Optimizing Fleet Assets Blaine Parkin: Director Corporate Asset Management, City of Barrie Roop Lutchman: Lead Business Consulting, GHD CNAM 2014 Conference Toronto, Ontario May 20-23, 2014

Agenda Background Business Drivers Business Optimization Concepts Approach to Fleet optimization at the City of Barrie Opportunity Gaps Improvement Roadmap Optimization Results and Next Steps

Background Fleet assets are typically key support equipment needed to deliver customer services Specialized vehicles are becoming more sophisticated and more expensive In many operations, Fleet Managers struggle to meet internal LOS as funding gets tight Fleet managers are seeing the average age of the fleet getting older Customers, frustrated with service, find novel ways to get around the system Municipal vehicles are always under the scrutiny of the public

Agenda Background Business Drivers Business Optimization Concepts Approach to Fleet optimization at the City of Barrie Opportunity Gaps Improvement Roadmap Optimization Results and Next Steps

Growth & Demand for More Vehicles Business Drivers Internal Customer Demands Workforce Shortages Financial Constraints Regulatory Compliance Aging Fleet Climate Change Fiscal Responsibility for Taxpayer Dollars Growth & Demand for More Vehicles

Agenda Background Business Drivers Business Optimization Concepts Approach to Fleet optimization at the City of Barrie Opportunity Gaps Improvement Roadmap Optimization Results and Next Steps

Business Optimization Model Inputs Stakeholders Expectations Business Drivers Physical Assets Technology Assets Business Processes People Arrangements Visioning Physical Assets Technology Assets Business Processes People Arrangements Strategic Physical Assets Technology Assets Business Processes People Arrangements Tactical Operational Physical Assets Technology Assets Business Processes People Arrangements Performance Objectives (los) Results Against Outputs Physical Assets Intellectual Assets Performance Management and Continuous Improvement Physical Assets 7

Business Process Effectiveness CAPABILITY Process Development Process Documentation EXECUTION Fully Rolled Out Fully Practiced Results Achieved X

Agenda Approach to Fleet Optimization at the City of Barrie Background Business Drivers Business Optimization Concepts Approach to Fleet Optimization at the City of Barrie Opportunity Gaps Improvement Roadmap Optimization Results and Next Steps

Study objectives Barrie’s Fleet Services group considers its operations to be generally effective in meeting the levels of service of its customers. The Fleet Services Management Team, however, believes there is an opportunity to critically review its operations to meet the following objectives: Validate current leading practices using an independent review team; and Identify improvement opportunities in the area of organizational and people arrangements, fleet programs and practices

Implementation Approach Project Planning & Kick-Off Current Situation Analysis Understand LOS for Internal Partners Early Wins Improvement Roadmap Key Activities Project Kick-off Introduction to SLT Review of existing data Staff Interviews Workshop 1: Current Practices Current Situation Report Workshop 2 : Future State Planning Workshop Future State Report Project Closeout

Agenda Background Business optimization concepts Challenges facing fleet operations in a municipal setting Approach to Fleet optimization at the City of Barrie Opportunity gaps Improvement Roadmap Optimization Results and Next Steps

Strategy: Overall Rating Vision for the Future Current Situation PAS 55 AM Maturity Scale 13

Assets Overall Rating Vision for the Future Current Situation PAS 55 AM Maturity Scale 14

Business Processes Overall Rating Current Situation Vision for the Future PAS 55 AM Maturity Scale 15

Technology Overall Rating Current Situation Vision for the Future PAS 55 AM Maturity Scale 16

Organization/People Overall Rating Current Situation Vision for the Future PAS 55 AM Maturity Scale 17

Agenda Background Business optimization concepts Challenges facing fleet operations in a municipal setting Approach to Fleet optimization at the City of Barrie Opportunity gaps Improvement Roadmap Optimization Results and Next Steps

Improvement Roadmap

Early Implementation Wins No Description Action By Comments EIW-1 Develop a clear policy, vision and mission that guides the Fleet Services Operations and sets clear expectations for its customers Fleet Services Approval by EMT With input from Corporate AM Group Circulated for comments from internal customers EIW-2 Prepare a guidance documents on what qualifies a vehicle as being City owned, employee owned or a rental To be prepared through discussions with managers in user departments EIW-3 Collate latest vehicle specifications into one asset management standard with supporting quality review (author, review, approval, Fleet & User Group, and version control) – on each document Fleet Services & CAM Group To be validated by internal customers EIW-4 Develop the "Use of Private Vehicles” policy or update it if it exists to clarify insurance and vehicle type HR/Fleet May need Union/Employee involvement EIW-5 Develop a guidance document on vehicle type and specification by employee role (this should identify City owned and employee owned) To be prepared through discussions with senior managers in user departments and Human Resources

Early Implementation Wins No Description Action By Comments EIW-6 When there are Council approvals for vehicles that deviate from what was submitted, ensure that user groups are made aware of the rationale for the change CAM Group and Fleet Services Managers in the user group should be informed about the change and have the responsibility to communicate to the affected staff EIW-7 Consider expediting the replacement of the mail vehicle with or explore the possibility of private vehicle use Fleet Services & Clerks Office This vehicle is beyond its life and is not fit for purpose EIW-8 Develop an exception report for inconsistent kilometre readings from the gas consumption data and have theses exceptions addressed by the managers of user groups with the relevant employee Fleet Services Managers in user groups This important for improving data quality used in developing fleet utilization information EIW-9 Review the low utilization vehicles (identified in this report) with the relevant user group managers and develop recommendations for maximizing the investment in these vehicles – consider replacing some of these with private vehicle use, use of rentals, create an initial City pool of vehicles to be shared across user groups (managed by Fleet Services) It is necessary to better understand the specific use for each vehicle and its operating context This may allow Fleet Services to start a corporate pool of City owned vehicles EIW-10 Consider some form of recognition for fleet staff for their dedication and hard work maintain acceptable service levels with an aged fleet EMT Fleet Services and End user groups do this on a regular basis but staff flee that their efforts are not appreciated by Council

Improvement Initiatives Establish a Corporate Fleet System where all City vehicles are owned by S-2 Create a corporate pool of vehicles to meet short term and adhoc vehicle needs A-1 Leverage existing fleet vehicle data for all fleet assets that are fully depreciated and develop individual life cycle business cases for replacement A-2 Consider expanding the Fleet Operations to the South End if a decision is made to build another operations center in this area. BP-1 Establish a Service Request process (leveraging the Fleet Services Portal – T1 below) to initiate work, track service request backlog and prioritize work orders created from these requests BP-2 Revise the PM process so that Fleet Services can trigger/schedule the A, B, C and D services instead of depending on user groups to identify this need

Improvement Initiatives BP-3 Develop a Fleet Performance Dashboard T-1 Establish Fleet Services portal on the City’s Intranet T-2 Reconfigure Computer Fleet Associates (CFA) to support the revised Fleet Services workflows T-3 Build interfaces from CFA to other key City systems P-1 Consider hiring additional mechanics to reduce the amount of core work that is contracted out P-2 Develop Service Level Agreements with individual User Groups for fleet related services

Agenda Background Business optimization concepts Challenges facing fleet operations in a municipal setting Approach to Fleet optimization at the City of Barrie Improvement Roadmap Optimization Results and Next Steps

Optimization Results Wide acceptance of new direction Consistent focus on service provision and relationship to critical assets Re-alignment of capital and operating investments Lifecycle based analysis Asset Acquisition: Aligned with specifics of position Alternate methods Multi-purpose

Next Steps Continue with Early Implementation Wins Finalize asset specificiations Policies on vehicle use Continue analysis of fleet asset data Finalize and implement new management model

Questions? Contact Us: Blaine Parkin Director, Corporate Asset Management, City of Barrie Blaine.Parkin@barrie.ca Roop Lutchman Lead Business Consulting, GHD Roop.lutchman@ghd.com