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April 30 2016


fleet services and management

In regards to choosing between changing the oil for individuals driving their personal SUVs or for fleet delivery vehicle managers you've got to consider enough time, not merely the quantity of money charged per vehicle. It may be enticing to change the oil for V-8 SUV owners at $45.00 a pop, as opposed to handle the cutthroat competition of bidding on fleet oil change services, but you've to keep in mind one thing; "The Money Is In the Time and Process, Not the Unit Charge Rate," so, let's talk fleet services and management.

You see, soon ago, I was reminded of the significance of production in the services business, when I was asked with a start-up entrepreneur of on-site auto maintenance. He asked point blank; "Exactly how many oil changes may be completed with a decent crew (I am assuming 2 individuals to a crew/truck) in a 8 hour day utilizing your trucks and methods?"

Okay, listed here is my experience; with full production - Six Sigma style - vehicles in a line (fleets) the solution is 100s with a team of three. Personal cars, various different, you will need very competent auto mechanics with experience 5-6 per hour with 2 people maximum. Obviously, there's more to the story, in fact his next question was even blunter and I must say directly on target too; "Do the trucks you utilize work with one vehicle at a time or multiple simultaneously?"

When doing fleets you utilize an assembly line methodology, so first, you start the motors on five vehicles, however you pop the hoods on 15 in the row. After 8-minutes, you turn off the first five, start the 2nd five, drain the first five drain plugs, you get the idea. Or, you utilize evacuation systems. It's an activity, the amount of money is in the "time" not the job or cost per unit. Travel time is job time by the way, including chasing parts, filters - especially when you're paying automotive technicians to fetch oil filters, fuel filters, and such gps tracker for car.

Indeed, I've always instructed our crews on the need to honor the concept of JIT - just with time inventory, that's to state have the supplier, NAPA Auto Parts for instance, deliver the filters had a need to the job site, why pay to stock the filters, inventory them, transport them, when these auto part companies deliver and is going to do anything to earn your business? If you are likely to run an automobile business if you are dealing with private owners of SUVs or those in charge of large fleets of vehicles, then you definitely need to operate it with production in mind. Please contemplate all this and think on it.

Don't be the product, buy the product!