Vehicle Service Maintenance and Cost Control: Vehicle Service Maintenance and Cost Control Bob Cavalli Regional Vice President Consolidated Service Corporation IMEAC April 5, 2001


Who is CSC ?: Who is CSC ? Started in 1939 / Chicago Located in Elk Grove Village, IL Leader In Innovative Programs Acquired by LeasePlan USA in 2000


Why is Fleet Maintenance Important ?: Why is Fleet Maintenance Important ? Cost Control Protection of Investment (Sizeable) Liability / Safety Concerns Productivity / Job Performance


Fleet Maintenance Objectives?: Fleet Maintenance Objectives? Establish Routine PM’s Develop/Schedule/Track/Post Review Control Product Purchases Tires- (Size/ Type/ Time) Brakes/ Shocks / Struts / etc. Maintain Manufacturer Warranty Maintain Extended Service Warranty


Fleet Maintenance Objectives?: Fleet Maintenance Objectives? Reduce & Control “Big Ticket” Repairs Minimize Downtime & Lost Opportunity Track & Monitor Total Repair Cost Gather Service Records /Unit History Cost per mile Cost per vehicle


Common Methods of Maintenance & Repair : Common Methods of Maintenance & Repair In-House (Mechanics / Shops) Total Control Most Convenient method Driver Managed Company Paid Direct Bills Expense Account Reimbursement Miles Driven Monthly / Annual $


Common Methods of Maintenance & repair: Common Methods of Maintenance & repair Centrally / Locally Managed Pool Car Environment Branch / Local Office Management Smaller Localized Fleets


Common Methods of Maintenance & repair: Common Methods of Maintenance & repair Outsourced Program Options Full Maintenance Fixed Payment For All Maintenance Usually Monthly Normal Exception is Tires Driver / Company Responsible for Neglect Managed Maintenance Expense Paid as Needed Experts Responsible For Most Repair Decisions


Audience Participation Time: Audience Participation Time How Do You Currently Handle Service & Repair For Your Own Fleet? What Problem(s) Do You Encounter And What Would/Could You Improve?


Outsourced Maintenance Options: Outsourced Maintenance Options National Account Concept The “You Manage It” Process Maintenance Management The “We Manage It” Process.


National Account Maintenance Option: National Account Maintenance Option


National Account Vendors: National Account Vendors Goodyear Firestone Bridgestone Michelin/BFGoodrich Kelly Springfield General Dunlop National Tire & Battery (NTB) Just Tires Mark Morris (California Only) Pep Boys Jiffy Lube Midas Precision Tune Pro–Care Valvoline Oil Changers Car–X Speedy Muffler Meineke Discount Muffler Expert Tire Tire America AAMCO All Systems Go All Tune & Lube Dayton Uniroyal Vehicare Winston Tire Penske/Goodyear Rainford Lube & Oil Tire Station Grease Monkey


Purchasing Methods: Purchasing Methods National Account Card You Establish Limits Preventive Maintenance Schedule You Determine Interval Your Technicians or Fleet Department Authorization Required Beyond Limits Central Billing No Direct Shop Payment By Driver.


Preventive Maintenance(PM) Book: Utilized in conjunction with: National Account I.D. Card Program Customized services and intervals Lists established PM services at stated mileage intervals Ability to Flag “overdue” service Preventive Maintenance (PM) Book


Why Have a Set PM Schedule? : Why Have a Set PM Schedule? Protects vehicle manufacturer’s warranty Reduces exposure to major repairs Engine failure/replacement Routine service of wear and maintenance items A good driver reminder Beneficial for unassigned units


Preventive Maintenance Book vs. Driver Guides: Preventive Maintenance Book vs. Driver Guides PM Book indicates next service due Good driver reminder Ideal for unassigned/pool vehicles PM Book provides audit trail PM Ticket is the purchase order PM Ticket is coded to individual vehicle PM Book pre-authorizes service No phone call required Expedites service for driver


Major Mechanical Network: Major Mechanical Network Supplements the National Account vendor network for major repairs National network of pre–qualified repair facilities Independents vs Dealers saves money Utilizes Maintenance Technicians: Review and negotiate estimates & warranty items Minimizes driver downtime Utilized on an as-needed basis


After Hours & ERS: After Hours & ERS Assistance 24/7/365 Technical Expertise Towing/Road Assistance Added driver value


Maintenance Management Option : Maintenance Management Option


Maintenance Management: Maintenance Management Comprehensive program providing: Full–time professional administration, authorization and cost control for all maintenance repairs and service needs. Service Vendor priorities are your priorities Driver safety Driver productivity Savings


Trained Service Technicians: Trained Service Technicians Recruited From Repair Industry ASE Blue Seal Certification I-Car Gold Certification Manufacturer’s Training


Maintenance Management: Maintenance Management Know How Vendor Handles Driver Know How Vendor Handles Stores Determine What Services Are Internal/External Learn Technician’s Transaction Incentive Get Savings Identified & Documented Hard and Soft Costs


Accident Management Services: Accident Management Services Accident Reporting Damage Estimating / Repair Subrogation Vehicle Rental Glass Replacement Driver Record Management


Accident Reporting: Accident Reporting 24 Hours / 7 Days Trained Staff Consistent Accident Report Electronic Report Transmission


Shop Network: Shop Network Preferred Networks Offer More Control Body Shops Are Less Common To Drivers Quality Guaranteed


Repair Process: Repair Process Experts Coordinate Estimates Call In Drive In Pickup Tow In


Collision Repair Program: Collision Repair Program Provides one source for repairs, towing and salvage I–CAR “Gold” & ASE certified staff: Negotiate repair prices Computerized repair tracking Maximize cost savings Electronic estimating and imaging Electronic audit procedure Fleet life warranty


Vehicle Rental Network: Vehicle Rental Network National network of rental companies/locations One toll-free call does it all Access to variety of vehicles Pickup & delivery service Zero damage deductible 24 Hour Emergency Road Service Rental tracking


Glass Repair & Replacement Network: Glass Repair & Replacement Network Provides windshield and glass replacement or repair for any vehicle One toll-free call does it all Nationwide network Guaranteed national account pricing Mobile installation available Repair vs Replacement Guarantee


Subrogation Program: Subrogation Program Insurance industry trained claims specialists: Work toward 100% recovery Establish contact with all parties Obtain all necessary documentation Computerized claims follow-up Nationwide legal network available for litigation


Driver Record Management Program: Driver Record Management Program Retrieves, sorts, & translates your drivers’ state Motor Vehicle Records Computer linked to all 50 states 24–48 hour retrieval Standardized format Automatic renewal program All drivers, new hires, spot checks Stores driver MVR history


Information Technology : Information Technology Three Main Directions I) Fleet Management Software Specific Program application II) Home Grown Fleet Program Excel Type Spreadsheet Program IT Written Program III) Access to Vendor’s Database Use The Info while Connected


Slide33: Windows 95/98 Compatible Single Station,Multi User, Windows NT, LAN & WAN Web Enabled Programming & Access Provide Capabilities To Store, Analyze, & Report All Related Expense, Maintenance & Accident History Download Information & Data Entry Ability to Store Notes on each Vehicle and Repair Maintenance & Accident Management Software


Slide34: Provides Internet Portal to vendors database Provides real-time information: vehicle inventory maintenance and expense history safety and accident cost information Vendor manages data Internet Data Access


Wrap Up : Wrap Up Fleet Service Options For Scattered Fleets Self Managed Program National Account Network Supplemental Networks Available Purchase Controls Set By You Driver Involvement Is High


Wrap Up: Wrap Up Fleet Service Options For Scattered Fleets Outsourced Program Managed Maintenance Hiring of Expertise Cost Control Documented 24/7 Access


Wrap Up: Wrap Up Self Insured Accident Assistance Reporting Repair Subrogation Claims Collection


Wrap Up: Wrap Up Information/ Computer Technology Internally Developed Systems Job Specific Software You own it and the data Internet Web Programs


Q & A: Q & A