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From Nafa Booklet
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 June 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.
Contents |
General Rules
Almost all children who grow up in America have access to multiple forms of transportation simultaneously. The school bus, their bicycle, a skateboard, Mom driving the family van, etc. Because of this they all grow up and think they know how to manage a fleet. Expect every decision you make to be scrutinized and second guessed endlessly.
Managers of Government Fleets should always remember: "There is no such thing as government money. There is only Taxpayer's money!!"
Just because you are paranoid, don't mean that they're not really out to get you.
Despite the premature aging and other damaging health effects caused by interaction with bean counters and lawyers, related workers comp claims for gray hair and ulcers are most likely going to be denied.
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.
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.
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??
Vehicle Fuel Management
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.
Business Management
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.
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.
