Today, we want to look at some of the hidden gems within your key performance indicators for fleet management. For this list, we’re not looking at the obvious KPIs like miles per gallon or cost per mile. We assume that you’re already tracking those, and we want to give you something more useful than stating the obvious. So, here are the examples of 5 underrated fleet management KPIs for improving your fleet maintenance, and how to use them.
Preventive maintenance compliance
When it comes to making sure your vehicles are getting the maintenance they need, few metrics are as useful as your PM Compliance rate. Your PM Compliance Rate is measured as a percentage of your PM Work Orders that are completed on time.
Watching your PM Compliance Rate will help you identify how successful you are in your maintenance efforts. If you have a low compliance rate, it indicates that your vehicles are not being maintained as well as they should. Good routine maintenance will help increase the productivity of your assets. Poor routine maintenance usually results in higher maintenance costs as can be seen in the next metric:
Preventive to reactive maintenance ratio
This fleet management KPI is measured as a simple ratio between the number of Preventive Maintenance Work Orders and the number of Reactive Maintenance Work Orders, expressed as percentages. This could be 50/50, indicating equal numbers of Preventive and Reactive maintenance work orders. It could be 30/70, indicating a much higher number of Reactive maintenance work orders than preventive.
The reason this Fleet management KPI is useful is because it can help you see the relationship between preventive, routine maintenance and your bottom line. In almost all organizations, the more PMs you perform using the preventive maintenance software, the fewer emergencies you have. Since PM’s typically cost less than reactive maintenance due to breakdowns, this directly affects your maintenance budget and your bottom line.
Vehicle TCO (Total Cost of Ownership)
Monitoring this fleet management KPI is also really important because the cost that a vehicle has cost you is much more than the purchase price, or the price of oil changes. Your vehicle TCO starts when you buy a vehicle. From there, it should include the costs of operation with things like fuel and oil. After these costs, you should look at what it costs you to maintain those assets. You may be surprised to find that some assets are costing you much more than others. Vehicles that are accumulating a high TCO should be assessed to see whether it might be better to dispose of them and purchase replacement or a better model.
One of the other factors that should go into your TCO is your vehicles’ depreciation. As vehicles age, they lose value. This comes both from wear and tear, as well as the simple fact that newer models have better technology. Both of these mean that the vehicle is worth less than you bought it for. Depreciation is a measure of how much the vehicle’s sell value has decreased over time.
This shouldn’t come as a surprise. You wouldn’t expect to drive a normal car for ten years and then sell it for the same amount that you bought it for. However, what can be surprising, if you haven’t been tracking it, is the actual depreciation of the vehicle. This is important to track, because you can always subtract the sell back value of a vehicle from the other costs of its TCO. If a particular vehicle has a sudden increase in depreciation due to market changes, technological advances, or massive damage, then the TCO for that vehicle just went up.
Technician productivity rate
This last metric can be deceptive. As employers or managers, we can fool ourselves into thinking that all of our employees are 100% productive all the time. At the very least, we don’t think about them as wasting time. This metric will help you put a concrete measure on how efficient your employees are in their work. Your technician productivity rate is measured by dividing an employee’s wrench time (the time they spend using tools to do work) by the total time they are at work.
Don’t be surprised if your rate is lower than you expected. Most maintenance teams have many tasks that are not directly billable or contributing to their PM work. This could include tasks as simple as travel between jobs to tasks as complex as managing the schedule for a long list of employees and assigning them work. Monitoring your Technician Productivity rate will help you recognize ways in which you can improve individual employees and will alert you to ways you may be inadvertently wasting time.
Each of these 5 metrics are not hard to find or use if you are working with ManagerPlus, the #1 maintenance management software. Our powerful fleet maintenance software and Business Intelligence dashboards make it possible for you to keep your finger on the pulse of your organization so that you know where you stand and exactly what you need to do to improve. If you’re ready to better control your maintenance operations, let us show you how ManagerPlus is the answer you’ve been looking for.