ADM Fleet Strategy - amathole.gov.za

1 ADM Fleet StrategyFleet Management StrategyPage2 Table of and Analysis Key and Shape of the Assessed Vehicle Vehicle Mis-use and Fleet Fleet Monthly per Vehicle Findings Vehicle Recommendations Vehicle Management Business Process Maturity Control Systems and Fleet Processes and Practices Management of Management for Head Office User Scheme (EVUS) and Description of the EVUS_____46 Fleet Management Cost Levels Post Implementation_____47 ANNEXURE A: Fleet Management Strategy Implementation Plan_____48 ANNEXURE B List of Assessed vehicle with condition_____49 ANNEXURE C Vehicles with Wesbank Transactions not Assessed_____50 ANNEXURE D CPK Repairs & Maintenance per Vehicle_____51 ANNEXURE E Fuel litre per 100km per vehicle_____52 Fleet Management MethodologyThe followingkey elements wereconsidered: ADM Fleet relatedfinancialand operational source information; Structured interviewswere conductedwiththe key roleplayersand aformalised view of thecurrent ADM Fleet management situation and practiceswereestablished and considered.

2 The ADM Fleet was physicallyinspected andthe overall condition established; Allrelevant and available documentationwasreviewedwithin the allocated timeframe; Project Steering Committee Meetingswere conducted andinput wasobtained frommanagement;and Structured workshopsand interviewswere conducted with the ADM Fleet following diagram outlines the Fleet improvementmethodologythat wasapplied:The diagram above outlines action steps duringPhase 1: Project mobilisation; Fleet Management StrategyPage5 Assessmentand measurement of the Fleet function; An optimised solution was envisioned and agreedupon; and Strategy design and report is the final deliverable of Phase 2will deal with Strategy implementation and does not form part of this key activities during this phaseincludes: Assistance with implementation; and Progress review and assistance with Management FrameworkThe followingdiagramoutlines therecommended ADM Strategic Fleet Management Framework(SFMF).

3 Thisdiagram centres the ADM Fleet Management Strategyonfour keyelements: Driver Management; Fleet Operations Management; Fleet Financial Management; Asset key elements and focus areas should work together in harmony to producethefollowingdesired outcomes: An available and reliable Fleet ; An economically run andcost effective Fleet Fleet should supportADM management Strategy together withthe service delivery mandate ofthe Management StrategyPage7 Thisreportoutlinesthe key findings of theADMsituationalanalysis, the Fleet managementintegratedapproach,as well Management AnalysisKey current ADM Fleet size and shapeisadequate for purposes of service delivery.

4 The Fleet is in agood condition, but Fleet availability is a total of 297 ADM vehicles were assessed out of an expected fleetsize of 330 vehiclesas stated inthe tender requirement small portion (10%) of the fleetwasnot available forassessment due to operational assessment could be regarded as a representative sample (90%) of the overall ADM technology was applied whilst conducting the overall condition of the ADM fleetwas and Shape of theAssessedFleetThe pie graph below outlines the Fleet configuration of the assessed vehicles: Fleet Management StrategyPage9 The following table provides a breakdownby vehicle type:Fromthe table it is clear that the bulk of the ADM Fleet consists of 1 Ton LDV (194) vehicles,followed bysedans (30) and trucks (30).

5 The remainder of the Fleet consist of various Size Key FindingsThere is a discrepancy in the ADM Fleet Size reported the following table indicates the various datasources and number of Fleet units reported: ADM Tender Document 8/2/20/2014-2015C = 330 Fleet units; ADM Venus Financial Systems = 409 Fleet units; and Wesbank System (Maintenance reporting & fuel) = 388 Fleet the situational analysis business review process and considering the various interactionswith key role players,the following key aspects regarding the Fleet size and shape became clear: There is no formal documented business process at ADM to determine the size and shape ofthe Fleet ;and The relevance of the current Fleet size, shape and utilization is being Size Key RecommendationsIt is recommended that: The Venusfinancial systemsbe updated with the actual ADM fleetmasterand that it be usedas the master data file for vehicles, plant and equipment.

6 The Wesbank and Netstar Vehicle tracking system be updatedwith the Venus vehiclemasterdata; Business process be implemented to ensure synchronisation of the various vehicle databases;Vehicle TypeQuantityLDV > 1 TON194 SEDAN < 2L30 TRUCK30 LDV DOUBLE CAB7 FIRE TRUCK7 TRUCK - TANKER6 EQUIPMENT - TRACTOR5 LDV < 1 TON5 TRAILER3 PANELVAN / BUS 16 SEATER3 EQUIPMENT - TLB3 SEDAN > 2L2 EQUIPMENT - PUMP2 Grand Total297 Fleet Management StrategyPage10 The vehicle classification codes be standardised and that all vehicle related descriptiveinformation be updated between the various systems; Aformal Fleet size and shape review process be introduced and that this process besynchronised with a Fleet budgeting process that needs to be introduced; and The Fleet utilization management process be aligned with the Fleet size and shape ConditionThe table outlines the overall Fleet conditionof the assessed vehicles:The bulk of the ADM Fleet is in aGoodtoVeryGoodcondition(77%) whilst 19% is in anAveragecondition.

7 Only5% is in following bar graphillustrates the overall Fleet condition:From the Fleet assessments it is clear that the ADM Fleet is in a good technical condition with95% conditioncompares favourably toothermunicipalities in South of Fleet1=Very Poor2%2=Poor3%3=Average19%4=Good60%5=Ver y Good17%Grand Total100% Fleet Management StrategyPage11 The5% of the fleetwhich is below averagecould impact on Fleet availability and service the absence of good Fleet practice, the5% poor Fleet condition could increase over is a further breakdown of condition by Vehicle Type:The currentADM fleetmanagementapproach is fragmented and not integrated with the are not integrated with the ADM Venus financial systems which results in a lack ofmanagement information, data integrity and integrated Fleet operation and financial management systems are lacking and vehicle repair and maintenance scheduling isabsent in the municipality.

8 This impacts negatively on service delivery due to the fact that vehicleavailability is not following recommendationsshould be taken into consideration when compiling the 2015/16fleet operational budgettogether with the Fleet replacement programme: Vehicles which are in a Very Poor to Poor condition should be rehabilitated orconsidered forreplacement. It is recommend that the Venus Fleet Master be verified andupdated accordingly. It thenneeds to bereconciled as part of a potential phase 2 of the project. A business processes need to be adjusted to ensure that the VenusFleet Master is accurate atall times and correct asset detail is always available.

9 Preferably this needs to be reported on amonthly basis and the Financial and Fleet Department need to co-ordinate this effort. The Venus Fleet Master needs to be synchronised with the Wesbank fuel and maintenancetransaction records. A business process needs to be introduced to ensure that ONLY authorised vehicles inVenusaremaintained. Currently it is clear that there is a disconnection between Venus andWesbanktransactions. Service Scheduling All service intervals of vehicles needs to be recorded in a fleetmanagement system. Alltrip sheetsmustto be captured in Venus to keep track of vehicleVehicle Type1=Very Poor2=Poor3=Average4=Good5=Very GoodGrand TotalEQUIPMENT - PUMP112 EQUIPMENT - TLB123 EQUIPMENT - TRACTOR11125 FIRE TRUCK167 LDV < 1 TON1315 LDV > 1 TON363111935194 LDV DOUBLE CAB3317 PANELVAN / BUS 16 SEATER123 SEDAN < 2L11218830 SEDAN > 2L112 TRAILER213 TRUCK1619430 TRUCK - TANKER426 Grand Total595517751297 Fleet Management StrategyPage12odometer readings.

10 This will enable ADM to predict vehicle serviceintervalsand manage fleetavailability. Regular vehicle auditsmust beintroduced at aSatelliteOffice level to ensure that vehicle abuseis managed and the known vehicle defects are mobile technology used duringthe analysis could bedeployed within the ADM Fleet function which will enable ADM to continuewith this business process. This should serve as a building block for future Fleet audits. Maintenance best practice needs to be introduced in order to preserve and extend theusefulasset life of the ADM Fleet . The current lack of an integrated maintenance management and Fleet management systemscould be regarded as a strategic impairment.