Benchmarking Flashcards
How can benchmarking be used?
To develop an understanding of fleet conditions and performance that can’t be attained through first hand observations or second hand information.
How can Benchmarking create value?
- Focusing on areas of improvement
- Identifying ideas from other organizations to help improve performance
- Creating a strategy on how the organization can move forward
- Making informed decisions based on improved knowledge
How do you determine your objectives and measure them?
- Define objectives
- Define measurement criteria and method
What data should be collected in order to benchmark?
Accessibility to good data. First collect internal data and then externally (peers, vendors, contractors or manufacturers).
What are some common performance measurements?
- Total operating cost per mile
- Total lifecycle cost per mile
- Fuel efficiency
- Vehicle utilization
- Vehicle downtime
- Crash costs
How can benchmarking identify what conditions and practices should be changed within the organization?
- Comparing quantitative performance levels across organizations to identify best business practices
- Process mapping and gap analysis can find weak links that cause organizational inefficiency.
List some common processes that can be improved in order to improve performance.
- Work scheduling
- Exception reporting
- Employee training
- Communication
- Quality assurance
- Incentives/rewards
- Acquisition method/policies/practices
What are some of the more common benchmarking topics?
• Vehicle availability or downtime rate
• In-service breakdown rate
• Ratio of actual to budgeted expenses
• PM schedule adherence rate
• Work order turnaround rate
• Average maintenance and repair backlog
• Mechanic productivity rate
• Total life cycle cost
• Total cost per mile/kilometer
• Direct/billable hours by mechanic
• Efficiency rate by mechanic
• Repair comeback rate by mechanic
• Parts order fill rate: percentage of orders filled from stock
• Parts order fill time
• Inventory turnover rate
• Inventory utilization rate: percentage of inventory lines used in last 12 months
• Technician to supervisor ratio
• Technician to parts technician ratio
• Ratio of administrative and managerial personnel to direct service personnel
• Ratio of vehicles to fleet management personnel
What are performance metrics?
System of parameters and periodic assessment of a process that is being measured. The metrics tracked are called key performance indicators.
List some common performance metrics.
• Maintenance cost per mile or km
• Maintenance cost per vehicle specification
• Overall fuel consumption
• Number and frequency of breakdowns
• Number and frequency of technician road calls
• Hours of service lost
• Schedule hours versus actual hours
• Average vehicle utilization
• Average collision rate
What can performance metrics be used to achieve?
• Identify areas for improvement
• Illustrate good performance (particularly to management)
• Help achieve goals and objectives
• Build a business case to obtain more resources
• Build a business case to change method of doing business (i.e. outsource, in-house, etc.)
• Emphasize value to clients or management
• Improve client satisfaction
• Help establish budgets
• Refocus priorities
• Measuring a contractor’s performance
• Regulatory compliance
• Improve productivity
• Improve equipment productivity and effectiveness
• Control maintenance costs
What do performance metrics show?
Indicators of tactical day to day performance and strategic long term performance trends. Provide a quantifiable method to evaluate performance and compare to past performance and/or peer organizations.
List some performance reports appropriate for each level of audience.
Customer: vehicle availability, actual to budgeted expenses
Fleet Manager: PM compliance rate, average maintenance, fuel consumption, total LCO
Maintenance manager: billable hours, efficiency rate, repair turnaround rate
Parts Manager: part order fill time, inventory turnover rate
What are some of the more common reporting tools?
Balance scorecard and digital dashboards.
Why is it important to measure performance?
To know if you are performing services the client requires and how well.
What are some objectives of an effective fleet operation?
- Keeping vehicles in good operating condition
- Keep maintenance facilities in safe and functional state
- Perform quality work
- Anticipate and prepare for future organization priorities
- Strive for continued improvement by evaluating performance, taking corrective action and measuring progress.
What do you need in order to have an effective fleet operation?
Policies and expectations that serve to guide staff in supporting activities.
What is the biggest obstacle facing Fleet Managers?
Being forced to do more with fewer resources.
What are some components of an FIMS that would be useful to a Fleet Manager?
- Equipment data management
- Work order control
- Preventative maintenance
- Inventory control
- Documentation control
- System security
- Customizable reports
What are two events when the FIMS should alert the Fleet Manager?
When work is covered by warranty and when costs deviate from contract rates.
What are some key steps to establishing effective exception reporting?
- Decide what is important enough to track
- Prioritize what to check, how often to check and who is responsible
- Establish exception reporting thresholds
What are exception reporting thresholds?
The difference between an “exception report” and standard informational reports is that only data outside the norm is shown, or highlighted for easy identification.
What is a Service Level Agreement (SLA)?
A negotiated agreement that creates a common understanding of needs and priorities. Can serve as a conflict prevention tool.
What service elements must be clarified in the SLA?
- Maintenance or other services provided
- Service standards ie. Time frames
- Responsibilities of both parties
- Costing details
