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Monitor and Control the Performance of the Vehicles and the Drivers

Measurement Fleet

In order to improve the performance of Fleet Management System, a system is required to monitor and control the performance of the vehicles and the drivers.

Prior of monitoring and controlling the performance of the vehicles and the drivers, there are three main areas to be considered and implemented:

1. Repair and maintenance of the vehicles. Procedures should be in place to ensure that the work is carried out at the appropriate time, to the appropriate standard and all records should be accurate and kept at vehicle level. Good repair and maintenance procedures are essential to ensure the effectiveness operational of a fleet. There are two things to be considered for this part:

  • Preventive maintenance. This to ensure that the vehicles are serviced and maintained at the correct time. Correctly maintained vehicles will be more efficient and less cost. This also will make the life of the vehicles will be extended and resale value also will be higher. Effective preventive maintenance will also enhance the safety of the drivers and passengers. It is important, therefore that the frequency of inspection of preventive maintenance is correctly established.
  • Repair situation. The procedures should be in place to deal with repairs of vehicles speedily and efficiently. The nature of repair and the reason for the repair needs to be identified. If there is an accident, all report and inspection of the vehicle to be reported in writing and copies of the report should be sent to all respective parties. All reports should be kept in the appropriate vehicle file.

2. Scheduling of the vehicles. This activity is to ensure that the right vehicles are available in the right condition, at the right place and time, to support all the planned of movement. This requires close and on-going liaison with the operational staffs. Information needs to be received from the operation staffs on the required number of vehicles and their movements and changes to activity whether planned or unplanned. Also information of non-availability of the vehicles should also be passed to all relevant parties. If non-availability of the vehicles creates shortage of resource to meet operational needs, then the fleet manager has the responsibility for securing short-term replacement vehicle to ensure operation can continue as planned.

3. Management of spare parts. The level and range of spare parts held in the garage or workshop will be influenced by factors such as the age, variety of vehicle, the usage of vehicles, etc. Procedures for spare parts will differentiate what are consumables and what are defined as spare parts. The procedures need to outline the decision rules to enable staff to decide on which parts are to be held and in what quantity. The procedures will also explain the process to be followed when identifying and requisitioning spared for service and maintenance work and who has the responsibility for re-ordering parts for stock replenishment. Parts should be ordered from authorize dealer or reputable sources that have been approved by the procurement function. The stock of spare parts needs to be accounted for and procedures need to be in place.

Once above three main areas are implemented, it is necessary to measure the performance of the vehicles and the drivers against the budgets that have been set. This monitoring and control will primarily involve measuring the availability and utilization of the vehicles and the running costs of it. The cost of operating a vehicle depends on a variety of factors, these grouped into the two costs, fixed costs – which are incurred whether the vehicle is moving or not and variable or running costs – incurred only when the vehicle is moving.

Cost

Fixed costs are easily recorded. This include wages, licenses, establishment costs for garaging of the vehicle, vehicle tax, insurance, depreciation or interest on the capital cost of the vehicle and any other fixed costs.

Running costs will be gathered from data related to the day to day activities of the vehicle. Running costs include fuel, lubricants, tires, maintenance, parking fee, toll fee etc. The level of maintenance costs is often directly attributable to the replacement policy. Fuel consumption will depends on the way that the vehicle is driven, the nature of the terrain over which it is driven and the age also fuel efficiency of the vehicle. In addition to those costs, there may be also being some capital costs and overhead costs which will complete the overall total cost figure. All information above should be completed in the vehicle logbook by the driver for every journey made. This logbook should be checked by fleet manager minimum once a week.

Vehicle Utilization and Performance

Productivity of the vehicles and the drivers are related to the utilization of those resources and the manner in which they performed.  Measuring performance of resources gives the required information that those resources are being used as effectively and efficiently as possible. In the planning stages for transportation resources, the calculations was made for required fleet size and the needs of the driver based on estimates of work to be done. Inefficient will result in unnecessary costs being occurred.

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Coordination is Essential for Emergency Response

Coordination

During the emergency/disaster response, we often hear the word coordination, coordinate, and the like. It is easy to say coordination and coordination, but in reality very difficult to run and achieve it. For example, during the emergency response of floods in Jakarta in early 2013, we noticed that a lot of turmoil distributions of basic necessities due to lack of coordination between the authorities, relief parties/donors and communities affected by the disaster. We saw from mass media, affected people at the evacuation centers complained that they have not received any aid, but on the other hand we also saw that a lot of aid has been given. The questions then where the given aid and why many affected people still complained not get it? Apparently at the time, a lot of aid have only been stored at posko and has not been given to the affected people due to lack of coordination!

Shortly after disaster struck, many people, individually, organizations and government agencies immediately plunged into the location and provide humanitarian assistance. All parties came with their own interests so often competing priorities occurred. It can be seen from the lack of services and support provided to the affected people/communities, one example as mentioned above. Another example is duplication of effort so it can create inappropriate assistance. I have experience the same situation when I was participating in the emergency response in one area sometime ago. At the time, almost all parties/donors sent food aid, until finally the affected people refused to accept any food aid. Actually what urgently required at the time is basic medicines and medical assistance, but due to lack of coordination in the management of information, therefore the aid as per requirement came very late.

Definition of coordination based on free dictionary artikata.com is regarding the set of an organization or activity to ensure that rules and actions to be implemented are not contradictory or confusing or we can say coordination is the regulation of diverse elements into an integrated and harmonious operation. Some synonyms for coordination are harmonization, alignment, organization, and synchronization.

From the above definitions and synonyms, we could see that coordination does not occur within the short time. Coordination should be done well long before the disaster. Coordination of emergency response must be made by all stakeholders from government, private sectors, other relevant organizations and communities itself.

In general, to be able to make a good coordination system, there are several things should be considered, namely:

  1. Participatory of all stakeholders involved in the emergency situation. The tasks of coordination within a structure and process agreed and supported by all of stakeholders. A person or an agency or organization designated as the coordinator should be able to build a good atmosphere and mutual respect among all stakeholders.
  2. Impartial. Coordination should aim to provide assistance in accordance with the requirements irrespective of ethnicity/race, religion, political choices/affiliate, gender or age. Attention should be given to the vulnerable groups, children, the elderly, the disabled and pregnant women. Coordination should not be made to favor one agency or organization over another.
  3. Coordination should be done in transparent way. Coordination requires trust from all of stakeholders. Every decision making process and the provision of information should be done in a transparent and honest, even in cases of failure remains to be informed and not be covered up to a certain interest.
  4. Should be beneficial to the affected communities and other stakeholders.

One of the first steps that could be done in order to have a good coordination in the emergency response is mapping the capacities of all stakeholders. This needs to be done in order to be able to identify and facilitate the process of involvement of each party at the time of emergency. In essence, this mapping noted:

  1. Who
  2. What
  3. When
  4. Where
  5. Why
  6. How

From the mapping, then we can see the capacity of the different stakeholders so that the division of tasks for emergency responses can be coordinated.

Categories: Disaster Management | Tags: , , , , , , | 1 Comment

Simple Ways to Measure Supply Chain Performance

We must be able to measure the existing supply chain performance and we also should able to see if the performance has improved.

SCM Measurement

In general, there are two ways that we can use to measure the performance of the supply chain, i.e. objective measure and subjective measure. Objective measure based on facts, preferably in the form of numbers. To be able to measure objectively, it requires setting up ways of recording for the performance of physical flow and information flow. Measurement of the performance of physical flow can be done through delivery performance, we need to record all request for goods/materials, when orders are placed, when orders are delivered/received, orders that are not delivered/received completely, etc. Measurement of the performance of information flow can be done through record all information concerning requests, delivery, returns/reverse or any information relating to the physical flow of goods / material.

There may be some aspects of performance which are either too difficult or not possible to measure in objective way. For these aspects, we have to use subjective measures. For example, subjective measures includes the views or perceptions of the people that cannot be supported by hard facts, this includes customers satisfaction surveys that can be done through questioners or direct interview.

With both ways as above, we then can make a matrix that focuses on the internal performance and the external performance.  External performance is performance that is done to the customer / buyer as well as the performance of all links in the supply chain. Internal performance will focus internally on the efficiency of the process, particularly the cost of carrying out all of the process.

Below is a simple way to measure the external performance:

1. Customer service, measurement includes:

  • Percentage of requests and orders fulfillment. The most used definition is on time, in full and error free. On time are orders delivered on or before date requested. In full are complete orders, and error free usually means complete based on the specification of the request, correct labeling and not damage.
  • Quality of the service provided. Included here is the information provided to the customer/buyer on the status of the goods / materials that are required/requested.
  • The flexibility provided.

2. Performance of supply chain links.

  • It is also important to measure different parties/actors involved in managing the whole supply chain. If these different parties/actors have different views what is required and they are using different matrix to manage and measure the performance, this can have a significant impact on the performance of the whole/total supply chain.

 

A simple way to measure the internal performance

Providing good customer service also must be done efficiently. Purely focused on managing and measuring customer service can lead to inefficiency and unnecessary costs. Below are simple ways to measure cost efficiency on the supply chain process:

  1. Total costs. These are the sum of all the supply chain costs including people who involved in the process and management costs.
  2. Inventory costs. Total costs of holding inventory in the whole supply chain.
  3. Inventory value. The value of inventory being held in the whole supply chain.
  4. Order management costs. Total costs involved in processing and managing orders.
  5. Cost of waste. Total costs involved in managing, returning and disposing of goods/materials which for different reasons are never used by the buyers/customers. This can include wrong goods/materials, damaged goods, expired goods, or goods/materials that arrived too late in the buyers/customers place, etc.
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Response – Disaster / Emergency Response

Airlift to speed up assistance to the affected people

Airlift to speed up assistance to the affected people

Previously, we have seen that response is the provision of assistances and services during or immediately after a disaster with primary goals to save lives, reduce the impact of the diseases or health-related, providing health services and providing basic needs required by the affected people/communities.

We can use a reference from The United Nations International Strategy for Disaster Reduction (UNISDR, 2009):

The provision of emergency services and public assistance during or immediately after a disaster in order to save lives, reduce health impacts, ensure public safety and meet the basic subsistence needs of the people affected.

As above reference, we can see there are two stages of response, namely:

  1. Response given immediately after a disaster or as we know is the emergency response.  The main activities at this stage are save lives and evacuation, fulfillment of basic needs and health care delivery. Emergency response period is usually set by the government for a certain period of time based on the recommendation from the agency or a special team tasked to assess and consider the conditions and impacts that occurred shortly after the disaster.
  2. Responses given during the disaster, this stage we know as well as the transition period. At this stage the provision of basic needs and health services still on-going and began providing assistance to improve vital infrastructure in order to support socio-economic activities as soon as possible. However, activities at this stage are temporary. Sometimes this phase continues until the recovery period.

Preliminary information about disaster events can be obtained from various sources, from the public reports, local government, mass media, the internet or other reliable sources. This early information must include the required data, namely:

  1. What: type of disaster
  2. When: day, date, time
  3. Where: location
  4. Who: number of casualties and infrastructure damage
  5. Why: the cause of the disaster
  6. How: what efforts have been made

Based on the preliminary information, the government or other professional organizations typically directly send their assigned Rapid Response Team to immediately conduct a quickly  and accurately assessment as well as provide the necessary support services for emergency response. In general, the team will conduct an assessment by using references from the initial information received and other secondary data. The report of rapid assessment must contain the necessary data, namely:

  1. Describes the type of disaster.
  2. Describes the exact time when disaster occurred.
  3. Describes the exact location or disaster area.
  4. Describes number of casualties (death toll, severe injured, minor injured, sick, missing) and the number of refugees, destruction of buildings and vital infrastructure that are damaged.
  5. Make a brief analysis of the causes of the disaster.
  6. Make a brief analysis of the available resources in the closest area to the disaster site and urgent resources needs.

From the report of assessment from Rapid Response Team, then usually the government will determine the status or level of disaster and set the next steps that should be taken to respond.

Categories: Disaster Management | Tags: , , , , , , , | 1 Comment

Ideas for Improving the Performance of the Supply Chain

Previously, we have seen that there are two types of flows that exist in the supply chain, i.e. the “physical flow” and the “information flow”. Here’s an outline about the functions of the two flows:

  1. Physical flow or goods/material flow is to ensure the right types of goods/materials, in the right quantities, and to the right quality are meet the requirement of customers. Activities in this flow are buying, making and moving.
  2. Information flow is to find what are the goods/materials needed by customer, what quantities are required, when and where are they required.

All the activities involved in the supply chain are to respond to this information.

Supply demand

We also have seen that there are five basic components of the supply chain management, i.e. plan, source, make, deliver, and reverse. From these five basic components, in general we can see there are three important things involves in the supply chain:

  1. Procurement and Order Management.  Source of goods/materials is key information for companies to meet the needs. From this information then we can make a further planning for delivery of goods to the customers/buyers.
  2. Transport. Transport is an important component that ensures goods/materials are moved efficiently in the right speed to meet the needs of customers/buyers.
  3. Warehousing and Inventory. These components are also a key component of the supply chain process. By warehousing, any inventory is being stored in the supply chain process.

Improving supply chain is about ensuring the flow of goods/materials and the flow of information is as effective and efficient as possible and removing any barriers there may be affected to those flows.

Below some ideas for improving the performance of the supply chain:

  1. Improve and increase communication between all units in the companies (internal) and all agencies/companies involved in the supply chain process (external). Lack of communication either internal or external may raise some problems in providing the needs to the customers/buyers. Sharing information also includes in this point. By sharing related information to other colleagues will help companies to meet the needs. Sometimes people kept latest information only for them or their unit to get applause from the management. But applause will be given only if the work is done well. If it is failed then we will blame each other. We also need to give correct information in order to avoid any problem. It is always better to double check the information before pass it to other.
  2. Improve coordination and manage all links in the supply chain in properly manner. This includes improving the knowledge of people involved on the supply chain process.
  3. Reporting. Good and clear reports as well as correct data are needed. For example, by creating a new database related to the movement of goods/materials from the sources until the customers/buyers. All related information such as procurement, storage, warehousing, and transport to be updated on daily basis.
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Fleet Management for Land Transport

Fleet management for land transport is the activity that supports the various land transport activities. This could relate to the management of vehicles involved in the movement of goods/cargoes/materials, the management of light vehicle fleets used in the transportation of people and light cargo, possible motorbikes and also other equipment such as warehouse handling equipment. Fleet management supports these activities through the management of the assets that are used.

Fleet Management

In general, the functions of fleet management for land transport as follows:

  1. Maintaining the assets/vehicles in an acceptable condition to ensure the safety and security of the goods and personnel to be moved.
  2. Make an appropriate systems and procedures that enable effective management controls to be in place. This includes vehicle maintenance, driver management, fuel management, vehicle tracking, also health and safety management.
  3. Monitoring and measurement of costs and the utilization and performance of the vehicles concerned. Fleet cost effectiveness involves not only the control of vehicle operating costs, but also their maintenance and repair, the spare parts stocks and also the replacement of vehicles at optimum point in their life.
  4. Ensuring that the vehicle, in terms of both numbers and composition, is balanced with the level of activity required.

There are number of areas to consider when setting up a vehicle fleet. Initially it is necessary to understand what will be done by the vehicles, what volume of work is envisaged and the area as well as environment in which the vehicles will operate. Once those are understood, suitable vehicles need to be selected and the support infrastructure decided. Procedures and systems need to be put in place to manage the fleet and measure, monitor and control its performance.

The physical condition of the road and environmental situation in which the fleet is to be used will influence the fleet composition. There will also be both general and specific operational needs to be considered. It is necessary to consider what is going to be transported, and any legislative or regulatory influences that may impact the use of vehicle in a fleet. It is also important to know the lead time that will elapse before the vehicles will actually be delivered as it may be necessary to rent vehicles.

Simple fleet report should provide data as below:

  1. Driver’s name
  2. Driver’s licence
  3. Plate / registration number
  4. Passenger or cargo
  5. Origin
  6. Destination
  7. Purpose of the travel
  8. Signature of passenger or receiver of goods/cargo
  9. Mileage
  10. Fuel consumption
  11. Maintenance / repair
  12. Remarks

This report should be checked on daily basis or at least weekly basis by fleet manager or person in charge.

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