Fleet Performance Metrics

Fleet Performance Metrics 2014 National Equipment Fleet Management Conference June 10, 2014

Sonja Scheurer, Administrator Scott Ratterree, Fleet Manager Daniel E. Smith, Fleet Specialist Andrew W. Bannasch, Analyst

Agenda  Timeline  Approved Resolutions

 Definitions  Methodology  Vehicle/Metric Groupings  Parameters  EMTSP Web Site  2014 Survey Results  Lessons Learned/Key Messages/DOT Benefits  Recap -- Why Measure Performance?

 Next Steps/Round Table Discussion 2

Performance Metrics “Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.” H. James Harrington (Former Chairman and President of the International Academy for Quality and of the American Society of Quality Control) 3

Timeline □ 10/2009: Initial Implementation of Fleet Management System □ 06/2010: Attended Southeast States Conference (Austin, TX) □ 09/2010: Midwest/Northeast States Conference (Pittsburg, PA)  Initiation of Performance Metrics initiative/Conduct Survey □ 07/2011: MAASTO  Several concurrent sessions on “performance measures” □ 08/2011: Midwest/Northeast States Conference (Kansas City, KS)  Performance metrics presentation and briefing/roundtable  Issue Statements on Four Key Performance Metrics  Initiation of Conference Calls □ 06/2012: First National Fleet Conference (Mobile, AL)  Performance metrics presentation/round table  40 States attended – majority vote to adopt four national metrics  Initiate/participate work groups via webinars (Metrics, NCSFA, M5) □ 08/2012: Team Webinar (13 States) 4

Timeline (Continued) □ 09/2012: AASHTO Subcommittee on Maintenance Adopts Resolution 12-03 (Equipment Fleet Management Performance Metrics) □ 09/2012: AASHTO Subcommittee on Maintenance Adopts Resolution 12-04 (Schedule for Alternating Biennial Regional and National AASHTO EMTSP Partnership meetings) □ 10/2012: Team Webinar (11 States) □ 11/2012: Team Webinar (13 States & Canadian Province) □ 12/2012: Team Webinar (9 States & Canadian Province) □ 01/2013: TRB “Spotlight” presentation □ 05/2013: Team Webinar (9 States & Canadian Province) □ 05/2013: EMTSP web site operational □ 06/2013: Southeast States presentation □ 06/2013: Northeast/Midwest States presentation □ 07/2013: Initial submission of metrics for web site posting (17 States reporting to date) □ 07/2013: NAFA coding approved and posted on web site □ 10/2013: Team Webinar (11 States & Canadian Province) □ 01/2014: TRB presentation – Committee on Maintenance Equipment □ 02/2014: Team Webinar (8 States) □ 05/2014: Team Webinar (8 States & Canadian Province) □ 06/2014: National Equipment Managers’ Conference 5

AASHTO Resolution #12-03 (Sept 2012)

NOW, THEREFORE, BE IT RESOLVED that the AASHTO Subcommittee on Maintenance expresses their endorsement of the use of the key performance metrics for the equipment fleet of utilization, preventive maintenance, retention, and availability/ downtime…

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Resolution #12-03 – Utilization (Sept 2012)

WHEREAS, The performance metric of utilization recognizes that tracking and reporting the use of the equipment fleet is necessary to ensure effective and efficient use of State DOT vehicles and equipment. Accurate tracking of utilization allows for informed assessment and assignments of the equipment fleet to meet operational needs…

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Resolution #12-03 – Preventive Maintenance (Sept 2012)

WHEREAS, The performance metric of preventive maintenance is a fundamental, planned maintenance activity designed to prolong equipment fleet life and aids in preventing unplanned maintenance and repairs, and preventive maintenance is the foundation of a properly managed equipment fleet and a significant component contributing to all maintenance strategies… 8

Resolution #12-03 – Retention (Sept 2012)

WHEREAS, The performance metric of retention recognizes that current economic times have resulted in lower levels of funding, and the cost of replacement fleet equipment has been escalating and resulted in a significant decrease in buying power, which have resulted in an immediate and extended impact on the equipment fleet and its life cycles, and it is imperative to sustain the high level of readiness and reliability, which is directly related to the age of fleet equipment, and accordingly the development and implementation of a nationally recognized metric for retention relating to fleet life cycles is essential to maintaining a healthy, economical, and operational equipment fleet… 9

Resolution #12-03 – Availability/Downtime (Sept 2012)

WHEREAS, The performance metric of availability/downtime recognizes the importance of assessing the readiness equipment fleet to perform and respond to routine and reactive/emergency response activities, and availability/downtime also reflects an organization’s ability to properly staff personnel and supply resources to accomplish the mission, which can also be reflective of a fleet’s age, utilization, and units beyond established retention periods… 10

Resolution #12-03 – National Metrics (Sept 2012)

WHEREAS, State DOT Comparative Performance Measurement: A Progress Report produced by NCHRP Project 20-24 (37)L states that AASHTO and FHWA have been working over the past eight years to identify a set of common transportation performance measures that could be adopted by all states, that these common measures would provide a basis for individual states to view their own performance relative to peer states, and common measures also make it possible to combine information across states to provide a national picture of performance… 11

Definition: Utilization

A measurement typically in hours or mileage to indicate how frequently a vehicle or piece of equipment is used within a given time period (i.e. month, quarter, or year).

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Definition: Preventive Maintenance

A fundamental, planned maintenance activity (i.e. oil and filter change) designed to improve life and avoid any unplanned maintenance activity/breakdown involving a vehicle or piece of equipment (typically performed on a calendar/hours/mileage interval). 13

Definition: Retention A measurement to compare whether an individual vehicle(s) or piece(s) of equipment are within or exceed established criteria (typically in months or years of age and usage in miles or engine hours) for the expected life cycle or useful life. Note: Report numbers/percentage for those units within established criteria. Example: If retention for a light truck is six years and eight of ten units are only five years old, then report 80%. Retention schedules are developed (often using empirical data analysis) by organizations to determine the most cost effective to replace a vehicle/piece of equipment. 14

Definition: Availability/Downtime Availability: When a unit is “in service” and capable of performing, at a minimum, its primary function. To calculate availability, downtime must be known.

Downtime: When a unit is unavailable and unable to perform its primary function due to a maintenance issue scheduled or unscheduled (i.e. a preventive maintenance inspection or road breakdown) versus non-utilization during seasonal timeframes. 15

Reporting Methodology National Parameters versus Statewide Criteria Use statewide criteria and report in accordance with agreed upon national parameters

“Go/No Go” results NAFA Codes for Vehicle/Equipment Groupings

Focus on collaboration among states to improve and share best practices 16

Vehicle/Metric Groupings: Utilization NAFA Codes 1-2 Light Vehicles under 10,000 GVW

3-6 Medium Vehicles 10,000 – 26,000 GVW 7-8 Heavy Vehicles Over 26,000 9 Equipment (Off-road & construction) 17

Vehicle/Metric Groupings: Preventive Maintenance

NAFA Codes

1-2 Light Vehicles under 10,000 GVW 3-6 Medium Vehicles 10,000 – 26,000 GVW

7-8 Heavy Vehicles Over 26,000 0 Non-self propelled

9 Equipment (Off-road & construction)

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Vehicle/Metric Groupings: Retention

NAFA Codes 1-2 Light Vehicles under 10,000 GVW 3-6 Medium Vehicles 10,000 – 26,000 GVW 7-8 Heavy Vehicles Over 26,000 0 Non-self propelled 9 Equipment (Off-road & construction) 19

Vehicle/Metric Groupings: Availability/Downtime

NAFA Codes

1-2 Light Vehicles under 10,000 GVW 3-6 Medium Vehicles 10,000 – 26,000 GVW

7-8 Heavy Vehicles Over 26,000 0 Non-self propelled

9 Equipment (Off-road & construction) 20

Parameters: Utilization Slightly broader parameters than other metrics Affected by less utilized seasonal & contingency units May be impacted by operations & geography Impacted by lack of commercial availability of mission critical assets 21

Parameters/Stoplight Charts: Utilization Light Vehicles

Medium Vehicles

85% or greater = Green 70% - 84% = Yellow Less Than 70% = Red 54%

53%

NAFA 1 & 2

NAFA 3 & 6

Heavy Vehicles

Equipment

Overall

56% NAFA 7 & 8

49%

54%

NAFA 9

NAFA All 22

Parameters: Preventive Maintenance Fleet Management Core Competency Ensures good health of fleet & enhances availability Extends fleet life and reduces long-term costs

Standards should be high!

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Parameters/Stoplight Charts: Preventive Maintenance Light Vehicles

Medium Vehicles

90% or greater = Green 80% - 89% = Yellow Less Than 80% = Red 93%

93%

NAFA 1 & 2

NAFA 3 & 6

Heavy Vehicles

Non-Self Propelled

Equipment

Overall

96% NAFA 7 & 8

89%

89%

92%

NAFA 0

NAFA 9

NAFA All

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Parameters: Retention Same parameters as PM Compliance

Regardless of budget, manage fleet wisely Highlight replacement needs to upper management

Okay to not replace older seasonal & contingency units on schedule

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Parameters/Stoplight Charts: Retention Light Vehicles

Medium Vehicles

90% or greater = Green 80% - 89% = Yellow Less Than 80% = Red 49%

51%

NAFA 1 & 2

NAFA 3 & 6

Heavy Vehicles

Non-Self Propelled

Equipment

Overall

58% NAFA 7 & 8

50%

39%

49%

NAFA 0

NAFA 9

NAFA All

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Parameters: Availability/Downtime Same parameters as PM Compliance & Retention Important management tool regarding health & condition of fleet assets and ability to meet mission requirements Will encourage timely reporting/repair of assets Could potentially foster support for additional resources (i.e. parts, people, and funding) 27

Parameters/Stoplight Charts: Availability/Downtime Light Vehicles

Medium Vehicles

90% or greater = Green 80% - 89% = Yellow Less Than 80% = Red 97%

97%

NAFA 1 & 2

NAFA 3 & 6

Heavy Vehicles

Non-Self Propelled

Equipment

Overall

92% NAFA 7 & 8

98%

96%

97%

NAFA 0

NAFA 9

NAFA All

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Reporting Requirements Twice a year to EMTSP--No later than January 10 & July 10 Complete standard form and e-mail to [email protected] EMTSP will post to web site prior to end of month It is okay to report incremental progress 29

EMTSP Web Site Individual metrics by region/state Information and Forms section

State folders for supporting documentation Access/updates Demonstration/link - http://www.emtsp.org/ 30

2014 Survey Results Twenty-five states responded prior to closing survey (5/15/2014) Question 1: How does your DOT currently track/report Fleet Performance Metrics data?  24% manually track  72% use a Fleet Management System (FMS)  4% do not track

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2014 Survey Results  Question 2: What have been the roadblock(s) to your State DOT tracking/reporting Fleet Performance Metrics data?  37.5 % - Lack of a FMS  6.2% - Don’t know or understand what needs to be reported  12.5% - Waiting to report all metrics at one time  25% - Too labor intensive  18.8% - DOT does not track/report these or any specific metrics  Other – current FMS is limited, waiting on new FMS, short personnel resources, in development to align with NAFA codes, and have not taken steps yet to report 32

2014 Survey Results Question 3: If assistance in reporting Fleet Performance Metrics from other DOTs was available, which would prove most helpful?  42.9% - Provide sample reports  21.4% - Provide methodology to retrieve data (if using same FMS)  35.7% - Provide more specific information on Fleet Performance Metrics  Other – assistance not needed

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2014 Survey Results  Question 4: What Fleet Performance Metrics does your State DOT use?  None (1 response)  Four national metrics (9 responses)  Depreciation  Cost of repair per unit  Cost per mile  Aging inventory quotas  Payment for use of POVs  Up-fitting/delivery times  Repeat repairs/rework  Reactionary/unscheduled maintenance  Total fleet size  Percentage of direct labor to assets  Safety information i.e. recall bulletins completed/pending 34

2014 Survey Results Question 5: Which Fleet Performance Metric has proven to be the most successful for your DOT and why?  None (1 response)  Four national metrics (1 response)  Too early to tell (1 response)  PM Compliance (8 responses)  Utilization (5 responses)  Retention (1 response)  Cost per mile (2 responses)  Expenditure QA (1 response) 35

Lessons Learned □ Fact: Have to be able to document what you are doing, how you are doing it, and why □ Need an effective way to gather, collect, and report on the metrics □ Statewide, coordinated, organized approach important

□ Planning and evaluation/re-evaluation cradle to grave 36

Lessons Learned □ Be careful what you measure (it will drive behavior!) □ Careful evaluation of metric “suggestions”

□ Statewide continual training is imperative □ Performance Metric reporting and incremental progress has resulted in renewed support/recognition 37

Key Messages □ Many states appear to be using performance metrics—there is still a difference among states, but improvement has resulted from national initiative □ Tie performance metrics to both strategic plan and tie to operations □ Be careful about setting targets/be careful what you measure/tendency is to measure what is easiest □ Don’t have to be perfect…incremental progress is ok □ AASHTO focus on performance management  Created a standing committee on performance management  Advocating a state driven approach based on national goals □ Yes, national performance metrics mean benchmarking/ comparison, but…focus should be on collaboration among the states to improve and share best practices--UNITED WE STAND, DIVIDED WE FALL 38

Examples of DOT Benefits  Improved visibility of fleet activities at management Level  Positive impact and improvement to PM Compliance Statewide (nearly 100% increase in 3 year period)  Higher visibility for funding replacement units  Improved ability to report seasonal impacts

 Pertinent fleet reductions/reassignments  Improved networking/sharing on a national level 39

Recap - Why Measure Performance? An opportunity to better manage and operate your fleet Creates benchmarks to track performance Brings focus to improvement efforts Part of strategic approach to fleet management Enables one to know where they are in relation to where they want to be

Accountability/transparency An opportunity to tell your story 40

Performance Metrics

“All successful organizations keep score. Without the ability to do so, it is impossible for organizations to prove the value of their services to their customers – the residents of the communities they serve.”

American Public Works Association Handbook, September 2002

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Next Steps/Round Table Discussion □ Report/update metrics information in July 2014 □ Continue periodic teleconferences (quarterly) □ Collaborate to assist states not reporting/or not able to report (regions work with member states) □ Ideas for states not reporting or unable to report □ Suggestions to improve/enhance metrics reporting/web site □ Reassess parameters as necessary □ Recommendations for future metrics (survey) □ Research opportunities □ Open to new ideas/suggestions 42

Contact Information □ Scott Ratterree – Fleet Manager □ Michigan Department of Transportation □ Mailing address: 2522 West Main Street, Lansing, Michigan 48917 □ Phone: 517-334-7769 □ Fax: 517-334-7840 □ E-Mail: [email protected] □ Website address: www.michigan.gov/mdot 43