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fleet services and management

April 30, 2016

In regards to choosing between changing the oil for individuals driving their personal SUVs or for fleet delivery vehicle managers you have to think about the time, not only the total amount of money charged per vehicle. It might be enticing to improve the oil for V-8 SUV owners at $45.00 a pop, rather than cope with the cutthroat competition of bidding on fleet oil change services, but you've to remember a very important factor; "The Money Is In the Time and Process, Not the Unit Charge Rate," so, let's talk fleet services and management.

You see, not long ago, I was reminded of the significance of production in the services business, when I was asked by a start-up entrepreneur of on-site auto maintenance. He asked point blank; "How many oil changes can be completed by a decent crew (I am assuming 2 visitors to a crew/truck) in a 8 hour day utilizing your trucks and methods?"

Okay, here is my experience; with full production - Six Sigma style - vehicles in a row (fleets) the clear answer is 100s with a team of three. Personal cars, various different, you'll need very competent auto mechanics with experience 5-6 each hour with 2 people maximum. Of course, there's more to the story, in reality his next question was even blunter and I must say directly on target too; "Do the trucks you employ focus on one vehicle at the same time or multiple at once?"

When doing fleets you employ an assembly line methodology, so first, you begin the motors on five vehicles, nevertheless, you pop the hoods on 15 in the row. After 8-minutes, you switch off the very first five, start the 2nd five, drain the very first five drain plugs, you obtain the idea. Or, you employ evacuation systems. It's an activity, the amount of money is in the "time" not the task or cost per unit. Travel time is job time in addition, including chasing parts, filters - especially when you're paying automotive technicians to fetch oil filters, fuel filters, and such gps tracker for car.

Indeed, I've always instructed our crews on the requirement to honor the thought of JIT - just with time inventory, that's to say have the supplier, NAPA Auto Parts for instance, deliver the filters needed to the task site, why pay to stock the filters, inventory them, transport them, when these auto part companies deliver and is going to do anything to earn your business? In the event that you are likely to run an automobile business if you are working with private owners of SUVs or those in charge of large fleets of vehicles, then you definitely need to run it with production in mind. Please consider all of this and think on it.

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