CAP Fleet Services Optimization Strategy Fleet Services Division n - - PowerPoint PPT Presentation

CAP Fleet Services Optimization Strategy

Fleet Services Division

n Transferred to Centralized Maintenance

July 2010 as part of Maintenance Group realignment

n At the direction of the General Manager,

a review of the fleet configuration was initiated

n Review identified 6 areas for optimizing

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Light Fleet Statistics/Concerns

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3,336,639 miles driven in 2010

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178 total light fleet vehicles

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68 Two Wheel drive vehicles

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110 Four Wheel Drive vehicles

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Out of the total there are:

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37 SUVs

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54 crew cabs

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6 automobiles

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Fleet configuration

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No standard vehicle defined for O & M

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Lack of standardization impacts parts, procedures and supply chain

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Utilization rates can be improved

Components of Optimization strategy

n Fleet standard vehicle n Policy for vehicle assignment - Pending n Management of vehicle pools - Ongoing n Online Reservation Tool n Economical addition of hybrids n Identify the “Right sized” Fleet

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Light Fleet Standard Vehicles

n Maintenance Fleet

n Two Wheel Drive Extended Cab ½ ton Standard

Size Pickup Truck Acquisition Cost $24,000

n $0.05 per mile lower operating costs

n Administration Pool

n 4-Door Sedans n Hybrid Vehicles

n Multi-Passenger Vehicles Available in

Both Pools

Vehicle Assignment Policy

n Set of guidelines to standardize how

vehicles are assigned to employees

n Guidelines to be developed in

partnership with departments

n Target date for draft is the end of Q2

2011

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Online Reservation System

n Online system will offer opportunities to

improve vehicle utilization

n Evaluation of existing functionality in

INFOR

n Assigned to IT Project Management

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Hybrids

n This type of vehicle is most suitable for

• ur Administration Pool

n Economics of Hybrid Vehicles

n Extra acquisition cost n Improved mileage n Lower operating costs n Reduced emissions

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Projected Savings by replacing 4x4's Pickups with 2x4 Pickups

2011 2012* 2013* 2014* 2015* 2016* 2017* 7 year savings #4x4's replaced 6 14 14 14 14 10 10 82 Initial Purchase cost savings $15,000 $35,000 $35,000 $35,000 $35,000 $25,000 $25,000 $205,000 Operating savings average $1,000 per vehicle

* Cost data is based on 2010 dollars and 2010 fuel cost (less than $3.00/gal.)

$6,000 $20,000 $34,000 $48,000 $62,000 $72,000 $82,000 $324,000 Cumulative Savings $21,000 $55,000 $69,000 $83,000 $97,000 $97,000 $107,000 $529,000 * Estimated replacements of 4 x 4s Present Light Fleet 4x4's - 104 Total eliminated 4x4's Remaining 4x4's 82 21

Sport Utility Vehicles

n 37 in fleet n $10,000 plus higher cost for the 4x4

SUVs than the defined fleet standard truck

n Most SUVs will be cycled out when they

reach the end of their life cycles and replaced with standard trucks.

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2011 Vehicle Replacement Schedule Org Replace Unit # Year & Make of Repl Object Current Miles Budget COST 510 G-062CK 2000 Chevy Pickup 4X2 9758 127800 $25,430 $24,000 1/2 4x2 pick up 510 G-519DX 2004 Ford x-cab 4x4 38765 131500 $28,016 $24,000 1/2 4x2 pick up 544 G-549DM 2003 Dodge Durango 4x4 36156 142000 $35,860 $24,000 1/2 4x2 pick up 550 G-180DH 2002 Dodge Durango 4x4 34050 117000 $34,480 $24,000 1/2 4x2 pick up 551 G-090CK 2001 Dodge x-cab 4x4 9824 133800 $34,480 $24,000 1/2 4x2 pick up 551 G-846BN 1997 Ford Explorer 4x4 8352 122400 $34,480 $24,000 1/2 4x2 pick up 621 G-242BV 1998 Chevy C/C 4x2 8645 83600 $37,080 $24,000 1/2 4x2 pick up 631 G-245BV 1998 Chevy C/C 4x2 8644 90400 $30,660 $24,000 1/2 4x2 pick up 555 G-208BV 1998 Ford Expedition 4x2 8518 134500 $29,085 $24,000 1/2 4x2 pick up 839 G-680BW 1998 Chevy x-cab 4x4 8641 90000 $30,766 $31,500 3/4 ton 4x2 x-cab utility bed $320,337 $247,500 Reduce 4x4 by 6 in 2011 Reduce SUV by 4 in 2011

Acquisition Savings

$72,837

Fleet Sizing/Purchases

n Tools to manage fleet size

n Online reservation system to assist in managing for better

utilization

n Utilization review reporting and management of assets –

reduces idle time of vehicles

n Cooperative efforts to provide economical service to fleet

customers and CAP

n Two vehicle replacements have been

deferred based on their condition rather than a mileage limit

n Fleet has been reduced by 11 vehicles

2010/11

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In Conclusion:

n Standard fleet truck defined with internal

customer input

n Online pool reservation system to be

implemented

n $72,800 in 2011 acquisition savings,

purchasing the CAP standard truck

n Increasing fuel costs are inevitable,

• ptimizing the fleet will lessen the impact

n Moving from automatic replacements based

• n miles to “condition based” replacements

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