Fleet Maintenance from the Operational Perspective

TableofContents
1.
2.
3.

4.

5.

Introduction................................................................................................................3
CapitalAssetManagement.........................................................................................5
2.1. EquipmentSelectionprocess...........................................................................5
MaintenanceManagementBasics..............................................................................6
3.1. TheGoalsofFleetMaintenanceManagement................................................6
3.2. RepairStrategies...............................................................................................7
3.3. TheCostofAvailability.....................................................................................8
3.4. MaintenanceTypes..........................................................................................9
3.4.1. CorrectiveMaintenance(CM)...................................................................9
3.4.2. PreventiveMaintenance(PM)..................................................................9
3.4.2.1. ScheduledMaintenance......................................................................10
3.4.2.2. PredictiveMaintenance.......................................................................10
3.4.2.3. ReliabilityCenteredMaintenance.......................................................11
Figure3.2..............................................................................................................12
3.4.2.4. OtherTypesofPreventiveMaintenance............................................12
3.5. MaintenanceManagementTools..................................................................13
KeyPerformanceIndicators(KPIs)............................................................................14
4.1. OperationalKeyPerformanceIndicators.......................................................14
4.1.1. Reliability.................................................................................................15
4.1.2. Availability...............................................................................................15
4.1.3. Maintainability........................................................................................15
4.1.4. SpareRatios.............................................................................................16
4.1.4.1. SpareRatioCalculations......................................................................16
4.1.4.2. OperatingCostperMile/Hour.............................................................17
4.2. MaintenanceProgramKeyPerformanceIndicators......................................17
4.2.1. ShopStaffKeyPerformanceIndicators..................................................18
4.2.2. Productivity.............................................................................................19
4.2.3. Efficiency.................................................................................................19
4.2.4. StandardRepairTimes............................................................................20
4.2.4.1. Proficiency...........................................................................................21
InformationManagement........................................................................................23
5.1. ComputerizedMaintenanceManagementSystems(CMMS)........................23
5.1.1. CMMSProgramSelection.......................................................................24
5.1.2. CMMSInformationNeeds.......................................................................24
5.1.2.1. TombstoneInformation......................................................................24
5.1.2.1. FaultCodes..........................................................................................25

Fleet Maintenance from the Operational Perspective

6.

7.

8.

5.1.2.2. OperatingData....................................................................................26
5.1.2.3. LabourandMaterialsCoding..............................................................27
MaintenancePlanning..............................................................................................28
6.1. OrganizationalSupport...................................................................................28
6.2. Resourceconsiderations................................................................................28
6.2.1. StaffTraining...........................................................................................29
6.2.2. GoalSetting.............................................................................................29
6.3. StrategicPlanning...........................................................................................29
BusinessManagement..............................................................................................30
7.1. PreferredVendors..........................................................................................30
7.2. ServiceLevelAgreements...............................................................................30
7.3. PurchasingProcesses......................................................................................30
RiskManagement.....................................................................................................32
8.1. ComplianceandRegulations..........................................................................33

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Fleet Maintenance from the Operational Perspective

1. Introduction
Fleet management in the 21st century is becoming increasingly more challenging with
regulatory and technological evolution. The definition of a well managed fleet can be
much different from the operational and maintenance perspectives. Fleet operators1
are often frustrated when maintenance goals appear to be at odds with the needs of
operations.

Fleetoperatorsofwellmanagedfleetsusekeyperformanceindicators(KPIs)toidentify
problemsandfinetunetheirfleetoperations.Theprimarymetricforfleetoperatorsis
availability. When equipment is not operational, revenue cannot be generated or
expenses paid. There are many other methods of measuring fleet operational
performance, but most of the views are beyond the scope of this training. Two
additional KPIs which will be examined are maintainability and reliability. All three of
the measurements are used by fleet maintenance managers who are sensitive to
operationalissues.

Typically, maintenance management information is written for people who are

maintenanceprofessionals.Manyfleetoperatorsarenotfamiliarwiththemaintenance
management tools used to measure fleet performance. Maintenance staff have skills
whichallowthemtomaintainequipmentquicklywhilecontrollingexcessivecost.

Fleet operational management becomes even more challenging when an organization

does not have an inhouse maintenance facility. Third party repairs mandate the
dedication of company staff for maintenance management. This is necessary because
third party maintenance providers are profit driven and may have priorities which do
notincludelifecyclecostreduction.

Repairsservicesperformedbythirdpartyvendorsrarelyconstitutefleetmanagement.

Employees assigned by the fleet operator to manage third party maintenance rarely
havestrongmaintenancemanagementskillsandneedguidancetobesuccessful.
Theyessentiallybecomeamaintenancemanagerwithoutthebenefitoftechnicalskills,
trainingoradedicatedstaff.

Afleetoperatorforthisdocumentisdefinedasanowneroranoperationsmanager.

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There are many different opinions regarding Best Practices in maintenance

management.Twoapparentlyconflictingviewsmaybothhavevalue.Awarenessofthe
basicsandaplantoimprovearethefirststepsinreducingthelifecyclecosts.Returnon
investmentisoftenapleasantsurprise.

The information contained in this document is designed to help the fleet operator to
better understand the fleet maintenance view. The goals an enhanced working
environment,reducedlifecyclecostsandincreasedequipmentavailability.

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2. CapitalAssetManagement
Fleet maintenance managers in well run organizations have a wealth of equipment
operatingknowledgewhichcansavethefleetoperatortimeandexpensewhenusedto
specify new assets. Most maintenance managers are too highly tasked to have
significant participation in the equipment acquisition process, but their cost and
reliabilityinformationcanreducelifecyclecosts.

2.1. EquipmentSelectionprocess
In all but the smallest fleets, most fleet maintenance managers do not have
sufficientrouteknowledgetoselectequipmenttomatchthebusinessneedsofthe
company.Howevermaintenancevariancereportswhichshowabnormallyhighcost
trendscanbeanalysedtodrivecomponentspecificationswhichwillreducefailures
and operating costs. For example, fuel consumption comparisons of power train
configurations and other cost per mile/hour of operation on similar routes give
verifiabledatawhichisnotjustasalesestimate.
The information can only be retrieved through use of a CMMS which is properly
implementedandsupported.Thefleetmaintenancestaffmustbetrainedtocreate
andinterpretreports.

Thesestatementsseemobvious,butasweprogressthroughthisdocument,itwill
bedemonstratedthatfleetoperatorsneedto:
1. Dedicate resources to build the infrastructure needed to create verifiable
data.
2. Analyseoperatingcostdatafromthemaintenanceperspective.
3. Engagemaintenancestaffwhenmakingassetspecificationdecisions.

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3. MaintenanceManagementBasics
This section is designed to demonstrate some basic principles of fleet maintenance
management.Thetoolswhichareusedtomeasureandanalysefleetoperationsdiffer
fromthosewhichareusedtoassessmaintenanceoperations.

3.1. TheGoalsofFleetMaintenanceManagement
ThebasicgoalsofFleetmaintenancemanagementinpriorityareto:

Managerisk
Minimizeassetlifecyclecosts
Minimizeoperationalcosts
Maximizeequipmentavailability

Risk management used to be a subconscious result of good maintenance

management,butwiththepassingoflegislationsuchasBillC45,ithasbecomea
significantpartofeverydaydecisionprocesses.
Notice that the order of importance of the last three goals is the reverse of
operationalneeds.Thisisbecausethemaintenancecommunitytrainstheirpeople
to control costs first. This focus often causes conflict with operational groups who
focusonrevenuegenerationandthirdpartyrepairfacilitiesthatareprofitdriven.
Notethatoperatingcostperunit2meterreadingisnotmentioned.

Arbitrarilyreducingfleetspend3isacommonmistakemadebydecisionmakersinan
attempt to mitigate equipment lifecycle costs. This approach only defers, and
ultimately,increasescosts.Itcreatesasystemwhichisnotsustainable.Thecorrect
methodsofreducingequipmentoperatingcostsareto:

a. Reduceutilization.
b. Reduceassetcount(Individualunitutilizationmustremainconstant).
c. Reduceaverageassetlifecycle(Averageassetage)
d. Optimizeassetspecification.

Mile,kilometerorhourforexample.
Reducingcapitalandmaintenancedollarspend,frequencyofservice,reducingqualityofmaterialsetc.

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e. Improvemaintenanceprocesses.

Mostfleetoperatorswishtogrowtheirsales.Ifacompanyhasoverreachedtheir
optimumsalesmassduetologisticalorotherreasons,thena.andb.arepractical
options.

It becomes clear that the last three options, c., d. and e. are the only methods
whereby a fleet operator can reduce costs without having a negative impact on
availability, unless the ratio of spare vehicles is too high. Obviously, to action the
beneficial methods, an organization must make an initial investment in order to
realize the benefits of improved fleet maintenance management. As well, all
participantsfromtheshopfloortoseniormanagementmustembracethecultureof
change. Lastly, the prescribed changes must be resourced properly to ensure
success.

Thefocusofthiscoursewillbetodiscusstheimprovementinthefleetmaintenance
processes. Lifecycles and asset specifications will be considered when they affect
maintenanceoptimization.

3.2. RepairStrategies
Fleetsusuallyhavethreebasicchoicesformaintenanceandrepairs:
Performrepairsonsite
Outsourcerepairstoathirdparty
Acombinationofboth

Fleet operators should study the factors which affect shop efficiencies even when
their repairs are fully outsourced. One of the best practices of modern fleet
managementistocreateservicelevelagreementswithvendors.Anelementofthe
service level agreement with a service provider should be transparent information
exchange regarding the performance of the vendors employees. Other factors
which affect vendor performance such as customer specific parts should also be
included.SeethebasicsampleofaservicelevelagreementinappendixXX.

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3.3. TheCostofAvailability
Equipment operating costs are composed of maintenance and repair expenses as
well as the costs of maintaining availability. What is the cost of availability? When
welookattheformulaforavailabilityandunderstandtheconceptwecancalculate
thecost.
Availability is explained in section 3.1.2. Increased asset availability is usually
proportional to maintenance cost. Figure 2.1 is a typical graphical relationship of
availability vs. cost over time, when a vehicle is placed out of service due to
breakdown.

Figure3.1

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Fromthegraphweseethatincreasingavailabilityalsoincreasescost.Themetrics
aregeneral,buttherelationshipsequivalent.Thecostofrepairisnotlinearin
relationtotime.Eachfleetoperatormustdeterminetheiroptimumcostof
availability.Someoperatorshavelimitedopportunitytocontroltheircostof
availabilityduetolowspareratiosandhighadvertisedservicestandards.

Someotherfactorsaffectingmaintenanceandrepaircostsingeneralare:
Shopefficiencies(labour)
Materialscosts
Preventivemaintenanceprogramsetup
Operatorbehaviour
Warrantyrecovery
Spareratios

3.4. MaintenanceTypes
Therearetwobasicmaintenancetypes,correctiveandpreventive.

3.4.1. CorrectiveMaintenance(CM)
Correctivemaintenanceisalsocalledreactivemaintenance.Thisistherunto
fail scenario. Some operators feel that it is an acceptable method of
maximizing component lifecycles, but it is usually an indication of poor
planning and results in reduced equipment availability, increased operating
costsandaddedcorporaterisk.Itisthemostcommontypeofmaintenancein
NorthAmericaandshouldbeavoided.

3.4.2. PreventiveMaintenance(PM)
There are many types of preventive maintenance. Scheduled maintenance is
commonly mislabelled as Preventive Maintenance. Many fleet operators
believe that scheduled maintenance is the best method of maintenance cost
control. In fact, scheduled maintenance is only a starting point for
management of fleet maintenance and there are many more methods of
reducingcostandmaximizingequipmentavailability.Thiscoursewillexamine

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three types of preventive maintenance which are relevant to commercial

transport Scheduled Maintenance, Predictive Maintenance and Reliability
CenteredMaintenance.

3.4.2.1. ScheduledMaintenance
Scheduledmaintenanceissimplydefinedastheservicingofequipmentona
plannedbasis.Thefrequencyofserviceiscommonlybasedonchronological
time,distancetravelled,hoursofoperationoracombinationofthethree.
Regular oil changes and tire rotations are good examples of preventive
maintenance tasks whose value is understood by accepted by fleet
operators.

Scheduled maintenance is the least effective preventive maintenance for

controllingcostsandmaintainingequipmentavailability.Itisthemostused
type of preventive maintenance in North America because it is easily
understood and implemented. It is a significant contributor to the poor
industrialproductivityratingsofNorthAmericanindustry.Itsrootsgoback
to World War Two when some method had to be found to keep military
equipmentavailableduringoperationsandwheninstorage.
In spite of the inefficiencies built in to scheduled maintenance,
implementation will greatly improve equipment availability and cost
reduction will be a minimum of 12% to 18% when compared corrective
maintenance. Return on investment will depend on the current state of
affairs,butinonecase,aKelRoycustomerrealizedanROEin11days.
3.4.2.2. PredictiveMaintenance
Predictive maintenance can be defined as service or repair based on the
conditionofthecomponents.Predictivemaintenanceisoftenreferredtoas
Condition Monitoring Maintenance, but it is usually made possible by
condition monitoring. It is the next logical improvement over scheduled
maintenance.Acomponentcanbedefinedasanyitemwhichhasalifespan.
Some examples of predictive replacement items are fluids, components
whichcannotbelubricated,batteriesetc.Forexample,oilintervalscouldbe
extendedorreducedbasedonoilsampling.Thechangeinfrequencywould
bedesignedtomaximizeoillifecycleorreducemajorcomponentwear.
Predictive repair or replacement triggers depend on measurement of
existingitemsinfrequencieswhicharesignificantlylessthantheestablished
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lifespan of the item. The measurements can be sensor, sample analyses,

historicaltrendoranyothermethodwhichiseffective.

3.4.2.3. ReliabilityCenteredMaintenance
Reliability Centered Maintenance4 has a least two distinct definitions in
industry.

1. In industries where equipment failure must be reduced to the lowest

possiblelevelI.E.Medicineoraviation,targetsareestablishedforfailure
percentagesandbudgetsbuilttosupportthegoals.

2. In budget constrained industries it is a planned strategy which utilizes

predictive maintenance, trend analysis and equipment prioritization
combined operational key performance indicators to develop a
complete maintenance program. It is a method which combines many
detailstoachievehighlevelgoals.Ratiosbetweencorrective,scheduled
andpredictivemethodologiesareactivelymanaged.

ThebenefitsofRCMdifferdramaticallyfrombusinesstobusinessand
implementationsarerarelysimilar.Theconceptwasoriginallyconceivedin
theaviationindustrybecauseoftheimportanceofunanticipatedfailures.
RCMissimilartotheTotalProductiveMaintenancemethodembracedby
themanufacturingsector.Itismakinginroadsinthemoreprogressive
commercialtransportandoffroadequipmentfleets.

Part of RCM is a continuous improvement philosophy which does require

ongoinginvestmentinprocessimprovement.StudieshaveshownthatROE
rarely exceeds three months and that benefits precede investments
thereafter.

RCM is a worthwhile venture and can give a company a competitive

business edge with reduced operating costs and greater equipment
availability.

RCM

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Studies of equipment maintenance costs versus the type of maintenance

implementationsshowdramaticreductionsinmaintenancecosts.Onesuchstudyby
JohnPiotrowskiin2001gavetheresultsshowninfigure3.1

Figure3.2

3.4.2.4. OtherTypesofPreventiveMaintenance
Thissectionhasdemonstratedafewofthecommonmaintenanceprograms
which are commonly used to manage assets. Many more programs exist
which can provide significant reductions in maintenance cost and still
increaseassetavailability.Thepurposeofthissectionwastodemonstrate
that preventive maintenance is not just scheduled maintenance. The
programs discussed are in common use in well run fleet maintenance
facilities.

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3.5. MaintenanceManagementTools
Skilled fleet managers have a number of performance measurement tools at their
disposaltohelpthemmanagetheirfleetsanddrivecontinuousimprovement.
Corrective to preventive repair ratios will monitor the effectiveness of the
preventivemaintenanceprogram.
WorkerKPIswillhelptoidentifytraining,departmentalsupportandskillset
problems.
Failurecodes5willidentifyweaknessesinthefleetspecification.

Thegoalofthiscourseistohelptheoperationalprofessionalunderstandthe
maintenanceview.Conversely,amaintenanceprofessionalwhounderstandsthe
importanceofoperationalissues,willalsoappreciatetheKPIsassociatedwithasset
operationalperformance.BasicoperationalandmaintenanceKPIswillbediscussed
inthefollowingsection.

Failurecodesarealsoknownasfaultcodes.

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4. KeyPerformanceIndicators(KPIs)
For the purposes of this course the differences in some of the operational and
maintenanceorientedkeyperformanceindicatorswillbeexplained.

Without a method to measure equipment performance we cannot compare

performance improvements or set goals. Some fleet operators and maintenance
managersmayuseselfdesignedKPIswithmixedresults.

4.1. OperationalKeyPerformanceIndicators

Reliability
Availability
Maintainability
Spareratios
Operatingcostpermile/hour

In order to understand the calculation of the following KPIs the reader needs to
know the difference between preventive and correctivei maintenance. Preventive
maintenancerepairsarethoserepairswhichareplannedinadvanceandgenerally
performed on work orders triggered by a maintenance management program6.
Therearemanytypesofpreventivemaintenanceroutines7.

Corrective8repairsarerepairswhicharenotplannedandwhichareinitiatedbythe
failure of a component prior to its scheduled replacement frequency or for which
there is no scheduled replacement frequency. If a failed component is found on a
preventivemaintenancerepair,whichisnottobereplacedinthenormalcourseof
repair,thatportionoftherepairshouldbedesignatedasacorrectiverepair.

Computerizedormanual
Frequencybased,predictive,reliabilitycentered,
8
SometimescalledReactive
7

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Theabilitytoseparatepreventiveandcorrectivemaintenancerepairswhen
calculatingthefollowingKPIsallowsabetterunderstandingoftherootcauseof
poorpeformancemetrics.

4.1.1. Reliability9
ThisisnottobeconfusedwiththefinancialreliabilityKPIsusedtodetermine
thecosteffectivenessofamaintenanceprogram.

Reliability is defined as the average time between failures the formula looks
like:

ScheduledOperatingTime[minutes]TimeOutofService[minutes]
=minutesReliability
NumberofFailures

Inordertobeabletobeabletousethisindicator,themaintenancemanager
mustknowthescheduledoperatingtimeoftheequipment(planned)andbe
able to report on the number of failures. A common mistake is to combine
preventivemaintenancerepairswithcorrectiverepairswherepartshadbeen
orderedinonapreviousrepairorder.

4.1.2. Availability
Availabilityisdefinedastheaveragepercentofscheduledoperatingtimethe
equipment was available for use (i.e. not out of service from equipment
failure).

ScheduledOperatingTime[minutes]TimeOutofService[minutes]
X100=%Availability
ScheduledOperatingTime[minutes]

4.1.3. Maintainability
Maintainabilityreportscanbeusedtoidentify
Maintainabilityistheaveragetimetorepairequipmentafterafailure.

AlsodefinedasMTBF(meantimebetweenfailures)

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TimeOutofService[minutes]
=minutesMaintainability
NumberofFailures

Theassetoperationalkeyperformanceindicatorscanbeusedtoidentify:
Equipmentsuitabilitytotask(optimization).
Assetlifecycleswhicharetoolong.
Preventivemaintenanceservicefrequencyproblems.
Supplychainproblems.
Manufacturerqualityissues.
Repairtrainingrequirements.
Operatortrainingandabuseconcerns.

4.1.4. SpareRatios
Spareratiosareprobablytheleastunderstoodfleetmetric.Spareratios
areusedtoensurethatsufficientequipmentisavailabletoperformwork
to the service level standards and to rationalize the fleet asset
population.
Untiltheinceptionofmaintenancefreeassets,equipmentavailabilitywill
neverbe100%.Thismandatestheneedforspareequipment.

4.1.4.1. SpareRatioCalculations
Traditionally, fleet and operational managers would calculate the
numberofspareassetsneededbyapplyinganarbitraryfactortothe
existing fleet asset numbers. Fleet performance based on the
additionalassetsmodelwouldbereviewedperiodicallyandadjusted
asnecessary.
Thisapproachisareactivestyleofmanagementwhichisinefficient
andshouldbediscouraged.

Current best practices support a different approach. Modern

methodslinktheratioofsparevehiclestotheoperatingneed.The
systemrequiresthecoordinationofthedispatchandthefleetstaff:

Dispatchstaff
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Determines the hourly operational or route need per

truck/trailerbasedonhistory,forecasts,driveravailability
oranyotherfactorwhichdrivesequipmentneed.

FleetStaff
Calculates availability based on history. If no history is
available,usespreventivemaintenanceserviceneedsplus
correctiverepairneedstoestimateavailability.
Comparestheoperationalneedtothefleetcapabilityand
calculatesspareratio.

Thecalculationlookslike:

Workneed(hours/routes)Assetcountxavailability(hours/routes)
x100=spareratio(%)
Assetcountxavailability(hours/routes)

This is a simplified calculation with many possible variations and

additionaldetail;theconceptisbasedonplannedneedandshould
useaforwardviewtocompensateforchangingrequirements.

4.1.4.2. OperatingCostperMile/Hour
Operating cost per unit meter reading is calculated in arrears. When a
system is set up to measure the other KPIs, the calculation becomes
effortless.FleetoperatorsshouldtakecautionwhencomparingtheseKPIs
tootherfleetsbecauseofthemanyvariablesusedintheindustry.Aswell,
fleet maintenance managers do not have direct control over the methods
usedtocalculatethenumbers.
Well organized operations will split the cost per unit meter readings and
onlyusetrendreportingtodrivecontinuousimprovement.

4.2. MaintenanceProgramKeyPerformanceIndicators
Maintenancemanagementprogramscanbemanualorcomputerized.Eithersystem
willworkifsetupandmanagedproperly.Theadvantageofcomputerizedsystemsis
thereducedresourcehoursneedtomaintainthesystemandthetimelyretrievalof
information. Skilled maintenance managers use many tools to manage the fleet

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performance whether repairs are done by vendors or company employees. This

course will cover the most basic indicators so that operators do not become
overwhelmedwithtechnicaldetails.

An important key performance indicator for the health of any fleet management
programistheratiooftheplanned(preventive)tofailure(corrective)repairs.

CorrectiveMaintenanceisworkwhichisnotplanned
RefertoSection3.4.1.

Preventivemaintenanceisworkwhichisplanned.
Refertosection3.4.2.

Theunitsofmeasurecanbeinmeasuredinrepairevents,repairhours,orcostof
repairs. Cost of repairs is usually preferred since inclusion of contract repairs is
easier.Theindicatorisexpressedasapercentageandlookslike:

Preventiverepairs
X100=%Preventivetocorrectiveratio
Preventiverepairs+correctiverepairs

Manyfleetsstruggletokeepthepercentageabove50%.Awellmanagedfleetwill
be above 70%. Note that this percentage can be affected by factors outside the
repairmanagementsuchasfleetage,optimization10andoperatorstyles.

PMtoCMrepairratioscanbemeasuredwhethermaintenanceisdoneonsiteorat
external vendors. Tracking of this information will be discussed in section 4
InformationManagement.

4.2.1. ShopStaffKeyPerformanceIndicators
If repairs are done on site, the fleet operator has the opportunity to mange
companystafftogreaterefficiencies.Theabilitytocontrolthedestinyofthe
repairoffsetsthechallengesofshopmanagementforsomeoperators.

10

Inthiscase,optimizationisthessuitabilityofequipmenttotask.

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If repairs are outsourced, the person managing fleet expenses should still
understand the basics of shop floor efficiencies. This knowledge will help in
vendorselectionorindeterminingthevalueofspecificrepairs.

Therearetwobasicworkerkeyperformanceindicators:
Productivity
Efficiency

Aswell,thereisablendedmeasurementwhichwillbediscussed.

Productivity and efficiency are often confused even within the maintenance
community.

4.2.2. Productivity
Productivityisdefinedasthepercentageoftimespentinproductivework.The
formulalookslike:

Actualproductiveworking[hourstenthsofhours]
X100=%Productivity
Scheduledworktime[hourstenthsofhours]

Productivitycannotbemorethan100%undernormalcircumstances.Workers
onlyhavepartialcontrolovertheirproductivity.Ifaworkerhasgoodefficiency
andpoorproductivity,schedulingorlogisticsareoftenthecause.

4.2.3. Efficiency
Efficiencyisdefinedasthetimeittakesaworkertoperformataskcompared
toastandardrepairtimeforthetask.Theformulalookslike:

Standardtimefortask[hourstenthsofhours]
X100=%Efficiency
Timetakenbyworkertoperformtask

Skilled workers can have efficiencies greater than 100%. Poor shop logistics,
insufficient training and experience can all have negative impact on worker
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efficiency. Poor material supply line process and tool management are the
mostcommonshoplogisticalissues.

4.2.4. StandardRepairTimes
Standard repair times are a tool which was developed by the automobile
manufacturers to control the cost of warranty repairs to their products.
Interestingly,consumergroupshavechallengedthecasesforandagainsttheir
use.

Insomerepairenvironments,standardtimesaredifficulttoascertain.Diverse
fleets, skewed preventive to corrective repair ratios, custom equipment
outfitting and any other diversions from standard are challenges for
establishingstandardrepairtimes.
Standardlabourtimes,coupledwithadvertisedlabourtimesandservicelevel
agreementsareavalidmethodofcontrollingthecostofrepairs.SomeCMMS
programs have standard labour guides embedded; few have commercial
transportorheavydutytimesintheirprograms.Thereare,however,lowcost
standalonelabourtimeguideswhichareavailable.

One inexpensive computer program such is Real Time Labor Guide which
provide most of the common repair times for commercial transport vehicles.
Theseprogramsareausefultoolforunder$300(asofMarch1,2011)which
can be used by fleet operators to negotiate repair times which appear to be
unreasonable.

Figure4.1isascreenshotfromastandardrepairtimeprogram.Theaverage
timetolookuparepairtimeislessthanaminute.

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Figure4.1

4.2.4.1. Proficiency
Thereisablendedkeyperformanceindicatorwhichiscommonlyusedwhen
standard repair times are not practical. There is a work around used to
measure the peformance of shop employees. It is commonly labelled
proficiencyandistheratiooftheworked11hourstothebillable12hours.
Itisatoolwhichcanbeusedinmostmaintenanceoperationsbecausethe
informationisreadilyavailable.Theformulalookslike:

Billabletime[hours]
X100=%proficiency
Paidtime[hours]

In union environments there is reluctance to measure workers with key

performance indicators. The argument that safety is compromised when
focus changes to production volume has some validity. The argument is
validifarepairfacilitywhichhassystemicprocessissuescomparesitselfto
anindustrystandard.

11

Payrollhourspaid.
Forgovernmentfleets,thisistherepairhourschargedagainsttheworkorders.

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Fleet Maintenance from the Operational Perspective

Nonetheless, it can be used as a baseline to measure departmental

performanceifthedatainputiscredible.

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Fleet Maintenance from the Operational Perspective

5. InformationManagement
Asrecentlyastenyearsagomaintenancetrainersrecommendedthatfleetmaintenance
programscouldberunwithoutthehelpofcomputers13.Thisisnotthecasetoday.The
effortlessaccesstoinformation,reducedstaffworkloadandreductionofhumanerror
cannotbeignored.
Computerized maintenance management systems (CMMS) used to be the domain of
largeorganizationswithsizableinformationtechnology(IT)budgets.Today,thecostof
CMMS systems have become affordable for even the smallest companies. Ongoing
CMMScostscancostonlypenniesperdayaftersetup.Setupcostscanhavereturnon
investmentcyclesmeasuredindays.

Thereluctancetoimplementcomputerizedmaintenancemanagementisusuallycaused
by the fear of change. Any organization which chooses to avoid computerized
maintenance management is facing a serious business shortcoming in the market.
Ownership and staff must embrace the known advantages of the computerization
beforesetupisattempted.

FleetoperatorswhooutsourcealloftheirmaintenanceshouldstilluseaCMMStotrack
theirfleetmaintenancecosts.Veryfewdispatchapplicationswillprovidetheaccessto
information needed to manage third party vendors. The payback in investment is
typically less than six months and does not increase human resource loads if well
implemented.

5.1. ComputerizedMaintenanceManagementSystems(CMMS)
A computerized maintenance management system is a powerful tool. It helps to
reduceemployeeworkloadandiscapableofmanagingfunctionssuchaswarranty,
dispatching, predictive maintenance and many more valuable maintenance and
operational functions which provide significant cost savings, risk management and
service improvements. Much of the information provided by computer reporting
would be impossibly expensive to retrieve with a manual system. Calculations for

13

JohnE.Dolce.

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Fleet Maintenance from the Operational Perspective

returnoninvestmentforaCMMSshoulduseoperationalimprovements14aswellas
maintenancespendreduction.
5.1.1. CMMSProgramSelection
The selection process of a CMMS has ended the promising career of many a
companyemployee.Thisisataskwhichismostoftensuccessfulwhenoutside
help is engaged. Software vendors often have recommendations which are
biased in favour of their product and their recommendations need to be
carefully screened to ensure that they fulfill the needs of the company. The
person(s)responsibleforchoosingthesoftwaremustbewellversedin:
Thebusinessneedsofthecompany.
Theneedsofthemaintenancedepartment.
Thecapabilitiesofthestaffthatwillbeusingthesoftware.

Maintenance departments often seem to work in isolation. This behaviour

oftenfrustratestheoperationsgroupbecauseofthedifferentgoalsmentioned
insectiontwo.BasicrequirementsofanyCMMSwouldbe:
Communication with the existing corporate financial packages. This is not
necessarily integration, but at least a process whereby double entry of
repaircostinformationisreduced.
Functionality which allows measurement of the KPIs for both Operations
andMaintenance.

A desirable, but not essential requirement is the ability to automatically

communicatewithdispatchingsoftware.

5.1.2. CMMSInformationNeeds
Computerizedmaintenancemanagementsystemsneedaccuratedatatobe
usefultools.InitialsetuprequireswhatisknownasTombstoneInformation
andasthesystemisused,operationaldataisadded.

5.1.2.1. TombstoneInformation
Allassetsmusthavecertaininformationtypesstoredinthedatabasebefore
maintenance staff can manage the fleet. As well the each piece of
equipmentneedsuniqueidentifierstoallowcoststobetrackedseparately.

14

ImprovementsinReliability,AvailabilityandMaintainability.

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Fleet Maintenance from the Operational Perspective

ThisinformationisenteredwhentheCMMSissetupforallexistingassets
andupdatedattimeofpurchaseforequipmentnewtotheorganization.

Theoutputforeachtypeofinformationiscontainedintable5.1.

DataType
Source
Output
UniqueAssetNumber
CMMS/System
IndividualAssetCosts
Asset
Attributes
SearchFunctions
AssetSpecifications
Survey/Documentation
PartsIdentification
AssetComponent#s
Survey/Documentation
CostTrendsWarranty
WarrantyCoverage
Manufacturer/Documentation WarrantyCostRecovery
FaultCodes
CMMSSystemSetupVMRS
CostTrends
PreventiveMaintenance
CMMSSystemSetup
CostControl
OtherCoding
CMMSSystemSetup
CostTrends
AssetSchedules
Operations
KPIs

Table5.1

5.1.2.1. FaultCodes
Fault codes are also known as failure codes and are rarely given the
sufficient attention to make them useful. In repair orders they are often
separatedintothreetypesandcommonlycalledthethreeCscomplaint,
causeandcorrection.TheyhelpFleetManagersdevelopthemostsuccessful
repairstrategiesforrepetitiveproblems.Repetitiveproblemsoftenindicate
vehiclespecificationandpreventivemaintenanceprogramdeficiencies.

Complaintcodesarethesymptomsoftheproblem.Typicallytheywouldbe
inoperative,missing,leakingetc.Thecustomerknowsthesymptomsofthe
problemwhentheequipmentisbookedforrepairandtheserviceadvisor
recordsthesymptomatthetimetherepairrequestiscreated.

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Fleet Maintenance from the Operational Perspective

Causecodesarethereasontheproblemoccurred.Typicallytheywouldbe
worn,broken,neededadjustmentetc.Causecodescanonlybeentered
afterdiagnosis.Causecodesaredeterminedbytherepairstaff.

Correctioncodesarethemethodofrepair.Typicalcorrectioncodesare
replaced,adjusted,rebuiltetc.Correctioncodescanonlybedetermined
afterasuccessfulrepairiscompleted.

Failurecoderegimesshouldbesufficientlydiversetoaccuratelydefinethe
problemsandcorrections.Somedescriptionsareinterchangeablebetween
thethreeCs.Apoorlydefinedsystemisdemonstratedwhentheusers
consistentlychooseOtherasadescription.TheuseofOtherasacode
hinderseffectivereporting.

5.1.2.2. OperatingData
OperationaldatamustbecommunicatedtotheCMMSastheequipmentis
used in order to support cost trending, KPI support information and
preventivemaintenancetriggers.
The key performance indicators only have value if the verifiable data is
collected with a consistent method and organized properly. Manual or
computerizedmaintenancemanagementsystemsrelyonqualityinputsfor
useable results. The following accurate data records must be collected to
supportthekeyperformanceindicatorsdiscussedherein:

DataType
Source
Output
UniqueRepairOrders
CMMSRepairShop
IndividualAssetCosts
UniquePartNumber
RepairOrdersVMRS
IndividualAssetCosts
LabourTimes
RepairOrders
IndividualAssetCosts
RepairandPartsCoding
CMMSVMRS
CostTrends
OutofServiceTimeStamp DriversEOBRGPS
KPIs
InServiceTimeStamp
DriversEOBRGPS
KPIs
StandardRepairTimes
CMMS
CostControl
WorkBacklog
CMMS
ComplianceKPIs

Table5.2

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Fleet Maintenance from the Operational Perspective

The list shows just the fundamental information required to support basic
maintenancemanagementandreporting.

5.1.2.3. LabourandMaterialsCoding
Proper labour and materials codes are essential elements for root cause
analysisofequipmentcomponentfailure.Thecodesprovidetheconsistency
necessarytoaccuratelyseparatethecausesoffailure.

TheVehicleMaintenanceReportingStandards15arebecomingthestandard
formatinthecommercialtruckingindustry.Thesystemwasdesignedinthe
1970sbytheTechnologyandMaintenanceCouncilwhichoftheAmerican
Trucking Association and consists of thousands of codes which describe
equipmentpartsandrepairactivities.Repaircodesgiveconsistency

15

VMRS

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Fleet Maintenance from the Operational Perspective

6. MaintenancePlanning
Whyplanmaintenance?

Wefixitwhenitbreaks!

Hopefully,theinformationintheprecedingchaptersandtheillustrationinfigure3.2
have helped the reader realize the folly of these two statements. However,
maintenance planning is more than setting up a CMMS and servicing equipment
whenthescheduledrepairordersaregenerated.Thissectionwilloutlinesomebasic
elementswhichfleetmaintenanceneedtobesuccessful.

6.1. OrganizationalSupport

Fleetmanagementemployeesrelyonfleetoperatorsto:

1. Buildateamenvironmentwithoperations.
2. Provide unbiased facilitation when conflicting operational and maintenance
goalsreachanimpasse.
3. Dedicatequalifiedstafftomanagethefleetmaintenance.
4. Providetrainingforfleetmaintenancestaff
5. Setgoalsforfleetmaintenance.
6. Empowerfleetmanagementstaff.
7. Rewardaboveaverageperformance.

6.2. Resourceconsiderations
Thehumanresourcesdedicatedtofleetmanagementvarywiththesizeofthefleet
andstyleofoperation.

Onecasestudyhadtheshipper/receivermanagingthirdpartyrepairsofmorethan
80powerand100trailingunits.Theyreorganizedtodedicateafulltimepersonto
fleet maintenance management with a full time equivalent administration
support. The savings in maintenance costs exceeded the increased expense
structurebyaratioof7to1.Returnoninvestmentforoutsourcedprogramsetup,

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Fleet Maintenance from the Operational Perspective

CMMS implementation and initial staff training was less than three weeks.
Improvementsinshippingandreceivingperformancecouldnotbecalculated.

Thepointhereisthatthecostofmaintainingafleetwithoutdedicatedmanagement
ismanytimesthecostofdedicatingandtrainingstaffforthetask.
6.2.1. StaffTraining
Fleet maintenance staff requires ongoing training for third party or in house
management. Their skill sets should be surveyed and an appropriate plan
drawnup.Inadditiontofleetspecifictraining,proficienciesshouldinclude:

Basicfinancialtrainingandbudgeting
SpecificCMMSandreporting
Procurementtopay
Conflictresolution
Riskmanagement
Compliance

6.2.2. GoalSetting
Goalsettingforfleetmanagerscanbefinancial,KPIbased,organizational
almostanythingwhichwillmaintaininterestandpromotecontinuous
improvement.Thekeyisensurethatthegoalsareattainablewhenabove
averageperformanceisdisplayed.

Someofthebestgoalsareteambasedwhichpromotescooperationwiththe
operationsgroup.

6.3. StrategicPlanning
Last,inthissection,donotforgettoincludethemaintenancemanagementstaffin
yourstrategicplanningsessions.Theyarevaluablecontributorswhenplanningthe
expensesideofabusinessmodel.Theirengagementwillengenderlongterm
loyalty.

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Fleet Maintenance from the Operational Perspective

7. BusinessManagement
7.1. PreferredVendors
Thetendencyforfleetoperatorstochoosematerialsandservicesbasedonlowestcost
is slowly disappearing. The downturn in the economy has demonstrated the value of
quality carriers to the expediters and in turn, the knowledgeable carriers, with a few
exceptions,havereducedtheirtendencytocuttheircartageratesbelowthatwhichis
sustainable.

7.2. ServiceLevelAgreements
Manyfleetoperators,however,havenotembracedtheadvantagesofferedbythe
establishmentofservicelevelagreementswithselectedmaintenancevendors.The
modern vendor client relationship is viewed as a partnership where business is
based on trust but governed by contracts. Carriers who define a contractual
relationshipwithvendorswithoutestablishingservicelevelsplacetheirequipment
availabilityatrisk.

The selection of agreements with international leasemaintenance companies is

oftenbasedonconsistencyandtheavailabilityadvantagesofferedwithreplacement
equipment. These benefits come at significant cost. Long haul carriers have the
greatest challenge when selecting approved vendors, but the use of the advanced
featuresoftruckserviceslocatorscombinedwithaCMMSeasesthemanagementof
thisgroup.

Fleetoperatorswhoallowtimefortheirmaintenancestafftoidentifyandpartner
withpreferredvendorslocallyoratmajorthroughpointsalwaysreducetheirrepair
costsanddowntime.

7.3. PurchasingProcesses

Maintenance planning will help to ensure that cost savings are sustainable. For
example,howdoesafleetoperatorensurethatathirdpartyrepairfacilityperform
onlythoserepairswhichareauthorized?Atypicalprocessisshownbelowinfigure
5.1.

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Fleet Maintenance from the Operational Perspective

This sample process may seem obvious to anyone with purchasing training, but
manyfleetstodayoperatewithoutadefinedprocess.Theresultispoorcostcontrol
andvendorrelationsaswellasstaffturnoverfromfrustration.

Vendor Repair Approval

Return to Base
No
Maintenance
Controller

Start
Failure
Information

Decision

Immediate
Repair
Need?

Driver
Concern
Yes
No

Yes

Company
Work Order

Vendor
Information

Acceptable
Terms?

Yes
Vendor Provides
Estimate

Purchase Order

Vendor
Invoice

Repairs

Vendor Advises
Completion

Matching

Adjustment

Start
Yes

Matches
Company
WO?

Accounts
Payable

No

Inquiry

Figure6.1

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Fleet Maintenance from the Operational Perspective

8. RiskManagement
8.1. ComplianceandRegulations
Maintenance managers are sometimes accused of inflexibility when they will not
release equipment for use which they feel is unsafe. Fortunately, most fleet
operators wish to operate within existing regulatory guidelines. This section will
have little value to companies who choose to operate outside the law due to
financialconsiderationsorphilosophicalreasons.

TheNationalSafetyCode(NSC)providesguidelinesforthemotorcarriersinCanada.
The maintenance component of the NSC is the Commercial Vehicle Safety and
Enforcement branch which administers the Motor Vehicle act and Regulations. Bill
C45 holds management accountable not only for their actions, but for their
inactions. Managers must ensure that they take proactive action to ensure the
safetyofworkers.

InBritishColumbiathemaintenancecomponentoftheNSCisadministeredbythe
Commercial Vehicle Safety and Enforcement division of the Ministry of
Transportation.Therearethreedocumentswhichguidetheprogram:
1. TheCommercialVehicleInspectionmanual
2. TheMotorVehicleAct
3. TheMotorVehicleActandRegulation

These are dynamic documents and are constantly changing with revisions,
compliancecircularsandbulletins.

Thirdpartyserviceprovidersmaynotprovideperpetualcomplianceduringregular
service visits. This maintenance deficiency is often driven by the profit nature of
theirbusinesswheremostnoninspectionrepairvisitsdonotresultininvestigation
beyondthescopeofaspecificrepair.

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Fleet Maintenance from the Operational Perspective

Index
A

Availability,1,8,13,15,22

Operatingcostpermile,13
OperatingData,2,24
Optimize,6

B
bestpractices,16
BestPractices,4

P
C

Compliance,2,25,27,31
ComputerizedMaintenanceManagementSystems,1,
22
CorrectiveMaintenance,1,9,17
culture,7

PredictiveMaintenance,1,10
preventativemaintenance,13,14,24
PreventiveMaintenance,1,9,12,23
Productivity,1,18,19
proficiency,20,21
Proficiency,1,20
PurchasingProcesses,2,28

Reliability,1,10,11,13,14,22
ReliabilityCenteredMaintenance,1,10,11
Resourceconsiderations,2,26
Riskmanagement,6,27

Efficiency,1,18,19

Failurecodes,13,24
FaultCodes,1,23,24
forwardview,16

ScheduledMaintenance,1,10
scheduling,19
servicelevels,7
Spareratios,9,13,15
StandardRepairTimes,1,19,25
StrategicPlanning,2,27

I
InformationManagement,1,18,21

K
keyperformanceindicators,3,11,13,15,18,21,24
KeyPerformanceIndicators,13,17
KPIs,3,13,14,17,23,25

T
Thirdpartyrepairs,3
TombstoneInformation,1,23

L
utilization,6

lifecyclecosts,4,5,6
lifecycles,15

V
VehicleMaintenanceReportingStandards,25

Maintainability,1,13,15,22

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warranty,22

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