Stuart Explains:
Benchmarking can also be defined as “a standard or point of reference in measuring or judging quality, value, etc.” For many fleet managers, it is also a term senior management uses to determine costs and to pin down projected costs. This concept is often masked by management saying, “Don’t spend any money.”
The benchmarking process has plagued equipment and maintenance managers for years because it pins them down to an exact figure, which is often a sure path to self-destruction. Under pressure, they either wind up providing figures that don’t meet expectations or meet unrealistic expectations because maintenance needs are so unpredictable. Various other issues impact operating costs and varied levels of expertise, warranty considerations, pricing and other factors can add cost.
Despite concerted efforts, determining costs within each company’s cost structure is an educated guesstimate at best. Actual costs that are higher than the established benchmark may become the basis for the belief that the fleet manger is not performing effectively. This cycle of self-destruction can be repeated over and over. Benchmarking can be a way of realizing lower costs. But even if the fleet manager meets established benchmarks, management may still be uncomfortable. Either the benchmark is suspect or the desire to lower costs further comes into play. Subsequently, another set of benchmarks is established and the cycle begins again.
So do your research and be involved on a day-to-day basis. Gather the information you need to figure out how to drive costs out and become the low cost provider before you are told to do so! I do believe we need a business plan, a roadmap on maintenance and monthly reviews on variances.
For more information, visit www.darrystuart.com or email comments, questions or requests to Darry at: [email protected].