Fleet Management

Muyimba John
BDS@IAL-U

jmuyimba@gmail.com
http://www.linkedin.com/in/jmuyimba
Twitter/facebook/skype id: jmuyimba
 Objective

● This training aims at imparting - in simple, non-

technical language - the key skills needed for
modern fleet management. It is essentially a
training on efficient fleet operations, rather than
on policy and strategy.
● It is particularly designed for a wide range of
administrators and managers, with a little
previous experience and knowledge of fleet
management issues, who undertake their role in
fleet on a part- or full-time basis.
 Rationale

● Running a fleet of cars or vans calls for a wide range of

skills and many of these skills are transferable, and in
themselves, need relatively little specialization. Others
are specific to the business of fleet management. But
fleet management is not an exact science – it must be
organized to serve the business which is actually using
the fleet.
● In FM, cost and functional aspects must be considered
to ensure that the fleet is run both properly and safely.
The Training is designed as a comprehensive overview
of fleet operations and includes a study of the main
options, the cost-reduction techniques and the
administration needed to keep the fleet under effective
control.
 Overview
● Brief history and background to the car and van fleet
markets
● Explanation of major cost types, causes, magnitude
and variabilities
● Fuel Management, Safety, Repairs and Maintenance
● Purchase/ leasing/ contract hire for vehicle
● Vehicle selection and impact on whole life cost
profiles
● Fleet administration, monitoring and reports
● Current issues and sources of information
all in the name of saving costs...
 Every Business is Different

● Some businesses use vehicles purely as a tool of

trade, to move people and equipment quickly and
easily.
● In some cases a company car is little more than
one part of the overall remuneration package:
designed to encourage and motivate the
employees concerned.
● In some cases, cars might not even be company-
controlled.
● Many organisations fulfill their business travel
needs through use of employee-owned cars.
 Duty of Care

● The core principle of Fleet Management is that

of Effective Risk Assessment/Risk
Management Policy to provide a framework for
ensuring that a safe working culture is in place
and that it is reinforced on a regular basis.
 Definitions

● A fleet is any collection of cars and/or vans being used and

operated within a single business.
● A pool car is a car used by any of a group of employees for
any legitimate business purpose. Private use by any
employee is not allowed.
● A company car is any car provided by the employer for use
by one employee; and generally bringing entitlement to
private use of the car for domestic travel. Any such private
use is taxable under benefit-in-kind tax rules.
● Fleet Management is the process of recording, monitoring
and controlling what is happening with the vehicles and
drivers. The main purpose is to control – and reduce – costs.
 Fleet Costs
● Depreciation: Purchase price - Sales Price
● Funding: Interest/finance cost + Capital Expenditure
● Maintenance: Routine/scheduled services + replacement
of worn parts
● Insurance: Insurance premium + any other costs relating
to repair of accident damage
● Fuel: Money spent on fuel used for business journeys only
● Fleet Administration: the costs of the administration
needed to set up the systems to acquire the vehicles, then
record and monitor all the other costs; together with other
factors like a computer system to hold the records
 The Fleet Market in Uganda
● Some service providers wrap up depreciation, maintenance and
funding, with much of the fleet administration, into a single package
called contract hire or leasing.
● Specialist businesses – Accident Management companies - deal with
all the repair actions needed as a consequence to a road accident.
● There are specialist credit/ charge card providers concentrating on
making re-fuelling easier to manage by issue of fuel cards.
● There are also many businesses using cars and vans which prefer to
do everything in-house, rather than outsource any of these areas to
specialist agencies.
Different methods and approaches will yield very different results in
different circumstances. The objective of the “fleet manager” is to get
the best overall result for the main business, rather than run the best
fleet.
 Fuel Consumption
Saving Money and The Planet

● Fuel is one of the most notable expenses

involved in running a vehicle fleet.
● Next to the capital costs of the vehicle, fuel is
generally the greatest single financial burden a
fleet manager will need to control.
● With some planning and forethought,
remarkable savings can be made in this area of
your fleet with some great benefits for the
environment as well.
 Why try to cut your fleets fuel
usage?
1. The Cost
Your driving habits, the type of car you drive
and the conditions under which you drive
determine your car's fuel consumption and
hence fuel costs.

How many litres of fuel due consume in a year?

 Estimated annual fuel use
annual distance fraction of city fuel
Travelled (km) X city driving X consumption
rating (L/100 km)

100
Annual fuel use (in litres)
= +
annual distance fraction of city fuel
Travelled (km) X Highway X consumption
driving rating (L/100 km)

100

Estimated annual fuel use and fuel cost are based on an annual driving distance of 20,000 km
with a mix of 55 percent city driving and 45 percent highway driving.
 Mileage Reimbursement Rates

● @ KK Security ??
● @ IAL-U; UGX. 1,500/= per Kilometer

Different companies have different rates.

Who's your official supplier?
 Quality of Fuel

● V-Power
- enhanced engine performance along with
increased engine protection, for more
consistent operation and engine longevity.
● Unleaded
When burnt in engines, this petrol/diesel does
not give off toxic fumes, as leaded petrol does.
● Normal
2. The Environment
● Our lifestyle is producing more and more greenhouse
gas emissions. Scientific research predicts that rising
temperatures caused by increased levels of greenhouse
gases will harm humans, plants and animals by
changing weather patterns and raising sea levels.
● You can help reduce these emissions by choosing the
most fuel efficient car to meet your needs and driving it
in a fuel efficient manner.
● Motor vehicles are a major contributor to air pollution in
allover the world, and as fleet managers we have a
responsibility to make every effort to reduce the output
of harmful greenhouse gases.
 Tips for Saving Fuel
● 1. Plan Your Trips
Plan to do a number of errands in one trip rather than
several trips and save both time and fuel. Avoid peak-
hour traffic, hard accelerating and heavy braking as
they all waste fuel. Driving smoothly and avoiding
stop-start traffic saves fuel and up to 30 per cent of
greenhouse emissions.
● 2. Avoid Short Car Trips By Walking or Cycling
Walking or cycling is good exercise and saves over a
quarter of a kilogram of greenhouse gas per kilometre
of car driving it replaces.
 ● 3. Service Your Car Regularly
Keep your car well tuned and reduce greenhouse gases by
up to 15 per cent through fuel savings.
● 4. Select The Right Gear
Change up through the gears and into top gear as soon as
possible without accelerating harder than necessary. Driving
in a gear lower than you need wastes fuel; so does letting the
engine labour in top gear on hills and corners. Automatic
transmissions will shift up more quickly and smoothly if you
ease back slightly on the accelerator once the car gathers
momentum.
● 5. Speed Kills Economy
High speeds result in high fuel consumption. At 110 km/h
your car uses up to 25 per cent more fuel than it would
cruising at 90 km/h. On the open road, drive within the posted
speed limits.
 ● 6. Stopping and Braking
Resting your foot on the brake or driving with the
hand-brake on wastes fuel, increases brake wear
and decreases braking efficiency.
Rather than idle for lengthy periods it is more fuel
efficient to switch off and then restart your engine
when necessary.
● 7. Filling Up
Filling past the first click of the fuel nozzle means
fuel can be spilt or lost through the overflow pipe
when you accelerate or go around corners.
A properly fitting petrol cap also saves fuel by
minimising evaporation of petrol.
 ● 8. Look After Your Car's Tyres
Inflate your car's tyres to the pressure range
recommended by the manufacturer for the use of the
car, and make sure your wheels are properly aligned.
Looking after your tyres will not only reduce your fuel
consumption it will also extend tyre life and improve
handling.
● 9. Use Air Conditioning Sparingly
Air conditioners can use about 10 per cent extra fuel.
●10. Travel Light
The more a car carries the more fuel it uses; an extra
50 kg of weight can increase your fuel bill by two per
cent. Anything fixed to the outside of the car
increases wind resistance and fuel consumption.
 Maintenance and Repairs
Regular maintenance will contribute to the
reliable and economical use of your motor
vehicles and could contribute to driver
safety.

– The Service Schedule.

Manufacturers are now recommending
greater service intervals than before, so it
is important to ensure that servicing
occurs at the right time.
Key Aspects of Fleet Maintenance
● Servicing. This is the routine work scheduled by the vehicle
manufacturer in the service booklet which comes with every
vehicle. Modern cars monitor their own condition by
indicating through some form of dashboard message.
● Repairs. The need for attention to the major or minor parts of
the vehicle which malfunction.
● Tyres. As the only contact between vehicle and road surface,
tyres have to be in good condition for safety.
● Downtime. Any days off the road for mechanical failure
should be monitored – for costs (especially of a rental car is
provided at an extra charge).
● Relief Vehicles. Related to the downtime issue above, but
with much more important cost implications.
 Tyres sizes

R - tire uses radial construction.

110 – Service description and indicates load carrying capacity, m+s – mud + snow use
● TYRE WIDTH (WIDTH / PROFILE R RIM SPEEDRATING)
This is the width of the tyre and is quoted in millimeters.
● TYRE PROFILE (WIDTH / PROFILE R RIM SPEEDRATING)
The tyre profile is the depth of the tyre and is quoted as a percentage of the
tyre width.
● RIM SIZE (WIDTH / PROFILE R RIMSIZE SPEEDRATING)
This defines the diameter of the metal wheel on which the tyre fits.
● SPEED RATING (WIDTH / PROFILE R RIM SPEEDRATING)
This code specifies the maximum speed at which the tyre can be used when
in good condition. Please note that sensible safe driving is recommended at
all times and
Speed Symbol Speed Rating Speed Symbol Speed Rating
F 80 km/h (49 mp/h) N 140 km/h (87 mp/h)
G 90 km/h (55 mp/h) P 150 km/h (93 mp/h)
J 100 km/h (62 mp/h) Q 160 km/h (99 mp/h)
K 110 km/h (68 mp/h) R 170 km/h (106 mp/h)
L 120 km/h (74 mp/h) S 180 km/h (112 mp/h)
M 130 km/h (80 mp/h) T 190 km/h (118 mp/h)
● LOAD RATING (WIDTH / PROFILE R RIM LOADRATING SPEEDRATING)
the maximum load the tyre can carry. For a given size of tyre there is
usually little variation in load rating offered by different manufacturers.
Other tyre comparisons
Rib shape:-
The pattern aids faster
water drainage and hence
● High Vs. Low profiles gives good traction on wet
roads. commonly found on
most tyres & suitable for
● Sport Vs. Ordinary all car types.

Assymetric pattern:-
● Pressure The sides differ in pattern
to give different
functionality, the inside
● Tire design offers better cornering
traction while the outside
is designed to channel
water away.
Block shape:-
The grooves are very
small the tread pattern is
very tight and close.
Rarely used. Were
common in the 90s.

ZigZag shape:-
A classic tread design for
a van. Very successful in
commercial usage
because of the grooves
that are cut in a zigzag.
 Maintenance Tips
Checks performed between scheduled services reduce the chances of your vehicle breaking
down. Try to establish a regular checking procedure, it need not be long and time consuming,
just a few minutes each week if your vehicle is being driven under normal conditions.
● Radiator: When the radiator is cold, check that the coolant level is within the range indicated
on the overflow reservoir.
● Engine Oil: The oil level should preferably be checked when the engine is cold and not
running and the vehicle is standing on a level surface. Wipe the dipstick and re-insert fully
before checking.
● Tyres: Ensure tyres are inflated according to manufacturer's recommendations. Check for
wear and irregularities.
● Lights: Check the operation of all lights, indicators and instruments. If a trailer is used
remember to check its brake lights and indicators are operating.
● Windscreen Washer Fluid: Top up the reservoir with clean water.
● Battery: If your battery is of the serviceable type ensure fluids are topped up to
recommended levels. Refer to the owner's manual for the correct procedure.
● Leaks: Observe the area where your vehicle has been parked to check for oil or other leaks.
If you find any leaks, the vehicle should be returned to a servicing agent for inspection.
 Safety

● Safety is very important.

● Every new car must meet certain federal safety
standards,
- Doesn’t mean that all cars are equally safe.
● Some vehicles are safer than others.
● Many automakers offer safety features beyond the
required federal minimums.
i.e. Crashworthiness, Structural design, Restraint
systems, ABS, Daytime running lights, Size &
weight
 Why Accidents Occur?

 Most frequent causes of accidents

– Inattention to detail
– Speeding
– DWI/ DUI
– Driving too fast for conditions
– Failed to yield
 Continuation
 Other Factors:
– Road conditions
 Weather related & Physical conditions
– Vehicle Maintenance
 Tires treadwear/pressure
 Brakes
 Costs of Accidents

1. Claims for damages to vehicles and property,

injuries to motorists and passengers

2. Workers Compensation claims

3. General Liability claims

4. Damage to transported materials and equipment

5. Negligent Entrustment lawsuits and punitive

damages
Rest Assured
 Motor Comprehensive

A good policy should provide indemnity for;

● All Material Damage: i.e. the risk of accidental loss, fire and
theft, including damage caused by fold, hurricane storm and
tempest, earthquake, riots, strikes and civil commotions and
malicious damage.
● Windscreen Extension: i.e. Reimbursement of costs incurred
to replace or repair windscreen following damage or loss
other than involving total loss of the vehicle.
● Third Party Liability: i.e. compensation to third parties for
bodily injury or death caused by the use of your motor
vehicles as required by statute.
●
 What Employees Should Do

● Stay at or under the speed limit, especially in trading

zones.

● Leave a long following distance between you and the

car in front of you, especially if there are heavy
materials in the vehicle. There should be ample time to
apply the brakes and come to a complete stop.
● Do not drive while fatigued or intoxicated, and don’t
engage in distracting activities, such as using a cell
phone.
● Use safety belts. Limit the number of passengers in the
vehicle to the number of safety belts available
● Participate in your company’s vehicle training program.
 What Employers Should Do
● Conduct driver’s license background checks on
prospective drivers before they are hired.

● Establish a written policy requiring drivers and

passengers to use seat belts at all times. Make sure
that employees are aware of and comply with this
written policy.

● Train drivers in safe driving practices and proper use of

vehicle safety features. Make sure that this training is
performance-based and periodically repeated.

● Maintain brakes and other safety systems on vehicles.

● Source for the best insurance policies that can protect

your Employees and the company.