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CAFM - Financial Management > Benchmarking > Flashcards

Benchmarking Flashcards

1
Q

How can benchmarking be used?

A

To develop an understanding of fleet conditions and performance that can’t be attained through first hand observations or second hand information.

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2
Q

How can Benchmarking create value?

A
  • 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
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3
Q

How do you determine your objectives and measure them?

A
  • Define objectives
  • Define measurement criteria and method
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4
Q

What data should be collected in order to benchmark?

A

Accessibility to good data. First collect internal data and then externally (peers, vendors, contractors or manufacturers).

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5
Q

What are some common performance measurements?

A
  • Total operating cost per mile
  • Total lifecycle cost per mile
  • Fuel efficiency
  • Vehicle utilization
  • Vehicle downtime
  • Crash costs
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6
Q

How can benchmarking identify what conditions and practices should be changed within the organization?

A
  • Comparing quantitative performance levels across organizations to identify best business practices
  • Process mapping and gap analysis can find weak links that cause organizational inefficiency.
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7
Q

List some common processes that can be improved in order to improve performance.

A
  • Work scheduling
  • Exception reporting
  • Employee training
  • Communication
  • Quality assurance
  • Incentives/rewards
  • Acquisition method/policies/practices
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8
Q

What are some of the more common benchmarking topics?

A

• 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

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9
Q

What are performance metrics?

A

System of parameters and periodic assessment of a process that is being measured. The metrics tracked are called key performance indicators.

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10
Q

List some common performance metrics.

A

• 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

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11
Q

What can performance metrics be used to achieve?

A

• 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

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12
Q

What do performance metrics show?

A

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.

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13
Q

List some performance reports appropriate for each level of audience.

A

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

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14
Q

What are some of the more common reporting tools?

A

Balance scorecard and digital dashboards.

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15
Q

Why is it important to measure performance?

A

To know if you are performing services the client requires and how well.

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16
Q

What are some objectives of an effective fleet operation?

A
  • 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.
17
Q

What do you need in order to have an effective fleet operation?

A

Policies and expectations that serve to guide staff in supporting activities.

18
Q

What is the biggest obstacle facing Fleet Managers?

A

Being forced to do more with fewer resources.

19
Q

What are some components of an FIMS that would be useful to a Fleet Manager?

A
  • Equipment data management
  • Work order control
  • Preventative maintenance
  • Inventory control
  • Documentation control
  • System security
  • Customizable reports
20
Q

What are two events when the FIMS should alert the Fleet Manager?

A

When work is covered by warranty and when costs deviate from contract rates.

21
Q

What are some key steps to establishing effective exception reporting?

A
  • Decide what is important enough to track
  • Prioritize what to check, how often to check and who is responsible
  • Establish exception reporting thresholds
22
Q

What are exception reporting thresholds?

A

The difference between an “exception report” and standard informational reports is that only data outside the norm is shown, or highlighted for easy identification.

23
Q

What is a Service Level Agreement (SLA)?

A

A negotiated agreement that creates a common understanding of needs and priorities. Can serve as a conflict prevention tool.

24
Q

What service elements must be clarified in the SLA?

A
  • Maintenance or other services provided
  • Service standards ie. Time frames
  • Responsibilities of both parties
  • Costing details
25
Q

What management elements must be clarified in the SLA?

A
  • How service effectiveness will be tracked
  • Communication
  • Conflict resolution
  • Procedure review
26
Q

What are the key steps in establishing maintenance services?

A
  • Data gathering
  • Consensus between parties
  • Outline responsibilities of both parties
  • Draft, implement and manage the agreement
27
Q

What are the benefits of a service level agreement?

A
  • Clear performance expectations of customer and provider
  • Clarifies the roles and responsibilities
  • Focuses attention on customer’s priority needs
  • Encourages continuous improvement
  • Customer can monitor performance
  • Service provider can plan their delivery function
28
Q

What is a service level?

A

Similar to standards but term is used for organization wide performance. An agreed measure.

29
Q

List some performance indicators that could be included in an SLA.

A
  • Quantity
  • Quality
  • Timeliness
  • Cost
30
Q

Why is it important to consult with customers when establishing performance indicators?

A

Creating performance measurements is part of the benchmarking process. Important to consult with your customers to find out what they want and with your employees to find out what they need to achieve success.

31
Q

List some best practices for developing accountability.

A
  • Lead by example
  • Cascade accountability
  • Keep employees informed
  • Keep customers informed
  • Create accountability
32
Q

What are some guidelines for collecting data?

A
  • Invest time and money to make it right
  • Make sure your data means something
  • Understand all data cannot be collected from one place
  • Measure the right data and accurately
  • Centralize data collection function
33
Q

What are some guidelines for analyzing the data collected?

A
  • Combine feedback and performance data
  • Conduct root cause analysis
  • Make results accessible to review
34
Q

What critical elements must be connected in order to drive actions?

A
  • Connect to employees and customers
  • Connect to the business plan
  • Integrate with data systems
  • Integrate with the budget process
35
Q

What are some qualities and activities that a good leader possesses?

A
  • Communicate with employees, customer and stakeholders
  • Use self-assessment tools
  • Involve employees, customer and stakeholders at each phase
  • Involve unions early

CAFM - Financial Management (7 decks)

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