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Fleet Management

Muyimba John
BDS@IAL-U jmuyimba@gmail.com http://www.linkedin.com/in/jmuyimba Twitter/facebook/skype id: jmuyimba

Objective

This training aims at imparting - in simple, nontechnical language - the key skills needed for modern fleet management. It is essentially a training on efficient fleet operations, rather than on policy and strategy. It is particularly designed for a wide range of administrators and managers, with a little previous experience and knowledge of fleet management issues, who undertake their role in fleet on a part- or full-time basis.

Rationale

Running a fleet of cars or vans calls for a wide range of skills and many of these skills are transferable, and in themselves, need relatively little specialization. Others are specific to the business of fleet management. But fleet management is not an exact science it must be organized to serve the business which is actually using the fleet. In FM, cost and functional aspects must be considered to ensure that the fleet is run both properly and safely. The Training is designed as a comprehensive overview of fleet operations and includes a study of the main options, the cost-reduction techniques and the administration needed to keep the fleet under effective control.

Overview

Brief history and background to the car and van fleet markets Explanation of major cost types, causes, magnitude and variabilities Fuel Management, Safety, Repairs and Maintenance Purchase/ leasing/ contract hire for vehicle Vehicle selection and impact on whole life cost profiles Fleet administration, monitoring and reports Current issues and sources of information

all in the name of saving costs...

Every Business is Different

Some businesses use vehicles purely as a tool of trade, to move people and equipment quickly and easily. In some cases a company car is little more than one part of the overall remuneration package: designed to encourage and motivate the employees concerned. In some cases, cars might not even be companycontrolled. Many organisations fulfill their business travel needs through use of employee-owned cars.

Duty of Care

The core principle of Fleet Management is that of Effective Risk Assessment/Risk Management Policy to provide a framework for ensuring that a safe working culture is in place and that it is reinforced on a regular basis.

Definitions

A fleet is any collection of cars and/or vans being used and operated within a single business. A pool car is a car used by any of a group of employees for any legitimate business purpose. Private use by any employee is not allowed. A company car is any car provided by the employer for use by one employee; and generally bringing entitlement to private use of the car for domestic travel. Any such private use is taxable under benefit-in-kind tax rules. Fleet Management is the process of recording, monitoring and controlling what is happening with the vehicles and drivers. The main purpose is to control and reduce costs.

Fleet Costs

Depreciation: Purchase price - Sales Price Funding: Interest/finance cost + Capital Expenditure Maintenance: Routine/scheduled services + replacement of worn parts Insurance: Insurance premium + any other costs relating to repair of accident damage Fuel: Money spent on fuel used for business journeys only Fleet Administration: the costs of the administration needed to set up the systems to acquire the vehicles, then record and monitor all the other costs; together with other factors like a computer system to hold the records

The Fleet Market in Uganda

Some service providers wrap up depreciation, maintenance and funding, with much of the fleet administration, into a single package called contract hire or leasing. Specialist businesses Accident Management companies - deal with all the repair actions needed as a consequence to a road accident. There are specialist credit/ charge card providers concentrating on making re-fuelling easier to manage by issue of fuel cards. There are also many businesses using cars and vans which prefer to do everything in-house, rather than outsource any of these areas to specialist agencies. Different methods and approaches will yield very different results in different circumstances. The objective of the fleet manager is to get the best overall result for the main business, rather than run the best fleet.

Fuel Consumption
Saving Money and The Planet

Fuel is one of the most notable expenses involved in running a vehicle fleet. Next to the capital costs of the vehicle, fuel is generally the greatest single financial burden a fleet manager will need to control. With some planning and forethought, remarkable savings can be made in this area of your fleet with some great benefits for the environment as well.

Why try to cut your fleets fuel usage?


1. The Cost Your driving habits, the type of car you drive and the conditions under which you drive determine your car's fuel consumption and hence fuel costs. How many litres of fuel due consume in a year?

Estimated annual fuel use


annual distance Travelled (km)

fraction of city driving

city fuel consumption rating (L/100 km)

100
Annual fuel use (in litres)

=
annual distance Travelled (km)

+
X
fraction of Highway driving

city fuel consumption rating (L/100 km)

100

Estimated annual fuel use and fuel cost are based on an annual driving distance of 20,000 km with a mix of 55 percent city driving and 45 percent highway driving.

Mileage Reimbursement Rates


@ KK Security ?? @ IAL-U; UGX. 1,500/= per Kilometer


Different companies have different rates.

Who's your official supplier?

Quality of Fuel

V-Power - enhanced engine performance along with increased engine protection, for more consistent operation and engine longevity.

Unleaded When burnt in engines, this petrol/diesel does not give off toxic fumes, as leaded petrol does.

Normal

2. The Environment

Our lifestyle is producing more and more greenhouse gas emissions. Scientific research predicts that rising temperatures caused by increased levels of greenhouse gases will harm humans, plants and animals by changing weather patterns and raising sea levels. You can help reduce these emissions by choosing the most fuel efficient car to meet your needs and driving it in a fuel efficient manner. Motor vehicles are a major contributor to air pollution in allover the world, and as fleet managers we have a responsibility to make every effort to reduce the output of harmful greenhouse gases.

Tips for Saving Fuel

1. Plan Your Trips

Plan to do a number of errands in one trip rather than several trips and save both time and fuel. Avoid peakhour traffic, hard accelerating and heavy braking as they all waste fuel. Driving smoothly and avoiding stop-start traffic saves fuel and up to 30 per cent of greenhouse emissions.

2. Avoid Short Car Trips By Walking or Cycling

Walking or cycling is good exercise and saves over a quarter of a kilogram of greenhouse gas per kilometre of car driving it replaces.

3. Service Your Car Regularly Keep your car well tuned and reduce greenhouse gases by up to 15 per cent through fuel savings.

4. Select The Right Gear Change up through the gears and into top gear as soon as possible without accelerating harder than necessary. Driving in a gear lower than you need wastes fuel; so does letting the engine labour in top gear on hills and corners. Automatic transmissions will shift up more quickly and smoothly if you ease back slightly on the accelerator once the car gathers momentum.

5. Speed Kills Economy High speeds result in high fuel consumption. At 110 km/h your car uses up to 25 per cent more fuel than it would cruising at 90 km/h. On the open road, drive within the posted speed limits.

6. Stopping and Braking

Resting your foot on the brake or driving with the hand-brake on wastes fuel, increases brake wear and decreases braking efficiency. Rather than idle for lengthy periods it is more fuel efficient to switch off and then restart your engine when necessary.

7. Filling Up

Filling past the first click of the fuel nozzle means fuel can be spilt or lost through the overflow pipe when you accelerate or go around corners. A properly fitting petrol cap also saves fuel by minimising evaporation of petrol.

8. Look After Your Car's Tyres Inflate your car's tyres to the pressure range recommended by the manufacturer for the use of the car, and make sure your wheels are properly aligned. Looking after your tyres will not only reduce your fuel consumption it will also extend tyre life and improve handling.

9. Use Air Conditioning Sparingly Air conditioners can use about 10 per cent extra fuel.

10. Travel Light The more a car carries the more fuel it uses; an extra 50 kg of weight can increase your fuel bill by two per cent. Anything fixed to the outside of the car increases wind resistance and fuel consumption.

Maintenance and Repairs


Regular maintenance will contribute to the reliable and economical use of your motor vehicles and could contribute to driver safety. Service Schedule. Manufacturers are now recommending greater service intervals than before, so it is important to ensure that servicing occurs at the right time.
The

Key Aspects of Fleet Maintenance

Servicing. This is the routine work scheduled by the vehicle manufacturer in the service booklet which comes with every vehicle. Modern cars monitor their own condition by indicating through some form of dashboard message. Repairs. The need for attention to the major or minor parts of the vehicle which malfunction. Tyres. As the only contact between vehicle and road surface, tyres have to be in good condition for safety. Downtime. Any days off the road for mechanical failure should be monitored for costs (especially of a rental car is provided at an extra charge). Relief Vehicles. Related to the downtime issue above, but with much more important cost implications.

Tyres sizes

R - tire uses radial construction. 110 Service description and indicates load carrying capacity, m+s mud + snow use

TYRE WIDTH (WIDTH / PROFILE R RIM SPEEDRATING) This is the width of the tyre and is quoted in millimeters. TYRE PROFILE (WIDTH / PROFILE R RIM SPEEDRATING) The tyre profile is the depth of the tyre and is quoted as a percentage of the tyre width. RIM SIZE (WIDTH / PROFILE R RIMSIZE SPEEDRATING) This defines the diameter of the metal wheel on which the tyre fits. SPEED RATING (WIDTH / PROFILE R RIM SPEEDRATING) This code specifies the maximum speed at which the tyre can be used when in good condition. Please note that sensible safe driving is recommended at all times and
Speed Symbol F G J K L M Speed Rating 80 km/h (49 mp/h) 90 km/h (55 mp/h) 100 km/h (62 mp/h) 110 km/h (68 mp/h) 120 km/h (74 mp/h) 130 km/h (80 mp/h) Speed Symbol N P Q R S T Speed Rating 140 km/h (87 mp/h) 150 km/h (93 mp/h) 160 km/h (99 mp/h) 170 km/h (106 mp/h) 180 km/h (112 mp/h) 190 km/h (118 mp/h)

LOAD RATING (WIDTH / PROFILE R RIM LOADRATING SPEEDRATING) the maximum load the tyre can carry. For a given size of tyre there is usually little variation in load rating offered by different manufacturers.

Other tyre comparisons


Rib shape:

High Vs. Low profiles Sport Vs. Ordinary Pressure Tire design

The pattern aids faster water drainage and hence gives good traction on wet roads. commonly found on most tyres & suitable for all car types.

Assymetric pattern:The sides differ in pattern to give different functionality, the inside offers better cornering traction while the outside is designed to channel water away.

Block shape:The grooves are very small the tread pattern is very tight and close. Rarely used. Were common in the 90s.

ZigZag shape:A classic tread design for a van. Very successful in commercial usage because of the grooves that are cut in a zigzag.

Maintenance Tips
Checks performed between scheduled services reduce the chances of your vehicle breaking down. Try to establish a regular checking procedure, it need not be long and time consuming, just a few minutes each week if your vehicle is being driven under normal conditions.

Radiator: When the radiator is cold, check that the coolant level is within the range indicated on the overflow reservoir. Engine Oil: The oil level should preferably be checked when the engine is cold and not running and the vehicle is standing on a level surface. Wipe the dipstick and re-insert fully before checking. Tyres: Ensure tyres are inflated according to manufacturer's recommendations. Check for wear and irregularities. Lights: Check the operation of all lights, indicators and instruments. If a trailer is used remember to check its brake lights and indicators are operating. Windscreen Washer Fluid: Top up the reservoir with clean water. Battery: If your battery is of the serviceable type ensure fluids are topped up to recommended levels. Refer to the owner's manual for the correct procedure. Leaks: Observe the area where your vehicle has been parked to check for oil or other leaks. If you find any leaks, the vehicle should be returned to a servicing agent for inspection.

Safety

Safety is very important. Every new car must meet certain federal safety standards, - Doesnt mean that all cars are equally safe. Some vehicles are safer than others. Many automakers offer safety features beyond the required federal minimums. i.e. Crashworthiness, Structural design, Restraint systems, ABS, Daytime running lights, Size & weight

Why Accidents Occur?


Most frequent causes of accidents

Inattention to detail Speeding DWI/ DUI Driving too fast for conditions Failed to yield

Continuation
Other Factors:

Road conditions Weather related & Physical conditions Vehicle Maintenance Tires treadwear/pressure Brakes

Costs of Accidents
1.
Claims for damages to vehicles and property, injuries to motorists and passengers

2. Workers Compensation claims 3. General Liability claims 4. Damage to transported materials and equipment 5. Negligent Entrustment lawsuits and punitive damages

Rest Assured

Motor Comprehensive
A good policy should provide indemnity for; All Material Damage: i.e. the risk of accidental loss, fire and theft, including damage caused by fold, hurricane storm and tempest, earthquake, riots, strikes and civil commotions and malicious damage. Windscreen Extension: i.e. Reimbursement of costs incurred to replace or repair windscreen following damage or loss other than involving total loss of the vehicle. Third Party Liability: i.e. compensation to third parties for bodily injury or death caused by the use of your motor vehicles as required by statute.

What Employees Should Do

Stay at or under the speed limit, especially in trading zones. Leave a long following distance between you and the car in front of you, especially if there are heavy materials in the vehicle. There should be ample time to apply the brakes and come to a complete stop. Do not drive while fatigued or intoxicated, and dont engage in distracting activities, such as using a cell phone. Use safety belts. Limit the number of passengers in the vehicle to the number of safety belts available Participate in your companys vehicle training program.

What Employers Should Do

Conduct drivers license background checks on prospective drivers before they are hired. Establish a written policy requiring drivers and passengers to use seat belts at all times. Make sure that employees are aware of and comply with this written policy. Train drivers in safe driving practices and proper use of vehicle safety features. Make sure that this training is performance-based and periodically repeated. Maintain brakes and other safety systems on vehicles. Source for the best insurance policies that can protect your Employees and the company.