 There are three objectives of this program. The first is to explain how to identify equipment requirements and establish an economic fleet size and mix. Fleet planning. The second is to explain how to monitor the utilization and performance of the fleet. And the third is to outline procedures that assure that each unit is replaced at its economic life point. Economic replacement. This videotape covers the details you will need to provide your organization with the right equipment units at the right time at the lowest cost. And monitor the performance and cost of those units so as to schedule their replacement at the right time. There are seven basic steps in the fleet planning process. One, establish assignment and utilization policies and procedures. Two, define individual user needs. Three, develop total equipment requirements. Four, define and analyze alternatives. Five, develop a comprehensive fleet plan. Six, incorporate the fleet plan within the overall fleet budget. And seven, obtain approval of the fleet plan and budget. First, you should develop assignment utilization procedures. They must be established prior to developing any formal fleet planning process. There are a number of procedures which can be used, such as 24-hour assignment to individuals. Generally, these assignments are made to top administrators, law enforcement personnel, or managers subject to 24-hour call, such as maintenance foreman. Also, pooling of sedan motor pools or heavy equipment motor pools can help reduce fleet sizes, but both must be effectively administered. If heavy equipment pools are used, it is a good idea to assign one operator to the same piece of equipment. Interdepartment temporary transfers can be used successfully if affected department heads fully understand the need for the program and support it. And the plan transfers are communicated to the department managers well in advance, so they know when, how much, and what type of equipment will be transferred, if trained operators are available to use and maintain the equipment, if you have an effective preventive maintenance program, and if coordination of the program and the fleet planning process is assigned to a specific individual within the department. The way in which rental rates are structured can provide an inducement to managers to transfer out equipment when it is not being used. With a two-part rate where the user is charged an ownership rate, the user is paying for equipment which isn't needed. Temporarily transferring out the equipment would save on the budget. Leasing can be an economical alternative to owning equipment. But some agencies have procurement procedures which may make leasing difficult. It should be considered as an alternative, however. Utilization objectives must also be considered. Low utilization may indicate that a vehicle should be pooled instead of assigned to a specific department. To ensure a uniform definition of equipment service levels, definitions must be adopted or modified for the system. Some key utilization terms are typically used. Nominal availability corresponds to a calendar period or to the number of shifts normally worked in that period. Availability equals nominal availability less downtime. Utilization rate equals time in use divided by available time. Time in use includes transport time as well as time in use on site. Utilization standards must be flexible to accommodate different needs. For example, pickups used by complaints investigators may have very high mileage. Pickups used by maintenance personnel may have moderate mileage. And utility inspectors may log very low mileage as they generally travel to one job site and remain there all day. Although their mileage is low, time in use is high. Some recommended guidelines are shown here. However, each agency needs to develop its own utilization rates based on its specific needs. You should also develop downtime objectives. The objectives shown here represent an average, well-managed fleet. You should also define individual user needs. The user should communicate needs in a specific, uniform format as shown here. Next, the fleet manager must analyze user requirements separately and in total to optimize fleet size. The requirements must be summarized by equipment class as shown here. After needs have been identified, the fleet manager must determine alternatives for meeting user needs. There are four possible alternatives to meet peak user needs. Fleet pooling, which is most effective for sedans, temporary transfers. Generally, heavy equipment falls into this category. Leasing or renting is particularly effective for specialized, high-cost equipment with low utilization, such as grade-alls. And buying new equipment and expanding the fleet. It may be cheaper to own the equipment. This option must be analyzed too. The fleet plan should cover assignment policies, number of units, and other key data. Incorporate the plan into the budget process using utilization policies, user requirements, total fleet requirements, analysis of alternatives, a comprehensive plan, and incorporation of the plan into the budget. Next, you need to consider the equipment inventory. The equipment inventory component is made up of four elements. Equipment numbering and classification, an equipment master file, location and assignment tracking, and utilization and performance monitoring. With a proper equipment numbering classification system, each piece of equipment should possess a unique number that remains the same throughout its life. Each unit should also be assigned to an equipment class for planning purposes and for comparing its performance with similar units in the fleet. The American Public Works Association, APWA, has developed an alphanumeric coding structure, as shown here. Another good system is to develop a six or seven-digit number, depending on your fleet size, that incorporates a class code along with a unique number, as shown here. The class code should be established as a hierarchical number that can be used to classify and subclassify equipment types. Consider the example shown here, regardless of whether you have an automated or manual system. A complete master file should be maintained. The file should consist of two parts. A master record and history files. And don't forget to keep a backup file. A history jacket should be established for each equipment unit that contains all pertinent information about the unit. The jacket should contain the birth certificate, work orders, accident records, and other pertinent information. In designing an equipment tracking system, there are a number of guidelines to follow. The tracking system should function simply as a tracking system. Do not try to mix it with utilization or performance monitoring. These are handled better in other components of the system. Maintain the inventory files for primary assignments of equipment units. Establish a policy of updating the files only for long-term assignments. For example, in excess of one month, do not try to be too specific. It's very difficult to try to maintain equipment inventories down to specific maintenance crews, for example. Generally, inventories at the department level are sufficient. Establish an equipment location board for individual departments to use. They can track equipment location, and the board is helpful for them in maintaining visibility of their total inventory. A magnetic board is good for this. The replacement component of a system is usually the last component to be implemented, since it requires detailed cost data. It is comprised of four main elements. Replacement targets, physical evaluations, the decision-making process, and the capital replacement plan. Each of the above system elements requires a six-step planning process. Step one, identify units targeted for replacement using industry norms. Step two, obtain replacement requests from users, submitted in priority order. Step three, perform physical inspection to determine whether the unit will remain in service or be replaced. Step four, evaluate alternatives, leave the unit in the fleet, replace it, or overhaul the unit. Step five, prioritize replacement units. In case the budget does not allow replacement of all units, the top priorities can be chosen. And step six, develop a total capital replacement plan, which should become a part of the overall annual fleet plan and budget. In this course, we've covered fleet planning, inventory control, and economic replacement. In the next series of courses, we will cover other components of an equipment management system. 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