While preventive maintenance may be the most important activity done in the shop –– managing warranty recovery, technician training and parts purchasing is also critical for success
They’re among the best, so when we want to talk about shop management, it only makes sense to go to members of our Editorial Advisory Board. Four from our panel had some time to chat: Vince DiSchino, manager of business development at Regional International and Idealease; David Foster, vice president of field maintenance at Southeastern Freight Lines; Peter Nativo, vice president of maintenance at Transport Service Co. and Darry Stuart, president and CEO of DWS Fleet Management Services as well as the recent general chairman of the Technology and Maintenance Council. DWS Fleet Management Services is an independent “limited time executive” transportation and fleet management business providing many fleets with fresh opinions by coaching-style leadership and expertise without the full-time commitment or expense. Stuart works with the existing employees to guide, direct, tutor, coach and mentor. We’ll just let them speak for themselves on topics they believe to be important.
Warranty recovery
NATIVO: We consider warranty recovery to be very important and train our people to know what to look for and the warranty time-frame for various parts. We use company supplied tags with a wire to attach to a failed part. The technician fills in the unit number, date and mileage along with a description of the part and mode of failure. Since some suppliers want us to return failed parts, we have our shop personnel hang on to parts for which warranty is claimed for 90 days. If the part doesn’t need to be returned to the supplier during that time, it can be disposed of.
When a part is submitted for warranty reimbursement, a warranty claim form is filled out and sent to our corporate office. This file is retained and regularly reviewed until action is taken by the supplier.
FOSTER: The challenge with warranty is to educate our people about the opportunities that exist. We’ve found there were some holes in our system because we didn’t do a sufficient job communicating to the folks in the field what we needed from them to properly file for warranty. Or, if they had the needed information, they did not record all the information we needed. When a problem is encountered with a warrantable transaction, we try to identify what information we didn’t have and figure out how we can eliminate recurring errors. Then we communicate to the people who are doing it. It’s all communication!
STUART: Warranty recovery is worth about a penny a mile over the life of a truck, so it is a vital pat of controlling costs. 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.
Most people claim they collect warranty, but, in reality, they don’t have an established procedure to track it. My goal has always been to have no warranty claims, because then you’re managing uptime and not downtime.
DI SCHINO: Since many operations are relying on dealers because today’s vehicles are more sophisticated, it makes sense to consider extended warranties. Warranties can be tailored to fleet needs, so I highly recommend that every fleet look into extended warranty options. Policy adjustments are becoming a thing of the past. Warranty now writes the rule.
There is always the desire for fleets to do in-house warranty work. If they want to do their own work, they need to make the commitment to get their people trained through a factory program.
Technician training
STUART: To a degree, I believe we over-train in some areas and fail to train in areas that we should. We should start training with the most basic activities we do in a shop –– preventive maintenance (PM). If you start with that and practice what I call MBWA, management by walking around, you have the opportunity to be training every minute of the day.
Manufacturers will do training anytime, anywhere. Too often, however, management is not willing to make the investment in shop time to get the training done. It takes a commitment by management to make it happen.
FOSTER: Considering how quickly equipment is evolving, continuous training is needed. We instituted a formalized training program here about three years ago that we call our ACE program, which stands for Associate Continuing Education. We’ve been very successful with this. It was initially rolled out as a voluntary program with an incentive paid after completion. As of this year, we’re making ACE certification a requirement for all of our technicians. They’ll have three years to complete the program. We are doing a lot of training in order to make sure all our technicians that want to be are ACE-certified. We believe that one of the best investments we can make in our people is in our technician training programs.
NATIVO: I have two regional maintenance managers who organize clinics with our major suppliers. These clinics are done at all of our shops at least once and sometimes twice a year. These managers also conduct training classes themselves. Our technicians are always on-the-clock when they’re in training sessions, because I don’t think you ever lose money by training your people.
DI SCHINO: I believe everybody in a company should be in training at all times. Management needs to develop this attitude and demonstrate its willingness to support training programs.
To determine the type of training that is needed most, just look at where you’re spending most of your dollars. It usually comes down to one of three categories: brakes, electrical or preventive maintenance. Training isn’t an expense. It’s an investment that will ultimately save money and better protect your assets.
Parts purchasing
STUART: Companies are so aggressive today that most prices are fair and reasonable. The programs offered by major manufacturers are good and guarantee pricing on a national level. Heavy-duty groups have also done some of this to compete with the manufacturers.
The process is fairly simple. Identify a vendor of choice, pick the parts you want to use and then negotiate a fair price. But, don’t spend more energy than it’s worth. You can waste a lot of time trying to save fifty cents on a brake shoe. If you spend the time establishing a relationship with your parts supplier, you will likely get quality parts at a fair price.
You might want to figure out how you can buy larger quantities of some items than you might normally purchase. For example, you should be buying filters on a monthly not weekly basis. It takes less time to put away once a month than weekly or even twice weekly. Many fleets don’t understand the costs involved in handling purchase orders and frequent shipments.
FOSTER: We always specify which parts we want our people to use and monitor that very closely. No other brands of parts are to be used on that application. All of our parts purchasing specification and negotiations are completed out of this office. We go out for bid on all of our major lines –– filters, brakes, tires, etc. We also try to do a two-year deal with suppliers at a minimum. We also do a monthly performance report of each of our vendors with which we have a purchasing agreement. This monthly performance report measures on-time deliveries and error rates on invoices, and if needed, we request improvements. If no improvements are required, we send the vendors a thank-you letter congratulating them on their performance.
PM management
NATIVO: I believe that if we train our technicians to do quality PMs we will have fewer failures. We have a maintenance procedure manual on our mainframe computer, and all shops have PC accessibility through which they can download it and print it at any time. Our regional managers also look for information from shop personnel. For example, we’ve gone to a six-year replacement cycle on brake chambers because we were having trouble with chambers rusting out and lines chafing.
FOSTER: We currently operate 76 terminals, but we work really hard to route equipment to one of our 22 shops for repairs as much as possible. We know that if we complete the work ourselves the quality of the jobs is higher and the cost lower. In addition, we are able to record the information better for historical cost evaluations and possible warranty recovery if we have a premature part failure. We also listen closely to the folks in the field and have made many changes in our PM procedures based on suggestions from our technicians in the shop.
If technicians have a question about a maintenance procedure, they can access needed information through the on-line library we use (Fleetportal). Fleetportal categorizes all our parts and service information on every procedure or topic we have, either published internally or from manufacturers’ information, using the TMC’s VMRS codes. So, if technicians want to look up parts or service information on a wheel bearing, all they have to do is access Fleetportal and enter in VMRS System Code 018. This library provides not only the manufacturers’ published information, but also any internal documentation concerning procedures or specifications we have created ourselves.
DI SCHINO: Managing PM is job number one. It’s the area that offers the greatest payoff, but, unfortunately, too many fleets neglect to properly train their people in it. If you don’t have a full-scale PM training program, you’re missing an opportunity.
While it’s usually not possible, the ideal situation is to have vehicles assigned to the same technician for PM inspections. He or she will be able to see changes in wear patterns and make good decisions about when to change a part.
STUART: The most important part of PMs is to do them! It’s essential to clearly define what you expect. The use of a detailed checklist is critical, as is supervision. PM audits need to be done in a professional, motivating way. When it comes to PMs, you have to manage the process, not necessarily the time it takes. Preventive maintenance is the most basic activity we do. When doing it, use good grease, good oil, good filters and good management.
Spec reviews
NATIVO: There are many things that we can’t control that will change our specs. The new diesel particulate filter (DPF) is just one example. Our manufacturer located the DPF right where we used to install some of our pump-off equipment. As a result, we had to spec a longer wheelbase to accommodate all the equipment. As a tanker fleet, we recently added roll stability and a blind-spot camera for the right side of the tractor.
DI SCHINO: Although fleets usually want to standardize on vehicles and components, times change, and fleets are forced to change, too. It’s critical that fleet managers always looks at applications when writing specs. Fuel economy is important, as is a fleet’s ability to support new specs in the shop. Drivers, of course, must always be considered.
It’s very difficult for the average fleet to test new product offerings because it takes two or three years to get meaningful results.
STUART: I don’t know that there’s much you can do with vehicle specifications today that is in any way different than what we’ve done throughout the years. In the end, it’s pretty simple. Keep the vehicle speed within reason. I usually suggest 69 MPH max and 64 cruise. Run the truck at its sweet spot –– around 1,450 RPM. Gear fast; run slow.
Optimization through computer-aided maintenance management
By: Scott Vanselous, senior vice president and general manager TMW Asset Maintenance
If a fleet’s assets are its profit-generators, its maintenance facilities represent the vital support system that keeps the assets performing in an optimal fashion. How efficiently the maintenance shop operates can make the crucial difference in a tight-margin business where every advantage counts. That’s why computer-aided maintenance management solutions, like TMT Fleet Management, are so vital.
For optimal maintenance shop performance, the right tools are crucial, especially those that can lower the costs of maintaining equipment through improved utilization of technicians, lower parts inventory and improved warranty recovery dollars on OEM and aftermarket parts.
Without real-time and accurate information from an automated asset maintenance system, too many maintenance shop managers find themselves buried in mountains of paperwork, beset by disorganization and suffering from the consequences of incorrect decisions, wasted time and resources. When shop managers, technicians and support personnel have crucial information in an easy-to-use and organize fashion, the result is a faster process, better decisions, lower costs and ultimately higher asset utilization.
A maintenance management solution, like TMT Fleet Maintenance, means seeing the key drivers of a shop in black and white –– a benefit that directly affects the company’s bottom line and has resulted in extensive use in maintenance and repair centers in both private and for-hire fleet operations. It makes preventive maintenance schedules, parts inventory, fuel and tire usage, technician hours, billing and maximum warranty recovery simple to assess and manage. The result is that company assets get back on the road and stay there longer.
The future is here: A paperless system to order and manage parts inventory
Imagine a day when your fleet can electronically check the “real-time” inventory of your distributor, and order the parts you need to complete repairs for the day. Meanwhile, in the background, your fleet’s computer system generates a purchase order that triggers the distributor’s computer to create a pick-ticket for the order to be fulfilled. The parts are delivered a short time later to the right fleet location, the repair is completed, and an electronic invoice is generated that can then be paid electronically.
That scenario is already playing out in a beta format for VIPAR Heavy Duty with one of its larger fleet customers. According to the group’s president and CEO, Steve Crowley, the early results of the test have been outstanding. He says this technology has virtually eliminated the need for anyone to touch paper.
“In the electronic catalog we provide for them, the fleet only sees the parts they have specified and want to see,” explains Crowley.
Though the time and money invested is substantial for both parties in developing the technology, Crowley says the payoff results in “faster and more responsive customer service.” Crowley estimates that early adopters of electronic solutions, like the one developed by VIPAR, will increase at a steady rate over the next few years.
“In the meantime, there are lots of tools an independent distributor can provide to a heavy-duty fleet manager,” says Crowley. “With the breadth and depth of inventory our distributors provide, it virtually eliminates the need for a fleet to have inventory at their location. Plus, the distributor can work with a fleet manager to track inventory usage so the right parts are on hand so fleets can better keep their trucks on the road.” For more information, visit www.vipar.com or phone (815) 788-1700.
