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.
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.