Shop Operations Flashcards
2.1.1 Understand downtime and how it effects operations. (p. 93)
When vehicles are needed but aren’t available – the definition of effective downtime – then there is no value being generated to offset the cost of the investment
2.1.2 Identify several strategies to use when service demands increase. (p. 93)
• Lower Service Levels
• Add Capacity with a New/Expanded Facility
• Added Staff & Shifts
• Out-source/Out-task Supplementation
2.1.3 How can Fleet Information Management Systems improve service and dependability? (p. 94)
Accurately coding work in the manner described in the example above allows the cost and downtime for various types of scheduled and unscheduled work to be tracked separately.
It also permits follow-up action and trend analysis over time to occur.
2.1.4 What is the difference between Preventive and Predictive Maintenance? (p. 94)
Preventive maintenance (PM) is defined as services and/or checks scheduled based on measurable
intervals which are designed to keep vehicles and equipment functioning properly.
2.2.1 When should the decision to perform a function in-house or out-source be made?
When determining how to structure your fleet
2.2.2 Identify the factors that might influence your decision to out-source a function. 101
depends on who can do the job for the lowest cost, highest quality, and/or quickest
specialty work should usually be outsourced because the vendor can probably beat the shop on cost, quality and speed
2.2.3 Identify how to measure technician productivity. (p. 103)
Establishing “Book times” for light- duty vehicles are readily available in various guidebooks and on-line guides accessible through subscription.
Job times for medium- and heavy-duty chassis are also increasingly available from these sources.
Job times for truck bodies, ancillary equipment, specialty vehicles, and off-road equipment are more difficult to determine. In many cases fleets can acquire times allowed for warranty repairs by the manufacturer and use those
2.2.4 Understand the factors that influence a decision to outsource a shop operation.
The answer depends on who can do the job for the lowest cost, highest quality, and/or quickest. A
- specialty work should usually be outsourced because the vendor can probably beat the shop on cost, quality and speed.
When the shop has a backlog, it is probably wise to outsource some work if the quality is comparable and the customer will get it back quicker even if the direct cost is a little higher.
Don’t forget that there is an opportunity cost to effective downtime which must be considered in the overall customer satisfaction equation.
2.3.1 Understand how to construct a flow chart and why it is an important tool. (p. 105)
Constructing a flow chart involves the following main steps:
- Define the process and identify the scope of the flow diagram.
- Identify project team members that are to be involved in the construction of the process flow diagram.
- Define the different steps involved in the process and the interrelationships between the different steps (all team members should help develop and agree upon the different steps for the process).
- Finalize the diagram, involving other concerned individuals as needed and making any modifications necessary.
- Use the flow diagram and continuously update it as needed.
2.3.2 Understand how to design and use a Standard Operating Procedure? (p. 112)
SOPs should be written in a concise, step-by-step, easy-to-read format. - SOPs should be written with sufficient detail so that someone with limited experience with or knowledge of the procedure, but with a basic understanding, can successfully reproduce the proce-dure when unsupervised.
2.3.3 Know how to prepare for and respond to emergencies. (p. 122)
Emergency Response Plan (ERP) or Business Continuity Plan (BCP) organized into various sections based on emergency responsibilities and implemented through an Emergency Operations Center (EOC). The EOC is usually organized into functional sections or teams patterned on the National Incident Management System (NIMS).
These areas are:
• Policy Group – Responsible for overall policy recommendations and decisions.
• Management – Responsible for the overall emergency direction and coordination.
• Planning and Intelligence – Responsible for collecting, evaluating, and disseminating
information; developing the organizational level action plan in coordination with the
EOC; and maintaining documentation.
• Operations – Responsible for coordinating departmental response to the emergency
through implementation of the organizational action plan.
• Logistics – Responsible for providing facilities, services, personnel, equipment and
materials.
• Finance – Responsible for financial and administrative activities not assigned to other
functions.
2.3.4 Understand how labor rates are constructed. (p. 120)
Employees who generate billable hours as a mechanism to recover all costs associated with their activities can use a labor rate
- costs typically include the billable employee’s salaries and benefits, other administrative and personnel overhead costs to support the operations, utilities, maintenance of infrastructure, environmental, and any infrastructure capitalized costs (such as buildings, furniture, equipment, storage shelves, etc) amortized over its life expectancy
For example, an overall shop labor rate of $58 per
hour may translate into $30 per hour being charged for small engine work, $40 per hour being
charged for the light-duty vehicles, $65 per hour being charged for heavy-duty vehicles, and $80
per hour for off-road equipment
2.3.5 Understand the Cost Allocation Spectrum. (p. 131)
The Cost Allocation Spectrum differentiates between knowing costs, allocating costs and billing for costs. - With this is mind, the positions identified on the spectrum can be further described as follows:
• Position A organizations do not track the costs of fleet operations. Fleets are given a
central budget, pay the bills as they occur and are not overly concerned with recovering
these costs from customers, or even having full knowledge of what these costs are. This
might be the case for a very small fleet where the costs of tracking expenses outweigh the
value gained.
• Position B fleets operate in a similar fashion except that they know the majority of their
costs. For a variety of reasons, they fund these costs centrally and do not allocate them to
customers.
• Position C fleets know their costs and allocate them to customers, but do not recover from
their customers by billing.
• Position D fleets know and allocate operating costs and bill customers for them. They
operate a general (capital) fund for vehicle replacement.
• Position E fleet departments know, allocate and bill for the majority of operating and
capital costs related to fleet.
• Position F fleets have a comprehensive system that tracks even incidental and all over
head costs. These are allocated or charged to customers through a variety of rates and/or
surcharges that will be discussed in the next chapter.
2.3.6 Know the three fund structures. (p. 131)
general fund: fleet department receives an annual bud- get allocation to cover costs of fleet operations
internal service fund: financing of goods and services provided by one department or unit to other departments or units of the same organization on a cost reimbursement basis.
enterprise fund: main distinction between an internal service fund and an enterprise fund is that in the case of the latter, at least some of the customers are external
