Vehicle Service Maintenance and Cost Control

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Vehicle Service Maintenance and Cost Control

Bob Cavalli Regional Vice President Consolidate
d Service Corporation
IMEAC April 5, 2001
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Who is CSC ?

• Started in 1939 / Chicago
• Located in Elk Grove Village, IL
• Leader In Innovative Programs
• Acquired by LeasePlan USA in 2000

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Why is Fleet Maintenance Important ?

• Cost Control
• Protection of Investment (Sizeable)
• Liability / Safety Concerns
• Productivity / Job Performance

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Fleet Maintenance Objectives?

• Establish Routine PMs
• Develop/Schedule/Track/Post Review
• Control Product Purchases
• Tires- (Size/ Type/ Time)
• Brakes/ Shocks / Struts / etc.
• Maintain Manufacturer Warranty
• Maintain Extended Service Warranty

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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

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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

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Common Methods of Maintenance repair

• Centrally / Locally Managed
• Pool Car Environment
• Branch / Local Office Management
• Smaller Localized Fleets

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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

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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?

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Outsourced Maintenance Options

• National Account Concept
• The You Manage It Process
• Maintenance Management
• The We Manage It Process.

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National Account Maintenance Option
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National Account Vendors

• Pep Boys
• Jiffy Lube
• Midas
• Precision Tune
• ProCare
• Valvoline
• Oil Changers
• CarX
• 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

• Goodyear
• Firestone
• Bridgestone
• Michelin/BFGoodrich
• Kelly Springfield
• General
• Dunlop
• National Tire Battery (NTB)
• Just Tires
• Mark Morris (California Only)

• Grease Monkey

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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.

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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

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Why Have a Set PM Schedule?

• Protects vehicle manufacturers warranty
• Reduces exposure to major repairs
• Engine failure/replacement
• Routine service of wear and maintenance items
• A good driver reminder
• Beneficial for unassigned units

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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

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Major Mechanical Network

• Supplements the National Account vendor network
  for major repairs
  
• National network of prequalified 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

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After Hours ERS

• Assistance 24/7/365
• Technical Expertise
• Towing/Road Assistance
• Added driver value

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Maintenance Management Option
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Maintenance Management

• Comprehensive program providing
• Fulltime professional administration,
  authorization and cost control for all
  maintenance repairs and service needs.
  
• Service Vendor priorities are your priorities
• Driver safety
• Driver productivity
• Savings

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Trained Service Technicians

• Recruited From Repair Industry
• ASE Blue Seal Certification
• I-Car Gold Certification
• Manufacturers Training

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Maintenance Management

• Know How Vendor Handles Driver
• Know How Vendor Handles Stores
• Determine What Services Are Internal/External
• Learn Technicians Transaction Incentive
• Get Savings Identified Documented
• Hard and Soft Costs

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Accident Management Services

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

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Accident Reporting

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

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Shop Network

• Preferred Networks Offer More Control
• Body Shops Are Less Common To Drivers
• Quality Guaranteed

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Repair Process

• Experts Coordinate Estimates
• Call In
• Drive In
• Pickup
• Tow In

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Collision Repair Program

• Provides one source for repairs, towing and
  salvage
  
• ICAR Gold ASE certified staff
• Negotiate repair prices
• Computerized repair tracking
• Maximize cost savings
• Electronic estimating and imaging
• Electronic audit procedure
• Fleet life warranty

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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

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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

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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

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Driver Record Management Program

• Retrieves, sorts, translates your drivers
  state Motor Vehicle Records
  
• Computer linked to all 50 states
• 2448 hour retrieval
• Standardized format
• Automatic renewal program
• All drivers, new hires, spot checks
• Stores driver MVR history

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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 Vendors Database
• Use The Info while Connected

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Maintenance Accident Management Software

• 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

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Internet Data Access

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

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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

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Wrap Up

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

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Wrap Up

• Self Insured Accident Assistance
• Reporting
• Repair
• Subrogation Claims Collection

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Wrap Up

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

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Q A