performance measurments if it can be measure it can be …

33
TRANSPORTATION SERVICES PRESENTATION ON Top 10 Performance Measures. April 19, 2005 KNOWING YOUR COSTS Bill DeRousse, City of Everett, WA ________________________________________________________________________ APWA North American Snow and Ice Conference PERFORMANCE MEASURMENTS If it can be measure it can be managed Just because you can, doesn’t mean you should APWA The team that worked on this project: Randy Owen (Chair) Mercury Assoc. Gary Bishop, City of Blacksburg, VA. Bill DeRousse, City of Everett, WA. Robert LaRoche, City of Glendale, CA. Judy Workman, City of Greeley, CO. Jim Wright, Fleet Counsel Services, Inc. Sam Lamerato, City of Troy, Mich. Karen Bloodworth, APWA Staff

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Page 1: PERFORMANCE MEASURMENTS If it can be measure it can be …

1

TRANSPORTATION SERVICES

PRESENTATION ON

Top 10 Performance Measures.

April 19, 2005

KNOWING YOUR COSTS

Bill DeRousse, City of Everett, WA ________________________________________________________________________

APWA North American Snow and Ice Conference

PERFORMANCE MEASURMENTS

If it can be measure it canbe managed

Just because you can, doesn’t

mean you should

APWA The team that worked on this project:

Randy Owen (Chair) Mercury Assoc.Gary Bishop, City of Blacksburg, VA.Bill DeRousse, City of Everett, WA.

Robert LaRoche, City of Glendale, CA.Judy Workman, City of Greeley, CO.

Jim Wright, Fleet Counsel Services, Inc.Sam Lamerato, City of Troy, Mich.

Karen Bloodworth, APWA Staff

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PERFORMANCE MEASURMENTChapter One

Developing Fleet Developing Fleet Charge Back RatesCharge Back Rates

Chapter One

Purpose:Purpose:To Capture All Costs Associated To Capture All Costs Associated With Operating A Fleet Department With Operating A Fleet Department and To Develop A Method To and To Develop A Method To Recapture These Costs Through A Recapture These Costs Through A Charge Back Process .Charge Back Process .

Equipment Repair Reimbursement (Direct Costs)

There are basically three methods used to receive reimbursement for equipment repair:

1. Per hour/mile ($.50 per hour or mile of usage)2. Flat rate by vehicle/equipment class ($350 per sedan per year, dump trucks are higher, scooters are lower)3. Hourly shop rate ($55 per repair hour all equipment)

Support Service Costs (Indirect Costs)

You can recover your other support costs by some of the below processes:

1. Vehicle Rental Rate (Pool Cars)2. Surcharge by W/O or Labor Dollar3. Parts Mark-up4. Fuel Mark-up5. Handling/Processing Fee6. Pass Through Cost, no Mark-up or Fee

A. You can use one, or a combination, or all of these methods to recover your operating expenses, whether they are Direct or Indirect costs.

B. At the end of the year, perform an end-of-year review to compare department costs vs. paid invoices vs. income received.

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GL Code Description 2001 2002 2003 2004 2005Actual Actual Actual Budget Budget

501 5900000110 Salaries and Wages $1,465,642 $1,479,771 $1,454,195 $1,474,493 $1,481,511501 5900000120 Overtime, Hazard Duty $19,913 $25,869 $21,978 $21,000 $16,000501 5900000170 Day Laborer/Seasonal $10,445 - -501 5900000180 Other Pay $5,872 $140 (in 110) -501 5900000210 Employee Benefits Taxes $295,884 $290,258 $171,221 $451,353 $447,929

Employee Benefits Medical (in 210) $190,944 - $6,000501 5900000260 Uniforms & Clothing $7,581 $6,358 $10,400 $11,000 $50,000501 5900000310 Office & Operating Supplies $30,087 $39,470 $32,240 $32,500 $30,000501 5900000330 Fuel Purchased for Resale $450,123 $652,741 $770,000 $726,999 $750,000501 5900000340 Items Purchased for Inventory $638,921 $639,142 $536,350 $520,000 $520,000501 5900000350 Small Tools/Equipment $33,544 $41,655 $8,320 $8,600 $25,000501 5900000410 Professional Services $92,183 $49,866 $18,720 $74,450 $19,000501 5900000441-6 Misc. Travel/Training $22,731 $15,104 $16,224 $16,800 $16,000501 5900000450 Operating Rental/Lease $8,033 $18,669 $6,240 $6,300 $15,000501 5900000470 Utility Services $45,475 $48,435 $45,760 $46,000 $50,000501 5900000480 Repairs & Maintenance $338,237 $375,878 $276,222 $285,000 $235,000501 5900000491 Dues & Memberships $2,597 $1,878 $1,872 $1,947 $1,800501 5900000492 Subscriptions $4,107 $4,107 $4,274 $4,450 $5,000501 5900000494 General Services $13,714 $14,829 $8,320 $8,500 $5,060501 5900000630 Improvements Not Bldg $13,520 $7,000501 5900000640 Fixed Assets, Mach. & Equip. $21,597 $13,520 $7,000 $20,000501 5900000910 Int Professional Services(1) $111,888 $107,136 $191,701 $106,062 $150,297501 5900000920 Interfund Telecomm. $18,696 $22,872 $20,896 $19,492 $9,308501 5900000940 Interfund I.T. $0 $11,328 $12,546 $8,742 $10,756501 5900000950 Interfnd Operating Rent $101,676 $91,812 $91,812 $111,026 $122,654501 5900000960 Interfund Insurance Services(2) $59,176 $59,742 $59,742 $69,930 $65,435

To Reserve Account (in 480) (9) (in 480) (8) (in 480) (8) (in 480) $60,000Warranty Specialist (in 410) (11) (in 410) (12) (In 410) (9) (In 410)

Fund 501 Budget $3,787,677 $4,007,505 $3,977,017 $4,018,644 $4,111,750Reserve Acct Expenditures $77,803 $75,750 $207,331 $41,000 $20,000Budget Amendment $350,000 $227,709 $125,000 $452,650Revised Budget $4,137,677 $4,235,214 $4,102,017 $4,471,294 $4,111,750

Actual Spent $3,861,626 $3,817,352 $4,001,953

(1) Accounting, Purchasing (Accounts Payable & Process Purchasing), Legal, Labor Relations, Personnel, Computer Services (DP) Risk Management, Custodial Maint/Repairs, Utilitiy (Space Lease), Rideshare, Transit Bldg. (Space Lease)

(2) Tort Liability, Workers Comp., Unemployment Comp.(8) $60,000(9) $55,000(11) $52,000(12) $53,000

2005 Budget

Operating Budget 2004 Summary

Maintenance Dept Costs:Shop Maint. Operating Cost $ 1,676,234Parts Room Operating Cost $ 299,724Electronic Maint. Operating Cost $ 244,220

Total Maintenance Dept. Costs 2,220,178$

Indirect maintenace costs* Fuel costs (330) $ 770,000* Pool vehicle rental costs $ 8,000* Parts (340) $ 796,420* Accident costs $ 139,640* Sublets $ 49,033

Total indirect costs 1,763,093$

Total Operating Budget 3,983,271$

General Fund 1,378,922$

Non General Fund 1,444,895$

Transit 3,446,782$

Equipment Replacement Budget 2003

MVD has three cost centers•Shop services

•Parts operations•Electronic services

SHOP SERVICES COSTS AND RATES 2003

Total Wages and Benefits (110, 120, 160, 170, 180, 210)2 Working Supervisor and 14 Mechanics / Service Workers 1,266,962$ City Support Costs (910, 920, 940, 960, 980) 210,245$ Office Support (260, 310, 470, 494, 620, 630) 73,024$

Asset Replacement & Operating Costs 640 & 000 purchased from reserves 55,508$

Shop Costs (350, 480) 34,762$ Training (441, 442, 443, 444, 445, 446) 12,249$ Professional Services (410) 14,134$ Leases (450, 660) 4,711$ Dues/Memberships (491) 1,413$ Subscriptions (492) 3,227$

Total Operating Cost 1,676,235$

Total Hours Available ( 14 x 2088 ) 29,120 Sick Hours Available ( 12 days x 8 hrs x 14 ) (1,000) Vacation Hours Available (1,950) Holiday Hours Available ( 11 days x 8 hrs x14 ) (1,232) Training, Meetings, Cleanup, Misc. - 7% (1,500)

Billable Hours ( Goal 1650 x 14 = 23,100 ) 23,438Total Operating Cost 1,676,235$ Total Hours 23,438 ÷ Fully Loaded Labor Rate 71.52$

** Local Shop RatesAcura 775-2925 $ 80.00 Harrington 355-6690 $ 78.00Rodland Toyota 353-1111 $ 79.00 Dwayne Lanes 353-3855 $ 78.00Brien Motors (Autos) 353-7171 $ 82.00 Kenworth 800-562-0060 $ 82.50Brien Motors (Trucks) 353-7171 $ 82.00 Husky (M otor Trk) 800-325-4709 $ 80.00Seaview Chev 742-1920 $ 78.00 Motor Trucks 258-2691 $ 77.50Smokey Point 659-0886 $ 77.00Bickford 334-4045 $ 82.00

Average 79.67Per Hour $

** This does not include hazardous waste disposal charges of between $1.50 and 7% per job.

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ELECTRONIC SERVICES COSTS AND RATES 2003

Total Wages and Benefits (110, 120, 160, 170, 180, 210)1 Working Supervisor and 1 Electronic Tech., Office Support Staff 184,591$ City Support Costs (910, 920, 940, 960, 980) 30,632$ Office Overhead Costs (260, 310, 470, 494, 620, 630) 10,639$

Asset Replacement & Operating Costs 640 & 000 8,087$

Shop Costs (350, 480) 5,064$ Training (441, 442, 443, 444, 445, 446) 1,785$ Professional Services (410) 2,059$ Leases (450, 660) 686$ Dues/Memberships (491) 206$ Subscriptions (492) 470$

Total Operating Cost 244,219$

Total Hours Available ( 2 x 2088 ) 4,176 Sick Hours Available ( 12 days x 8 hrs x 2 ) (100) Vacation Hours Available (300) Holiday Hours Available ( 11 days x 8 hrs x 2 ) (176) Training, Meetings, Cleanup, Misc. - 3% (125) Supervision (7% of 2088) (162)

Billable Hours 3,313

Total Operating Cost 244,219$ Total Hours 3,313÷ Fully Loaded Labor Rate 73.72$

Local Shop RatesDAY WIRELESS SEATTLE 206-624-6332 $ 100.00 $ 110.00 FIELD CALLSACCU COMM 425-353-9334 $ 85.00 + TRAVEL $15.00ACTION 425-348-9121 $ 85.00 SHOP & FIELDDAY WIRELESS EVERETT 425-258-0554 $ 85.00 $95.00 FIELD CALLS

AVERAGE COST 88.75Per Hour $ **Average 88.75Per Hour $

** This does not include hazardous waste disposal charges of between $1.50 and 7% per job.

" H " column is linkedwork sheets of this do

Total Wages and Benefits (110, 120, 160, 170, 180, 210) for use in calcuations1 Working Supervisor, 2 Buyers, 1 Asst. Buyer, Office Support Staff 226,543$ City Support Costs (910, 920, 940, 960, 980) 37,594$ Office Overhead Costs (260, 310, 470, 494, 620, 630) 13,057$

Asset Replacement & Operating Costs 640 & 000 9,925$

Shop Costs (350, 480) 6,215$ Training (441, 442, 443, 444, 445, 446) 2,190$ Professional Services (410) 2,527$ Leases (450, 660) 842$ Dues/Memberships (491) 253$ Subscriptions (492) 577$

299,723$

Credit (See below) -60,226

Total Operating Cost 239,497$

Parts Receipts (Includes: stock, non-stock, expendable, and repairable parts; oil and lubricants (excluding fuels) and any item that does not receive a markup.) 797,121$ *

(Total funds spent for all items $2,003,588.00 )

% of Mark up of Parts Receipts to Cover Operating Expenses 30%

Operating CreditVendor/Accidents/Sublets (1) $30,226.00 (85% of sublet fees collected-Accidents

& Outside Repairs)Fuel Management (2) $30,000.00 (4.6¢ per gallon of markup)

$60,226.00

(1) Sublets (accidents & outside repairs)(markup 30% max. $100) $248,743.43(2) Fuel Cost (gals/cost)(markup 7/15¢) 646,288 / $593,808.29

Tools $22,297.00Expendable Parts $10,323.00Non-Stocked Parts $687,649.00Stocked Parts $440,773.00

$2,003,593.72

PARTS ROOM COSTS AND RATES 2003

MVD Fees (2003)

Fee detail Fee amount per…

Automotive shop rate $ 71.52 …vehicle/equipment

Radio shop rate $ 73.72 …communication repair work

Fuel surcharge $ 0.07 …gallon of fuel

Fuel surcharge (2) $ 0.15 …gallon of fuel

Hazardous waste fee, warranty & spec writing

9.767% …work order billable hr.

Parts processing fee 30% …parts ordered …special order items

Pool car rental (1) Staff Car Pick-up truck (S-10 type) Van, 11 passenger

$ 4.00 $ 4.00 $ 12.00

…hour, max of $32/day …hour, max of $32/day …hour, max of $96/day

Accident and outside vendor repair fee

30% or flat $100, if cost is >$300.00

…cost of requesting bids, arranging repairs, etc.

Indirect fees paid by MVD for departments

(actual cost is transferred to the appropriate department)

…hazardous waste disposal for items received from department

…towing …license plate fees …taxes …identifix fees

Parking fee (2) $ 25.00 …month and vehicle

Overtime 1½ times the automotive or radio shop’s rate

Call Out/Back 3 hours minimum at the overtime rate

(1): for City Departments only (2): Non-City customers Operating hours: Monday – Friday 6:30am – 12:30am (2 shifts, 8 hours each) Saturday closed Sunday closed Points of Contact for MVD: Automotive Shop (days): Bruce Haugen 425-257-8892 (swings): Fred Brevik 425-257-8892 Radio Shop (days): Kurt Bertilson 425-257-8954 Parts Operation: Phil Thompson 425-257-8802 Fuel Transactions: Beth Scruggs 425-257-8802 Invoice Payment: Angie Macomber 425-257-8802 Warranty Office: Mike Royer 425-257-8953 M&O: Bob Carlson 425-257-8920 Superintendent: Bill DeRousse 425-257-7250 Fees are reviewed annually and are competitive with local vendors.

2005 Shop rate•$76.52•$76.84

•Special services•rate

•9.767% per •labor dollar

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PERFORMANCE MEASURMENTChapter Two

Preventative Preventative MaintenanceMaintenance

(PM)(PM)

Chapter Two

Purpose:Purpose:The Preventative Maintenance The Preventative Maintenance of A Unit Will Ensure The of A Unit Will Ensure The Operators Safety, Reduction of Operators Safety, Reduction of Downtime, Track Warranty, Downtime, Track Warranty, and Avoid Costly Repairs.and Avoid Costly Repairs.

EQUIPMENT REPLACEMENT ANDEQUIPMENT REPLACEMENT ANDP/M SERVICESP/M SERVICES

1 OF 10In 2004 increased Staff car replacement to 125K from 100KAnd patrol cars to 100K from 80K

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PM’s

SERVICE CHECKLIST

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SERVICE CHECKLIST

Performance measures

- 50% of W/O should be PM’s.- 95% of PM’s performed with in

10% of due date.- 95% of PM’s performed with in

a standard flat rate time.- PM’s performed with in a standard

cost.- Are PM’s performed to frequently?

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PERFORMANCE MEASURMENTChapter Three

Fleet AvailabilityFleet Availability

Chapter Three

Purpose:Purpose:To Keep Track of The Availability of To Keep Track of The Availability of Vehicles and Equipment In A Fleet. Vehicles and Equipment In A Fleet. Provides An Indication of Overall Provides An Indication of Overall Readiness and Fleet Program Readiness and Fleet Program Effectiveness.Effectiveness.

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PERFORMANCE MEASURMENTChapter Four

Technician Technician

ProductivityProductivity

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Chapter Four

Fleet Mnts Technician Standard AvailableFleet Mnts Technician Standard AvailableWrench Turning Time.Wrench Turning Time.Available hours 2088 (261)Available hours 2088 (261)Vacation Vacation --200 (25)200 (25)Sick Lv Sick Lv --75 (9)75 (9)Holidays Holidays --88 (11)88 (11)Training/Meetings/etc Training/Meetings/etc --75 (9)75 (9)

1650 (206)1650 (206)

SHOP SERVICES COSTS AND RATES 2003

Total Wages and Benefits (110, 120, 160, 170, 180, 210)2 Working Supervisor and 14 Mechanics / Service Workers 1,266,962$ City Support Costs (910, 920, 940, 960, 980) 210,245$ Office Support (260, 310, 470, 494, 620, 630) 73,024$

Asset Replacement & Operating Costs 640 & 000 purchased from reserves 55,508$

Shop Costs (350, 480) 34,762$ Training (441, 442, 443, 444, 445, 446) 12,249$ Professional Services (410) 14,134$ Leases (450, 660) 4,711$ Dues/Memberships (491) 1,413$ Subscriptions (492) 3,227$

Total Operating Cost 1,676,235$

Total Hours Available ( 14 x 2088 ) 29,120 Sick Hours Available ( 12 days x 8 hrs x 14 ) (1,000) Vacation Hours Available (1,950) Holiday Hours Available ( 11 days x 8 hrs x14 ) (1,232) Training, Meetings, Cleanup, Misc. - 7% (1,500)

Billable Hours ( Goal 1650 x 14 = 23,100 ) 23,438Total Operating Cost 1,676,235$ Total Hours 23,438 ÷ Fully Loaded Labor Rate 71.52$

** Local Shop RatesAcura 775-2925 $ 80.00 Harrington 355-6690 $ 78.00Rodland Toyota 353-1111 $ 79.00 Dwayne Lanes 353-3855 $ 78.00Brien Motors (Autos) 353-7171 $ 82.00 Kenworth 800-562-0060 $ 82.50Brien Motors (Trucks) 353-7171 $ 82.00 Husky (M otor Trk) 800-325-4709 $ 80.00Seaview Chev 742-1920 $ 78.00 Motor Trucks 258-2691 $ 77.50Smokey Point 659-0886 $ 77.00Bickford 334-4045 $ 82.00

Average 79.67Per Hour $

** This does not include hazardous waste disposal charges of between $1.50 and 7% per job.

25,281 BILLED HOURS

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CALCULATION OF KEY VOLUME INDICATORAUTOMOBILES

ACTIVITYRepair hours number of

vehiclesYour flatrate TIME

Your Average cost perrepair

Accessories 6.5 71 .09 $12.60Axle - Front 5.5 71 .08 $11.20Battery 26.0 71 .37 $51.80Body - Exterior 123.0 71 1.73 $242.20Brake - Reline 6.5 71 .09 $12.60Brake - Repair 19.5 71 .27 $37.80Cleaning 129.3 71 1.82 $254.80Cooling and Heating 32.1 71 .45 $63.00Differential 13 71 .18 $25.20Engine - Major 6.5 71 .09 $12.60Engine - Minor, Tune Up 104 71 1.46 $204.40Exhaust System 6.5 71 .09 $12.60Ignition and Electrical 13 71 .18 $25.20Lights 169 71 2.38 $333.20Lube 91 71 1.28 $179.20Mounted Equip. Frames,Supports

19.5 71 .27 $37.80

Safety and Patrol 19.5 71 .27 $37.80Equipment 6.5 71 .09 $12.60Steering 6.5 71 .09 $12.60Suspension 6.5 71 .09 $12.60Tires 91 71 1.28 $179.20Transmission - Major 4.5 71 .06 $8.40Transmission - Minor 4.5 71 .06 $8.40Wheels and Rims 6.5 71 .09 $12.60Radio Work 68 71 .96 $134.40Preventive Maintenance,all

234 71 3.32 $464.80

Miscellaneous 234 71 3.32 $464.801452.4 71 20.46* $2868.60

* These standards are not transferable. Each agency must determine its ownequivalent values.

Shop rate is $70.00 dollars per hour

Source: APWA equipment Manual

•20.46 HRS•$2868.60 PARTS•$1432.20 LABOR

•SEDAN

FIGURE 3

COMPUTATION OF AVAILABLE HOURS

Available Hours per Year 2,08812 Holidays at 8 Hours (96)Annual Vacation (120)Non-Productive Time (i.e., Sick Leave, Coffee Breaks, etc.) at 9.6% (202)

Net Available Hours per Year 1,670

*Everett’s net available hours used per year per technician is 1650 billedout hours.

Once available hours are computed and equivalency units determined foreach equipment class, manpower needs are easily computed for theshop(s), as shown in figure 4.

In addition to the Equivalency Units, the number of available hours for eachmechanic must be estimated. Figure 3 illustrates how they can becomputed. The numbers shown in the figure are for illustration. Eachagency should develop its own.

FIGURE 6

EXAMPLE FOR ESTIMATING STAFFING NEEDSUSING THE MAINTENANCE LABOR-HOUR PLANNING

STANDARD METHOD

No.EquipmentDescription

No. of VehiclesWhich Shop isResponsible for

AverageAnnualUsage

Labor*HourSTD

Unit ofMeasure

EstimatedAnnual

Labor-Hours

101 Compact Sedan 42 16,000 2.4 1,000 Mi. 1,613102 Police Sedans 12 22,000 2.9 1,000 Mi. 766201 1/2 Ton Pickups 18 12,000 2.8 1,000 Mi. 605302 5-Yd Dump Truck 11 14,000 9.2 1,000 Mi. 1,417

“ “ “ “ “ “ ““ “ “ “ “ “ “

(ETC. FOR ALL CLASSES)“ “ “ “ “ “ ““ “ “ “ “ “ “

602 Motor Graders 2 800 .240 Hour 390618 End Loader 2 1,100 .182 Hour 400911 Pneumatic Drill 1 N/A 34 Unit 34

Total Estimated Labor-Hours = 22,712

No. OF MECHANICS REQ’D = 22,712 Hrs = 13.6 Mechanics1,670 Hrs. per Mech.

2.4 hrs per veh per 1,000 miles x 42 vehicles x (16000 ÷ 1000 = 16) = 1612.8.240 hrs per veh per hr x 2 x (800 hrs ÷ 1 hr = 800) = 384

Regardless of the system you choose, you will need to be able to defendyour choice and periodically recalculate your numbers as equipmentservice requirements change, equipment ages, new equipment ispurchased, usage changes, etc.

* Numbers are hypothetical; develop your numbers from your particular fleet,based on actual repair hrs per type of equipment.

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PERFORMANCE MEASURMENTChapter Five

Cost Per Mile or HourCost Per Mile or Hour

(CPM)(CPM)

Chapter Five

Purpose:Purpose:To Track The Cost Associated To Track The Cost Associated With The Operation and With The Operation and Ownership of Equipment.Ownership of Equipment.

Chapter

5

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Equipment/Vehicle Cost Factors

Equipment/Vehicle costs fall into two categories:

OPERATING COSTS: FuelOil (added between oil changes)Maintenance (scheduled)Maintenance (unscheduled)Towing (maintenance)Tires(Warranty, fuel tax refunds)AccidentsTowing (accidents)WashingAccessoriesTollsParkingEquipment/vehicle rental

OWNERSHIP COSTS: Taxes (Fed, state & local)Depreciation (cost-salvage value÷life)Financing (interest charges, borrowed $)RegistrationInsurance (vehicle)License fees(Insurance rebates)Lease

The costs associated with ownership are those costs you would have if youpurchased a vehicle and never drove it.

Chapter

5

Chapter

5

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EQUIPMENT HISTORYEQUIPMENT HISTORYCOST PER MILECOST PER MILE

Chapter

5

Crystal Report

EQUIPMENT HISTORYEQUIPMENT HISTORYCOST PER HOURCOST PER HOUR

Chapter

5

Crystal Report

Chapter

5

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PERFORMANCE MEASURMENTChapter Six

Repair Hours By Repair Repair Hours By Repair Type and Cost of Type and Cost of

RepairsRepairs

Chapter Six

Purpose:Purpose:To Establish The Number of To Establish The Number of Repair Hours and Cost of Repair Hours and Cost of Repairs by Repair Type Repairs by Repair Type Within Each Equipment Class.Within Each Equipment Class.

Chapter

6

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Chapter

6

CALCULATION OF KEY VOLUME INDICATORAUTOMOBILES

ACTIVITYRepair hours number of

vehiclesYour flatrate TIME

Your Average cost perrepair

Accessories 6.5 71 .09 $12.60Axle - Front 5.5 71 .08 $11.20Battery 26.0 71 .37 $51.80Body - Exterior 123.0 71 1.73 $242.20Brake - Reline 6.5 71 .09 $12.60Brake - Repair 19.5 71 .27 $37.80Cleaning 129.3 71 1.82 $254.80Cooling and Heating 32.1 71 .45 $63.00Differential 13 71 .18 $25.20Engine - Major 6.5 71 .09 $12.60Engine - Minor, Tune Up 104 71 1.46 $204.40Exhaust System 6.5 71 .09 $12.60Ignition and Electrical 13 71 .18 $25.20Lights 169 71 2.38 $333.20Lube 91 71 1.28 $179.20Mounted Equip. Frames,Supports

19.5 71 .27 $37.80

Safety and Patrol 19.5 71 .27 $37.80Equipment 6.5 71 .09 $12.60Steering 6.5 71 .09 $12.60Suspension 6.5 71 .09 $12.60Tires 91 71 1.28 $179.20Transmission - Major 4.5 71 .06 $8.40Transmission - Minor 4.5 71 .06 $8.40Wheels and Rims 6.5 71 .09 $12.60Radio Work 68 71 .96 $134.40Preventive Maintenance,all

234 71 3.32 $464.80

Miscellaneous 234 71 3.32 $464.801452.4 71 20.46* $2868.60

* These standards are not transferable. Each agency must determine its ownequivalent values.

Shop rate is $70.00 dollars per hour

Source: APWA equipment Manual

•20.46 HRS•$2868.60 PARTS•$1432.20 LABOR

•SEDAN

Chapter

6

FIGURE 4

COMPUTATION OF STAFFING NEEDSUSING VEHICLE EQUIVALENCY METHOD

Equip. Class

No. of VehiclesShop is

Responsible ForEquivalency Units

per Vehicle*Equiv. Units

per Shop

Autos 120 1.0 120Pickups 35 3.5 122Police Cars 87 5.6 487Dump Trucks 22 8.0 176End Loaders 6 12.4 74Sweepers 2 15.3 31

Total = 1,010

Total Hrs. Req’d. = 1,010 x 20.46 = 20,665 HrsMechanics = 20,665 Hrs. + 1,670 Hrs/Mech. = 12.4 Mechanics* Numbers are purely hypothetical and used only for purposes of illustration.

The same calculation is performed for each shop to determine the numberof mechanics required.

The only complication that arises in using the vehicle Equivalency Methodis when shops are responsible for various echelons of maintenance. Whenthis occurs, KVIs will have to be developed for each shop using only thoserepair activities for which each is responsible.

Referring to Figure 2, a shop may be responsible for only a portion of theactivities shown. The total hours, or KVI, for the vehicle would be the sameas in the example: 20.46 hours. The difference is that a sub-shop may onlybe responsible for 8.2 hours, and the central shop man responsible for theremaining 12.26 hours.

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Chapter

6

Chapter

6

Chapter

6

Modified CCG Report using Crystal Report

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Chapter

6

c. Maintenance Labor-Hour Planning Standards

The third method of manpower planning is the Maintenance Labor-HourPlanning Standards method developed by the U.S. Navy. The Navy hasdeveloped estimated annual hours required to maintain various types ofequipment units. These estimated hours were developed over a number ofyears for the many types of public works vehicles within the Navy fleet.

The method uses standard labor-hour planning values for each equipmentclass. Depending on the equipment type, the planning values are basedon a unit of measure of one of the following:

• Per 1,000 miles -- for equipment whose usage is measured in miles,such as cars, pickups and dump trucks.

• Per hour -- for equipment whose usage is measured in hours such asgraders, loaders and other heavy equipment.

• Per unit (annual) -- for equipment whose usage is not measured byhours or miles such as pneumatic drills or trailers.

The first step in designing a system using the Labor-Hour Planning methodis to develop the standard planning values for each class of equipment inthe fleet. The result will be a chart which looks like the example shown inFigure 5.

•0102 - 0114•Sedans

•2.4 hours per •1000k miles

•Standard repair hours needed•by miles/hours/annual

Chapter

6

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•Standard is •7 repair hours •per 1000 miles•Everett - 4.445

Chapter

6

Crystal Report

•Standard is•11.2 repair hours•per 1000 miles•Everett - 8.302

Chapter

6

Crystal Report

•Standard is•2.4 repair hours•per 1000 mile•Everett - 2.068

•Standard is•2.4 repair hours•per 1000 miles•Everett - 6.622

Chapter

6

Crystal Report

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•Engine

•Transmission

•Accident

•A/C

Chapter

6

Crystal Report

PERFORMANCE MEASURMENTChapter Seven

Scheduled Repair RateScheduled Repair Rate

Chapter Seven

Purpose:Purpose:One of Several Data Elements One of Several Data Elements Used to Monitor the Efficiency Used to Monitor the Efficiency and Effectiveness of Various and Effectiveness of Various Repair Activities. Repair Activities.

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1. Total number of workordersin this example is 267

2. Our goal of 200 scheduledwork orders is 75% of our

work load.

77% of Repairs areScheduled

30 % scheduledScheduled

N/AScheduledScheduledScheduledScheduledScheduledScheduledScheduled

PERFORMANCE MEASURMENTChapter Eight

Parts Inventory Turn Parts Inventory Turn RateRate

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Chapter Eight

Purpose:Purpose:To measure the quantity, To measure the quantity, frequency of use and types of frequency of use and types of parts in your Inventory.parts in your Inventory.

Chapter

8

Chapter

8

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Chapter

8

Chapter

8

CCG Report “FOR0219Parts Obsolescence

Then information is exported in to Access

Chapter

8

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PERFORMANCE MEASURMENTChapter Nine

Parts Demand Parts Demand

Fill RateFill Rate

Chapter NinePurpose:Purpose:Measure Parts Rooms Ability To Measure Parts Rooms Ability To Support A High Average Repair Support A High Average Repair Turnaround Time and Minimal Parts Turnaround Time and Minimal Parts Related Equipment Downtime by Related Equipment Downtime by Providing Technicians With Providing Technicians With Required Repair Parts In A Timely Required Repair Parts In A Timely Manner.Manner.

Chapter

9

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Chapter

9

Crystal Report

•The question here is how do you calculate this percentage.•Do you count only the parts that are issued to the Technician, right then as they are

standing in front of your parts counter?•Do you count any part that is issued with in 2 hours of the request?

•I have seen some numbers as high as 98 %. While I have not been able to figure out howthey get to this number I do support a Demand Satisfaction percentage of at least 70 %.

Chapter

9

PERFORMANCE MEASURMENTChapter Ten

CustomerCustomer

SatisfactionSatisfaction

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Chapter Ten

Purpose:Purpose:Customer Satisfaction Can Customer Satisfaction Can Have Considerable Impact In Have Considerable Impact In Evaluating The Overall Evaluating The Overall Efficiency and Effectiveness of Efficiency and Effectiveness of A Fleet Operation. A Fleet Operation.

CUSTOMER SERVICECUSTOMER SERVICE

•• AccountabilityAccountability•• Team WorkTeam Work•• KnowledgeKnowledge•• CreativityCreativity•• CommitmentCommitment•• TrustTrust

What do you need to provide?What do you need to provide?

Chapter

10

KEY FACTORS IN DEVELOPING A CUSTOMER SERVICE PLAN

•• Courtesy Courtesy –– How are you treatedHow are you treated•• Efficiency Efficiency –– Do you meet Bill out Do you meet Bill out

rate (1650 hrs) and Flat rate rate (1650 hrs) and Flat rate standardsstandards

•• Quality of Work Quality of Work –– Number of call Number of call backsbacks

•• Responsiveness Responsiveness –– Repairs done Repairs done in a timely manorin a timely manor

What questions to ask?

Chapter

10

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WHAT IS THE LEVEL OF WHAT IS THE LEVEL OF CUSTOMER SATISFACTION CUSTOMER SATISFACTION THAT YOU PROVIDE? THAT YOU PROVIDE?

How do you know this?How do you know this?

Chapter

10

CUSTOMER SERVICE

•• Communication Communication –– Meetings Meetings •• Survey Customers Survey Customers -- AnnuallyAnnually•• Develop standardsDevelop standards•• Spend time showing your Spend time showing your

customers what you docustomers what you do•• Be proactiveBe proactive

CUSTOMER SERVICE COMMITTEECUSTOMER SERVICE COMMITTEE

Chapter

10

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CUSTOMER SERVICE

SURVEY RESULTS

•• Share with staff, Management and Share with staff, Management and CustomersCustomers

•• Create Customer Create Customer Service/Maintenance AgreementsService/Maintenance Agreements

•• Take corrective actionTake corrective action•• Remember who you work forRemember who you work for

Chapter

10

M a in te n a n c e R e p a ir S h o p , A u to m o t iv e / R a d io

D e v e lo p fu l l y b u r d e n e d r e p a i r r a te ( s ) (b y m i le s / h r s , b yla b o r h r , b y e q u ip m e n t o r c la s s r a te ) . R u le o f T h u m b –y o u r s h o p r a te is th r e e t im e s y o u r m e c h a n ic s ’ r a te o fp a y . H o w d o e s y o u r ra te c o m p a r e to d e a le r s h ip s , h e a v ye q u ip m e n t r e p a i r s h o p s a n d in d e p e n d e n t r e p a ir s h o p s .

L a b o r h r s 5 0 % P M S 2 0 % s c h e d u le d m a in te n a n c e 3 0 %u n s c h e d u le d

P M ’s p e r fo r m e d b y % , b e fo r e d u e d a te , o n d u e d a te ,a f t e r d u e d a te (b y v e h ic le , b y c la s s )

P M 's p e r fo r m e d w ith in 1 0 % o f d u e d a te (d u e 1 8 0 d a y sO K i f p e r fo r m e d 9 d a y s b e fo r e o r a f t e r d u e d a te ) .

L a b o r h r s 1 6 5 0 p e r m e c h a n ic p e r y e a r R e p a ir d o w n t im e 7 0 % 1 d a y

2 0 % 2 d a y s1 0 % o v e r 2 d a y s

F le e t a v a i la b i l i t y (d u r in g s h if t h r s ) > 9 5 % B a c k lo g 2 - 5 %

• C o m p a r is o n o f y o u r f u l l y b u r d e n e d r a te s to c o m m e r c ia ls h o p s a n d l ik e o r g a n iz a t io n s ( t r u c k in g , c it ie s , c o u n t ie s ,e t c . )

U s e o f F la t R a te G u id e v s . y o u r s h o p a v e r a g e la b o r h r sb y r e p a ir t y p e

% o f r e tu r n e d s h o p w o r k < 5 % o f to ta l w o rk o r d e r s(w a r r a n ty 3 0 d a y s )

• D o l la r a m o u n t r e tu r n e d to c u s to m e r s a f t e r b i l l in g b yr e a s o n c o d e

S ic k le a v e u s a g e le s s th a n 2 % o f to ta l a v a i la b le b i l la b leh r s

# o f f a i le d q u a li t y c o n t r o l in s p e c t io n s b y M a in te n a n c eT e c h n ic ia n

• D e v e lo p c u s to m e r s e r v ic e c o n tr a c t s w i th e a c h c u s to m e r• D e v e lo p c u s to m e r s e r v ic e f e e ( s ) l i s t• R e v ie w o v e r h e a d c o s t s (B i l l t o d e p a r tm e n ts a s r e q u ir e d )• R e v ie w o ld e s t 2 0 d e fe r r e d w o r k r e q u e s t s (e q u ip m e n t &

r a d io s )• R e v ie w o ld e s t 2 0 s e r v ic e s d u e

Fleet Performance Measures/Goals & Best Maintenance Practices

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Percentage of fleet using alternative fuels Number of vehicles by class maintained Number of non-vehicle equipment maintained by class Number of work orders by shop Downtime per work order by shop, by vehicle, by class, and by manufacturer Percentage of downtime total fleet by class and by manufacturer Vehicle downtime in hours by class, by manufacturer, and by vehicle by

reason code Average number of worker (labor) hours per job (work order) by vehicle,

reason code, class Average cost per PM by class, by type Number of vehicles replaced on schedule Percentage of repairs completed

0-4 hrs4-8 hrs8-12 hrs12-24 hrs>24 hrs

Percentage of vehicles down for parts0-4 hrs4-8 hrs8-12 hrs12-24 hrs>24 hrs

Operating costs per mile/hour by equipment and class (last month, last 12months, life)

Repair labor hours by equipment and class Repair labor hours by employee (direct & indirect) Repair labor hrs by repair type for equipment and class Road calls (number of times a person is sent on a road call ÷ number of

work orders = %) (Less than) < 2% of total work orders Road calls -towed in (less than) < 4%

-fixed & driven in < 2% Road calls by repair shop & vehicle class 100% of annual emission tests done on time

# of unscheduled repairs per vehicle

# of break down repairs (road calls or towed in) by equipment per year Miles/hours between break down (road calls or towed in) by equipment

• Review oldest 20 open recalls/service campaigns• Develop replacement criteria• Develop an equipment disposal procedure

Maximum amount of cash on hand to replace equipment is 25% of total assetvalue

# of vehicle condition reports submitted by equipment• # of miles/hours used per year, establish low usage numbers and who this

information is reported to Average age of fleet

• Capital value of fleet (what is your annual capital replacement budget)• Long-term equipment bids can standardize fleet purchases

Outsourced repairs, % & dollars spent (vs) total repair dollars spent

Pool Equipment

Number of hours rented per month compared to hrs needed to be rented tomeet cost recovery

Motor pool equipment cost (vs.) revenue received monthly/annually byequipment and class

• # of requests that could not be filled• Establish rental agreement to cover peak usage periods

Lease/rent if usage is less than 70% of available hrs.• List of Citywide pool vehicles by type and location

Under-utilization based on miles/hours usage criteria, list of equipment withless usage

Hazardous Waste/Environmental Management

• List of products shipped for disposal including shipped to, cost and disposaldisposition

• List of disposal vendors used• Waste reduction program• Spill log and prevention program

• Automated MSDS management • Controlling CFC’s • Use of rerefined or recycled products • Control adding hazardous waste items to inventory and in shop Average pounds of metal collected per week Number of gallons of motor oil collected per week, and per month Percentage of waste stream recycled Number of times a vehicle goes through car wash

• Install car wash water infra-red sensor to turn water on/off

Accident Accident recovery 50% Accident repairs per 100,000 miles or 10,000 hrs by employee, and by

department • Review oldest 20 open accidents for reimbursement status Accident claims by dept., by class, and by employee (# & $) Average miles between preventable accidents by employee

Fuel Management Fuel costs (tanker deliveries) within 5% of OPIS Rack Price (cost varies

between area and tanker deliveries, small truck deliveries, cardlock systems, fleet cards, and credit cards) Fuel on hand (vs.) fuel used (bill out > 98%)

• Use an automated fuel tracking system, identifying equipment #, operator, fuel pumped by type, and time

• Use an automated fuel leak detection system • Develop emergency fuel contingency plan Fuel markup 7-15¢ per gallon

• Develop a reserve account for funds collected from markup for future repairs • Review fuel prices from credit cards, spot deliveries, and commercial fueling

sites at least every six months

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• Compare outside costs to internal costs (must include full cost of owningyour own fuel site)

• Add fuel site PM’s to your fleet maintenance system (tank tightness, cathodicprotection, vapor recovery, pump accuracy, cleaning, and servicing)

Number of gallons of fuel (gas/diesel/alternative fuel) sold Fuel consumption by equipment and class average Fuel costs per mile/hour by equipment and class

• Conduct month end inventories

Warranty

Warranty dollar return rate goal 5-10% of new equipment purchase costs• Review oldest 20 warranty requests• Develop a monthly warranty report showing warranty dollars collected & due

Warranty claims by vehicle class, and by manufacturer

Parts

Number of work orders between PM’s Dollars spent between PM’s (labor and parts) Parts to Labor ratio (dollars spent on parts per one labor hour) Demand satisfaction (fill rate) > 70% Average parts cost by repair type Overhead markup, between 20-35% Cost per part handled ($3.66) Inventory accuracy 95% or greater, conducted at least annually Inventory parts cost adjustment, less than 5,000 annually (due to lost, found,

shelf life, obsolescence, or theft) Parts availability 24 hrs >90% 48 hrs 7% over 48 hrs 2% Parts stock usage rate (turnover ratio) 0-1 year (>90%) 1-2 hrs (5%)

2-3 years (4%) 3-7 years (1)

Expendable parts < $10.00 each• Add to inventory, 6 demands in 180 days (review monthly)• # of inventory parts lines with no demands in last 6 months• Review oldest 20 back order parts requests (parts ordered & not received)• Review oldest 20 returns for credit list

Invoice payment processing time < 2 days Parts processed into inventory or issued in < 1 day

• Automate parts operation Average parts cost per work order

• Implement a bar code system• Build a library/electronic list of interchangeable parts (cross reference parts

list)• When equipment is sold, remove unique parts that were used for this

equipment only from inventory & cancel any parts that may be on order• Review oldest 20 non-stocked parts received & not issued• Review oldest 20 open PO’s (parts ordered, received & not paid) in financial

system• Review 20 items from transfer out list to ensure credit has been requested• Develop credits received but not used list• Develop a monthly equipment transfer/sold list

Parts bid out if accumulative value of like parts is greater than $5,000 inannual purchases

Repair part frequency of failure (time between failures) miles/hrs/days fromfirst issue to second issue of part for same vehicle (except PM parts)

Administration

Number of FTEs filled Average age of fleet by class Average miles of fleet by vehicle and class

• Number of support staff DBE Goal 5%

• List out-sourced work

Resource Conservation & Recovery Act goal. Purchase 35% recycled items(oils, tire caps, antifreeze, etc.)

• Review radio licenses for renewal dates Percentage of invoicesd paid within 24 hrs of receipt

• Develop replacement criteria

Transit

Number of trips missed by class, and by manufacturer Cost per passenger boarding Cost per hour by class, and by manufacturer Number of vehicle miles/hrs per dollar

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Whats New in Performance Tracking

Dashboards

For more information contact:NOC Corporationwww.Fleet911.com

Bob Strasser, [email protected] 604-207-2618Murray Kidner, [email protected] 604-207-2618

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Thanks and have a great day

TO ORDER the top 10 Performance measures from APWA go to:

WWW.APWA.NET

To learn more about Fleet

Dashboards contact: Bob Strasser, [email protected] 604-207-2618