Advisor Alley

Business Plan

Public fleet management organizations need a business plan.  It is a powerful tool used to tell the story of your fleet operation.  It communicates your current position, your vision for the future, and your plans for realizing that vision.  Your organizational plans for success are clearly communicated to your team, management, customers, council, and other stakeholders.  A well written plan can also give you control over your finances, marketing, and daily operations.

Direct & Indirect Labor

Direct time is the time technicians spend on repairs and/or preventive maintenance (PM) tasks that are posted to a work order.  Indirect time is the time employees spend on administrative duties, meetings, training, breaks, vacation, sick leave, etc.

Technician time by task can be measured against time standards that you set up in your fleet management information system.  The results can lead you to improvement opportunities such as better tools, training, or possibly a vehicle hoist.

Indirect time is captured using a methodology called Activity Based Costing (ABC) and tracks work activities by category.  ABC time tracking helps you determine where your indirect time is going, affords reconciliation, and also guides performance improvement.

Benjamin Franklin said, “Lost time is never found again.” Productivity suffers every second that an employee’s time is lost, and you can’t ever get lost time back.  Tracking direct & indirect time can help you improve operational efficiency, and your bottom line.

Parts Inventory

Parts inventory is one of the largest expenses in your fleet budget. It is very important to monitor industry best practice targets for the following:

  • Parts Inventory
  • Parts Inventory Turns
  • Obsolescent/Stale Parts Inventory
  • Parts On-Demand Fill Rate

This data is utilized during budget development, year-end audit reports, and is vital to your operational efficiency and fleet availability.  This information is also important when determining whether to keep your parts department in-house or to outsource.

Should you need help with any of the topics above, please contact the Public Fleet Advisors for assistance!