Performance Metrics for the Organizational Fleet Manager. William Gookin & Scott Conlon Mercury Associates
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2 Performance Metrics for the Organizational Fleet Manager William Gookin & Scott Conlon Mercury Associates
3 What Is a Metric? Metrics is the process of developing objective sets of data to measure how your fleet is doing relative to goals; A metric is a quantifiable and repeatable standard of measurement; and Metrics can be used to develop benchmarks, a standard by which progress can be measured against past performance. 3
4 Why Measure? What gets measured, gets done. Anonymous 4
5 Why Measure? Because performance measures (metrics) can: Help you make a case for more (or fewer) resources, Identify areas where you need to improve, Emphasize your strengths (prove you are doing a good job), Help you track future performance improvements (or declines), Productively use the information you collect for FAST to inform management, and Allow comparisons to other organizations. 5
6 A Good Metric... Is accepted as meaningful; Tells how well goals and objectives are being met; Is simple, understandable, logical, and repeatable; Identifies a trend; Is clearly defined; Allows for simple and consistent data collection; Is timely; Drives appropriate action; and Can eliminate speculation. 6
7 Important to Remember Management above the fleet management organization often does not understand the science and complexity of fleet management. The fleet manager s responsibility is to establish and clearly communicate the meaning of key fleet performance measures and why they are important in meeting the mission. Communicate performance to: Leadership, Customers, and Fleet employees. 7
8 If Leadership asks, do you know? How many vehicles do we have? What is the average annual mileage of our fleet? What is our fleet MPG? How do costs of owned vehicles compare with those leased from GSA? Are our costs competitive with other bureaus? What is our annual fleet fuel consumption? How much alternative fuel do we use? How many accidents have we had? How much did they cost? Are vehicles being adequately utilized? What are our optimum replacement cycles for our owned fleet? 8
9 Categories of Performance Metrics Inventory Cost Cost per mile (CPM) Fuel Utilization Accidents EPACT 701 Waivers Maintenance 9
10 Inventory Category Description (Annual Metrics ) Agency Federal Average Inventory Total Number of Vehicles ,974 Total Number of Owned Vehicles 519 9,129 Total Number of GSA Leased Vehicles 13 3,755 Total Number of Commercial Leased Vehicles 1 91 Total Number of AFVs 138 4,125 AFVs % of Total Fleet 25.9% 31.8% Net Fleet Change 46 (581) % Net Change of Fleet Size 8.6% -4.5% Total Number of Vehicle Acquisitions 11 1,844 Total Number of Vehicle Disposals/GSA Turn-Ins (35) 2,424 Average Age of Owned Fleet
11 Cost Category Description (Annual Metrics ) Agency Cost Federal Average Total Cost $3,604,224 $183,553,177 Average Cost per Vehicle $6,762 $6,976 Total Owned Vehicle Acquisition Cost Average Acquisition Cost per Vehicle Total Owned Vehicle Cost $3,454,518 $137,350,884 Average Owned Cost per Vehicle $6,656 $7,411 Total GSA Vehicle Lease Cost $125,434 $43,624,309 Average GSA Lease Cost per Vehicle $9,649 $5,742 Total Commercial Vehicle Lease Cost $24,272 $2,577,984 Average Commercial Lease Cost per Vehicle $24,272 $14,033 Total Maintenance Cost of Owned Fleet $431,857 $47,721,624 Total Fuel Cost of Owned Fleet $369,538 $40,695,574 Total Cost of Depreciation $2,675,103 $40,619,160 Total Cost of Indirects/Overhead $0 $10,888,679 Total Owned Vehicle Cost per Mile $1.77 $1.08 Total Fixed Cost per Mile (Depreciation & Indirects) $1.37 $0.40 Total Operating Cost per Mile (Incl. Fuel & Maint.) $0.41 $0.68 Total Cost per Mile $1.75 $
12 Cost per Mile Cost per mile, like miles per gallon, is an important tool in determining the efficiency of equipment. Can be used to benchmark between classes. Can be used to benchmark between fleets. Make sure costs are being captured the same way, operational (fuel, maintenance, tires, etc.) and ownership costs (depreciation, financing, insurance, etc.) are being captured the same way. In addition, consider the equipment age. Reviewing CPM will identify problem vehicles within each equipment class. 12
13 Fuel Category Description (Annual Metrics ) Agency Federal Average Fuel Total Number of Gallons Aggregate All Fuels 124,581 15,889,411 Total Number of Gallons Gasoline 81,212 12,246,574 Total Number of Gallons Diesel 21,667 2,779,515 Total Number of Gallons E85 15, ,993 Total Number of Gallons B20 4, ,228 Total Number of Gallons CNG 1,662 15,302 Total Number of Gallons Propane 0 10,182 % Alternative Fuels Used 17.4% 5.3% Average Miles per Gallon What steps have you taken to see that your AFV drivers, within 5 miles or 15 minutes of an alternative fueling station, are fueling to regulation? 13
14 AFVs as Percentage of the Fleet 14
15 Utilization Category Description (Annual Metrics ) Agency Federal Average Utilization Total Number of Miles Driven 2,059, ,431,673 Average Miles per Vehicle per Year 3,863 7,579 Great data driven, objective metric Essential for right-sizing a fleet Establishes a standard justification for assignment Quantify through: a) Annual miles driven b) Hours operated or in use c) Number of trips 15
16 Accidents & EPACT 701 Waivers Category Description (Annual Metrics ) Agency Accidents Waivers Federal Average Total Number of Accidents 20,569 Accident Rate = # of Accidents per Million Miles 9, Total Cost of Accidents Average Repair Cost per Accident Count of EPACT 701 Waivers 16
17 Accident Metrics Fleet accident rate accidents per million miles Average repair cost per accident Money recovered from programs Lost time due to accidents Percentage of accidents with injuries Percentage of accidents with fatalities Percentage of one-vehicle accidents 17
18 Maintenance Sample Shop Performance Measures 18
19 Summary Establish performance metrics (goals) based on your data and best practices Improve your processes, measure at determined intervals, and adjust goals if necessary Don t be afraid of bad data; it may help identify problem areas! Get stakeholders involved in the process Establish exception reports High & low cost per mile High & Low Utilization Fuel MPG Maintenance costs Metrics can modify behavior Don t let it become personal 19
20 Remember There is no guarantee of reaching a goal at a certain time, but there is a guarantee of never attaining goals that are never set. David McNally in Even Eagles Need a Push 20
21 MERCURY ASSOCIATES, INC. Specializing in the science of fleet management. William Gookin Director, Federal Fleet Consulting (cell) Scott Conlon Sr. Consultant, Federal Fleet Consulting (cell) 21
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