1. Fleet Metrics Presenters Adlore Chaudier Ph.D., Mercury Associates Gary Hatfield, Mercury Associates General Services Administration

2. “What gets measured, gets done.” – Anonymous

3. Because performance measures can: Help you make a case for more (or fewer) resources Identify areas where you need to improve Emphasize your strengths (prove you are doing a good job) Help you track future performance improvement or decline Lay the foundation for FAST and other reports

4.  Is accepted as meaningful  Tells how well goals and objectives are being met  Is simple, understandable, logical, and repeatable  Shows a trend  Is clearly defined  Allows for simple and consistent data collection  Is timely  Drives appropriate action

5. Management above the fleet management organization often does not understand the science and complexity of fleet management. An important Fleet Manager’s responsibility is to establish and communicate key fleet performance measures, their meaning, and significance. Communicate performance to: Leadership Customers Fleet Employees

6.  How many vehicles do we have? Types?  Do we have too many vehicles? How do we know?  What's our maintenance cost? By type?  Do all our vehicles receive PM?  Are we competitive with local repair shops?  What is our fleet MPG? By vehicle type?  How many accidents do we have?  How are the numbers trending?

7. A metric is a quantifiable and repeatable standard of measurement; A performance metrics program means that you have a process for developing objective sets of data to measure how your fleet is doing relative to goals; Use the metrics to develop benchmarks, a standard by which you can measure progress (or lack thereof) against past performance If you don’t know where you’ve been and where you’re going, you won’t know when you’ve gotten there.

8. Cost Quality of Service Timeliness of Service Customer Satisfaction Conformance with Best Practices Compliance with Legal Requirements Contractor or worker performance Safety Accidents

11. Basic Fleet Inventory Utilization CPM / CPH (Cost per Mile or Hour) Maintenance Shop PM Compliance Productivity Scheduled versus Unscheduled Parts Fleet Availability Fuel MPG Number of transactions Alternative Fuel Use

13.  Great data driven metric  Right-sizing metric  Establishes a standard justification for assignment  Objective Quantify as:  Miles driven  Hours operated or in use  Number of trips

14. Class # of Units Total Mileage Hours Avg Annual Miles / Hours Annual Use Target Actual Monthly Miles / Hours Monthly Use Target Minivan, Passenger56688,843.0012,300.776,150.381,025.06512.53 Sedan, HYB23342,178.0014,877.307,438.651,239.78619.89 Pickup, LD, 4X438295,433.007,774.553,887.28647.88323.94 Pickup, MD, 4X419128,820.006,780.003,390.00565.00282.50 Bus12432,987.0036,082.2518,041.133,006.851503.43 Forklift, Diesel2421,971.00915.46457.7376.2938.14 Establish Standard for each class of equipment Don’t Forget about your off road equipment Utilization

15.  Average age of your fleet by Class and Type  Average total miles  Average Miles per Gallon  Average Cost per Mile (or Hour) Class Code Class TotalAvg Age Avg OdometerMPGCPM SEDAN15.0073321128.400.13 VAN, CARGO78.0062575816.900.16 PICKUP, COMPACT, EXT CAB 4X223.0052076415.300.19 SPORT UTILITY, MD, 4X2, 4X419.0032340013.200.42 TRUCK, 6X45.00121023478.901.34 SWEEPER, ROAD4.0094367810.300.97 MOTOR GRADER2.002265435.501.45

16. Cost Per Mile / Hour – (CPM, or CPH) should include: Ownership (Fixed) Costs Depreciation Indirect (Admin – Overhead) Operating (Variable) Costs Maintenance & Repair Costs Fuel

17. Total Miles Driven5,654,765Average Purchase Price$19476 Total Maintenance Costs$347,320 Estimated Residual Value$3400 Maintenance CPM$0.06Depreciation$16076 Total Fuel Costs$567,500.00 Estimated replacement cycle6 Fuel CPM$0.10Depreciation Per month$223.28 Total M&F Costs$914,820.06 Estimated Monthly Mileage1025 Total Operating Cost Per Mile$0.16Capitol Cost Per Mile$0.22 Not all Agencies use depreciation Use to develop CPM for all classes Total Fixed Cost Per Mile = $0.22 Total Operating Cost Per Mile =$0.16 Total Cost Per Mile =$0.38

18. MeasureTarget Fleet availability95% Turnaround time70-80% in 24 hours Rework rateLess than 2% Road call rate2% PM Compliance95% Scheduled work55-65% Billable hours1,500 hours Technician training40 hours per year Customer satisfaction90-95% good or better surveys

19. Fleet accident rate – accidents per million miles Average repair costs for accidents Money recovered from programs Lost time due to accidents

20.  Benchmarks are trends or comparisons expressed as metrics;  Your current metrics are most valuable when they are compared to another metric or benchmark (provide a historical context);  By capturing and benchmarking metrics, a fleet manager can demonstrate improved performance;  Transform your metrics into trend lines.

21. How are you doing?

22. Now how do you think you are doing?

24. Industry Norm

25. Best in Class

26. 1.Benchmark against yourself (year by year) 2.Benchmark against peers 3.Benchmark against industry standards 4.Benchmark against “best in class”

28. Use Internal vs. External comparisons Other Agencies Contractors Share the data Customers Leadership Agencies (DOE, GSA)

29. 1. Develop a plan that describes how you will gather necessary information and calculate the measure. 2. Establish a suggested performance level for each measure. 3. Assess performance against the established performance level. 4. Based on performance levels, as required, take corrective actions to work toward achieving established goals.

30. Develop a detailed description of each factor when building your plan for implementing your performance metric program.

32. Identify your area(s) to Measure Define the Performance Measure Collect the Data Measure & Evaluate performance Evaluate Processes & practices Improve or Reengineer Process

33.  Establish goals based on the data  Improve process, set goals, measure at determined intervals, and adjust goals if necessary  Don’t be afraid of bad data!  Get customers involved in the process  Establish exception report ◦ High & low cost per mile ◦ High & low utilization ◦ PM compliance ◦ Fuel MPG ◦ Maintenance costs  Metrics can modify behavior  Never let it become personal

34. “There is no guarantee of reaching a goal at a certain time, but there is a guarantee of never attaining goals that are never set.” David McNally in Even Eagles Need a Push

35. MERCURY ASSOCIATES, INC. “Specializing in the science of fleet management.” For more information, contact: Adlore Chaudier Ph.D. Director, Federal Fleet Consulting achaudier@mercury-assoc.com 262-215-5566 (cell) Gary Hatfield Director, Public Sector Fleet Consulting ghatfield@mercury-assoc.com 941-685-6907 (cell)