october2022 - 32

Heavy-duty KPIs
Jacob Findlay, co-founder and executive
chairman of Fullbay, provided
a series of KPIs for heavy-duty
repair shops to consider:
Technician KPIs
* Comeback rate, typically measured
as comeback hours in a
given period divided by total
billable hours, is a measure
of technician proficiency.
* Technician efficiency measured
as service order hours
(actual wrench-turning time)
divided by billable hours.
* Technician utilization, a measure
of service order hours
divided by clocked hours.
Parts KPIs
* Inventory shrinkage and turn
rates, the latter being average
inventory balance divided by cost
of parts used over a time period.
The lower the rate, the slower
your inventory is turning and
therefore the more you will lose to
obsolescence, shrinkage, etc. (The
carrying cost of inventory is typically
between 15% and 20% of the
total inventory balance per year.)
Shop KPIs
* Shop efficiency and utilization
is measured in the same way
as technician efficiency and
utilization, but at a shop level.
* On-time PM rate as a percentage
of PMs performed on
or before their due date.
* Warranty claims as a measure of
parts and labor cost savings.
* Efficiency of roadside repairs
versus in-shop repairs as billable
hours divided by actual hours.
" Because the primary concern of
fleets is unit uptime, tracking and
executing a solid PM program
is crucial, " Findlay said. " Shop
and technician efficiency KPIs
are indicators of an effective
PM program, as it means more
work can be done in less time,
and with fewer technicians.
" The quantity of commercial vehicles
on the road is increasing at
the same time that the quantity of
technicians available to maintain
those vehicles is decreasing, "
Findlay added. " Shops need to use
KPIs to run more efficiently so they
can do more with the technicians
they have while maintaining a high
level of quality workmanship. "
» Technician proficiency is a critical measure for FleetPride, especially with the cost of labor continuing
to rise, as it is an important KPI for ensuring the quality of the repair and customer satisfaction.
Photo: FleetPride
time to complete repairs is missed, the real cost is to
the fleet in lost revenue.
Real-time data is essential for developing valuable
KPIs, Russo noted. " Looking at fault code patterns leads
to a better understanding about which alerts indicate
critical repair needs, and trends in those metrics get
you closer to predictability about failures, " he said.
" Analyzing data that way puts you ahead of the curve
rather than being reactive. "
On an industry level, Decisiv is utilizing its vast
repository of actionable data derived from nearly four
million annual repair events in partnership with TMC
to elevate the ability to analyze maintenance and repair
activity. In their quarterly North American Service
Event Benchmark Report, the organizations track KPIs
that highlight maintenance labor and parts costs by
nine VMRS (vehicle maintenance reporting standards)
System level codes.
What can be valuable for fleets as well, Russo added,
is the ability to automate VMRS encoding. The capability
that Decisiv offers analyzes individual service
operations using Machine Learning (ML) and Artificial
Intelligence (AI) to interpret information
captured during the creation
of a repair order and assigns VMRS
codes to completed operations.
Another source of industry-level
metrics is the TMC/FleetNet Vertical
Benchmarking Program. Through
the program's quarterly Truckload
Vertical Benchmark Study, which
tracks mileage and uptime between
unscheduled road repairs, fleets can
access an analytic tool that allows
» The Chevin KPI Wizard allows
users to build fleet status
KPIs that can be viewed in a
dashboard or in their FleetWave
software's Reports module.
Photo: Chevin
them to drill into their data, comparing it to the industry
average.
Leveraging the data
Management information technology is central to the
development of metrics and the effective use of KPIs.
Shaun Rowley, global head of product at Chevin Fleet
Solutions, was quick to relate that vehicle downtime is
a top metric to track.
" Looking at historical data, you can identify what
faults have occurred on the same vehicle types, " he
said. " That helps make sure the right parts are in place.
It's also about keeping technicians fully utilized and
having the data to understand the size and complexity
of repairs, which ensures that skill sets fit the job. "
For KPIs that address technician proficiency, it's key
to have the ability to understand repair times and the
time between jobs in order to measure productivity,
Rowley added. " If your technicians are 80% productive,
then what are they doing for the other 20%, and how
can you reduce that? "
32 Fleet Maintenance | October 2022

october2022

Table of Contents for the Digital Edition of october2022