Fleet Spend

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<ul><li> 1. </li></ul> <p> 2. Agenda </p> <ul><li>Fleet Spend </li></ul> <ul><li>Cost Per Mile </li></ul> <ul><li>Fuel/Optimization Strategies </li></ul> <ul><li>Maintenance</li></ul> <ul><li>Capital </li></ul> <ul><li>KPIs </li></ul> <p> 3. Fleet Spend 4. Cost Per Mile (CPM) Vehicle Type Purch PriceMPG Fuel CostMaint*ResidualCPM** BM***Fusion Sedan $21,00019 $11,842$8,887$1,400$0.40$0.35Escape FWD SUV $19,00018 $12,500$5,360$2,600$0.34$0.37Escape 4X4 SUV $21,00017 $13,235$8,215$2,600$0.40$0.42Escape 4X4 Hybrid SUV $27,00025 $9,000$6,448$2,600$0.40$0.47F150 4X2 Pickup $16,00011.4 $19,824$15,343$1,700$0.49$0.40F150 4X4 Pickup $22,34710.7 $20,969$16,336$4,000$0.56$0.44F250 4X4 Gas Pickup $25,0008.18 $27,506$20,078$2,800$0.70$0.59F250 4X4 Diesel Pickup $33,00010.1 $22,388$30,027$4,500$0.81$0.68E250 Cargo Van $22,00011 $20,455$5,331$2,400$0.45$0.48Average $ 22,927.44 $17,524.35$12,892$2,733$0.51$0.47 5. Fuel </p> <ul><li>As Is </li></ul> <ul><li><ul><li>Consume 233K Gals of Fuel Annually (50% Unl/50% Dsl) </li></ul></li></ul> <ul><li><ul><li>Average vehicle MPG 11.5 MPG </li></ul></li></ul> <ul><li><ul><li>Average Idle Time Estimate 25-50% </li></ul></li></ul> <ul><li>To Be </li></ul> <ul><li><ul><li>Consider E10 and B20 when price is competitive </li></ul></li></ul> <ul><li><ul><li>Rightsize vehicle to improve overall CPM to include MPG </li></ul></li></ul> <ul><li><ul><li><ul><li>Example - Replaced 16 Pickups with SUVs for a CPM Reduction of .13 or $205K over their 100K Mile life. </li></ul></li></ul></li></ul> <ul><li><ul><li>Green Driver Training/Tracking </li></ul></li></ul> <ul><li><ul><li>Stay connected w/ JoCo AFV Strategies and partner when appropriate </li></ul></li></ul> <p> 6. Fleet Optimization Strategies </p> <ul><li> Right Size the vehicle to the Job Description </li></ul> <ul><li>Green Driver Training/Tracking </li></ul> <ul><li><ul><li>Rate of Acceleration/Deceleration </li></ul></li></ul> <ul><li><ul><li>Speeding/RPM </li></ul></li></ul> <ul><li><ul><li>Idle Time KS Article 28-19-712 </li></ul></li></ul> <ul><li><ul><li><ul><li>5 and 30 minute rules effective 6-25-10 </li></ul></li></ul></li></ul> <ul><li>Route Optimization GPS? </li></ul> <ul><li>Pooling excess depart fleet assets (18 Vehicles); AO Pool of 9 and TP Pool of 3 to be actively managed via Outlook and Ops Coordinator </li></ul> <p> 7. AFV Strategies </p> <ul><li>Blended Fuels </li></ul> <ul><li><ul><li>B20 20% Biodiesel; Replace existing Diesel w/ Biodiesel; similar price, quality and performance; No need to change Fuel Farm or Vehicles; Fuel and Go. </li></ul></li></ul> <ul><li><ul><li>E10 10% Ethanol; Replace existing Unleaded w/ E10; similar price, quality and performance; no change to Fuel Farm or Vehicles; Fuel and Go. </li></ul></li></ul> <ul><li>Propane Cheap to purchase ($50K vs $500K) and maintain fuel station due to lower pressure (100-300 PSI vs. 5000 PSI for CNG); $10K Upfit w/ $5K Rebate; Currently $1.50 Per Gal vs. $2.25 Per Gal.</li></ul> <ul><li>CNG Expensive Fueling Station to own and operate; $1.00 Per Gal vs. $2.25 Per Gal.</li></ul> <ul><li>Hybrids 150K Mile ROIPurchase price must come down to make sense at current fuel prices ($2.25). </li></ul> <p> 8. Maintenance </p> <ul><li>As Is </li></ul> <ul><li><ul><li>10 ROs Per Day</li></ul></li></ul> <ul><li><ul><li><ul><li>7 Repair </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>2 PM </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>1 Road Call Jump Starts Better Batteries and Less Draw via LEDs/Battery Brains </li></ul></li></ul></li></ul> <ul><li>To Be </li></ul> <ul><li><ul><li>8 ROs Per Day</li></ul></li></ul> <ul><li><ul><li><ul><li>6 Repair </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>2 PM </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>0 Road Call </li></ul></li></ul></li></ul> <ul><li><ul><li>Better PMs/Less Failures; New PM Sheets by Vehicle Type </li></ul></li></ul> <ul><li><ul><li>Actively tracking Shop Productivity to include a 20% increase over the last 90 Days with no increase in Rework. </li></ul></li></ul> <p> 9. Sample PM Sheet 10. 2010 Capital </p> <ul><li>$600K Under Budget via: </li></ul> <ul><li><ul><li>Customer Cooperation and Flexibility!! </li></ul></li></ul> <ul><li><ul><li>Competitive RFQ via DemandStar </li></ul></li></ul> <ul><li><ul><li>Quoting both New and Lightly Used (With Warranty) </li></ul></li></ul> <ul><li><ul><li>Seeking out New Leftovers; 2009s and 2010s. </li></ul></li></ul> <ul><li><ul><li>Benchmarking MACPP versus just using it exclusively </li></ul></li></ul> <ul><li><ul><li>Rightsizing where applicable; Pickups to SUVs; Tons to Tons </li></ul></li></ul> <p> 11. Rightsizing by the Numbers </p> <ul><li>Sedan (.40 CPM) to Front Wheel Drive SUV (.34 CPM) = .06 Less </li></ul> <ul><li>2WD Ton Pickup (.49 CPM) to Front Wheel Drive SUV (.34 CPM) = .15 Less </li></ul> <ul><li>4WD Ton Pickup (.56 CPM) to 2WD Ton Pickup (.49 CPM) = .07 Less </li></ul> <ul><li> Ton Pickup Diesel (.81 CPM) to Ton Pickup Gas (.56 CPM) = .25 Less </li></ul> <ul><li>16 Vehicles rightsized in 2010 equating to a $205K O&amp;M Savings over the next decade ($20K Per Year) </li></ul> <p> 12. Fully Warranted Used Equipment = 20-40% Savings Over New 13. New Tapper = .25 CPM Savings 14. New Meter Reader = .15 CPM Savings 15. New CMVS Asst Mgr = .16 CPM Savings 16. Leftover Truck Examples = 15-30% Savings 17. KPIs </p> <ul><li>As Is </li></ul> <ul><li><ul><li>CPM - .50 </li></ul></li></ul> <ul><li><ul><li>CPH - $25 </li></ul></li></ul> <ul><li><ul><li>PM Currency Estimate 80% </li></ul></li></ul> <ul><li><ul><li>Mechanic Time Accountability 81% </li></ul></li></ul> <ul><li><ul><li>Utilization 8.7K Miles Per Year </li></ul></li></ul> <ul><li>To Be </li></ul> <ul><li><ul><li>CPM - .40 (20% Reduction Target);Note ZFL_CPM in SAP</li></ul></li></ul> <ul><li><ul><li>CPH - $20 (20% Reduction Target) </li></ul></li></ul> <ul><li><ul><li>PM Currency 98% </li></ul></li></ul> <ul><li><ul><li>Mechanic Time Accountability 85% </li></ul></li></ul> <ul><li><ul><li>Utilization 10.5K Miles Per Year (20% Increase) </li></ul></li></ul> <p> 18. ZFL_CPM; Cost Per Mile Report 19. Summary </p> <ul><li>People Continued customer focus w/ a more diversified team. </li></ul> <ul><li>Fuel Conserve the fuel we have and green fleet gradually. </li></ul> <ul><li>Maintenance Optimize PM &amp; Materials to reduce costly failures/downtime. </li></ul> <ul><li>Capital Methodically evaluate requests to ensure we are optimizing these dollars. </li></ul> <ul><li>Lifecycle/Spec Optimize Spec within current Lifecycle to reduce CPM/CPH. </li></ul> <ul><li>KPIs Continually track progress &amp; make adjustments to ensure improved results. </li></ul> <p> 20. Questions?</p>