Why Does a PM at Fleet Cost $100 when I can get a PM at Jiffy Lube for $19.95??

Fleet’s #1 Customer Inquiry: “Why does an Oil Change cost $100 at Fleet when I can get the same service at Jiffy Lube for $19.95”

Origin of the Question? Everybody is a fleet manager Distrust of the Trade Unfamiliar with the Concept of Preventive Maintenance especially on Commercial Vehicles

Real Question? Is Fleet Efficient & Effective??

Bottom 1/3 Vehicle : Technician Ratio - Bottom 1/3 – Speaks to Employee Productivity Bottom 1/3 $/Vehicle - Bottom 1/3 – Speaks to Cost Control

“Preventive Maintenance and Safety Is everyone’s Responsibility”

Preventive Maintenance? Core Competency & Function Systematic Never Routine Measured constantly PM’s ARE Everyone’s Responsibility

If Preventive Maintenance is Fleet’s most Basic Service… Can the marketplace complete for Fleet’s basic service???

PMI Comparison Jiffy Lube: Fleet: LOF = Lube, Oil, & Filter Exchange – Engine Oil & Filter only Performed by minimum wage unskilled labor High volume, loss leader objective – upselling common Limited Quality > Expertise & Materials 3000 Mi. Service Intervals They want you back…soon LOF - all filters/all fluids ck’d Load Test Charging Sys. Brake Inspection (wheels off) Inspect & Gauge Belt Tension Test Ph level of Coolant Tread Depth Measured & Recorded – Inflation Adj/Rec. PM - Core Function – No Short Cuts - Unit should run with zero defects til next PM Interval – OEM or Appl. Spec. Performed by a Certified Fleet Technician III

Dealership vs Fleet: Service Department: Business Model Success?? Return Business – The quality of oil change services not measured by time/distance between shop visits – They want you back SOON. Fleet: PM Success ?? Extend Interval between repairs/breakdowns – as long as possible.

Market Test Action Plan: Objective: Sample Local Market PM Effectiveness Select 4 Common Vehicles Vendors Perform Our PM’s (cklists & instructions provided) Compare Vendor $ & Quality <> Fleet Businesses Selected: Vehicles: XXX Ford 2007 F-150 pickup XXX Chevrolet2008 Transit bus XXX GMC/Mack 12 Yd. Dump Truck CaterpillarCaterpillar Grader

Results: Commercial outlets? $ Higher One vendor failed to follow instructions - performed LOF only Same vendor recommended replacement of the drum brakes (truck not equipped w/drum brakes?!?) Wheelchair inspection not performed – an FDOT requirement – ck’list provided Parts Cost 28.8% Higher Filters routinely serviced by Fleet left untouched Erratic Inflation Pressures - all units – 12 Yd Dump had a flat tire not discovered by Vendor – Tread Depth/Infl not recorded as requested

Conclusions: Vendors unable to alter LOF “template” Poor Quality - time allowed, missed filters, fault lights on, erroneous repair recs, flat tire, inflation pressures off, cklists not completed) Inspection services not performed Variance does not include transport costs Vendor Preventive Services Insufficient

Is Fleet Management Efficient & Effective? The facts speak for themselves…