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Dedicated Contract Fleet

Maintenance Programs

James Cain, National Business Development Manager

Rob Lovi, Vice President-Sales & Marketing

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Types of Maintenance Programs

There are generally four approaches to maintenance management:

How are these applied and to what extent are they driven by a

company and their own unique needs?

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In-House

Hybrid of In-

House &

Outsourcing

Outsourcing &

OEM

(specialty

components)

Dedicated

Program

Universal Maintenance Struggles

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Production

downtime

due to

equipment

reliability

Retiring

Technician

Workforce Struggle and

balance to lower

their costs

Limited resources for

recruiting and keeping

technicians

Solid Technician

Training Program

to stay ahead of

new technologiesUse of multiple

vendor systems to

capture all OEM

equipment costs

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Why do companies move away from in-house to

dedicated maintenance programs?

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Lack of

understanding

new Tier 4

technologies

No real-time

tracking of

maintenance

reports

No idea

where

their CPH

stands

today

Out-of-control

maintenance

program and

budget

Shortage of

qualified

technicians

Large ongoing

breakdowns and

equipment

reliability issuesNo maintenance

system to track

and allocate

dollars to assets

Nonexistent

PM

compliance

No or limited

technician

training

program

What is a Dedicated Contract Maintenance

Program?

• A solution built through systematic, disciplined, and scheduled preventative

maintenance with predictive elements which lowers the overall maintenance

costs and increases uptime while reducing companies’ reliance on many

OEM dealer networks.

• The goal is to stop maintenance dollars from flowing outside the gates

and to provide an onsite solution that reduces reliance on vendors and

expensive OEM dealers.

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Typical In-House Maintenance Program

Concerns• Typically dealing with 8-15 “outside

vendors” for all maintenance tasks

• Low or inconsistent productivity and

availability of equipment

• Poor communication and constant

battling with internal departments

• Huge impact on resources to “deal” with

many vendors

• No one maintenance system to “capture”

all maintenance costs

• Limited or no performance metric

accountability for the complete fleet

• Virtually nonexistent life cycle history

and fleet data for capital purchases

Client

Komatsu

Exxon/

Mobil

Colony Tire

RoadTec

Ford Truck

Dealer

Euclid Dealer

GM Dealer

Caterpillar

Hyster

John Deere

Godwin Pump

Volvo

Grove

Crane

Mack

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Dedicated Program Features

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Overall Maintenance Costs• Reduces cost drivers such as offsite

and expensive OEM dealer services

• Better forecasting & scheduling of

repairs

• Better control of equipment

downtime Reporting• Single source maintenance system

to track every unit

• KPIs to track the historical

maintenance costs of each unit…true

fleet metrics

• Real time data to make proactive

decisions on fleet needs

Maintenance Leadership• Incorporates Reliability Centered

Maintenance Philosophy

• New fresh direction that incorporates

training, technology and accountability

• Eliminate waste and drive tighter

control with current and future SOPs

Reliability• Adoption of a Predictive Technologies

& Analytics philosophy to every piece

of equipment

• Improved safety and MSHA

compliance with a reduction of

penalties/fines

• Reduction on rework to reduce the

downtime of equipment.

Shop Performance • Proactive mindset with greater sense

of urgency and understanding to safety

• Accountability through fleet

maintenance metrics

• Plan your Work, Work your Plan’ with

manager and shop-planner platform

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Dedicated Program: Technician Impact

A dedicated program prides itself on the fact that their factory-trained service

Technicians are the lifeline of their company.

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Rigorous Training

• Ongoing commitment to invest 1% -

3% of their hours towards training

• Trained in latest repair techniques

including Tier 4 machines

• Building competencies to drill down

to root cause analysis and build

maintenance case

• Cross training opportunities

Shop Performance

• Proactive mindset with greater sense

of urgency and understanding to

safety

• Accountability through fleet

maintenance metrics

• Plan your Work, Work your Plan’ with

manager and shop-planner platform

• All service repairs are “scheduled” on

weekly calendar

Personal Life

• Bona fide career path with

opportunities for advancement

• Improved work environment that

improves attitudes and personal

development

• Greater job satisfaction and

teamwork

• Typically higher wages

Advantages of Dedicated Contract Programs

Feature

Dedicated

Fleet Program Impact Area

Safety first approach to every asset and shop activity Yes Risk Mitigation

KPIs for fleet uptime, tech productivity, efficiency, and PM compliance management Yes Reliability

Synergy, Streamline parts selection, ordering practices, and reduced acquisition price Yes Cash Flow

Reduced cost drivers such as offsite and expensive OEM dealer services Yes Third Party Services

Lifecycle cost analysis and management with “real-time reporting” on all types of

equipment

Yes CAPEX

Fixed monthly expenses for labor, FMIS, and operating expenses Yes Cash Flow

Work Flow Optimization, shop floor management, and inventory controls through one

platform

Yes Operations

Better forecasting and scheduling with production downtime of assets Yes Production

Build competencies to drill down to root cause analysis and build maintenance case Yes Reliability

Investment in technician training program on new technologies Yes Operations

Tracking of all warranty parts (OEM and Aftermarket) Yes Third Party Services

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Dedicated Contract Maintenance Program

Benefits• Dedicated factory certified technician team

that is managed onsite in a captive

environment

• Single POC interface to increase

communication and account management

for all maintenance related issues

• Higher equipment uptime with availability

goals driven by KPIs

• One real-time maintenance system to track

and allocate dollars to assets

• Higher parts and tires availability which

reduces reactive “waiting on parts”

• Cost of Process reduction with one

consolidated invoice for ALL vendors

Client

Komatsu

Exxon/

Mobil

Colony Tire

Thermo King

Ford Truck Dealer

Euclid Dealer

GM Dealer

Dedicated Contract

Maintenance Program

Caterpillar

Hyster

John Deere

Goodwin Pumps

Volvo

GroveMack

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HE Production

Fleet

Administrative Light Duty

Fleet

Staff HE Shop

ForkliftFleet

Skid steerFleet

CraneFleet

Optional: Fleet Fuel

Management System

Mobile Maintenance

Capability

Single POC Interface for Entire Site

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Disadvantages of Dedicated Contract Programs

• Loss of Control

• Staff turnover

• Workplace Considerations

• Hidden Costs

• Cost Developments

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How a Dedicated Maintenance Program Impacts

Cost and Availability

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Dedicated Program’s Scalability

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Customer: CEMEX

Equipment: 30 units of HE

Location: Southeast

Vector Onsite Staff: 3

Past Hurdles: High OEM dealer costs, low

availability & not meeting customer expectations

Customer: Titan America

Equipment: 30 units of HE

& 100 Support Fleet

Location: Florida

Vector Onsite Staff: 18

Past Hurdles: Mismanaged In-house Program, No tech

training program, Fragmented maintenance system with

limited cost tracking

Customer: Potash Corp

Equipment: 66 units of HE, 125 Light

Duty, & 200 Fueling Units

Location: North Carolina

Vector Onsite Staff: 25

Past Hurdles: High OEM & Local vendor costs,

No tracking system, Loss of control

Customer: Mosaic Fertilizer

Equipment: 454 units of HE,

400 Light Duty & 1000 Support Fleet

Location: Southeast

Vector Onsite Staff: 72 across 6 sites

Past Hurdles: High Maintenance Internal Costs

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Results:

Customer’s Past Average: 71.6%

Current Average: 88.7%

79.9% 80.3%

67.9%

58.4%

64.3%

71.2%

75.3% 75.6%76.9%

83.3%

87.5% 91.2% 90.8%91.9%

93.8% 94.4%

92%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

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Equipment Availability

Customer (Jan 2014 -Aug 2014)

Vector (Sep 2014 -Apr 2015)

Goal = 92%

Linear (Customer (Jan2014 - Aug 2014))

Linear (Vector (Sep2014 - Apr 2015))

Profile:

• Heavy Equipment Fleet – 33

• Support Fleet – 131

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Results:

Customer’s Average: $691,684

Current Average: $583,546 (-18%)

$635,877

$728,890

$685,448

$669,321

$725,988 $732,122

$664,145

$610,587

$622,387$597,854

$575,963

$595,310

$534,012

$548,710

$300,000.00

$350,000.00

$400,000.00

$450,000.00

$500,000.00

$550,000.00

$600,000.00

$650,000.00

$700,000.00

$750,000.00

$800,000.00

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Maintenance Costs

Customer (Jan 2014 -Aug 2014)

Goal = $550,000

Vector (Sep 2014 - Mar2015)

Poly. (Customer (Jan2014 - Aug 2014))

Profile:

• Heavy Equipment Fleet – 26

• Support Fleet – 113

Dedicated Program Takeaways

• Comprehensive coverage for your entire fleet to allow you to focus

on your core business

• One real-time maintenance system to track and allocate dollars to

assets no matter what the manufacturer

• Addresses the lack of training program and retiring technician workforce issues

• Insightful KPIs: detailed cost and equipment performance reports

• Tighter cost and fleet control mechanisms

There is no one maintenance program that works for everyone so make the time

investment to ensure you have the right program for your company!

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Q & A

James Cain

National Business Development Manager

Cell: 704-352-6831

Email: jcain@vectorfleet.com

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