– By Caroline Falls –
Poor reporting systems was cited as a key reason for the bankruptcy of transport company McArthur Express in 2007. It follows then that having good fleet management reporting systems are essential for a successful business. Of course, so too, is the habit of analysing the data.
“It is not unusual to find organisations recording data, but they don’t always use these data effectively or they may not do anything with it at all,” according to a chapter devoted to this topic in the indispensible Plant and Vehicle Management Manual, published by The Institute of Public Works Engineering Australasia.
The tome sets out a step-by-step approach to achieve this in “Fleet Management Reporting, Software Systems and GPS Tracking”. The section talks about what data to collect, how to prepare operational reports, available software, and issues related to installing global positioning systems and fleet tracking, such as privacy.
At a minimum, the manual says, data needs to be recorded to inform on six key performance indicators:
- Utilisation: measuring mileage and capturing refuelling data can help calculate fuel consumption, schedule maintenance and plan replacement times.
- Optimum replacement points: keeping records of equipment residual values will help plan and budget for replacement.
- Whole of life costs: capturing all costs associated with running vehicles or equipment can be used for budget forecasting and in making hire/buy decisions.
- Downtime costs: measuring machine or vehicle downtime is evidence to support replacement.
- Maintenance failure: these records help establish reasons for failure — incorrect use, lack of training and in planning maintenance.
- Flat-rates: use flat labour rates for specific tasks to compare time taken by in-house staff to measure competitiveness, effectiveness.
Reports can be delivered in a variety of ways: including spreadsheets and dedicated fleet-management software, but whatever system is used it is a good idea for more than one member of staff to be competent in using them.
“Having an effective management information system is probably the most critical technology tool needed to run a competitive business,” the manual states. It refers to an appendix that sets out a specification template for fleet management software that was developed in a series of IPWEA workshops with fleet managers.
GPS and fleet tracking provides rich data on a vehicle’s movements — start-up times, engine running, severe braking, average engine rpm, and travelling speeds, among other things. One great advantage of this engine-linked data feed is that it is less error riddled than manual records. However, privacy concerns is one issue that should be addressed beforehand, by consulting potential drivers and after, by tagging vehicles containing GPS, according to the manual.
This article is part of a series based on the IPWEA manual, a how-to guide to setting up a fleet management program. It covers topics such as rightsizing the fleet, minimising unscheduled repairs, returning the best value on capital investment, deciding whether to buy or hire equipment, buying and disposing of equipment and embedding key performance indicators.
For more information about the manual go to this link <ipwea.org> here or telephone 1300 416 745.
