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- Cornelius Daniel
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1 THIS REPORT OUTLINES THE FINDINGS FROM A THREE WEEK REVIEW OF CSU S WAGGA CAR FLEET WITH ONE GOAL BROUGHT ABOUT THROUGH ANALYSIS AND IMPLEMENTATION OF CHANGE WITHIN THREE KEY AREAS. GOAL: TO GENERATE DATA WHICH PROVIDES AN ACCURATE AND HOLISTIC VIEW OF WAGGA S CAR FLEET AND UTILISE THIS DATA TO ESTABLISH A CLEAR DIRECTION IN WHICH TO TAKE THE FLEET TOWARDS A GREENER AND MORE EFFICIENT FUTURE. AREAS OF CHANGE COVERED BY THIS REPORT: - CAR SELECTION - DRIVER BEHAVIOUR DEVELOPMENT - SYSTEMS AND PROCESSES REASONING: CAR SELECTION WILL PROVIDE THE FOUNDATION FOR CHANGE IN THE BOTH DRIVER BEHAVIOURAL DEVELOPMENT, SYSTEMS AND PROCESSES WITH THE POTENTIAL TO CREATE A GREENER FUTURE FOR THE FLEET, SIMPLIFIED AND STREAMLINED PROCESSES AND PROVIDE POTENTIAL FOR DEVELOPMENT OF THE SERVICES PROVIDED SUCH AS CAR-POOLING, DRIVER BEHAVIOUR MANAGEMENT AND ON-GOING REDUCTION TO THE FLEETS CO2 FOOTPRINT. Please be advised that findings in this report are recommendations based around the information provided at the time (Nov-Dec 2012) and those relating to fleet composition and vehicle selection are subject to change due to the sale and acquisition of new vehicles and technology changes in the vehicle market. Overview of recommendations The fleet is comprised currently of a significant amount of V8 Landcruiser s which provide a disproportionate amount of pressure per vehicle on the overall average fuel efficiency of the fleet but provide financial reassurance through having the buy-back security. However with the loss of this system there is a unique opportunity to use the drastic profits from these vehicles to invest in new systems and improve the infrastructure of the fleet. Recommendations 1. Update and replace the entire fleet management system for the car fleet to a modern designed for purpose computerised system The existing fleet management software is a in-house developed system, based on a Microsoft Access database, that is completely inadequate for the management of an efficient vehicle fleet identified limitations of the system as well as potential cost s associated with upgrading the system are summarised in Table 1, below Current computing systems are completely inadequate New car-pooling systems demand higher computing power and programs 1 P age
2 Car-pooling systems will require less vehicles within a 6-12 month period and so the system will pay for itself and provide influx of funds by requiring less vehicles to be used far more efficiently Utilisation of less vehicles reduces the on-going risks associated with a constantly depreciating car fleet Modernisation will promote CSU as a leading innovator in management systems for educational institution in Australia Table 1 - Identified weaknesses associated with the CSU Fleet Management System (figures provided for annual estimated time s and cost s have been calculated based on the entire CSU fleet) Existing weakness Comments/Assumptions Annual estimated time Annual estimated cost 1. Inability to accurately track car servicing requirements No service costs or histories are recorded against each vehicle which can led to vehicles being held longer than they should be 7 hours per week to maintain manual records $14,000 Not possible to highlight vehicles with higher maintenance costs Difficulties in producing detailed vehicle maintenance history at time of sale which can affect the sale price of future vehicles and tarnish CSU s reputation within a finite pool of dealers and auction houses 2. Tracking car utilisation (to ensure consistency in timing of car sales) Vehicles that have taken too long to acquire desired mileage prior to sale will be significantly devalued a t eventual time of sale (due to limited remaining warranty and release of newer models to market) 10 hours per week $15, Managing timing of car sales to coincide with peak At present manually $60,000 2 P age
3 Existing weakness Comments/Assumptions Annual estimated time Annual estimated cost utilisation undertaken Reports would assist each campus to monitor their usage, but more importantly some campuses may have too many vehicles in general to cover for one off peaks. Assumes 5% reduction in vehicle fleet size (~15 vehicles) Assumes average vehicle depreciation and running costs at $4, Inability to accurately collate and report on fuel data records (for efficiency and emissions reporting requirements) CSU has a legislated obligation to report on emissions under the National Greenhouse and Energy Reporting scheme, of which the fleet makes a significant contribution Limitations in assessing real-world fuel efficiency of purchased vehicles to help inform future vehicle purchasing decisions No fuel utilisation reports for each vehicle which a fleet system could provide Unknown but greater efficiencies could be achieved by improved vehicle selection 5. Managing cost of tolls Not currently possible to attribute toll payments to individual vehicle bookings, resulting in this entire cost being borne by the Fleet s central operating costs Not done at present $25,000 ( could be recovered from the users) 6. Monitoring car hire rates Five separate campuses with their own setups can create inconsistencies with under and over charges 5 7 days $2,000 3 P age
4 Existing weakness Comments/Assumptions Annual estimated time Annual estimated cost possible. No University wide reporting to check whether all the vehicle kilometres have been accounted for etc. 7. Car pooling portal Assumes 5% of vehicle trips can be avoided due to car pooling between common destinations $57,000 Additional s could be achieved by reducing number of cars required during peak periods Assumes cost per km at $ Managing fuel theft No system to check for abnormal fuel usage on vehicles Unquantified Total $173, Consolidate the fleet to have minimal variants of vehicles Clients assured of vehicle functionality Creates potential for standardisation of car-pooling and sizing Allows for projection of future sales Uniformed maintenance and servicing Client familiarity with vehicles provides potential for future behaviour change Builds relationship with dealerships through secure purchasing 4 P age
5 Provides potential to formulate guidelines for purchasing, maintenance, Km management and vehicle sales 3. Formulate guidelines for purchasing, maintenance, Km management and vehicle Broaden the term "maintenance" to include accurate and continual data retrieval, compilation and utilisation Set targets of min km's travelled within set time periods such as 45,000-65,000 within month periods Digitalisation of the fleet management will provide ongoing information for fleet managers to set targets and goals for future years. With the streamlining of information the fleet will be more accountable Will stabilise the investments and provide a scaffold for justifying the ongoing needs of the fleet. 4. Invest In small four cylinder diesel s with particulate filters utilising active cleaning Cuts down on overall carbon footprint of the fleet Provides fleet with low fuel economy rating and overall ability to cut down on fuel costs Caters to the needs of most clients as majority of trips undertaken by 1-2 passengers for short periods of time 5. Build customer relations through providing consistent, relevant and immediate information Red folders updated and information streamlined for accessibility Familiarisation charts implemented to allow new drivers to acclimatise to vehicles quickly Building up the relationship with drivers provides on-going potential for positive driver behaviour change Implement changes to car selection based around needs Have standard practices which determine the sizing of cars unless reasonable argument given to provide another type of vehicle Car size determined by Number of passengers Amount of luggage Length of trip 5 P age
6 Demands upon the fleet Car selection Priority given to early birds and consistent drivers Overall process undertaken to establish these guidelines and recommendations - Analysis of current fleet to establish baseline data - Establish targets for fleet to meet which will direct purchasing - Research current car market to establish overview of options - Analyse Caltex fuel records to establish real world fuel economy and carbon footprint - Collect customer reviews to establish appropriate vehicles, processes and systems - Developed draft report for approval and review - Present findings with DMVF (Department of Motor Vehicle Finance) senior staff and began collaborative problem solving - Refined final report and presentation for senior management In order to have a holistic view of the fleet all cars across all campuses were reviewed with respect to the following categories: - Fuel Economy - Green Star Rating - ANCAP Rating - Driver Reviews - Re-sale value - Functionality - Carbon Production All data was generated from real world data provided for a subset of vehicles which represented one of every type of vehicle in the fleet. For example - Fuel Economy ratings were generated by analysing data retrieved from Caltex Fuel card records which track the amount of fuel and provides the km s travelled through the speedometer reading. Although this was shown to be unreliable for some vehicles due to driver error so all data was cross referenced with official figures provided through online references such as - Green Star and ANCAP rating were also recovered from Redbook - Carbon Production was produced through analysis of current Caltex Fuel records using their approved scaling. 6 P age
7 Analysis of Current Wagga Fleet Snapshot of CSU Wagga s Cars Reg. # Car No Make L/100km Fuel Type Small Drive Type CO2 g/ km ANCAP Green Star BN02NW CAR07 Holden Cruze 7.9 ULP FWD BWL25C CAR12 Subaru 8.4 ULP AWD Liberty CIO53N CAR08 Subaru 7.5 ULP AWD Imprezza BR04NJ CAR28 Ford Focus 5.7 Diesel FWD BTO37R CAR44 Suzuki 7.3 ULP FWD Kizashi Medium BB36QA CAR27 Honda 9.5 ULP FWD Odyssey Wagon CDL28A CAR05 Hyundai I ULP FWD Wagon CDL27M CAR34 Ford Falcon 10 ULP RWD BWG51V CAR43 Hyundai I45 8 ULP FWD BWY94Y CAR30 Subaru 8.9 ULP AWD Outback BWY94J CAR18 Subaru 8.4 ULP AWD Forester Large CDX88R CAR50 Ford 13.5 Diesel AWD Territory BZZ26A CAR15 Hyundai 10.2 Diesel FWD imax BM78RR CAR26 Kia Carnival 13.8 ULP FWD Wagon CDX88N CAR49 Ford Ranger 9.7 Diesel 4x x4 BQ17GY CAR06 Toyota Prado 10.4 Diesel 4x GXL BQ18GY CAR06 Toyota 12.4 Diesel 4x Landcruiser GXL BWY91Y CAR21 Hyundai IX Diesel AWD Wagon Characteristic of Fleet Current Average Projected Average Fuel Economy 10.5L/100km 8.5-9L/100km Max Pass 7 P age
8 Green Star Rating ANCAP Rating 3.1 4< Car Selection It is the recommendation of this report to consolidate the fleet into four key categories with three variants for each category. Through limiting the number of variants provides on-going benefits: Projecting re-sale values for entire sections of the fleet for budgets Provide clients with consistency and; o Reassurance of vehicle functionality o Opportunity for driver behaviour change through familiarity Simplify servicing into steady routines Create valuable relationships with dealerships Minimize miss-fuelling and Guide Lines - Fuel Economy Small 6-8L/100km Medium 8-9.5L/100km Large & Utility L/100km - Green Star Rating Small & Medium >4 Large & Utility >3 - ANCAP Rating Minimum of 4 for entire fleet - Re-sale value Minimum of 62% forecast by Redbook over 24 month period - Functionality Must meet requirements of clients and all vehicles monitored through an on-going process - Carbon Production ULP Max 225 g/km CO2 Diesel Max 260 g/km CO2 (particulate filter advised) 8 P age
9 Cars which meet current guidelines (subject to change and based around developing from our current fleet towards a greener future) Small Vehicles - Subaru Imprezza 5 ANCAP 5 Green 7.5L/100km 185 CO2 g/km 68% Resale - Hyundai i30 Diesel 5 ANCAP 5 Green 5.7L/100km 198 CO2 g/km 62% Resale - Ford Focus Diesel 4.5 ANCAP 4.5 Green 5.9L/100km 202 CO2 g/km 62% Resale Medium Vehicles - Hyundai i40 Wagon 5 ANCAP 4 Green 8L/100km 215 CO2 g/km 68% Resale - Subaru Forester 5 ANCAP 4.5 Green 8.4L/100km 205 CO2 g/km 68% Resale Large Vehicles - Hyundai imax 4.5 ANCAP 3.5 Green 10.2 L/100km 214 CO2 g/km 62% Resale - Toyota Prado Diesel 5 ANCAP 2 Green 12.3L/100km 256 CO2 g/km 100% Cashback Utility Vehicles - Ford Ranger Diesel 4 ANCAP 2 Green 9.7L/100km 246 CO2 g/km 65% Resale - Hyundai iload Diesel 4.5 ANCAP 2.5 Green 9.4L/100km 240 CO2 g/km 62% Resale - Ford Transit Diesel 4 ANCAP 2 Green 9.3L/100km 242 CO2 g/km 62% Resale CSU s car fleet currently is undergoing changes to the fleet through the introduction of Subaru Imprezza s and Ford Focus. This trend of small economic and high quality vehicle provides three key improvements for the fleet; customer satisfaction, better vehicle safety, lower carbon footprint and lower average fuel economy. The fleet is comprised currently of a significant amount of V8 LandCruisers which are weighing heavily on the overall average of the fleet but providing financial reassurance through having the buy-back security. However with the loss of this system there is a unique opportunity 9 P age
10 to use the drastic profits from these vehicles to invest in new systems which will utilise vehicles in a more efficient way, cutting down the costs for individual departments and the system will essentially pay for itself by requiring less vehicles an allowing for current vehicles to be sold and not needed to be replaced. Driver Behaviour Management It is important to note that for the purpose of this report the term driver behaviour covers all interactions of the client with the vehicle and CSU staff; vehicle control, braking and acceleration, re-fuelling, passenger safety, emergency procedures, contact numbers and vehicle layout. Through the consolidation of the fleet into standard set cars for each sizing and purpose it is then possible to begin managing the way in which drivers actively engage with the vehicles and staff. From the driver feedback reviews, engaging with clients in person and analysing the current information provided to the clients in the red folders there are three key areas which need to be addressed in order to manage driver behaviour effectively. This is possible through three phases, firstly familiarisation through an introductory brochure which takes new drivers through the layout and characteristics of the vehicle and clearly label all important features so that drivers are quickly familiarised with the vehicles layout. Key issues identified with vehicle familiarisation: - Fuel cap side - Position of Fuel cap opening button in cabin - Type of Fuel - Indicator/wiper controls being European style (left indicators, right wipers) - How to set Cruise Control - Emergency contacts and procedures o Breakdown procedures o Insurance details o Towing services With the consolidation of the fleet it will be possible to provide the in-car familiarisation kits within every car in the fleet over a 12 month period as fleet vehicles are bought and sold. This will increase the customer care and facilitate in reducing confusion about these issues which were shown during the two weeks of analysis as key to slowing down the overall process of managing the fleet. Systems and Processes It is important to note that it is only through the dedicated work of Davin Kendal, Steve Wakeim and the consistent abilities of their mechanical team that our fleet is able to function. 10 P age
11 During the analysis of the systems and procedures it became evident that Davin and Steve have both been at the forefront of updating and streamlining the macro-systems whilst also managing the fleet and providing seamless day to day running. The current system is based around an out of date computer system which is unable to cope with the workload and insufficient for the needs of staff. It is strongly advised that this system be updated to a modern digital system because the unique nature of the business turn over requires on-going analysis, calculation and records management. The current processes are reactionary to need and unable to forecast future needs of the fleet which would greatly increase the overall efficiency and utilisation of vehicles, thereby providing greater return on the constant investment being made into each vehicle. It is also important to note that the staff at CSU Wagga fleet represent the front runners of the fleet and provide a realistic, educated and professional approach to introducing new systems and directing the fleet management towards a more efficient, green, higher functioning and lower costing fleet. This is evident given the changes which are already being made to the fleet such as purchasing 5 star green rating vehicles and ensuring a higher level of utilisation prior to purchasing. The findings of this report have also shown the direction currently being taken are perfectly on track with the vision Davin and Steve have provided to their credit. It is the opinion of this report that CSU s Wagga fleet is ideally positioned given the forward thinking and highly capable staff, the large and central nature of the fleet, the research findings of this paper and the potential for a new system to be paid off immediately by selling vehicles which would no longer be required. Future projections for a new System Through analysis of 6 months of trip records it has been shown that on numerous occasions multiple cars were provided to staff from the same departments travelling to and from the same location, at the same time and staying in the same accommodation. This was exemplified on December 3 rd 2012 when an unnamed staff member from the Veterinary sciences department arrived to collect a vehicle and commented that he was one of 8 people travelling to the same conference and that only two people were travelling together. This situation is one which occurs often and from the data provided of trips between campuses there is evidence to suggest that an overall reduction of 23-38% of use if an effective car-pooling system can be implemented. The up-front cost of updating the entire system would be offset immediately by selling the vehicles which were no-longer required because efficiency will be increased. An investment in an efficient system will also provide long term on-going s by reducing the number of required vehicles to run the fleet and thereby alleviate losses incurred from those depreciating assets. Such an investment is one which will also help reduce the overall carbon footprint of CSU Wagga and provide long term reduction of costs associated with the fleet and provide accurate data which will help provide further evidence and direction for potential to implement effective change on all other campuses. 11 P age
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