1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

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

9. 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

10. 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

11. 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

12. 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

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

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

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

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

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

18. 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

19. Improvement Roadmap

20. Early Implementation WinsNo
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

21. Early Implementation WinsNo
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

22. 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

23. 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

24. 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

25. 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

26. 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

27. Questions? Contact Us: Blaine Parkin
Director, Corporate Asset Management,
City of Barrie
Roop Lutchman
Lead Business Consulting, GHD