Determine fleet availability for each equipment class. For fleet organizations these goals and metrics can be expressed in terms of reliability, revenues and expenses, customer satisfactio… Fleet Operations will provide the necessary technical expertise to … Depending on the intensity level of each component, it’d be closer to one type or the other. 24/7 Availability; Formula Aviation provides air charter solutions across Australia. The results of this would be the vehicle’s use percentage, the queue time, etc. Having more than one operations center, the vehicles can be picked-up from any of these centers, and it could happen that every center has an optimal number of vehicles, and for this reason for all the fleet. Every part of the organization serves the same corporate goals and objectives even though each part plays a vastly different role and carries different responsibilities. There needs to be an established limit of maximum traveled kilometers for the studying period, to be able to meet the direct costs or budget, since the goal is to obtain profits from the fleet. However, because of how the service operates, clients would return the vehicles in some centers more than in others; in consequence, some centers would have more vehicles than others, causing that the service level isn’t met in those center with fewer vehicles than their optimal number, and this would cause a misbalance in the established service level. Copy cell C4 and paste to cell C5. For this reason, it must be assured that each operations center has its optimal number of vehicles by transferring vehicles between different operations center, and it’s ideal that policies are made about vehicle’s transference between different operations centers. The optimal number of vehicles needed is lower than the one the company has, and for this reason some vehicles must be disposed of service and sold. The components provide availability percentages from a corporate, fleet-wide perspective and an operational unit level, respectively. If the vehicle fleet meets the budget, the next phase is acquiring the vehicles. Graph 6 shows the process of calculating the optimal number of vehicles in a fleet in order to start its operations since the beginning for this case. Between these two limits, it’s calculated the number of vehicles needed in the fleet to meet the service level previously established, using the model’s final equations from the open model M/M/c. from a recent high of 69.2 percent in FY05. Taking this traveled kilometer limit as reference, there must be established policies for the client to be responsible of all or some of the vehicle’s variable operational costs. The unit’s price and operating costs should. Associates, Inc. availability rates of the aircraft types which those spares support. Most of the time, this happened when people used more of Fleet (sodium phosphates enema) than they were told. 6.4 Optimizing Vehicle Size and Fleet Size. When applied to a specific vehicle type, such as a police car, fire truck, school bus, or trash compactor, this approach can be used in situations where quick and approximate comparisons must be made. This Car Fleet Management spreadsheet is the spreadsheet you might need if you are managing more than one car in your company and need to do organizing, tracking and reporting in a single excel spreadsheet. Vehicle price and associated interest 2. If the budget wasn’t met, it’d be needed to choose other vehicle’s brands and/or models and establishing the maximum distance to travel, and have to check again if the budget would be met. A fleet manager must also be nimble, as many of the same events and technology impact a fleet’s function. For example, an intermediate fleet is the sales force of a company where there are clients to visit, and where normally there’s an assigned vehicle to each sales associate, in this case the most important part is calculating the routes to travel in a determined time in order to minimize variable costs or maximize the number of visits, considering that the geographical area to cover is divided in zones to have a sales force equilibrium. Therefore, the availability calculation looks like this: Availability = 100 ÷ (100 + 10) Availability = 100 ÷ 110 Availability = 0.909 Availability = 90.9%. It excludes logistics time and waiting or administrative downtime. Every part of the organization serves the same corporate goals and objectives even though each part plays a vastly different role and carries different responsibilities. In a taxicab company, picking-up clients can be done at a taxi station, or traveling “empty” kilometers until a client hails the cab, for which there must be an established limit for maximum “empty” kilometers to travel. For example, renting companies would establish different rates depending on distance traveled or a rate per mile/kilometer traveled. Some of the direct costs and residual values require an estimate or previsión. For equipment that is expected to be oper… The AAM uses a marginal analysis technique, i.e., it ranks the candidates for procurement and repair in decreasing order of benefit per cost to form an ordered "shopping list." Fleet Operations objective is to standardize the specifications of Vehicles and Equipment to optimize the costs of acquisitions and minimize the expenses of maintenance and repair, while meeting functionality requirements and enhancing availability. BQR offers free calculators for Reliability and Maintainability, including: MTBF, failure rate, confidence level, reliability and spare parts Whe… Graph 6: process to calculate the optimal number of vehicles with an assigned driver/user/activity to one of the fleet’s vehicles. A maximum limit of traveled kilometers need to be establish for the studying period, in order to meet the direct costs or determined budget, since the goal is to obtain profits from the fleet. A vehicle fleet can be classified as one of the three reference types of vehicle fleet, or in an intermediate position of two of these three reference types of fleets; because it has the planned routes component and the aleatory demand component, or the planned routes component and the assigned user/activity to a vehicle, or it has the aleatory demand component and the assigned user/activity to a vehicle. During this correct operation, no repair is required or performed, and the system adequately follows the defined performance specifications. There isn’t an specific software for this, for which a generic software on queuing theory, simulation, spreadsheet, or programing would be used depending on how complex is each case. vehicles available for customer use in comparison to customer�s total Copy cell D4 and paste to cell D5. (The first five percentages in this formula represent the five employees’ utilization rates) This means that the average utilization rate at Leslie’s company is 74%. The Availability Rate was 290 � 300 = 96.7%, Page: 2.4.1 Performance Metrics\Contractor-Operated Last Updated: August 1, 2005 The optimal number of vehicles needed is the same as the one the company has, and for this reason there’s no need to acquire of dispose any vehicle. 1.3 Availability has various meanings and ways of being computed depending upon its use. The first step is to establish the service level (time), the approximate number of vehicles that would be used to accomplish it, and the capacity of each vehicles (m3, passengers, tons, etc.). There are three types of vehicle fleets that can be considered of reference or basic, and are the following: A particular case is when there is a set of vehicles that perform a service for another set of vehicles, like it’d be the case for public works or mining, in which there are the following vehicle categories: vehicles extracting land (excavator), and other vehicles that transport it geographically (trucks), for which it’s necessary to calculate the optimal number of vehicles for each category considering both. Thus, the fleet availability for Vans was 300 – 10 vehicle-days = 290 vehicle days. Everyone who has worked in a complex organization knows, typically, little value is obtained from silo mentality. Availability, achieved (Aa) The probability that an item will operate satisfactorily at a given point in time when used under stated conditions in an ideal support environment (i.e., that personnel, tools, spares, etc. Each week we publish posts, conferences, news, scientific papers, and technology related to Fleet Management. The number of clients in the system are the ones in queue, the ones using the vehicles, and the ones that haven’t request a vehicle. Download free our eBook “Introduction to Fleet management” that develops how to manage any type of vehicle fleet through all his activities and key factors. Contractual Availability signed between the owner and the turbine manufacturer. While the process of reviewing fleet data to discover the effectiveness of a fleet operation could rightly be called an audit, this label has some negative connotations that can impede the process. A piece of equipment is not available if it is not available for the customer/user during a normal shift. In this case the service level is the number of drivers/users, or the activity to perform. It is used to manage the agreements within the contract. fleet formula is the only direct booking platform tailor-made for the luxury rental market, allowing bookings and reservations of exact models. It needs to be proven that a better solution doesn’t dominate the chosen one, if m is the optimal number of vehicles of the chosen solution, then the service level and its associated costs will be calculated for m -1, -2, -3 vehicles and will compare it to the chosen solution, if said solution is dominated by a better one the last will be chosen. Graph 4: open system for a vehicle fleet’s queuing theory. Availability will consist of two components: Materiel Availability (fleet) and Operational Availability (unit). gauge fleet health and combat capability yAircraft performance metrics based primarily on data input into the maintenance and supply information systems yAir Force develops and publishes metrics standards and goals Leaders need information, not just data However, 1 of the Vans was out of service for 10 days. If you do not pass a stool after a dose of Fleet (sodium phosphates enema), do not use another product that has sodium phosphate in it within 24 hours. μ is the time a vehicle is used by the clients (consider that it has an exponential distribution and that it’s the same for all vehicles). The results would be the real service level, routes to travel, or distance to travel. site map | search |, A monthly report showing the average number of The first is simply how you calculate the availability of a system that has been in operation for some time. When businesses acquire assets without needing financing, it is often assumed this does not need to be included in the TCO calculation. The use of the vehicle’s capacity is the main or secondary aspect depending on each case. 37, 341-350. Using the total costs from earlier, we get: 144,000 / 2,000 x 80 = 144,000 / 180,000 = .80 In the case of a public work or mining, the use of the vehicle’s capacity and the percentage used of the vehicle’s capacity are the main aspect. are instantaneously available). The fleet’s direct costs or budget for a determined time period is the sum of direct costs, variable operational costs, and the vehicle’s residual value (amortization) if it’s disposed from service at the end of this studying period. + FY2002 Agency Performance Report Everyone who has worked in a complex organization knows, typically, little value is obtained from silo mentality. The optimal number of vehicles in a fleet varies with time depending on aspects such as market demands, the service level and available budget, and for this reason the organization has to establish when to calculate the optimal number of vehicles that are needed for a certain period of time. Know your fleet's primary costs.A few cost items to consider: 1. Tracking the timeline from the “idea” stage on to implementation is a metric that measures how efficiently a fleet manager can react, and how … The classification of availability is somewhat flexible and is largely based on the types of downtimes used in the computation and on the relationship with time (i.e., the span of time to which the availability refers). are instantaneously available). I´m a Fleet Management expert, and the manager of Advanced Fleet Management Consulting, that provides Fleet Management Consultancy Services. Driver costs 2. So, the formula for ideal utilization rate is: (Resource costs + overhead + profit margin) / Total available hours x Target billable rate. It is vital that each function and department link themselves to the overarching objective of the whole. The first step is to establish the service level, the approximate number of vehicles needed to meet it, and the capacity of each vehicle (m3, passengers, tons, etc). Materiel Availability (A m) is the percentage of the total inventory of a system operationally capable (ready for tasking) of performing an assigned mission at a given time, based on materiel condition.This can be expressed mathematically as: Materiel Availability also indicates the percentage of time that a system is operationally capable of performing an assigned mission and can be expressed as: A vehicle assigned to a driver/user or to an activity: te demand that originates the service performance is a vehicle assigned to a driver/user or a specific activity, since there aren’t any planned routes or aleatory demand like in the previous cases. If the budget wasn’t met, it’d be needed to choose other vehicle’s brands and/or models and have to check again if the budget would be met. In this group, you can know and share knowledge, experiences and meet people interested in Fleet Management over the world. Examples of this would be: vehicles used by company’s executives for private use or commercial vendors. Reliability is the probability that a system performs correctly during a specific time duration. The AAM uses a marginal analysis technique, i.e., it ranks the candidates for procurement and repair in decreasing order of benefit per cost to form an ordered "shopping list." This paper aims at defining the different types of availabilities based on a common approach developed by “When we perform a comprehensive review of a fleet operation we typically refer to it as an ‘operational assessment of program effectiveness’,” explained Tony Yankovich, senior manager for Mercury Associates, Inc. “The term ‘audit’ can have … The second step is calculating the routes, which is recommended to be done with a specific software, and considering one or several sub-optimal conditions like minimizing fuel consumption, traveled distance, time of service, or maximize the vehicle’s load capacity. Our system can capture and utilize data for ‘yellow iron’ heavy equipment, cranes, portable plant equipment such as generators and light towers as well as vehicle fleets including large trucks and light commercial vehicles. The optimal number of vehicles in a fleet varies with time depending on aspects such as market demands, the service level and available budget, and for this reason the organization has to establish when to calculate the optimal number of vehicles that are needed for a certain period of time.. Any type of fleet can be assigned to any position in the triangle shown in graph 1, depending on the characteristics of it. The model is like shown in graph 4. availability based on actual events that happened to the system. The first is simply how you calculate the availability of a system that has been in operation for some time. The capacity utilization rate is a metric used to measure the rate at which potential output levels are being met or used. It should have reasonably high availability. In these cases the clients or users could be in a queue in order to use any vehicle of the fleet. Once established the vehicle’s brand and equipment, the variable operational costs and residual value can be calculated using the distance to travel, obtaining the fleet’s direct costs or budget for the studying period. Formula in C4: =WEEKDAY(B4, 2) + ENTER. Some of the direct costs and residual values require an estimate or previsión. Calculate utilized machine hours. Availability is, in essence, the amount of time that an item of equipment or system is able to be operated when desired. With these results it can be checked if the established service level is met, and if not they need to go back to the previous phase to establish service level or number of vehicles and their capacities, depending on the case one or the other or both will be modified. Once established the service level, the results would reflect the number of vehicles and their capacities (type of vehicles), and the number of drivers, if the service requires it. ratios. Established in 2001, Formula Aviation offers you the trust & confidence that comes with over 2 decades’ operating experience and an … Vehicle Availability This indicator shows the extent to which the vehicle fleet is available for revenue-earning work, and to a large extent reflects the effectiveness of the maintenance arrangements. Mathematically, it is given by: The numbers of clients in the system are the ones using the vehicles and the ones waiting in the queue. If you do not pass a stool after a dose of Fleet (sodium phosphates enema), do not use another product that has sodium phosphate in it within 24 hours. vehicle-days). Thecombined system is operational only if both Part X and Part Y are available.From this it follows that the combined availability is a product ofthe availability of the two parts. The higher the traveled distance limit is, the lower is the budget for the vehicle’s acquisition, and on the contrary, the higher the budget for the vehicle’s acquisition, the lower must be the traveled distance limit. For that, I offer the simple formula: Uptime A = ------------------- x 100% Uptime + Downtime If the vehicle fleet meets the budget, the next phase is acquiring the vehicles. Operational availability is the ratio of the system uptime and total time. As a result, there are a number of different classifications of availability, including: 1. Airlift and tanker availability rates hover around 60 percent range, as do those for the special operations and combat search and rescue platforms. If the service level is met, the results would reflect the number of vehicles and their capacities (type of vehicles), the number of drivers and distance to travel, for which the only variable to establish is the vehicle’s brand and equipment. But, contrary to that belief, businesses must account for this opportunity loss of money, in other words, the loss of a potential greater return had the money been used differently. The fleet size and mix pollution-routing problem, info@advancedfleetmanagementconsulting.com, On determining optimal fleet size and vehicle transfer policy for a car rental company. Safety, Reliability and Flexibility are our main priorities. During this correct operation, no repair is required or performed, and the system adequately follows the defined performance specifications. If the service level is met, the results would reflect the number of vehicles and their capacities (type of vehicles), and the number of drivers if the service requires it. The E&Y study found that economies of scale influence total cost of o… Computers and Operation Research. In other words, reliability of a system will be high at its initial state of operation and gradually reduce to its lowest magnitude over time. BQR offers free calculators for Reliability and Maintainability, including: MTBF, failure rate, confidence level, reliability and spare parts Some of these attributes are the percentage of the vehicle’s usage, average waiting time in queue, probability of queuing, average number of units in queue, average number of inactive vehicles, number of units that are being assisted by a vehicle, number of clients in the system, average time in the system, probability of having to wait in queue, etc. However, 1 of the Vans was out of service for 10 days. If none of the solutions meets the budget, then they have to go back to the previous phase of establishing the service level and number of vehicles. But, contrary to that belief, businesses must account for this opportunity loss of money, in other words, the loss of a potential greater return had the money been used differently. For example, a Center has 10 Vans which should be available each day of a 30-day month (10 x 30 = 300 vehicle-days). Cost-Reduction Potential: Small to Moderate. The way we calculate uptime is easy to understand: we take the number of seconds that your monitor was down (in a certain time frame), and divide this by the total number of seconds your monitor was being monitored during that time frame. print | | Applying these three variables to the model’s final equations, one would obtain the principle attributes that characterize said model. home | But only 44.8 percent of the bomber fleet is ready to go at any time, down from a peak of 57.2 in FY02. With the obtained results, it can verified if the service level is met, if it doesn’t then they have to go back to the previous phase of establishing the service level or number of vehicles and its capacities, depending on the case one or the other or both will be modified. 2010). The 60m (196ft) motor yacht ‘Light Holic’ still has some availability for a 2021 Monaco Grand Prix yacht charter. 2º The closed model is characterized by the following three variables M/M/m (λ, μ, c): Graph 5: closed system for a vehicles fleet’s queuing theory. Availability time = Total time – Unavailability time Aircraft Unavailability is calculated as the number of days in a year that the aircraft is not available, using the different levels of Availability defined below. Calculating the optimal number of vehicles is simple using a spreadsheet. Capital costs are the most overlooked metric, particularly for small- to medium-sized businesses who purchase assets using cash. The approach to service planning laid out in this guide generally assumes that the system operators can and will adjust the number of vehicles they operate per route, and the size of the vehicles used on each route, to best serve the demand on each route. From this maximum limit of traveled kilometers, there must be established policies for the client to be responsible of all or some of the vehicle’s variable operational costs. μ is how long a vehicle is used by the clients (consider that it has an exponential distribution and that it’s the same for all vehicles). Where: A = the percentage of time that the system is operational. Back for a bigger, better and even more iconic edition next year after being cancelled in 2020 due to Coronavirus, the Monaco Grand Prix is gearing up for its wildest Formula 1 … So, how do you calculate the uptime percentage? Calculation: Average number of vehicles available for service during the peak period (morning or evening, whichever has the greater vehicle requirement), expressed as a percentage of the total number of vehicles licensed. Considering this data and using equation 1, the minimum number of vehicles for the system to be stable is 400 vehicles, and there’s a maximum number of vehicles in which there’s no queue and all clients are using all vehicles. Thus, the fleet availability for Vans was 300 � 10 vehicle-days = 290 On the contrary, if there are a number of vehicles equal or higher than the number of clients in the system, there won’t be any client in the queue, and those are the maximum service level and maximum number of vehicles that can be in the fleet. Buying and repairing from this list in the order Vehicle Maintenance\Fleet Availability, + Freedom of Information Act + Freedom to Manage, Author: Mercury The resulting scenarios for each period of time are: Once established the vehicle’s brands and equipment, and the maximum distance to travel, one can calculate the variable operational costs and the residual value using the maximum distance limit, obtaining the values for direct costs and budget for the studying period. The first step is to know how many users/drivers or activities to perform are going to be assigned to a vehicle. For this reason, there are two variables to establish: the maximum distance to be traveled, and the vehicle’s brands and equipments. As stated above, two parts X and Y are considered to be operating in series iffailure of either of the parts results in failure of the combination. c is the number of vehicles to assist the client that arrive to the system. The Operational Availability metric is an integral step to determining the fleet readiness metric Operating costs 3. 2010. + The President's Management Agenda The next step would be establish the maximum distance to travel, the vehicle’s brands and equipment to calculate the vehicle’s direct costs and budget for the studying period. It’s very important what vehicles are being used, because it could happen that some vehicles initially assigned won’t be used, for which they are no longer necessary. (That is the reason for having a swing or graveyard shift.) It excludes logistics time and waiting or administrative downtime. Graph 3: process for calculating the optimal number of vehicles in a fleet with aleatory demand. Fleet World & VAN Fleet World and International Fleet World magazines for free. Aleatory demand of vehicles: The demand that originates from the random use of the vehicles in time in a geographical area, like people that use the vehicle to transport themselves geographic (car rental companies, taxicabs, car sharing) or incidents that demand attendance such as firefighters, police, traffic accidents, towing services, or ambulances. As stated above, two parts X and Y are considered to be operating in series iffailure of either of the parts results in failure of the combination. Setup shift hours. While no set formula exists for calculating the percentage of a fleet budget devoted to overhead, an Activity Based Costing (ABC) exercise is useful for identifying the sources of these costs as a first step. It is fast, precise, and reliable, meeting the exclusive needs of both luxury fleet managers and their clients. All PAI, BAI, AR acft hours (entire fleet) Categories of non-availability (Five) NMCM, NMCS, NMCB, UPNR (B$, X$), Depot (D$) MC ‘great’ at unit level – ‘not good’ for fleet AA is the metric for ‘Health of the Inventory’ MC ‘great’ at unit level – ‘not good’ for fleet AA is the metric for ‘Health of the Inventory’ The formulas that characterize each one of them are different because the queue is made in a different way. The clients’ arrival to the system is of 5 people per hour (λ), the rate of usage of any vehicle is of 80 hours (μ), and there’s been established that the service level is that the clients don’t wait more than an hour in queue from the moment they request the vehicle. Back for a bigger, better and even more iconic edition next year after being cancelled in 2020 due to Coronavirus, the Monaco Grand Prix is gearing up for its wildest Formula 1 weekend yet. Availability, achieved (Aa) The probability that an item will operate satisfactorily at a given point in time when used under stated conditions in an ideal support environment (i.e., that personnel, tools, spares, etc. For that, I offer the simple formula: Uptime A = ------------------- x 100% Uptime + Downtime. 3. The fixed costs are determined mainly by the vehicle’s type, brand, equipment, and the number of drivers. Logistical constraints – repair cost and availability of repair stations. In 1973 vi. fleet used are shovel and truck, depending on the . In the case of incidents that demand attendance, vehicles are assigned to a crew and specific equipment, for which the use of the vehicle’s capacity is a secondary aspect. Define the key metricsyou want to measure and track, such as utilization, cost per unit/vehicle and depreciation. Aircraft Availability is a key indicator to monitor aircraft performance, as a complement to Operational Reliability, and can be employed to optimize the profitability of an airline. The Aircraft Availability is therefore, by deduction, the remaining number of days in the same given year.