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From Nafa Booklet

Current revision as of 15:55, 17 December 2008

NAFA's Booklet "Fleet Rules of Thumb"

This is the current working draft of NAFA's new booklet of Fleet Rules of Thumb. All changes and additions must be made before July 1, 2006, when this forum will be closed and the draft will be sent to the editorial committee. Please log in to contribute or create a user name for yourself by clicking the link in the upper-right of this page.

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[edit] Asset Management

Fleet managers must make sure their vehicles meet the job responsibilities of their fleet and represent the best image of their organization, no matter how much their drivers want to drive yellow Hummers.

Bid specifications should be specific, but concise and only list the set of requirements necessary for the vehicle's intended purpose for the organization.

Depending on the type of fleet you manage, it may be a good practice to select a basic vehicle to be utilized throughout the organization. However, not all environments, terrain or work to be performed may be able to utilize the selected standard vehicle safely or affectively. Under such circumstances, and upon request, the Fleet Manager should provide vehicle quotes based on the scope and nature of the work to be performed in conjunction with the environment and terrain the vehicle will be required to operate in. Quotes are easily created and/or obtained if you purchase your vehicles through a fleet leasing company. Should you require an upfitted vehicle, the fleet leasing you conduct business can efficiently and quickly provide quotes for the specific make and model of vehicle the upfit is required. A good practice is to compile a list of standard vehicles your company generally utilizes for vehicle requests which you can quickly forward to requester with specific allowable company options to select. This list should not be publiicized, but retained for specific requests to streamline the purchase process.

You don't have to buy all your fleet vehicles from the local dealer. There may be a better price in another town or another state in another time zone.

Fleet cars should generally be replaced after three years or 60,000 miles.

Take the time to write bid specifications right the first time; it saves headaches down the road.

Combining an Open-end Lease with an Operating Lease is usually a good idea because it frees up the organization's funds for other investments.

Bid specifications should be specific, but concise and only list the set of requirements necessary for the vehicle's intended purpose for the organization.

If a fleet is owned, the vehicles will usually be operated for longer periods and to higher mileages than if the fleet is leased.

Fleet vehicle replacement should be a planned in accordance with your replacement criteria and amended by user and staff input.

From acquisition until disposal, lifecycling and cost analysis principles are worth-while to apply.

[edit] Maintenance Management

Multiply tow vehicle GVWR and GCWR ratings by 75 percent to calculate a generally safe, accurate estimate of the tow vehicle’s capacity.

You may have a great maintenance department, but if you're fixing up vehicles for resale, chances are you aren't going to get the full amount you invested in your recent repairs.

Lack of training, fatigue, bad work habits, shortcuts, and poor housekeeping are common causes of shop accidents. All of them are avoidable when managing risk.

If you can't find time to do it right the first time, where are you supposed to find the time to do it correctly the second time??

If we do not stay "Customer Driven" then our trucks won`t be either!!

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[edit] Headline text

Fuel Management: When you automate vehicle/equipment data collection (odometer/hour meter)and take the human element out of the process, your fleet management software data quality improves exponentially in all areas.

[edit] Risk Management

Generally speaking, in an accident with a fleet vehicle and a wall,rock or telephone pole, the wall, rock or telephone pole is fine.

Treat unsafe use of a vehicle as negligence. The driver is responsible for the safe operation of the vehicle.

An organization is only as good as its weakest link. Educate your employees and you'll strengthen your organization.

You have to assess potential risk and manage it before the risk becomes a reality and manages you.

If the liability is too great, then rewrite the policy to avoid taking the risk altogether.

Get your drivers actively involved in accident management; reward improvements in driving with awards, recognition, and even donuts.

Lightining very well may have struck your car, but it's still not an accident. It's also not an accident when your fleet vehicle is on the receiving end of hoodlums with spray paint.

Million to one shot that you're vehicle was rear ended going uphill? Snap a few photos to support your story later on.

The decisions a review board makes regarding accidents is crucial to an organization's policy - especially with discipline. Make sure the review board is balanced enough to make an educated and thoughtful deicision, for their decisions now will be the precedent of the future.

Lead by example: if you're walking around a hazardous site without a required safety helmet, don't expect your associates to wear one either.

Question your drivers before their questionable driving leaves you answering for them. Bad drivers are like apples - they can ruin the bunch. It's better to evaluate them on the whole rather than the nitty gritty details of every incident they've been involved in.

Don't just punish bad drivers. Exemplify the conduct of good drivers not only as examples, but also to reward and recognize their conscious efforts to be safe.

There are many things to consider when selecting a repair shop. But if you wouldn't take your family vehicle there, then you shouldn't take your fleet vehicles there either.

You may believe that you have designed an idiot proof piece of equipment but just remember that there are a multitude of bigger idiots out there just waiting to be hired.

Drive safely. Remember vehicles are not the only thing that have recalls by their maker.

Drivers with a Commercial Drivers License are classified as professional drivers, treat them as such. They are also held to a higher standard when they screw up.

[edit] Behavioral Modification

One way to mitigate bad driving is through behavioral modification. At our company, SmartDrive Systems, we use the old analogy of the "it's not my car syndrome" as when folks rent a vehicle.

So, what does a company do?

Well, one way is for fleet/risk/safety managers to ride along with the drivers. Right! So, SmartDrive has come up with a solution: SmartDrive puts a "safety manager" on board through our break-through technology! SmartDrive is a behavioral modification device, a safety device, an accident reconstruction device, an erratic driving detection device, and an engine diagnostic device---all rolled into one, web-based unit.

SmartDrive consists of 2 cameras---one facing forward, the other facing the driver---that are continuously recording. When a bad driving "event" occurs, it is stored on video 15 before and 15 second after the event. The video event is then wirelessly down-loaded to our secure website. Then, the fleet/risk/safety manager reviews the "event" and can see for himself what happened.

Guess what? Drivers drive to the camera with SmartDrive on board; they drive better! Crashes are reduced, insurance costs go down and maintenance costs are also reduced!

SmartDrive also download all the engine diagnostics info for the fleet/risk/safety manager. No more going from vehicle to vehicle to get daily odometer readings; SmartDrive does that too.

SmartDrive is a Risk Manager's best friend.

Please see our video for more on this. Here is a link to the SmartDrive website: [1]

[edit] Business Management

Success and prosperity will favor business partners over business sales every time.

Every business relationship is governed by the rule of law.

Torts are private (civil) wrongs against persons or their property.” – Business Law and the Regulatory Environment

A meeting is an event where minutes are taken and hours wasted.

Don’t forget – Management Approval before implementation (of policy).

There is no perfect universal fleet policy.

Spec writing shouldn't be difficult. Chances are someone already wrote a spec similar to what you're looking for. Do some quick research first before starting from scratch. Piggybacking off of someone else's work is time-saving, not plagerism.

When analyzing RFPs, you need to look at more than just the black and white bottom line. Think about the service you're getting for your money. If the RFP is cheap, the vendor's service may be exactly what you pay for. Value the vendor's role when deciding on RFPs.

Read over everything you put in writing - from internal policies to agreements with vendors or customers. You are held responsible to it in any court of law.

"He who does the job knows the job best". Trust the people you have hired to do the job.

When evaluating cost of vehicles, focus on the total lifecycle cost instead of the acquisition cost.

With regard to motivating by measurement:

* Don't mandate the process only the outcome
* Don't measure things you don't care about or are of minimal significance
* Remember, generally what gets measured gets done
* Be willing to change measures as needed
* Benchmark against the best in class not just the best in government
* Be sure the people whom performance measures apply can control that on which they are  
  measured
* When starting to measure be sure to start somewhere...don't study the subject to death

[edit] Financial Management

Police department in large cities on average operate:

- 307 marked cars per 1,000 sworn personnel

- 207 unmarked cars per 1,000 sworn personnel

- 35 motorcycles per 1,000 sworn personnel

- 44 bicycles per 1,000 sworn personnel

The Department of Justice, Bureau of Justice Statistics Survey (published May 2002)

If the vehicle looks good and runs well, but it's been in the fleet for 9 years, maybe a lifecycle cost analysis would be a good idea to gauge how much longer ol' reliable is going to last.

Your fleet will always depreciate faster than the cost to maintain it. Know when it's time to acquire new vehicles to save the most money.

So you got a good monthly lease price for your vehicle, but are you getting good monthly Cost Per Mile reading.

[edit] Fleet Information Management

Even with ever faster computers and user friendly operating systems, garbage in still equals garbage out.