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Large construction companies
with fleets of on-road and off-road vehicles running into the tens
of thousands have long known the importance of the computer in managing
these critical assets. As Ken Skidgmore, maintenance systems manager
for LaFarge Construction Materials, puts it, "Today's fleet
managers need real-time information to keep up in this ever-changing
environment. Even small adjustments in equipment purchases, parts
management, and regular maintenance can result in dollars saved
when based on factual information."
LaFarge has quite a large
fleet, approximately 30,000 equipment units and, similar to most
large construction firms, has committed to using a fleet management
system that he describes as a "product valuable beyond its
estimations." Some large firms, such as AMECO, have developed
their own enterprise software for fleet management, but most use
one of the fleet management software packages on the market, running
them on PCs or midrange computers, such as IBM's AS/400.
Now smaller construction
companies are seeing the advantages–even the necessity in their
competitive marketplace–of computerizing at least their fleet
maintenance operations using one of the quite-capable software packages
on the market. TMT Software of Durham, NC (which supplied the system
LaFarge uses), revealed what these software systems can accomplish
when it described its Transman SQL PRO Base System's components:
repair-order system, preventative maintenance (PM) scheduling, inventory
management system, purchase-order system, attached barcode devices,
basic warranty analysis/identification, fuel inventory and management,
accounting export, and TMT report viewer.
While this describes
one specific product, it also more or less describes the design
philosophy behind most of the fleet management software packages
we examined. And virtually every one of these packages has users
who are very happy with their investment–and investment
is the term they use. Not only do these systems save fleet managers
significant time and effort in their jobs, but they have been shown
to save surprisingly substantial costs as well. For example, Desmond
Hannon, fleet manager of the B.F. Joy Company near Washington, DC,
reports that the system he uses (Arsenault's Dossier package)
enabled him to reduce the spare parts inventory for his 300-vehicle
fleet from $350,000 to $37,000.
Varying System Scopes
Although the design philosophies
of the competing software systems appear to be quite similar, the
specifics of each can vary widely. One of the most significant differences
is the scope of the system. Since construction is still a relatively
small, emerging market for fleet management systems, many of the
software firms have adapted the systems they developed for the larger
and more mature transportation market. This approach has produced
systems that economically provide the construction fleet manager
with the functions and features he needs for his business by integrating
them into a system that can also solve the problems of a transportation
fleet manager. The capability for construction fleet management
is included, but the architecture has drawbacks, particularly for
smaller contractors.
For example, the LB Corporation
of Lee, MA, has a small, 46-vehicle fleet that specializes in excavation
and concrete forming. Notes LB's Tracy Garrity, "We're
not a big hauling company that trucks commodities from here to California
and back, so we don't need a complicated system for our operations.
It would be overwhelming to learn and operate. Our needs were for
a system that's simple to understand and use but that provides
the information we need quickly and efficiently. We found what we
wanted in a new fleet maintenance software system on the market–Compufleet
from Solutions Construction of Tampa, Florida.
"It's very
efficient at tracking the fuel usage and fuel taxes in the two states
where we operate. It keeps track of registrations and vehicle sticker
renewals; things like that have always been a time-consuming pain
to do with a paper system. We don't ask it to do a lot of things.
Why, we don't even use the PM part of the program. We do all
of our major vehicle maintenance and repair in the wintertime–January,
February, and March–when there isn't much excavation because
of the snow on the ground. For the other nine months, we rely on
driver assessments. If one of them complains about spongy brakes,
for example, we check that vehicle's repair history on the
system and determine what to do about it and when. The system does
everything we ask of it, quickly and without complications."
Buck Donovan, vice president
of Solutions Construction Inc., is quick to point out that his Compufleet
system has the capability of doing much more than LB Corporation
asks of it. "We have a background in construction, so when
we started in the fleet management system business, we initially
designed a system for small contractors. Subsequently, we have branched
out and added functions that are useful in other markets. We took
care to keep our system simple to operate; yet now, in addition
to what LB Corp uses it for, it records equipment maintenance, provides
PM schedules with checklists, tracks operating costs, monitors parts
inventory with auto-reorder, flags warranty items, produces customized
reports, creates estimates and invoices, plus much more. What's
more, it's flexible and scalable; now it can be used by any
size of fleet."
"All customers of
our Fleet Cost & Care software get the same system," states
Jim Marl of Crane Cost & Care Company in Detroit, MI. "Then
we customize it for each individual user by simply ‘turning
off' the functions and features that the user doesn't
want or need. We initially developed the Crane Cost & Care system,
so it just made sense to extend it modularly to meet the requirements
of users with other specialties.
"The construction
industry is component-intensive, with a lot more hydraulics, cylinders,
tracks, and the like. Our software is geared to handle those components
too. Each user can define his own fleet configuration and his own
activities, such as PM schedules for each vehicle and each component,
if he likes. Thus, contractors can assign parts and action items
to a master maintenance and repair facility that is uniquely designed
for each machine in their fleet. When they open a work order and
insert a maintenance or repair activity, they can print out an action-item
checklist of everything that needs to be done on that specific vehicle
or equipment, as well as a list of the parts and tasks needed."
What's more, Marl
adds, users can define these activities in whatever terminology
they are accustomed to using–whether they are from the Deep
South or in Brooklyn, NY. This sort of "user system design"
also is offered by Solutions Construction. "Contractors are
free to set up their own PM schedules, for instance," Donovan
points out. "And we encourage them to suggest ideas that will
enhance the system's value."
TMT Software also lets
each user define his own construction specifics at the outset. Alternatively,
he can outsource the definition loading to TMT. "We give them
a one- to two-day services session at no cost," says TMT Vice
President Mark Ashdown, "and in the process we show them how
to do that definition loading. Usually they'll learn the process
quickly and see that they can do it on their own without any outsourcing
expense. And the knowledge they gain allows them to change their
system configuration in the future."
As part of the startup,
TMT also converts old user data, trains the user staff, and establishes
a complete manual customized to that user's standard operating
procedures. Thus, it is not just a generic manual; it documents
standardized user-specific procedures for use across the entire
company, including at remote job sites. And when the user acquires
another company, this documentation is very useful in training the
newly added staff.
In the course of researching
this article, we found that contractors are customizing fleet management
software packages to their own needs, often ignoring functions and
features that the package offers. For example, Mike Jones of Mitchell
Asphalt in Baltimore, MD, freely picks and chooses Arsenault software
functions and adapts them to his own needs. He doesn't use
the meter and fuel report to track fuel costs in real time, but
he does use it to get mileage and other data to his accounting department
for budget allocation.
"I also take the
mechanic productivity report and export it to an Excel file,"
he adds. "Then I format it into a special report that I use
to determine what the guys in the shop get paid. Also, there are
special situations that arise where the system can really help.
I remember when one of our tractor-trailers was involved in an accident.
People always jump to the conclusion that these big vehicles are
at fault because of sloppy maintenance. Well, we knew we had one
of the better maintenance programs in our area; the problem was
how to prove it.
"Rather than have
to do a lengthy paper search, I simply accessed the Arsenault system
and pulled up a really impressive report on the maintenance that
had been done to that tractor-trailer. It showed the schedule and
amount of time and money that had been spent for brakes, lights,
body, everything. The police were completely satisfied and, although
I won't go so far as to say it precluded a lawsuit, I was very
glad we had that documentation."
Jim Christey of Blossom
Valley Construction in San Jose, CA, says he has one overriding
use for his Computerized Fleet Analysis CFAWin system: just-in-time
PM. "We have a very high vehicle utilization," he explains.
"We use every one of our 275 vehicles virtually every day.
Therefore we don't bother to track our equipment utilization
with the computer. Our concern is keeping our fleet up and running
so every vehicle is available every day with an absolute minimum
of downtime for maintenance or repairs.
"The system generates
weekly PM reports for us and schedules the PM we do here or have
done for us in the field. With that schedule, we can be assured
that all vehicles get their PM on time, yet vehicles don't
stack up here waiting for service on any given day. We do use the
CFAWin parts inventory function, but we use it strictly to support
our PM program by ensuring that we don't run out of needed
parts when a vehicle is in for PM. The system has helped us tremendously
in keeping our equipment up and operating at peak utilization."
Capturing the Data
A basic challenge to
the efficient use of any fleet management system is capturing the
field or shop data electronically so that they don't have to
be rekeyed into the computer. This is particularly important for
construction firms that have multiple and often-remote job sites.
Toronto, ON—based
Cetaris has made an impressive stride toward this goal by implementing
wireless technology with its Fleet Assistant system. According to
Jim Iglesias, Cetaris offers an optional wireless repair order system
featuring a Symbol PDA (personal digital assistant) device (hardened
for field conditions) and a wireless network. With it, a mechanic
at a job site can log on to the computer at company headquarters,
select a repair order, and scan in the vehicle ID. He can then capture
labor and parts usage (using the PDA's built-in integrated
barcode scanner to facilitate the quick and accurate entry of part
numbers) and other information.
"This provides a
mobile capability previously unknown in fleet maintenance systems,"
Iglesias notes. "Previously a contractor with multiple sites
might require a staff of a dozen people to create work orders and
fax them to the appropriate job sites. Then the mechanic would write
down on the fax what he had done and send it back to headquarters,
where the repair data would be manually entered into the system.
"Now that company
will only need perhaps two employees to create the work orders.
If the company equips each job site with a $300 wireless hub and
one or more PDA devices, the exchange of data will be seamless and
virtually error-free. Not only will this system save labor costs
both in the field and at headquarters, but the data captured will
be free of data-entry error, can be sent instantaneously, and will
eliminate costly and error-prone rekeying."
This system option is
already being used in Canada and, at the time of this writing, is
being rolled out in the United States. This gives Cetaris a jump
on the rest of the industry. TMT Software, for example, is still
in development of a PDA-based option comparable to that of Cetaris.
TMT hopes to announce it at its conference in October 2002.
However, TMT has a unique
fleet management system feature of its own–touch-screen technology.
With TMT's touch-screen module, a shop mechanic can complete
every task on a displayed work order and in the process create an
electronic parts list and an electronic time card for every activity
(including idle time). "This makes possible a 100% paperless
shop," Ashdown points out. "And the data captured don't
have to be rekeyed at the home office. That labor savings alone
is significant, and it goes right to the bottom line."
Getting Data to the
Accounting System
Since fleet management
systems generate so much useful cost data, contractors would like
to export these data to their accounting systems, again so that
they will not have to rekey them. There are at least three general
ways fleet management software suppliers address this issue:
- They don't normally
do it.
- They develop interfaces
for various accounting software packages.
- They develop a general-purpose
output file.
Computerized Fleet Analysis
in Addison, IL, does not feature accounting system links, although
President Mike Ohlinger says, "We can do it. Our software is
open-database [ODB]-compatible so we can transfer data to and from
other systems in a file format that some accounting systems can
accept. As I said, we can do it, but there's not much call
for it."
Fleet Cost & Care
develops interfaces to accounting systems. The firm, which is also
an ACCPAC International Inc. accounting system reseller, prides
itself on being flexible, so it also has developed interfaces with
leading Windows-based accounting software packages. "We can
now interface with any Windows-based accounting system that is ODB-compliant,"
says Jim Marl. "We use ODB architecture to interface directly
with databases. Therefore any data added or changed in our fleet
management system update the accounting system database."
Apparently this custom
interface approach works well–at least Mick Bryant of the AEI
Mining Resources Division thinks so. "From our standpoint,
one of the best features of this system is that it can transport
data to our Dynamic accounting system so we don't have to manually
enter the same data twice."
TMT takes a general-purpose
approach to interfacing with accounting systems. "Our Transman
system captures a lot of cost data that accounting people want,"
Ashdown points out. "So we have a routine that puts these data
in an ASCII file. That way it can be directly accessed by any accounting
software system–from a $49 package to a full-blown Oracle system."
Application Service
Providers
Many contractors simply
do not want to take on the expense and trouble of buying and maintaining
a full fleet management computer system. "We're construction
people," they reason, and they do not want to divert their
focus from their primary operations.
Now they can have their
way. With the almost universal availability of the Internet, fleet
management software suppliers are now also offering to serve contractors
and other users as application service providers (ASPs). For a monthly
fee, an ASP will maintain a contractor's fleet management software
at its center on sort of a service-bureau basis. Although the contractor's
system resides on the ASP computer, he has complete access to it
via the Internet.
One of the many fleet
management software suppliers offering an ASP service is Arsenault
Associates in Atco, NJ. Arsenault simply took its popular Dossier
fleet management software and adapted an online version that it
calls 24/7 Fleet Online. "Our 24/7 system can be run from just
about any computer with Internet access," states Charlie Arsenault.
"A Web browser and a dial-up account through AOL or any of
the free ISPs [Internet service providers] is all that's required.
"Effectively using
our Dossier software over the Internet means substantially less
setup time and provides access and control of the fleet from virtually
anywhere for less than $6 a day on a month-to-month, no-obligation
basis. A contractor's fleet maintenance manager doesn't
have to be a data-processing expert. And he can be up and running
with the system in a matter of days, scheduling PM; tracking maintenance
costs, histories, and warranties; automating parts inventory; keeping
an eye on vendors; and saving money throughout."
The use of ASP services
is increasing steadily, but not every contractor will want to use
this service. Buying your fleet maintenance program and running
it in-house on your computer system is the traditional method of
acquiring and operating software. Some companies require this method,
as it provides the control and security they demand. Even if it
is not company policy, there certainly are advantages to owning
and operating your own computer system that might outweigh the convenience
of an ASP arrangement. Arsenault, who continues to market Dossier
as a package, agrees and lists eight persuasive arguments in favor
of a contractor owning and operating his own system:
- Total control of all
aspects of software deployment and its operation to satisfy your
information technology (IT) department standards.
- Operating your fleet
software on your own computers and communication system provides
a level of known security.
- A one-time purchase
eliminates the ongoing invoicing of a rental service.
- Annual support and
upgrades can be purchased on an as-needed or as-wanted basis.
- Your IT department
maintains control of all technology systems and purchases.
- Corporate assets are
increased with the value of the depreciable asset of software.
- Ancillary services,
such as program training, can be purchased on an as-needed basis.
- Integration of technology
and data can be performed as required if the database dictionary
is acquired.
Obviously the choice
depends on each contractor's particular circumstances. Whichever
choice a contractor makes, however, it is likely that the system
will pay for itself in many different ways. Arsenault cites instances
in which users had maintenance cost savings of up to 30% over three
years, 80% of all repair work became scheduled as opposed to emergency,
and the warranty dollars increased by 50%.
"You can't
predict where all the savings is going to come from," Donovan
says. "Why, if a contractor is changing the oil of just 10
vehicles once too often in a given year, the system can save him
almost $1,000 just by keeping to a proper PM schedule. And I recall
an instance where a mechanic accidentally changed all the hydraulic
oil in a large excavator, an unnecessary loss of $500 that a system-generated
PM checklist could have prevented."
Desmond Hannon agrees,
citing not just the parts inventory feature that enabled him to
cut his parts inventory value by 90% but also the repair-trend feature
of his system. "The system showed us that we were getting a
lot of flat tires on vehicles at a lot of different job sites,"
he recalls. "We investigated and found that most of the flats
were occurring at our new-housing-development job sites where there
were a lot of nails lying around. As subcontractors, we couldn't
control the job-site conditions, but we could protect the tires
with internal tire sealants. As a result, my tire budget dropped
by $20,000 and our uptime increased dramatically. I would never
have thought that an office system could have such an impact on
our field operations."
Charles D. Bader,
a frequent contributor to Forester Communications publications,
is with Dateline II Communications in Los Angeles, CA.
GEC
- November/December 2002
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