road transport technology
jhh19970724
Fleetoperation.pdf
Lecture overview
• Transport and the environment
• Fleet Safety
• Accident prevention
• Change of use
• Driver selection and training
• Managing vehicle safety
Transport and the environment
Emissions and Euro VI
Vehicle type Clean Air Zone (CAZ) minimum standard
Buses, coaches, heavy goods vehicles Euro VI (2014)
Vans, minibuses, taxis, private hire vehicles, cars Euro 6 (diesel, 2015) and Euro 4 (petrol, 2005)
Motorcycles Euro 3 (2007)
ULEZ 25th October 2021
Future clean air zones and ULEZ
• Birmingham Summer 2020 (Class D)
• Leeds Summer 2020 (Class B)
• London expansion October 2021
Class Vehicle type
A Buses, coaches, taxis, private
hire vehicles
B Buses, coaches, taxis, private
hire vehicles, heavy goods
vehicles
C Buses, coaches, taxis, private
hire vehicles, heavy goods
vehicles, vans, minibuses
D Buses, coaches, taxis, private
hire vehicles, heavy goods
vehicles, vans, minibuses,
cars, the local authority has the
option to include motorcycles
Future clean air zones and ULEZ
• Actros - £90,000 + VAT (Euro 6)
• Atego - £50,000 + VAT (Euro 6)
• Arocs - £150,000 + VAT (Euro 6)
Emissions Euro VI
Combustion
HC
CM
PM
NOx
HC
Petrol/Diesel
Controlling Emissions
• Diesel • Petrol
Petrol and Diesel NOx
Further methods of reducing environmental impact
• Maintenance
• Driver selection and training
• Route optimisation
• Vehicle type and use
Driver selection and training
Why train drivers?
Case Study
Route optimisation • Cost of delays
• Cost of accidents
• Lost loads
• Reliable service
• Fuel efficiency
• First step is to adopt the use of routing and scheduling software
Route optimisation
Route optimisation
Route optimisation
Route optimisation Increased Brake Pad wear
Clutch wear (Manual only)
Higher lateral acceleration:
➢ Tyre wear (outer shoulders)
➢ Increased wear on suspension components
➢ Increased wear on steering components
➢ Increased lateral forces on load
Higher risk of incident
Increased acceleration zones
A Jaworski et al, 2018
Avoiding collisions – From 2022 active safety systems will become mandatory in Europe
Avoiding collisions – Nearly half of all traffic fatalities occur at night • Replace wiper blades when they do not clear the windscreen
• Ensure washer fluid is added to water
• Adhere to strict driving protocol
• Ensure headlights are clean and in working condition
• Fit additional lighting for extensive B road use
Vehicle Utilisation
• Cost Centre – Fleet or single vehicle
• Cost Unit – cost per load/mile/tonne
• Direct Costs – those directly attributed to the cost centre (standing and running costs)
• Fixed Costs – overheads (buildings, salaried staff)
• Variable Costs – those that vary due to the use of a cost unit
Vehicle Utilisation January February March April May June July August September October November December
1 1 1 1 1 1 1 1 1
2 1 1 1 1 1 1 1 1 1
3 1 1 1 1 1 1 1 1 1 1
4 1 1 1 1 1 1 1 1
5 1 1 1 1 1 1 1
6 1 1 1 1 1 1 1 1 1
7 1 1 1 1 1 1 1 1 1
8 1 1 1 1 1 1 1
9 1 1 1 1 1 1 1 1 1
10 1 1 1 1 1 1 1 1 1
11 1 1 1 1 1 1 1 1
12 1 1 1 1 1 1 1
13 1 1 1 1 1 1 1 1
14 1 1 1 1 1 1 1 1 1
15 1 1 1 1 1 1 1 1
16 1 1 1 1 1 1 1 1 1
17 1 1 1 1 1 1 1 1 1 1
18 1 1 1 1 1 1 1 1
19 1 1 1 1 1 1 1
20 1 1 1 1 1 1 1 1 1
21 1 1 1 1 1 1 1 1 1
22 1 1 1 1 1 1 1 1
23 1 1 1 1 1 1 1 1 1
24 1 1 1 1 1 1 1 1 1 1
25 1 1 1 1 1 1
26 1 1 1 1 1 1 1
27 1 1 1 1 1 1 1 1 1
28 1 1 1 1 1 1 1 1
29 1 1 1 1 1 1 1 1
30 1 1 1 1 1 1 1 1 1
31 1 1 1 1 Actual Available Usage
23 20 22 20 19 22 23 20 22 22 21 21 255 365 70%
Vehicle Utilisation
Weekends 262
Bank Holidays 255
Driver holidays -21
Vehicle downtime – repairs/breakdowns ??
Vehicle Utilisation
Vehicle Standing Costs (Direct Costs)
1. Straight line method
𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑝𝑟𝑖𝑐𝑒 − 𝑡𝑦𝑟𝑒𝑠 − 𝑟𝑒𝑠𝑎𝑙𝑒 𝑣𝑎𝑙𝑢𝑒 = 𝑑𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛
2. Reducing balance method
𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑝𝑟𝑖𝑐𝑒 − 𝑡𝑦𝑟𝑒𝑠 − 𝑑𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 = 𝑎𝑛𝑛𝑢𝑎𝑙 𝑐𝑜𝑠𝑡
Vehicle Utilisation
2. Reducing balance method
Initial cost of vehicle - tyres / set percentage (e.g. 20%)
Actros £90,000
Tyre £200
Depreciation 20% per annum
𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑝𝑟𝑖𝑐𝑒 − 𝑡𝑦𝑟𝑒𝑠 − 𝑑𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 = 𝑎𝑛𝑛𝑢𝑎𝑙 𝑐𝑜𝑠𝑡
90000 − 200 ∗ 6 − 20% = 𝑎𝑛𝑛𝑢𝑎𝑙 𝑐𝑜𝑠𝑡
Vehicle Utilisation
Year 1 depreciation
Year 2 depreciation (𝑏𝑎𝑙𝑎𝑛𝑐𝑒 = 90000 − 17760)
Year 3 depreciation (𝑏𝑎𝑙𝑎𝑛𝑐𝑒 = 72240 − 14208)
Standing value after three years = £46665.60 or 51% of purchase price
90000 − 200 ∗ 6 − 20% = 17760
72240 − 200 ∗ 6 − 20% = 14208
58032 − 200 ∗ 6 − 20% = 11366.4
Actros £90,000
Tyre £200
Depreciation 20% per annum
Vehicle Utilisation
Licenses
Road fund licences for all vehicles – fixed regardless of use (2020)
Operators licence fees for each vehicle
Vehicle Utilisation
Insurance
Insurance will be dependant on vehicles use, claims and drivers experience
Vehicle Utilisation
Wages
Dependant on your business structure, you will have either salaried staff, or hourly paid staff. You may
use contract staff too.
Salaried staff and hourly paid staff must be paid as in the terms set out in their contract. This payment
is regardless of vehicle use. Holiday pay and sick pay must be factored.
Vehicle Utilisation
Standing costs
Working out the daily, or hourly standing cost, allows you to analyse the cost of downtime.
Depreciation
Taking the residual value after the first year, we can begin to calculate standing costs per hour.
Depreciation = 17760
Insurance = 1200
Road tax = 350
Operator license = 926
𝑆𝑡𝑎𝑛𝑑𝑖𝑛𝑔 𝑐𝑜𝑠𝑡𝑠 = 𝑑𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 − 𝑖𝑛𝑠𝑢𝑟𝑎𝑛𝑐𝑒 − 𝑙𝑖𝑐𝑒𝑛𝑠𝑒𝑠 − 𝑤𝑎𝑔𝑒𝑠
Vehicle Utilisation
Standing costs
Annual standing cost = £20236
Daily standing cost = 20236 / 255 (active days – weekends and bank holidays) = £79.36
Assuming a 9 hour day. £79.36 / 9 = £8.82
Depreciation = 17760
Insurance = 1200
Road tax = 350
Operator license = 926
Vehicle Utilisation
Standing costs
Annual standing cost = £20236
Cost per mile (Annual mileage 45000)
20236 / 45000 = 45 pence per mile
Depreciation = 17760
Insurance = 1200
Road tax = 350
Operator license = 926
Vehicle Utilisation
Calculating standing costs
Initial cost of vehicle - tyres / set percentage (e.g. 20%)
Actros £90,000
Tyre £200
Depreciation 20% per annum
𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑝𝑟𝑖𝑐𝑒 − 𝑡𝑦𝑟𝑒𝑠 − 𝑑𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 = 𝑎𝑛𝑛𝑢𝑎𝑙 𝑐𝑜𝑠𝑡
90000 − 200 ∗ 6 − 20% = 𝑎𝑛𝑛𝑢𝑎𝑙 𝑐𝑜𝑠𝑡 Depreciation = 17760
Insurance = 1200
Road tax = 350
Operator license = 926
Standing costs
Annual standing cost = £20236
Daily standing cost = 20236 / 255 (active days –
weekends and bank holidays) = £79.36
Assuming a 9 hour day. £79.36 / 9 = £8.82
• Actros - £90,000 + VAT (Euro 6)
• Atego - £50,000 + VAT (Euro 6)
• Arocs - £150,000 + VAT (Euro 6)
Driver selection and training
Devise metrics for measuring performance Staff A - Small goods delivery driver
Quality Rating Improvement
Licence categories A, B, BE, B1, C1, C1E, D1,
D1E
Train for Cat C
Hours Weekly, 16 hours nights,
24 hours days
Reduce night hours where possible and
replace with daytime hours. Ensure night
hours are not consecutive
Education BTEC Level 3 HND or similar
Mental wellbeing Personal life, working
conditions
Suggest?
Physical demand Required to move goods
alone
Suggest?
Customer contact Outgoing, untidy, smoker Suggest
Vehicle responsibility Lone worker for most hours Suggest
Driver selection and training SAFED Safe and Fuel Efficient Driving
The UK’s 422,000 Heavy Goods Vehicles travelled approximately 22.2 billion kilometres in 2001. An
average of 32,582 miles per vehicle.
Fuel use averaging 8 mpg, we each vehicle consuming over 4000 gallons.
Monitoring and managing fuel usage can reduce fuel consumption by at least 5%.
Average fuel price £1.14 (ex VAT).
114 x 4.546 = 518.244 or £5.18 per gallon
5.18 x 4000 = £20,720
A saving of 5% = £1036
Management
Management Leadership
• Ensure everyone knows their role in the business –provide clear job roles and titles
• Carry out initial training and induction to the company
• Adopt necessary in-service training
• Carry out remedial training for staff making mistakes or driving inefficiently
• Provide opportunities for on-going training (make staff part of this process)
Management Structure
• Hierarchical Structure
• Flat Structure
Hierarchical Structure, or Vertical Structure
DIRECTOR
EAST DIRECTOR
WEST
TEAM
LEADER
TEAM
LEADER
TEAM
LEADER
TEAM
MEMBER
CEO
TEAM
MEMBER
TEAM
MEMBER TEAM
MEMBER
TEAM
MEMBER
TEAM
MEMBER
Flatter Structure
TEAM
LEADER MARKETING
TEAM
LEADER
TEAM
MEMBER TEAM
MEMBER
TEAM
MEMBER TEAM
MEMBER
TEAM
MEMBER
TEAM
MEMBER
DIRECTORDIRECTOR
Product Derived Structure
PROJECT A
TEAM
LEADER
CEO
PROJECT D
TEAM
LEADER
PROJECT C
TEAM
LEADER
PROJECT B
TEAM
LEADER
Functional Structure
PRODUCTION
MANAGER
CEO
HUMAN
RESOURCES MARKETING
MANAGER
FINANCE
MANAGER
Flat Structure
TEAM
MEMBER
TEAM
MEMBER
TEAM
MEMBER
TEAM
MEMBER
TEAM
MEMBER
PROJECT
MANAGER
TEAM
MEMBER
Which management structure does Loughborough adopt?
Vice
Chancellor
Pro-
Chancellors
Senior Pro-
Chancellor and
Chairman of
Council
Chancellor
Pro-Vice-
Chancellor Pro-Vice-
Chancellor
Pro-Vice-
Chancellor
Deans
of
Schools
Deans
of
Schools
Deans
of
Schools
Deans
of
Schools
Deans
of
Schools
Deans
of
Schools
Deans
of
Schools
Deans
of
Schools
Deans
of
Schools
Deans
of
Schools
TQM
Continuous improvement
Involves all employees
Accurate evaluation
Customer focussed
Quality improvement
Data informed decisions
Ascertains needs
of customers –
not what they
want
TQM
• Ensures the customer needs are placed first and foremost
• Continuously evolves in a purposeful and strategic direction
Six Sigma
Define
Measure
AnalyseImprove
Control
Define goals.
Measure factors
that are critical
to quality
(fitness for use).
Analyse various
options. Explore
concepts.
Move onto high
level planning.
Ensure the plan
works and
allows for
interaction
between teams.
Validation of
plans to all
stakeholders.
Staff/hours and training • Absenteeism
• Off the job and on the job accidents (Health Care)
