May 2009, Work Truck - Feature
Medium-Duty Operating Costs Increase in 2008-CY
The biggest factor behind the spike in medium-duty operating costs was the increase in diesel prices, which jumped 32 percent from the then-historical high in 2007. Other factors included increased labor rates and higher taxes.
By Mike Antich
2008 maintenance costs and vehicle utilization by years in service, Class 5-6.
5 Ways to Lower Operating Costs
Here are five actions fleet managers can take to lower the operating costs of their medium-duty truck fleets.
1. Update PM Schedules
"There have been a lot of technology changes in the past decade, but we sometimes still see PM schedules that haven't been reviewed or changed in years," said Charlie Thomas, manager, PHH Vehicle Maintenance Assistance. "For example, as platinum spark plugs changed how we think about tune-up intervals, advances in synthetic fluids and extended drain intervals should be considered when drawing up a PM 'A' or PM 'C' annual inspection."
Thomas sometimes see a client or a shop present a PM schedule with a manual transmission or differential drain required at 30,000 miles or annually, and the truck in question has synthetic gear oil in the axle, which has a drain interval of 150,000 or even 500,000 miles.
"Reviewing all of the PM requirements to meet the needs of a fleet's current vehicle inventory should be a regular practice. Maintenance is essential, but over-maintaining raises fleet costs and is detrimental to the environment," added Thomas.
2. Driver Pre-Trip Inspections
"The DOT requires daily driver vehicle inspection which can generate fines if not completed," said Thomas. We recommend that you enforce procedures for taking corrective actions on items which fail inspection, to avoid fines and possible breakdowns.
3. Enforce PM Compliance
PM compliance will also help reduce incidents of unscheduled maintenance. "Closely manage your PM compliance to reduce costly unscheduled maintenance events that typically have premium fees, such as towing, roadside service, or after-hours surcharges," said Steve Byrd, fleet services manager for PHH Arval. "Consider curtailing onsite PM services, which often include service fees for technician driving time. Local dealers looking to increase their service department activity may be willing to offer free pickup and delivery or walk-in service."
4. Reduce the Number of Preventable Accidents
"Increase driver safety training to reduce preventable accidents. Also, see if you are able to downsize your fleet rather than hanging on to 'spare' units to hedge against accidents and high rental costs," said Byrd.
5. Track Costs by Maintenance Codes
"Tracking costs internally through specific maintenance codes can give a fleet manager a key view of where specific costs lie," said Ezel Baltali, fleet services applications engineer for PHH Arval. "If a fleet manager sees his fleet has higher-than-average transmission costs, see what new options may be implemented for the new order. Don't focus only on the main areas, such as engine, transmission and brakes, which are oftentimes warrantable, but also examine the cranking, charging, fuel, PTO, and exhaust systems for potential savings."