Heavy Duty Vehicle & Equipment Fleet Service Maintenance ... - Narsa

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Heavy Duty Vehicle & Equipment Fleet Service Maintenance ... - Narsa

Heavy Duty Vehicle &EquipmentFleet Service Maintenance &RepairJohn E. Dolce, Instructorjohnedolce@yahoo.com


John E. Dolcejohnedolce@yahoo.comJohn Dolce is an active Consultant, Instructor, and Fleet Manager. He has over 40 years of experience in the publicand private sector, with fleets ranging between 100 and 18,000 units, and over 30 years in general management.John has written three textbooks: “Fleet Management” (McGraw Hill); “Vehicle Specification and Procurement”; and“Analytical Fleet Maintenance Management” (SAE)He has worked with over 450 clients in fleet matters, including strategic planning, life cycle and vehicle replacementprograms, maintenance, operations, safety, and budgeting. John has worked with utility, private, municipal,construction, mining, federal, and intermodel clients.John teaches Fleet Management for The University of Wisconsin nationally and internationally.John earned an A.A.S. in Auto and Diesel Technology at the State University of New York – Farmingdale, LongIsland; a B.S. in Industrial Management at New York University, New York City, and his M.A. in Industrial Managementat New York University, New York City.2


Measure What is MeaningfulWatch EverythingPay AttentionTo EvolvingMeaningful InformationSustainability – “Ability To Endure”3


Series of a Chain of EventsLeads to ProblemsSmall Problems – Small Solutions“Running Hot”Large Problems – Complex SolutionsWhich are Difficult to Implement“Cooked Engine”4


CircumstancesDistractionsChoices- intended- unintendedConsequencesControl- intended- unintended


Fleet % BreakdownsMunicipal/Gov’t 55%Transit-Coach-School 5%Common Carrier 10%Private Contractors 15%Construction 10%Owner Operators 5%6


Operating budget – ConsumablesCapital budget – Depreciating/Loss ofvalue7


Average AgeOlder - More Operating $Less Capital $Younger - Less Operating $More Capital $8


Life CycleCost of Old vs. NewRepair Rebuild ReplaceScrapSell9


$70,000 Chassis-Mtd. EquipmentPrinciple 140001 2 3 4 5 6 7 8 9 1014000 14000 14000 14000 - - - - -Interest 3500 2800 2100 1400 700 - - - - -Parts/Labor1455 2475 3780 3690 3495 3375 3800 4500 8500 22425Fuel 3600 3600 3600 3600 3600 3600 3600 3600 3600 3600¢/mile15000Resale 49000% Maint.Residual1.50 1.53 1.57 1.51 1.45 0.47 0.49 0.54 0.81 1.7439200 31360 25088 20014 14056 12845 10276 8221 65773% 6% 12% 15% 17% 21% 30% 44% 103% 341%Replace Target Evaluation(repair / replace / rebuild)10


Vehicle Replacement Strategies – Based on $150,000 truck1 2 3 4 5 6 7 8 9 10Principle 30,000 30,000 30,000 30,000 30,000 - - - - -Interest 7,500 6,000 4,500 3,000 1,500 - - - - -Parts/LaborFuel/YearOperatingCost:$/Mile*4,500 7,500 11,500 11,500 11,500 11,500 11,500 13,500 27,500 67,00020,000 21,200 22,472 23,820 25,250 26,765 28,370 30,073 31877 337902.33 2.42 2.56 2.47 2.39 0.64 0.64 0.75 1.50 3.72Resale 105,000 84,000 67,200 53,760 43,008 34,406 27,525 22,020 17,616 14,093Maint. =X% ResidValue4% 9% 17% 21% 27% 33% 42% 61% 153% 475%*Operating Cost: $/mile based on 18,000 mi/yr11


To Rebuild½ Cost of New2/3 – 3/4 Life of New“Warranty”12


Repair AuthorizationBefore vs. After the Fact• Should a replacement part be other than a brand newpart, whether OEM or aftermarket, it must delivermore economy than a new part.• Therefore should a part cost more than ½ the cost ofnew and deliver less than ¾ the life of new, reject itfor a new part.• Should a part cost ½ the cost of new and deliver ¾the life of new, then use it in place of new.• Use a documented historical experience as a basisfor your decision.13


Rebuilt &/or Reman & NewPartsReplace a water pump.– New water pump cost $600 and lasts 150,000miles– Rebuilt water pump cost $300 and lasts 100,000miles– 6 hours labor to install an water pump at $75/hr– Assume 300,000 miles left in vehicle life14


Rebuilt, New &/orRemanufactured PartsCalculations:• New– Parts: $600 X 2 = $1200– Labor: $75 X 12 = $900– Total cost = $2400$2400/300,000 miles = $0.008/miles• Rebuilt– Parts: $300 X 3 = $900– Labor: $75 X 18 = $1350– Total cost = $2250$2250/300,000 miles = $0.0075/miles15


Replace, Rebuild or Repair?Truck worth $10,000 needs $4,500 repair (> 30% than current value)New -Rebuild -$140,000 ÷ 1,000,000 miles = $0.140/miles$ 85,000 ÷ 750,000 miles = $0.113/milesEngine $18,000Trans/Rear $12,000Tires $ 4,000Body $25,000Suspension $ 7,000Clutch $ 7,000Interior $ 5,000Other $ 7,000TOTAL $85,000Repair -$ 4,500 ÷ 25,000 miles = $0.180/miles16


Rebuild VehiclesDue To Wear & TearCorrosionVibrationAbuseAction to be TakenNew Chassis - Glider KitsBody – Mounted Equiptment17


SUMMARY OF TYPICAL AUDIT AREAS OF CONCERNWritten policies are needed for conformity.AUDIT REVIEWNeed for work standards and productivity measures.Fleet size is to large.Management practices need improvement.Utilization and availability measures are needed.Supervision needs training on participatory methods.There is a need to upgrade communication on each level.Quality must improve.Vehicle purchase procedures need upgrading.Transportation organizations whether centralized or decentralized need to be defined anddirection spelled out.Work scheduling needs to be quantified on Time, Miles and Fuel Use.Mechanics and non-mechanics and working foremen need training (technical) on newtechnology and methods. These is need for management by goals and objectives withrewards and discipline enforced.Better balance is needed for in-house and vendor maintenance activity.Scheduled maintenance programs need upgrading.Cost control systems manual and / or automated varieties need to be implemented andapplied to Vehicle Maintenance Management Concepts.18


Vendor Analysis – Activity-Based CostingNewark2008 2009 2010# Done $ Spent # Done $ Spent # Done $ SpentAlternators ($15.94) – 358 $5,351 ($10.48) – 596 $6,249 ($9.41) – 615 $5,785Batteries ($116.00) – 283 $32,827 ($112.00) – 530 $59,632 ($100.00) – 559 $56,102Brakes ($23.00) – 141 $3,263 ($29.00) – 273 $8,145 ($18.00) - 296 $5,397Starters 72 $2,951 129 $5,121 180 $10,314Shocks 1 $18 5 $248 - -Radiators ($35) - 18 $640 49 $5,695 48 $1,453Tires 439 $65,045 757 $118,524 658 $94,257Totals ($124.00) – 2,808 $350,146 ($140.00) – 4,354 $613,118 ($127.00) - 4,964 $634,235Jacksonville2008 2009 2010# Done $ Spent # Done $ Spent # Done $ SpentAlternators ($23.00) – 186 $4,290 ($60.00) – 245 $14,797 ($58.00) – 89 $5,192Batteries ($133.00) – 113 $15,034 ($154.00) - 254 $39,168 ($144.00) – 105 $15,127Brakes ($53.00) – 15 $808 ($59.00) – 87 $5,173 ($66.00) – 38 $2,516Starters 20 $3,673 34 $6,177 29 $6,739Shocks - - - - - -Radiators ($33) - 4 $133 14 $465 12 $458Tires 126 $21,226 479 $90,753 223 $34,529Totals ($172.00) – 560 $96,403 ($174.00) – 1,593 $277,932 ($151.00) – 1,125 $170,87619


Vendor AnalysisActivity-Based CostingGreensboro2008 2009 2010# Done $ Spent # Done $ Spent # Done $ SpentAlternators ($144.00) – 30 $4,324 ($118.00) – 131 $15,513 ($64.00) – 272 $17,586Batteries ($123.00) – 98 $12,087 ($123.00) – 453 $56,088 ($88.00) – 413 $36,693Brakes ($136.00) – 61 $8,301 ($171.00) - 321 $55,176 ($1,193.00) – 270 $322,295Starters 62 $6,412 245 $32,209 251 $49,009Shocks 18 $1,777 178 $33,930 167 $34,696Radiators ($366) - 37 $13,555 134 $53,913 122 $48,470# of Trucks 320 $91,845 790 $185,499 418 $27,589Totals ($382.00) – 845 $323,413 ($405.00) - 2,725 $1,106,252 ($448.00) – 1,803 $807,85120


Vehicle and EquipmentScheduled“ Maintenance “•Preventive Maintenance Inspections and Generated Repairs•Driver Pre & Post Trip Inspections•Predictive Maintenance- 100K Water Pump Replacement•Planned Componant Repairs- 2/32 Tire Replacement = 30%•CSA-2010 Commercial Safety Analysis21


Unscheduled maintenance is unplanned orsurprise maintenance or surprise maintenanceactivity, raising vehicles life cycle costs andlowering productivity of vehicles, manpowerand facilities.“Repairs”• Road calls• Breakdowns• Premature components• Repeat repairs70%→30%24


Gathering Meaningful InformationWork Order - Manual/AutoLabor - PartsBirth Certificate InformationCause of Repair - Repair CodesBreakdown Analysis25


Activity BasedCostingGeneral LedgerAccounts Payable26


ActivityBasedCosting27


GoalException ManagementSet BenchmarksSelf InformationComparative Information28


Maintenance-Component LifeCycle Costs of Vehicle ClassActivity Based CostingType - DescriptionTiresBrakes replaceBrakes repairPower replacePower repair (Cooling-40%)Preventive maintenanceSuspensionLightingSteeringNumveh.5041502849150445344NumR/O6591625634333615013021,616319TotalDOL110,80357,94340,90339,67930,11468,12446,86540,12932,273CommDOL3,02133––42–265–106PartsDOL94,87531,32415,90726,96810,0653,41022,97811,67114,326LaborDOL12,90620,58524,99712,69320,00764,71423,62128,45817,842Total for top 7componentsTotal for all457,347759,548231,52450.62%363,97847.92%225,82349.48%391,28252.08%29


40% of Engine Costs – Estimated to BeDue to Cooling IssuesEspecially EGR Related2002 2007 2010 2012 2014Tier I – II – III – IV – 2012 - 2014Older vs. Newer30


CavitationHead GasketWater PumpHosesBeltsEGRCoolersChillersCompressorsFan ClutchesRadiator(s)Heater Core(s)Variable Turbos PulleysSealerBlack PepperFilters/Coolants31


DEFDiesel Emissions FluidSCRSelective Catalytic Reduction67% Ionized Water - 33% Urea32


DEF Freezes 12 degrees FSlushy27 degrees FHot80 degrees FNeeds to be heated and cooled33


The Goal is to Standardize CoolantsFully Formulated Low Silicone BasedSCA Additives - Film Coating200-250,000 miles--2-3 years—4000 hours2000-2002 -- Extended Life – NO SCAextender@300,000 miles – 600,000 miles12,000 Hours- Nitrates – 200 PPM –No NitritesNo CoatingWaterless – ethylene & propylene glycol34


50-50 Mix Pressure TestRecycledSCA PackageNewTest StripsSample TestPH Acid BaseRefractometer35


OEMTells UsService 2x’s per yearR x R 2 years 4000 hours 200-250,000Or ELC extender @ 300K to 600K -12,000hrApplication Specific ApplicationELC -Adjust Severe Duty vsRegular - Application36


2002 2007 2010 2012 2014Tiers 1, 2, 3, 4,EGR EquippedHigher Cooling SystemPressuresTo Regulate Temperature10 PSI to 18 PSI37


Inspection - Test - CertifyNew AlloysAir Exchange CoolersHigher Temp SealsEGR TechnologyCeramicsHVAC Maintenance &Repair38


Diagnostic Tools - Training ClientPressure Test - Additives-SCATest Strips - PH - NitratesSamplesControl of Multiple Additives2 x’s per year8 weeks - 2000 miles39


New Technology“ENVIROCOOL”Windshield Cowel VentsBlowersSide Vents30 second change of air in Engine CompartmentExtend Component LifeReplace Some Components Later40


“Inspect rather than Expect”“ Maintenance “is aScheduled Proactive EffortAnd is more cost effective than“ Repair “A Reactive EffortAn Unscheduled Activity41


FLEETS REACH OUT TOOEM’sComponent ManufacturersDistributorsFOR DIRECTION42


OEMFLEETCOMPONANTMANUFACTURERSDISTRIBUTORS43

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