Management – Page 6 – Utility Fleet Professional

Using Benchmarks to Improve Fleet Operations

Written by Tom Gelinas on August 1, 2014. Posted in Maintenance.

A benchmark is something that can be used to judge the quality or level of other, similar things. As such, a benchmark is a very nice thing for a fleet professional to have when some difficult questions are being asked. Are we competitive? When should we replace our equipment? Exactly how many technicians do we need to effectively maintain our equipment?

Those are three questions that Chris Shaffer, one of the founding partners of Utilimarc (www.utilimarc.com), believes fleet managers should be answering at least annually. His company analyzes fleet data and, using its proprietary analytic software, generates a number of management tools. Benchmarks are one of those tools.

If you’re going to compare your performance with supplied benchmark data, keep in mind that it’s essential to compare apples to apples. “We have found that it’s very important to benchmark like vehicles doing like work in like applications,” Shaffer said. “If you consider, for example, a heavy-duty bucket truck, it’s important to compare yours with trucks in other fleets that have exactly the same kind of truck doing exactly the same kind of work.”

Michael Riemer, vice president of products and channel marketing at Decisiv Inc. (www.decisiv.com), echoed the importance of benchmarking on a regular basis. “It can greatly help improve the performance of maintenance operations and generate greater returns on investment in assets and personnel,” he said. “Regularly scheduled benchmarking enables fleets and their service providers to compare their performance with competitors and best-in-class performers. This analysis can help fleets better prioritize and measure key maintenance initiatives.”

Both Utilimarc and Decisiv represent fleets totaling more than 300,000 vehicles. As a result, both are capable of generating meaningful data that fleet professionals can use to benchmark their operations. There are, however, other opportunities available that enable fleets to generate yardsticks against which their performance can be compared.

One Fleet Association’s Approach
One example of other benchmarking opportunities comes from Frank Castro, transportation manager for the Snohomish County Public Utility District based in Everett, Wash. The utility’s fleet consists of light pickup trucks, Class 8 vehicles and everything in between. Castro participates in a regional professional group – the Northwest Electric Utility Fleet Managers Association (NEUFMA) – which represents 5,000-plus vehicles throughout Idaho, Washington and Oregon.

Regarding the organization’s benchmarking activities, Castro said, “If you’re just looking at your own fleet, how do you really know if you’re doing a good job unless you can compare against another organization? Maybe the best scenario would be to compare against a much larger organization.”

NEUFMA members realized that they already had the much larger organization they needed in the form of their association, which meets quarterly but has more frequent contact through email. As a result, they decided to generate a list of fleet-related issues that all members were asked to respond to at their meetings. The idea was to have a discussion about the various topics, giving members the opportunity to ask how some fleet managers were getting better numbers than others might be getting.

According to Castro, “If nothing else, we were hoping to get some help answering the question: Are we doing well or are we doing poorly? When we find a fleet that’s doing something better than we are, we talk about what they’re doing differently to see if their procedures would work in our fleets.”

Approximately 25 percent of the association’s members regularly contribute information about the various topics scheduled for discussion, but, as it turns out, that’s often enough. “In reality, everybody loves the information, but not everybody is willing to spend the time to prepare a report for the meeting,” Castro said. “Fleets who do not participate are still able to reap the benefits of our benchmarking discussions. It’s all open discussion. If they’re at the meeting, they can hear what’s going on. We also send out summaries of our discussions to the entire membership.”

The association also encourages regular email contact among its members. As a result, if anyone is having a particular issue, he or she can send out a question to the entire membership for input. Castro believes NEUFMA’s benchmarking studies provide added value to the members of the association.

A Benchmarking Caveat
While benchmarks can be valuable tools, they can also plague fleet professionals. Consider the possibility of a fleet professional having a benchmark imposed on him not by an experienced individual who understands what it means to maintain a fleet of utility vehicles, but by a middle manager who lacks the practical knowledge it takes to actually keep equipment operating and ready for service.

As Decisiv’s Riemer put it, “The ability to ensure the right information is captured [and understood] as part of the core service and repair process is the foundation for good benchmarking.”

About the Author: Tom Gelinas is a U.S. Army veteran who spent nearly a decade as a physicist before joining Irving-Cloud Publishing Co. While at Irving-Cloud, he worked in various editorial capacities for several trade publications including Fleet Equipment, Heavy Duty Equipment Maintenance and Transport Technology Today. Gelinas is a founding member of Truck Writers of North America, a professional association, and a contributing writer for Utility Fleet Professional.

Moving the Needle

Written by Seth Skydel on August 1, 2014. Posted in Editor's Perspective.

Wherever we turn these days, it seems that CNG is one topic on everyone’s mind. At the 2014 Electric Utility Fleet Managers Conference held in June, for example, CNG was the subject of the first technical session, including a report by Nina Kisch, manager, fleet administration, transportation services at PG&E. Among the more than 3,300 on-road alternative-fueled and high-efficiency vehicles in the PG&E fleet, she reported, there are more than 720 natural gas units.

“CNG has a lower equivalent cost than gasoline or diesel, and lower carbon intensity than biodiesel, LNG, ultra-low-sulfur diesel, ethanol and reformulated gasoline,” Kisch reported. “CNG is also considered an alternative fuel under the Energy Policy Act of 1992. In addition, while the number of light-duty natural gas vehicles from OEMs are limited but growing, a wide variety of heavy-duty natural gas vehicles are available from manufacturers, and CNG conversions are readily available.

“While the current generation of equipment is much more reliable than first generation,” Kisch continued, “CNG vehicles aren’t available in large quantities, there are range limitations due to storage and density, and fuel storage space on the vehicle is an issue, so CNG often requires us to build a bigger, less fuel-efficient truck than diesel. There is also still a significant premium on purchases of $5,000 to $8,000 for light-duty models and $15,000 to $30,000 or more for a heavy-duty vehicle, depending on the size of the fuel system and technology, higher maintenance costs due to durability and parts availability, and in some cases a lack of qualified technicians and service centers.”

Werner J. Schweiger, Northeast Utilities president, electric distribution, delivered the keynote address at EUFMC, and CNG was also on his agenda. “The utility industry is addressing how efficiently it manages its energy portfolio,” he said, “and sustainability is a fleet issue as well. As a result, the debate about alternative fuels is a challenge in the Northeast Utilities fleet of more than 5,000 assets.

“Idling has become a significant issue,” Schweiger went on to explain. “Along with fostering a culture of more responsible operational practices, we also need to adopt technological solutions that promote environmental responsibility and enhance the image we portray in our communities.”

Increasingly in use at Northeast Utilities, Schweiger noted, are alternatives to gas and diesel vehicles and equipment. In particular, CNG-powered units are being added to the utility’s light-duty fleet. However, there does remain the challenge posed by a fuel supply infrastructure for natural gas vehicles.

“Fueling infrastructure is one of the largest limitations on CNG vehicle adoption,” Schweiger said. “With respect to the solution, expansion of more fill stations must be driven by a larger demand that has to come from more CNG-enabled fleets and more progress in cost-effective solutions among the choices available for CNG models. Other partners in finding a solution can be local, state and federal agencies that promote conversion of fleets to alternative fuels such as CNG through grants and other programs.”

Schweiger encourages dialogue among industry stakeholders. “Forums such as the Electric Utility Fleet Managers Conference are ideal for the collaboration that is needed to bridge the requirements of utilities with the gas industry and automotive vendors,” he stated.

“As an operations executive, I have always valued the role of fleet,” Schweiger continued. “While fleet was once viewed merely as a cost center, it is now a strategic asset as utilities work to effectively manage their fuel costs and to enhance a culture that is environmentally responsible. The theme of this conference – driving fleet value and performance – is timely as the industry continues to focus on fuel diversity, a challenge that will grow. The amount of progress you have already made is impressive, and the collaboration between fleet professionals and vendors has moved the needle with respect to the transportation needs of the utility industry.”

For more information about EUFMC, visit www.eufmc.com.

Seth Skydel
Editor

Latest Developments in Self-Inflating Tires

Written by Sean M. Lyden on May 30, 2014. Posted in Technology.

What if tires could inflate themselves and maintain optimal pressure at all times, with no human intervention required? How much of an impact could that make on fuel efficiency, tire life cycle, driver safety and a fleet’s bottom line?

New self-inflating tire technologies being developed today may provide a glimpse into future possibilities.

Cost of (Improper) Inflation
According to the U.S. Environmental Protection Agency, a tire that’s underinflated by just 10 pounds per square inch (psi) can reduce fuel efficiency by up to 1 percent per tire.

That’s because an underinflated tire, as it flexes, creates greater friction with the road surface, requiring more energy – or fuel – for the vehicle to overcome the added resistance.

This friction also causes heat to build up in the tire, leading to accelerated deterioration and increased risk of blowout. A report by the Technology & Maintenance Council of the American Trucking Associations on tire pressure monitoring and inflation maintenance states that tires operating constantly at 20 percent below appropriate pressure levels could increase the wear of the tread by 25 percent.

The challenge is that many fleets don’t do a great job of keeping up with tire pressure on a regular basis, with more than half of truck tires on the road operating outside of their target pressure range, according to research by the Federal Motor Carrier Safety Administration.

This is important because tires left on their own, just by natural diffusion, will leak about 2 psi per month. Then there’s the issue of pressure fluctuations resulting from extreme climate temperatures that impact tire performance and longevity. So, it can be difficult and often impractical for fleet managers and drivers to manually keep up with tire pressures all the time.

Self-Contained, Self-Inflating System
One solution under development is Goodyear’s Air Maintenance Technology (AMT), a self-maintaining tire inflation system that enables tires to remain inflated at the optimum pressure without the need for any external pumps or electronics. All components of the system, including the miniaturized pump, are fully contained within the tire.

The project was unveiled in 2011 and has been aided by a $1.5 million grant from the U.S. Department of Energy’s Vehicle Technologies Office. The grant money funds research, development and demonstration of the AMT system for commercial truck tires.

How does AMT work?

“AMT has an internal regulator that senses when the tire inflation pressure has dropped below a specified level,” explained John Kotanides Jr., project manager at Goodyear (www.goodyear.com) in the Akron, Ohio-based Global Innovations Group. “Once the system senses the pressure drop, the regulator opens to allow air to flow into a pumping tube. And as the tire rolls down the road, under the load of the vehicle, the deflection of the tire will flatten that pumping tube, pushing puffs of air back into the tire through the inlet valve. The air flows into the tire cavity and continues to fill the tire as it rolls down the road until the regulator senses that the specified tire pressure has been met and then shuts the system off, until it senses another pressure drop.”

Kotanides said that the company expects to begin piloting AMT on commercial trucks by the end of 2014, but he could not comment on pricing and when the system will be available for sale.

What fleet applications will benefit from AMT?

“Right now, our focus is on the long-haul Class 8 tractor-trailer setup. But we think this type of system could work on almost any tire that has inflation and that travels down the road under a load,” Kotanides said.

Bolt-On Hub System
Another solution to the problem of underinflated tires is Halo, which was launched earlier this year by Burlingame, Calif., startup Aperia Technologies (www.aperiatech.com).

Halo is mounted outside the tire, onto a truck’s axle hub, and is designed to use a wheel’s rotation to maintain optimal tire pressure in dual and wide-based tires on the drive and trailer axles of trucks, tractors, trailers and buses.

“Halo operates on a similar principle to a self-winding watch,” said Josh Carter, chief executive officer and co-founder of Aperia. “It uses a wheel’s rotational motion to pump and maintain optimal tire pressure and therefore does not require any connection to a compressor.”

This is an important distinction because using compressors to power self-inflating tires increases complexity – and cost – and could add weight to a level that negates the fuel economy savings generated by maintaining proper tire pressure in the first place.

Carter said that Halo, which bolts on to the hub on each side of an axle, weighs about 5 pounds per unit and requires fewer than 10 minutes to install by a service technician, without expensive tools.

Since the system is mounted on the axle hub and not integrated into the tire itself, each Halo unit can be remounted for use with multiple sets of tires for up to 500,000 miles or 10 years, the company said.

This bolt-on approach also gives fleet managers flexibility in tire choices, Carter said. “Fleets have a lot of loyalty with a tire manufacturer and they get into a groove with a tire program. With Halo, they can use whichever tire manufacturer they want.”

Carter said that Aperia’s first Halo production run was allocated quickly after launching in March, and the company is currently taking orders for the next round of production. List price is $299 per unit.

Will this system be made available for applications besides long-haul trucking, such as utility fleets?

“Right now our focus is on Class 7 to 8 trucks, primarily those used in long-haul applications because of the payback time frame those fleets can expect from cost savings driven by improved fuel economy,” Carter said. “But we have received a lot of interest for tailoring the system for a wider range of truck sizes and applications. And we have plans in place to conduct a pilot program for the utility market later this year.”

The Bottom Line
Since tire inflation is a critical factor to reducing fuel consumption and overall fleet operational costs, it’s likely that some form of self-inflating tire technology will gain widespread market acceptance. But when? And will the systems of the future look more like Goodyear’s AMT that is integrated within each tire or Aperia’s Halo that is bolted on to the axle hub outside the tire? Or will there be a new, even more effective approach to solving this problem? Keep your eye on this space.

About the Author: Sean M. Lyden is a nationally recognized journalist and feature writer for a wide range of automotive and trucking trade publications, covering fleet management strategies, light- and medium-duty trucks, truck bodies and equipment, and green fuel technologies. He blogs at Strategy + Writing (www.seanmlyden.com).

Driving Toward Discounts: How Telematics is Reshaping the Auto Insurance Marketplace

Written by John Dolce on May 30, 2014. Posted in Management.

Here’s a pop quiz for you: Driver A is a 17-year-old single male who conservatively drives his car a total of 12 miles a week to and from his high school. Driver B is a 52-year-old married female who aggressively drives her car 500 miles a week to and from her late night/early morning job at a restaurant. Both have perfect safety records and no traffic violations. Who is likely to have the more expensive vehicle insurance premium?

With a traditional insurance plan, Driver A would more than likely have the higher premium. This is based on the fact that the risk data that insurance companies use to calculate premium rates indicates that young, inexperienced, single male drivers are more likely to get into accidents.

However, the reality is that Driver B is the higher-risk driver. She drives during the most dangerous hours of the day. She’s an aggressive driver. And she drives a considerable number of miles.

This is where usage-based insurance plans – also referred to as pay-as-you-go plans – come into play. By installing telematics devices in vehicles to gather more accurate risk data, insurance companies are now setting personalized rates based on individual driver activities, behaviors and actions. They look at a number of risk indicators, including:
• How often a driver slams on the brakes.
• How many miles a driver drives.
• The time of day a driver drives.
• How often a driver speeds or drives aggressively.
• Whether or not a driver uses a phone while driving.
• How long a driver drives without taking breaks.

Telematics insurance products have been available in the U.S. for a number of years, and their future popularity is projected to skyrocket. According to a study by ABI Research, telematics insurance will see a massive boost in popularity – growing from 5.5 million subscribers at the end 2013 to approximately 107 million subscribers in 2018.

With constant advances in technology added to vehicles at both the OEM and aftermarket levels, it is safe to say that usage-based plans may soon become the insurance industry standard.

About the Author: John Dolce is a fleet facility and maintenance specialist employed by Wendel Companies, an architectural and engineering firm. He is an active consultant, instructor and fleet manager with more than 40 years of experience in the public and private sector. Dolce has written three fleet-related textbooks and teaches fleet management courses at the University of Wisconsin’s Milwaukee and Madison campuses. He can be contacted at johnedolce@yahoo.com.

Driving Fleet Value and Performance

Written by Seth Skydel on May 30, 2014. Posted in Management.

“The Electric Utility Fleet Managers Conference is an unparalleled opportunity for fleet professionals,” said Gerald Owens, fleet manager at Oncor Electric Delivery and EUFMC president. “EUFMC offers educational sessions on management topics by industry experts, manufacturers and fleets, and roundtables where fleet managers share best practices and work with suppliers and service providers to address challenges. This conference is a unique forum where fleet managers can exchange ideas and network with suppliers who showcase new technologies and are prepared to discuss technical and operational issues.”

EUFMC continues to attract a record number of attendees. In 2013, more than 100 fleet professionals from about 75 investor-owned electric utilities in the U.S. and Canada came to the conference.

“I knew after attending my first EUFMC in 2009 that this conference would be one that I could not afford to miss each year,” said Chris Wilson, supervisor at Knoxville Utilities Board, Transportation Department. “Having the ability to network with some of the top fleet managers in the country, as well as the informative and detailed display of products presented by manufacturers, has been well worth my attendance. EUFMC is an excellent learning environment, and at the end of each year’s conference I leave with knowledge, real-life solutions, ideas and contacts that have proven to be invaluable.”

“For me professionally and for my company,” stated Dave Fisher, fleet manager at PNM Resources, “EUFMC hits home because it’s relevant for electric utility fleets. Unlike other conferences we’ve attended, everybody at the Electric Utility Fleet Managers Conference is dealing with the same issues, and the exhibits at the show are all focused on the same types of equipment we use. EUFMC is a great place to interact with top utility fleet people from across the nation.”

Driving Fleet Value and Performance
For 2014, EUFMC educational program presentations will include:
• CNG – Hear the facts from utilities and industry experts about their experiences, success and issues regarding the use of CNG in a utility fleet.
• Regulatory Update – Get information on current federal and state regulatory issues affecting utility fleets, and learn how to influence decisions.
• Safety – Hear about the process one utility used to investigate and reduce recordable incidents, and lessons learned.
• Managing Driver Performance and Vehicle Information – Get expert advice on the risks and advantages of telematics and other onboard systems.
• Vehicle Electrification – Utility executives explain their position on vehicle electrification.
• How Do You Do It? – A panel of utility fleet professionals provides insight on a variety of current, relevant topics, including technician recruiting and training, sourcing parts, fuel cost reduction and more. Presenters on the agenda include Gregg Doeden of Arizona Public Service, Dave Fisher of PNM Resources and Diana Weaver of American Electric Power.
• Tires: Minimizing Failures and Managing Cost – Fleet managers and manufacturers discuss minimizing tire costs with successful management programs and advancements in tire technology, tire pressure monitoring and failure analysis.

Featured Speakers
Werner J. Schweiger, electric distribution president at Northeast Utilities, will offer valuable insights to EUFMC attendees based on 30 years of utility industry experience. Currently, Schweiger is responsible for overall operations at Northeast Utilities’ four electric operating companies that deliver electricity to more than 3 million customers in 525 cities and towns in Connecticut, Massachusetts and New Hampshire.

Previously, Schweiger served at NSTAR as president of NSTAR Electric, where he was responsible for distribution, engineering and investment planning across a system serving 1.1 million customers, and as senior vice president of operations with responsibility for electric and gas operations, engineering, metering, fleet, training and investment planning. Earlier in his career, Schweiger held positions at Long Island Lighting Co. and KeySpan Corp.

Bonnie St. John, who has been called one of the five most inspiring women in America by “NBC Nightly News,” will bring her message of success to the 2014 EUFMC. St. John is a highly successful Paralympics athlete, best-selling author, television and radio personality, business owner and consultant to senior Fortune 500 business executives.

Today, St. John travels the globe speaking and leading seminars for corporate clients, and researching writing projects. She frequently donates personal appearances to schools, homeless shelters, community groups and other organizations. St. John is also the author of six books.

Supplier Support
EUFMC is supported by suppliers who take part in a drive-through utility equipment demonstration and an exhibition of more than 60 displays of the latest equipment and services for utility fleets. In 2013, 250-plus representatives from more than 95 manufacturers and service providers were in attendance.

“Preco Electronics Inc. has been attending EUFMC for a number of years,” said Peter Evans, vice president at Preco Electronics. “The unique format of the event creates the perfect atmosphere for sharing ideas and building strong business relationships that continue long after the last day of the conference.”

“Equipment Technology has been a proud sponsor of the Electric Utility Fleet Managers Conference for many years,” added Chris Neuberger, president of Equipment Technology. “ETI believes strongly in the value of the conference as it provides an environment to dialogue and work collaboratively toward industry solutions.”

At EUFMC 2014, the International Fluid Power Society will present its range of hydraulic and pneumatic certifications and membership and education offerings for utility fleets and equipment manufacturers. Included is the IFPS Mobile Hydraulic Mechanic certification, a third-party assessment of an individual technician’s skill level. Also offered by the organization are membership programs for individuals and corporations, and online and on-site education through a network of service providers.

Excellent Opportunity
“EUFMC is one of the best conferences,” said Marvin Snyder, manager of operations at Adams Electric Cooperative. “The exchange of ideas, the viewing of new equipment and technology, and meeting vendors and other fleet managers are excellent opportunities that occur as a result of attending. The roundtable discussions are also very informative. Adams Electric Cooperative is relatively small compared to the larger utilities in attendance, but we have most of the same issues, so listening to others is very helpful and gives us insights on solutions.”

“EUFMC is one of the only conferences that I go to annually,” said Pat Procaccini, manager of transportation and equipment at PSE&G. “The topics that are presented are always timely and the information provided is extremely useful. This conference also provides adequate time to network with other fleet professionals. I continue to reach out to the professionals that I meet during the conference on a regular basis to leverage their vast combined experience to help better my organization, and to share my experiences.”

For more than 60 years, EUFMC has lived up to its objectives, which include providing educational and technical information in a forum where utility fleet professionals can exchange ideas, and promoting cooperation between manufacturers and service suppliers and fleet executives.

Future EUFMC meeting dates are May 31-June 3, 2015, and June 5-8, 2016. For more information, visit www.eufmc.com.

About the Author: Seth Skydel has more than 28 years of truck- and automotive-related publication experience. In his career, he has held editorial roles at numerous national business-to-business publications focusing on fleet and transportation management, vehicle and information technology, and industry trends and issues.

Worthwhile Investment

Written by Seth Skydel on May 29, 2014. Posted in Fleet Profiles.

“Like many utility fleets, we have gone down the rebuilding path before and then moved away from it,” said Al Mascaro, fleet manager at Connecticut Light & Power Co. “Today, however, several key factors caused us to rethink our aerial replacement practices.

“There were economic and financial issues,” Mascaro continued, “such as the higher cost of new equipment and the relatively low residual value of used units. There were also changes in technology that have significantly improved equipment longevity and durability, including truck chassis and bodies that are favorable for rebuilding.”

Last, but certainly not least, Mascaro added, “We have the talent, tools and facilities to rebuild trucks and aerials in-house for less than half the cost of purchasing new equipment. The bottom line is that from operational and maintenance standpoints, we can have a boom going out that is better than when it came in.”

When the decision was made to embark on an in-house aerial rebuilding program at CL&P, Mascaro, a 32-year veteran of the utility, turned to the fleet’s highly qualified management personnel. Heading up the effort are Ronald Henne, transportation supervisor – Central Services, who has more than 33 years of fleet work experience, including 28 years at CL&P and 23 years as a supervisor, and Jack Deen, transportation supervisor – Aerial Overhaul Program, who joined the company after retiring from the U.S. Navy and has additional experience at Cummins and truck stop service facilities.

Selling Points
“One of the biggest selling points for this program,” Henne said, “is that we can rebuild aerials to reflect the latest designs and technologies. Everything manufacturers have developed and changed over time can be applied to the rebuilt units, from the turret to the bucket.”

The same philosophy, Mascaro noted, is applicable to the trucks’ chassis and stainless steel bodies. “We looked at our maintenance costs for a bucket truck in our fleet, which has a typical life cycle of 10 years, and realized we weren’t spending a lot of money on major components,” he said.

“Our specs and spending up front were designed for longevity, but we weren’t keeping trucks in service for a longer time,” Mascaro related. “With this program, we’re extending a 10-year life cycle to 17 years, which also frees up capital for customer reliability projects.”

The CL&P chassis in the rebuilding program are International 4400 models with DT466 engines and Allison automatic transmissions. Deen noted that to date, of the 61 trucks that have received rebuilt aerials, fewer than 20 percent – or about 10 to 12 units – have required powertrain rebuilds.

Partnership
Aerial equipment makers involved in the CL&P rebuilding program include Holan, Lift-All, Terex and Altec. “We work closely with suppliers and manufacturers to maintain a sufficient inventory of parts to support the rebuild program,” Deen said. “This partnership facilitates long-range planning and ordering of supplies before a truck is scheduled to be rebuilt.”

According to Deen and Henne, one challenging part of the process has been to stay ahead of changes among manufacturers, particularly aerial equipment companies that have merged or been bought out. “That is an ongoing issue, particularly for inventory control and engineering support,” Henne stated.

“Manufacturers are also key to making sure our technicians have the skills necessary to support the rebuild program,” Deen added. “Our suppliers helped technicians develop those additional skills through on-the-job training, including specialized skills associated with the aerial rebuilds which are done in-house, such as machining bushings from raw stock, custom fabrication of hydraulic hoses and rebuilding hydraulic cylinders.”

For completed rebuilt units, dielectric testing is handled for CL&P by Diversified Inspections/ITL, which is the same outside service provider that certifies the company’s aerials on a regular basis. In addition to dielectric testing, rebuilt units also have an acoustic emissions test performed in-house prior to being returned to service.

Under Mascaro’s direction, the CL&P fleet includes approximately 300 bucket trucks, 50 digger derricks, 500 Class 2 pickups and vans, 12 tractor-trailers, and a range of specialty and heavy equipment such as cranes and bulldozers. Specifications and purchases are handled by the Corporate Transportation operation headed up by Ron Thresher, manager at Northeast Utilities, CL&P’s parent company. The CL&P fleet is maintained by 80 technicians at 16 shops across Connecticut.

Exceeding Expectations
“There are always changes that can adversely affect equipment reliability,” Mascaro stated, “but we’re keeping tabs on every facet of our rebuilding program, and we are confident that it’s meeting and exceeding our expectations in every way. That not only includes financially, but in other very important ways as well.

“We could have outsourced this process very easily, and the numbers were very good either way,” Mascaro continued, “but we feel that performing this work in-house contributes to the program’s success. We have full faith in the skill of our staff, and our lineworkers feel the same way.

“Their confidence in this program was especially apparent this past January when we dispatched crews to help with storm restoration work in another state,” Mascaro concluded. “While the company selected the crews that would go out of state, the lineworkers chose the vehicles to take, and among them were two units from our rebuilding program.”

CL&P Truck Specifications
Model: International 4400
Wheelbase: 175 inches
Body: Reading ZAT148ADW Utility Body
Engine: International DT466 HT, 250 HP at 2300 rpm
Transmission: Allison MD3060P
Front Axle and Suspension: 12,000-pound leaf spring
Power Steering: TRW
Rear Axle and Suspension: 23,000-pound leaf spring
Brakes: Air
Wheels: 22.5-by-8.25 steel disc
Tires: 11R22.5 Michelin XZE

About CL&P: Formed in 1917, Connecticut Light & Power Co. is the state’s largest electric utility. Serving 1.2 million customers in 149 cities and towns, the company has a service area bordered by New York, Massachusetts and Rhode Island covering about 4,400 square miles. CL&P’s transmission network includes 1,625 miles of overhead transmission lines, 403 miles of underground cables and 19 substations. Its distribution network has 18,375 miles of overhead lines, 1,154 miles of underground lines and 212 substations.

CL&P is part of Northeast Utilities, New England’s largest utility system serving more than 3.6 million electric and natural gas customers in Connecticut, Massachusetts and New Hampshire. Sister companies include NSTAR Electric, Public Service of New Hampshire, Western Massachusetts Electric Co., Hopkinton LNG Corp., NSTAR Gas and Yankee Gas Services Co.

Managing Warranty Recovery

Written by Tom Gelinas on May 29, 2014. Posted in Maintenance.

Even though warranty coverage is automatically included with each new vehicle and replacement part bought for your fleet, nearly every fleet professional fights with suppliers for more. It’s also a lot like accident insurance policies; good warranty coverage is nice to have, but it’s something that no one looks forward to using.

Like it or not, part of every dollar you spend on a new truck or replacement part goes to pay for warranty. Doesn’t it make sense to maximize the return you’re getting on those dollars? To do that, you need to have a warranty recovery system in place to be in a position to recover all the warranty money that’s coming to you.

“Warranty recovery is worth about a penny a mile over the life of a truck, so it is a vital part of controlling costs,” said Darry Stuart, president and CEO of DWS Fleet Management Services (www.darrystuart.com). “Too often, however, fleets lack an organized procedure to store failed parts. There needs to be a specific location for failed parts and a procedure to mark and identify the parts. That way, if a manufacturer calls for one of those parts, shop personnel can go directly to where it can be found.”

Sources of Warranty
Warranty is readily available from several sources. All new vehicles come with standard warranty packages provided by manufacturers, generally through their dealer networks. In addition to these standard packages, some fleet managers are able to obtain supplementary coverage from truck manufacturers based on the size of the order and the fleet professionals’ negotiating skills.

In some instances, manufacturers will approve reimbursement for repairs after the standard warranty expires; these have become known as policy adjustments. If you need to repair a vehicle, and you believe the repair should be covered by the vehicle or component manufacturer, don’t hesitate to ask for reimbursement under a policy adjustment.

Another widely available source of potential warranty reimbursement is the additional coverage available to fleets when a new vehicle is purchased. This can come from two sources: major component suppliers and extended warranties offered for sale by truck builders. The former, which normally comes at no extra charge, commonly covers major drivetrain components. Most knowledgeable fleet managers, however, do not consider the purchase of extended warranties, the latter source of additional coverage, to be a good business decision.

An additional source of warranty reimbursement comes from aftermarket parts suppliers, many of whom offer warranty coverage on their products. This is where most fleets struggle to make the claims necessary to successfully maximize their warranty recovery. When many fleets in the industry were using three years as their trade cycle, new truck warranties dominated in importance. Now, however, with trade cycles extending five and even seven years, more replacement parts are being used that are not covered by new truck warranties. The successful management of an effective warranty recovery program is an important opportunity for a fleet to recover dollars.

Recovery Management
While most fleets have some kind of program to track warranty, only those that have a formal program – and properly manage it – are successful. “Many people claim they collect warranty, but I find most don’t have an established procedure to track it. So they really don’t have a handle on it,” Stuart said.

Management’s challenge is to make sure technicians know what opportunities exist for warranty recovery. When analyzing why warranty reimbursement has been lost, too many fleet professionals find it was because they hadn’t done a satisfactory job communicating to the people in the field what was needed from them to properly file for warranty. When a problem is encountered with a warrantable transaction, try to identify who was missing necessary information and what that information was, and then figure out how to eliminate such errors from recurring.

Maintenance management software can help. The most effective software modules are designed specifically to help fleets maximize warranty recovery. “The software should help the fleet know that the repair about to be done is warrantable,” said Dave Walters, technical sales manager for TMW Systems (www.tmwsystems.com), a provider of enterprise software to transportation and logistics companies. “If you can have that information in front of you early in the process, it may influence how you make that repair and where you get that repair done. Our software will identify and bring to the forefront potential warranty claims.”

“It’s always possible to discover warranty information after a repair has been completed or the information makes it into the fleet’s maintenance system, but that’s an after-the-fact, reactive approach,” said Michael Riemer, vice president of products and channel marketing at Decisiv Inc. (www.decisiv.com). “When information about warranties becomes available to fleets and service providers at the beginning of the process, it saves time and lets fleet managers know upfront what will and won’t be covered. Some fleets estimate 30 percent savings from warranty recapture using the Decisiv platform. With the right technology, those are valuable opportunities for warranty recapture that won’t be missed.”

Decisiv’s cloud-based Service Relationship Management (SRM) software enables fleets to manage, monitor, and report on service and repair events independent of asset type or service provider. The SRM platform, which integrates with many maintenance management systems, makes warranty information available in real time as soon as a vehicle identification number is entered.

Value Received
What’s a good warranty recovery system worth? Consider a fleet with a six- or seven-year trade cycle. In that fleet, there will be a broad range of vehicle ages, and therefore a range of warranty needs. “For vehicle ages of 1 through 3 years, we see a warranty recovery of about 10 percent of the amount spent on maintenance annually,” Walters said. “In years 3 and beyond, we see a 4 to 5 percent return from a combination of extended warranties and aftermarket parts warranty.”

Clearly, there are some significant dollars available for fleets that are willing to correctly set up a warranty recovery system. Remember, you pay for warranty every time you purchase a new truck or replacement part. Make sure you’re getting an acceptable return on that investment.

Struggles and Strategies

Written by John Dolce on March 3, 2014. Posted in Management.

To some, spare vehicles are presumed to be extra units that, for the most part, sit idle and therefore have no real cost associated with them. For the unfortunate fleet managers and end users who believe this, they will inevitably find out how inaccurate they are.

A vehicle deteriorates when it sits idle for too long, and spare units kept at an end user’s location are usually idle more of the time than if they are shared with other departments. When it comes time for these vehicles to be put to work, they typically have deteriorated from lack of use – regardless of whether they are stored inside or outside – and are not functional unless serviced to avoid breakdowns. Deterioration can come in the form of rust, corrosion, component cannibalization, lack of preventive maintenance and dead batteries due to parasitic drain from new technology.

So, why would someone keep spare vehicles, particularly when many units that have been replaced with new vehicles are auctioned off, traded in or scrapped? The logic behind keeping spares is that the fleet will have properly configured extra vehicles in the event that they are needed, providing convenience and an alternative to renting units that may be costly and not fully meet the fleet’s needs.

This logic, however, is faulty. If these units were truly capable of functioning as required, why were they replaced instead of having their lives extended? Once vehicles exceed their life cycles, maintenance costs increase, making old units more costly than new ones to own and operate. If a unit has been replaced, it should be removed from service because it does not support reliability, safety or cost-efficiency.

It’s crucial for fleet needs to be reviewed on an annual basis. This assessment gives fleet personnel the opportunity to define and refine the mix of their motor pool as well as determine what units should be removed from the mix due to lack of use. These units typically should not be replaced because if they are not being used, they are not needed. At the same time, if there is an underutilized vehicle in the mix that still has some economic life left, it can replace a unit in the same vocational class that is higher in cost, and that more costly unit can be removed from the fleet inventory.

A Spare Solution
As previously stated, keeping spare units at an end user’s location can result in them being idle more often. This is not the only end user-related obstacle fleet managers run into when addressing spare vehicles.

The reality is that sometimes vehicle replacement programs have politically and culturally powerful end users at the top of the pecking order. Their influence and authority allow them to bend or even break rules that were put in place to keep the fleet running in a cost-effective manner.

As fleet managers, we support these end users who, due to their power and perceptions, still want spare vehicles even though they are idle and costly. In the face of their choices, our vehicle support personnel can only do their best to provide operating and cost information, furnish return-on-investment analyses, and support end users’ work methods in the most fiscally responsible way possible.

It is worth the time spent to educate yourself, your staff and end users about arguably the best use of true spare vehicles (not those units that have been replaced by newer, better vehicles) – making them part of the fleet’s central motor pool. The motor pool usually consists of a number of reliable light-duty and vocational units that are put into service when other, more frequently used vehicles are in need of maintenance or repair, or during peak service times when the workload is greater than usual.

Adding these reliable spare units to the pool has multiple benefits. First, since they are being added to the rotation, they will not sit idle and continue to deteriorate. This leads to lower costs of operation and ownership, as well as greater safety and reliability. Second, fleets will potentially spend less on rental units if they have more vehicles in the central motor pool. And third, if it appears they are no longer needed after three to six months, units can and should be removed from service and cost-effectively disposed of.

It is a good idea for all companies with fleets to take the time to create a written policy that details why and how the company rotates vehicles in a central motor pool, and why and how units should be removed from the fleet. The policy should be signed by the company’s chief operating officer and published for all departments to review and follow.

Changing Times, Changing Technology
Times are changing, and it’s to a fleet’s advantage to adapt to new technology and adopt the most recent best practices, including how to handle spare vehicles. Due to global competition, a vehicle manufactured today is designed to last longer and achieve more miles than one produced 20 to 25 years ago.

The lives of top maintenance and repair components – among others, tires, brakes, steering, air conditioning, starters, alternators, drivelines, engines and transmissions – have also been extended due to better technology. In turn, they are more reliable for greater periods of time in their application-specific environments. Today’s vehicle warranties are also better and longer than in the past, which is further proof the vehicle components are more reliable and last longer.

On top of all that, vehicle maintenance technicians, mechanics and related workers are more highly trained now than ever before. Their input to management continues to improve fleet best practices every day, and we’re seeing repairs we have never seen in the past. For example, it was previously unheard of to replace a vehicle’s hydraulic brake line because the brake lines used to outlive the vehicle. Now, vehicle life cycles are much longer, so many components need to be replaced or have their lives extended, which also extends the cost of the unit beyond its original purchase price.

Today’s fleet service personnel are also highly aware that young vehicles require different services than older vehicles. Mounted equipment needs are different from chassis to chassis and application to application, and usage keeps spares more reliable for longer periods of time and better controls costs.

In summary, spare units should be removed from fleets if at all possible, but if an end user insists on keeping spares, adding them to a central motor pool is the best way to prevent them from becoming idle and unduly costly. The bottom line is that chief executives, fleet personnel, and all departments need to communicate and work together to establish spare vehicle guidelines that best meet everyone’s needs.

Cooling System Maintenance Considerations for Fleet Managers

Written by Tom Gelinas on February 28, 2014. Posted in Maintenance.

Automotive engineers have made great strides in recent years in their attempts to increase the efficiency of engines. Their efforts, unfortunately, cause them to butt heads with various principles of physics. As good as they are, today’s gasoline engines are usually less than one-third efficient. Diesels do a bit better with efficiencies running generally just over a third. With the exception of post-combustion heat recovery systems, that leaves approximately two-thirds of the heat energy either going out the tailpipe or being handled by the cooling system.

Thermodynamics says that any heat engine will run more efficiently as its operating temperature increases, but, of course, there’s a limit since parts will start to melt. Engines are designed to operate efficiently within a relatively narrow heat range. Too cool means less power output. Too hot means overheating problems. Keeping the operating temperature in that narrow heat range is the job of the cooling system.

Producing an efficient cooling system is the job of automotive design engineers. Keeping the system operating efficiently is the job of a fleet’s maintenance department.

Coolant
Ethylene glycol, propylene glycol or long-life/extended-life coolant should be used in cooling systems year-round as the glycol provides both freeze and boil-over protection. It also provides a stable environment for gaskets and hoses, which might leak if only water is used as a coolant. Antifreeze products offered by reputable manufacturers will comply with applicable ASTM standards and should be used only with distilled water in a blend of between 40 percent and 60 percent. A 50 percent blend is ideal.

Coolant containing too high a concentration of antifreeze can cause silicate dropout and water pump leakage. A study of water pump failures by Cummins (www.cummins.com) found an overconcentration of antifreeze in 78 percent of the pumps they examined.

Because magnesium and calcium found in most tap water can cause scaling on internal cooling system components, tap water should not be used in cooling systems. In addition, sulfates in tap water can corrode these parts. Distilled water should always be used when filling a cooling system to help avoid these problems.

Engineers at Baldwin Filters (www.baldwinfilters.com) outline the various functions required of an engine coolant:
• Removes heat
• Lubricates components such as water pumps
• Provides freeze protection
• Prevents scale and sludge formation
• Protects against corrosion

The first three can be handled by a simple mix of a low-silicate antifreeze and distilled water. Supplemental coolant additives (SCAs) must be introduced to the system to prevent scale and sludge formation and to provide corrosion protection. SCAs typically contain inhibitors designed to prevent generalized corrosion and cavitation erosion, and they keep hard water scale from depositing on engine surfaces and use buffers to reduce the acidity of the coolant.

Fleets need an effective preventive maintenance program to keep the cooling system clean. Because this can be labor intensive, it’s too often not done. All commercial trucks should be equipped with coolant filters, and fleet managers should strongly consider working with cleaning filters that are used for a relatively short time instead of normal coolant filters. Manufacturers have developed spin-on cleaner/filter cartridges that chemically clean the system while the truck is used in normal operations. These units are left on the truck for a few weeks. After that, the coolant is checked with test strips to ensure that dissolved solids are within OEM-recommended levels. The cleaner/filter contains the chemistry needed to clean a cooling system as well as what’s needed to protect it against further corrosion.

Check for Leaks
In many cases a small coolant leak might not be noticed because of the high temperatures under the hood during operation. The leaked coolant simply evaporates as the truck travels down the road. The result could be an automatic shutdown.

The best way to check a cooling system for small leaks is to pressurize it before making an inspection. Too often, fleets that pressurize cooling systems on a regular basis only pressurize to cap pressure. System pressures up to 18 psi should be used.

Arctic Fox (www.arctic-fox.com) makes a tool called a Coolant Dam Pressure Tester that uses shop air to quickly pressurize systems up to 18 psi. After pressurizing the system, the technician lets the truck sit for a while and then looks for problems. After checking for leaks, he or she can use the same test unit to check the cap.

High-quality silicone coolant hoses and heater hoses are found on most commercial trucks today, yet cold water leaks are still a problem faced by the trucking industry. To obtain good sealing at the coolant hose connection, the entire system – stem, hose and clamp – must be considered. Constant tension or spring-loaded clamps generally seal better than constant diameter screw clamps, especially for sealing in low temperatures. These generally work better because they contract as the material in the hose wall thermally contracts and loses resilience.

Cooling systems require maintenance on a regular basis. Antifreeze needs additives. Systems need to be cleaned and checked for leaks. When cooling systems are working properly, most engine problems can be avoided.

Helping Fleets Shine

Written by Wade Vonasek on February 28, 2014. Posted in Management.

Managing a fleet can be a challenging task. In addition to the day-to-day procedures and duties, it is essential to think long term as well. Whether a seasoned professional or a new arrival to fleet management, it is necessary to utilize new strategies and technologies to find efficiencies, cut costs and lower the total cost of ownership (TCO). How this is achieved can be a different strategy for each fleet.

ARI is a privately held vehicle fleet management services company with a workforce of more than 2,500 in offices throughout North America, Europe, the United Kingdom and Hong Kong. Founded in 1948 by parent company Holman Automotive Group, ARI manages more than 1 million vehicles in the United States, Canada, Mexico, Puerto Rico and Europe.

According to Rob Hoysgaard, director of sales support at ARI, “Having a strategic partner with the knowledge, experience and flexibility to help run an efficient fleet and manage the data the fleet returns is critical to ensuring the fleet is achieving maximum cost savings and the lowest TCO possible. We work with customers to solve complex problems with fleet vehicles and equipment, combining business insight and optimal life-cycle analysis, best-in-class services, and high-powered technology to push up vehicle fleet efficiency and cut costs.” ARI helps the fleets it works with to achieve this through controlled management of vendor-out maintenance and repair, in-house garage maintenance, fuel management and more.

SEMCO Energy
One of ARI’s partnerships is with Port Huron, Mich.-based SEMCO Energy, a regulated public utility that delivers natural gas to approximately 290,000 residential, commercial and industrial customers in the southern half of Michigan’s Lower Peninsula, as well as in the central, eastern and western parts of the state’s Upper Peninsula.

According to Hoysgaard, SEMCO understood that its core competency is delivering natural gas to its customers, and therefore it made sense to partner with a company like ARI to assist in managing its fleet. SEMCO’s Fleet Analyst Chris Kowalski said that ARI’s expertise and focus on the utility market made them a logical partner for his company. SEMCO chose ARI after an exhaustive request for proposal with several other vendors, including face-to-face meetings with finalists. The company was very satisfied with the seamless transition from a previous vendor to ARI.

“Our processes seem to be streamlined in terms of ordering and preventative maintenance repair,” Kowalski said. “ARI received high marks in our internal survey of fleet users on ease of maintenance, in essence, how improved the process for getting a vehicle in and out of a shop for preventative maintenance was as compared to the previous vendor.”

One strategy SEMCO uses to lower its TCO is the use of GPS technology, which Kowalski said has been a large driver in controlling fuel costs and work management.

“In retiring vehicles, ARI has allowed us easier access to our cost per mile and has completed studies for us that let us pinpoint the vehicles we should retire, not just the ones we think should be retired,” Kowalski said. “We have been able to input our internal repair orders at our one maintenance facility, which greatly enhances our preventative maintenance exception accuracy and assists in capturing our internal costs – both of which were missing previously.

“For SEMCO’s fleet, fuel cost is a challenge,” Kowalski continued. “Leasing costs are down due to interest rates being nil and maintenance is a cost of doing business, as trucks will break when used. However, fuel is something we have no control over the price of. We have control over the size of engines, size of our vehicles, idle time and weight that we carry. How to balance operations’ wants and needs while optimizing our fuel costs will always be a challenge. As a fleet manager, I cannot help but feel that ARI representatives truly care about my business, no matter what their role.”

Piedmont Natural Gas
Piedmont Natural Gas provides natural gas to more than 1 million residential and business customers in North Carolina, South Carolina and Tennessee. According to Hoysgaard, Piedmont was seeking a partner to offer guidance and insight on running a more efficient fleet – not just a leasing partner.

“Piedmont decided to partner with a fleet management company to eliminate both on-site vehicle and equipment maintenance and all of the company’s garages,” said Keith Gindoff, Piedmont’s manager – fleet and inventory control, finance, who noted that while the company still operates two garages, its three mechanics primarily assist with vehicle management. “In addition, it allowed Piedmont to gain an expertise in vehicle purchasing, maintenance, licensing and more that we didn’t have at the time. Our partnership also allows us to free up some resources to perform other value-added activities.”

According to Gindoff, ARI assists Piedmont with the specification and procurement of company vehicles. ARI also manages the maintenance issues, as well as the title and licensing programs, for all of Piedmont’s vehicles and heavy equipment. Gindoff added that Piedmont is very happy having ARI as its business partner.

“We are happy for many reasons,” Gindoff said. “The biggest reason is the day-to-day expertise of the ARI employees. They have experts in procuring the vehicles, licensing and registration, maintenance, report generation and more that we can utilize without having to hire specific individuals for those positions.

“ARI has the ability to group many companies together throughout the country to assist us with pricing that we normally wouldn’t be able to receive by ourselves,” Gindoff continued. “They also have other utility companies like ours as clients, which help to facilitate industry best practices through an annual utility fleet forum where other fleet managers from utility companies across the country get together to discuss important topics affecting our industry. That, coupled with real-time technological platforms for communications with peers, definitely increases everyone’s awareness and knowledge about new ideas and more efficient ways to operate.”

Integrys Energy Group
Electricity and natural gas provider Integrys Energy Group is headquartered in Chicago with approximately 3,500 vehicles in its fleet. According to Hoysgaard, Integrys has multiple operating units spread across several states, and ARI’s advanced technologies have helped the company to integrate its data and systems for easier access and understanding, making sure its fleet is running as efficiently and cost-effectively as possible.

“To sum it up, [using ARI as a strategic partner] provides better management tools and improves the bandwidth and knowledge base of our fleet department employees,” said Tim Harteau, customer strategy leader, Integrys Energy Group.

Harteau said choosing to work with ARI came down to understanding the current needs of Integrys’ different utilities and identifying a service provider that gave them a wide range of products to meet the varied requirements of those utilities going forward. The relationship with ARI started out with activities related to the implementation and support of a specific product, but now is a blend of support for the current programs and strategic planning to address challenges within Integrys.

One new strategy Integrys has implemented is third-party maintenance management of its vehicles for a small segment of its fleet, with an ongoing effort focused on vehicle acquisition and procurement activities.

“There have been some inroads to establish standard vehicle designs across multiple business units,” Harteau said. “As we speak, there is a pilot project to implement a new garage management system. Soon we will be looking at the title and licensing area that will free up internal resources to work on new fleet initiatives.”

According to Harteau, one of the best features of the partnership for Integrys is that it can select the product that meets the needs of a specific subsidiary. One subsidiary may have a need for a garage management system and licensing services while another subsidiary is looking for better fuel and maintenance management.

“From a corporate perspective, I now have all of the information consolidated to support compliance and performance reporting for the entire company,” Harteau said. “With this partnership, Integrys is now starting to capture consistent data from six different subsidiaries and present it in a consistent format to measure our performance. Ultimately, these measures will provide the support for the best possible decisions.”

About the Author: Wade Vonasek is a writer and editor. His work has appeared both in print and online for publications such as Mass Transit, Professional Tool & Equipment News, Fleet Maintenance and more. He resides in Bristol, Wis.

Tag: Management