CREATING FLEET CUSTOMER SERVICE AGREEMENTS
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- Owen Holmes
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1 CREATING FLEET CUSTOMER SERVICE AGREEMENTS Presented by Steve Kibler Fleet Manager, City of Loveland, Colorado Loveland, Colorado Gateway to the Rockies Full-Service Municipal Gov. agency, service population of 63,000 people over 42 sq. miles and growing Water and Power Utilities, Public Transportation, Streets, Solid Waste, Stormwater & Street Sweeping, Police, Fire, Parks & Recreation Operate 781 licensed vehicles, maintained at one location by 11 mechanics on two shifts 1 st municipal government to merge operations with a school district ASE Blue Seal Certified and one of the Top 100 Fleets of N. America Loveland even has light rail public transportation
2 Teddy Roosevelt said: Do what you can, with what you have, wherever you are Shop opened in 1985 Fleet size Mechanics - 2 Shifts 23 yrs later in vehicles 11 Mechanics 2 Shifts Service is only as good as the people behind it
3 Customer Service Agreements are simply Defined Mutual Expectations Let your customer educate you about what they need from you Educate your customers about what you need from them to provide the service they expect Define Who What When Where How and Why in each Customer Service Agreement Your mission should be to provide the level of service your customer expects Albert Einstein said: Two things are infinite; the universe and human stupidity. I m not yet sure about the universe Accident or Stupidity?
4 What was your initial conclusion after seeing that picture? Stupid operator Right? Wrong! * A design flaw caused this failure Root cause of this failure: Pivot pins at rear of frame were a poor design We had 16 Trucks with same flaw Trust your customers to know their job Trust your mechanics to provide you the facts before jumping to conclusions Result of this incident Manufacturer duplicated our mechanic s re-deigned pivot pins and recalled and retro-fitted all like-trucks world-wide Accident or Stupidity? This is what happens when operators quit crying wolf 6-times this vehicle was written up for the same intermittent electrical problem (Idle kick -up) 6-times this symptom couldn t be reproduced and work orders were closed no problem found Root causes Operator ( the Customer) lost faith in the mechanic Mechanic s supervisor didn t notice the reoccurring complaint Operator s supervisor knew about it but didn t escalate it Mechanic couldn t confirm there was a problem Operator became desperate to do his job and figured another way to get it done by circumventing the problem system
5 Why are Customer Service Agreements Important? Teddy Roosevelt said: Do what you can, with what you have, wherever you are Getting your customer s cards and your cards together to see what kind of hand you can build together What happens when you initiate that call to the department or division head and tell them you would like to meet and discuss negotiating a service agreement?
6 SHIELDS UP! How to get the shields lowered Meet on their turf, at their convenience Managers and Supervisors only You come with a blank writing tablet only This way, the ideas are his/hers not yours Be a good listener, learning their needs is why you re there Assure the customer that your goal is to improve the level of service you provide ASK: What is the minimum vehicles/equipment you need at the beginning of each work day? This is your customer educating you what their needs really are Your mission is to adapt your operations and if needed, change your processes to meet the minimum daily needs of your customers The customer will usually include backup and extra vehicles and equipment in this list. Don t worry about these at this time Now define the next steps in the SLA process You will take this information back to your staff for questions and input (what they feel is needed to meet this expectation) After staff input you will contact the customer for meeting #2 to go over the initial SLA draft This step in the process should take about 4-weeks Time to meet with your mechanics
7 SHIELDS UP! On the 1 st SLA, mechanics immediately think their in trouble After 10-minutes of blaming no parts; wrong parts; no stall to work in; operator couldn t wait; had to fix something else; yada -yada-yada - you can now move forward with best strategy and commit needed resources to comply with the customer s expectation Take a performance snap-shot of how current service compares to customer s minimum daily needs Identify the pluses and deltas Now the real work begins Remember; every customer has different vehicle/equipment needs
8 Each of your mechanics knows how to fix every vehicle in your fleet OK - YOUR TEAM IS READY! SLA HAND-OUT
9 MEASURE PERFORMANCE SOMETIMES THE CUSTOMER S EXPECTATIONS ARE UNREALISTIC SUMMARY Your customers deserve your very best! Communication is your most valuable tool in achieving great customer service. SLA s or Mutual Expectation Agreements can be your greatest tool to educate your customers and your staff You have to start somewhere. Don t be afraid to fail; wherever you start, it only gets better from there
10 QUESTIONS? CONTACT INFORMATION: Steve Kibler, Fleet Manger City of Loveland, Colorado 200 North Wilson Ave
11 Service Level Agreement Initial Meeting: Second Meeting: Signed: MUTUAL EXPECTATIONS BETWEEN: (Customer) DIVISION AND VEHICLE MAINTENANCE Summary of Agreement VISION: All fleet customers receive quality service that meets all their expectations and are completely informed about fleet management strategies through Service Level Agreements (SLA) and Fleet Policies and Procedures (SOP). MISSION: To keep Loveland s fleet of 781 pieces of vehicle and equipment operated by 46 divisions in 8 departments, dependable, safe and cost effective. SLA PURPOSE: Each division generates service needs for unique equipment that Vehicle Maintenance (VM) is committed to provide. This Service Level Agreement was created to identify each customer division s unique needs and expectations, while simultaneously identifying what VM needs from the customer to meet those specific needs. This agreement stipulates the vital communications which must be maintained by all parties to assure success. This agreement is a living document which will continually evolve to improve service levels provided to the customer from VM. Verbiage pertaining to Divisions agreement is in blue. Verbiage pertaining to Vehicle Maintenance Division agreement is in dark red. Verbiage pertaining to the general agreement of all parties is in black. Essential Services Protocol All agreed availability commitments in each Service Level Agreement (SLA) are subject to day-to-day emergencies which may supersede promised priority due to any unplanned mechanical failures of Priority 1 - Public Safety Vehicles (PSV-1). If a PSV-1 is Red- Lined (out-of-service) and requires immediate attention from Vehicle Maintenance, this type of mechanical emergency takes precedence over all other City vehicles of lower priority. All agreed availability commitments are calculated to accommodate some priority 1 emergencies. It is the intention of Vehicle Maintenance to always provide availability as promised in this SLA, although it should be understood that if any unplanned breakdowns on PSV-1 vehicles occur, or if any local or national emergency occurs, primary repair and maintenance efforts will go to PSV-1 s 1 st. Page 1 of 6
12 The Following are examples of PSV-1 Vehicles: o Fire Engine w/o backup like-vehicle o Fire Dive-Truck o Fire Haz-Mat truck o Fire/Police Mobile Command Vehicle o Police SWAT tactical vehicle o COLT public transit regular route bus w/o available backup bus o Streets Rotomill, during a scheduled rehab project o Streets front-line snow plows, during a major winter storm SLA availability % is based on total annual performance and on any given day a PSV-1 may bump a scheduled vehicle s promised completion time. If this were to occur, VM would contact the affected operator and/or his/her supervisor immediately. Please be understanding if this occurs. (Customer) Expectations: 1. VM agrees to schedule PM and manage vehicle downtime to ultimately provide with the following availability by class of vehicles, each business day. a. Class 8 tractors, dump trucks, paving equipment and construction equipment: 90% availability. b. Light and medium duty vehicles: 95% availability. 2. VM agrees to provide immediate notice to Superintendent and/or Crew Supervisors of pending repair costs > $ VM agrees to provide immediate notice to Superintendent and/or Crew Supervisors of trend failures after root-cause is determined. 4. VM agrees to provide Superintendent a quarterly report which details the following expenses and vehicle performance: a. Tire cost analysis report. b. Fuel cost analysis report. c. Equipment utilization report. d. Out-of-service reports on all vehicles. e. Expense reports by vehicle class to track costs for each categories: i. H/D trucks iii. Light and medium duty vehicles ii. Paving equipment iiii. Off-road equipment 5. VM Shop Supervisor agrees to provide ongoing communications to Crew Supervisors regarding outsourced repair status with s vehicles at vendors. 6. VM will provide a written policies and procedures to define service levels provided. agree to work within the Policies and Procedures Manual guidelines. 7. Mutual courtesy between operators and mechanics. a. VM mechanics will be instructed not to criticize operators for failures and continually work to help maximize vehicle efficiency and minimize out-ofservice time. b. operators will be instructed not to expect immediate service on unscheduled breakdowns, unless an emergency has been identified and the immediate need communicated to the VM Shop Supervisor. Page 2 of 6
13 (Customer) Division Expectations: 1. VM agrees to schedule PM and manage vehicle downtime to ultimately provide with the following availability by class of vehicles, each business day. a. Mechanical Sweepers and Air Sweeper: 80% availability. (Example) b. Light and medium duty vehicles: 95% availability. c. Class 8 Flusher truck and Vacon truck: 90% availability. (Example) 2. VM agrees to provide immediate notice to Superintendent and/or Crew Supervisors of pending repair costs > $ VM agrees to provide immediate notice to Superintendent and/or Crew Supervisors of trend failures after root-cause is determined. 4. VM agrees to provide Superintendent a quarterly report which details the following expenses and vehicle performance: a. Tire cost analysis report. b. Fuel cost analysis report. c. Equipment utilization report. d. Out-of-service reports on all vehicles. e. Expense reports by vehicle class to track costs for each categories: i. H/D trucks iii. Light and medium duty vehicles ii. Street Sweepers iiii. Off-road equipment 5. VM Shop Supervisor agrees to provide ongoing communications to Crew Supervisors regarding outsourced repair status with vehicles at vendors. 6. VM will provide a written policies and procedures to define service levels provided. agree to work within the Policies and Procedures Manual guidelines. 7. Mutual courtesy between operators and mechanics. a. VM mechanics will be instructed not to criticize operators for failures and continually work to help maximize vehicle efficiency and minimize out-ofservice time. b. operators will be instructed not to expect immediate service on unscheduled breakdowns, unless an emergency has been identified and the immediate need communicated to the VM Shop Supervisor. Vehicle Maintenance Expectations: 1. Supervisors and/or Crew Leaders agree to notify VM Service Writer and/or Shop Supervisor as soon as breakdowns occur, so repairs can be scheduled according to priority of available vehicles and equipment. will require operators to communicate needed repairs to Supervisors as soon as they are discovered. Supervisors will communicate these unscheduled repair needs to VM Shop Supervisor as soon as they are reported by operators. Note: The goal of the PM program is to meet OEM service intervals and proactively inspect for potential failures and prevent in-service breakdowns. Efficiency of reactive repair work-flow is contingent to timely notice from customers so that available direct labor can be scheduled. Page 3 of 6
14 2. VM will convert to a PM notification system which informs appropriate Crew Supervisors at least 1-week before PM is due. VM will make every attempt to schedule PM s outside s normal working hours. If any truck needs PM or repairs, has a backup truck available, and VM has the opportunity to immediately work it into the daily schedule, promises to immediately deliver that truck to VM. agrees to communicate any additional needed repairs on any scheduled trucks before dropping off the truck at Vehicle Maintenance. 3. Mutual courtesy between mechanics and operators. a. VM mechanics will be instructed to treat all operators with respect and courtesy. b. operators will be instructed to not to approach any mechanic directly when needing repairs or service. Operators should make all requests directly to shop Service Writer and plan on waiting in appropriate customer waiting area (not on shop floor). This is due to shop floor hazards and safety concerns for our customers. 4. VM agrees to provide with an overall average fleet availability of at least 92%. a. 90% availability (This is a fleet maintenance industry best practices bench mark from the National Industry of Fleet Administrators NAFA) means that of the 2080 hour annual duty cycle, it will be our goal for any HD vehicle/equipment to not be out-of-service > 208 hours per year or 17 hours per month. This availability guarantee is contingent to Streets pre-scheduling the majority of repair hours and minimizing unplanned repair requests. b. VM will track scheduled vs. un-scheduled repairs. Breakdowns determined by VM to be the result of operator abuse will be exempt from promised availability. c. Operational design issues, which VM staff helps resolve will be exempt from promised availability. (I.E. Curotto grabber function issues) 5. VM agrees to provide with an overall average fleet availability of at least 88%. a. 80% availability (This is a fleet maintenance industry best practices bench mark from the National Industry of Fleet Administrators NAFA) for Sweepers, means that of the 2080 hour annual duty cycle, it will be our goal for any street sweeper to not be out-of-service > 416 hours per year; 35 hours per month. This availability guarantee is contingent to pre-scheduling the majority of repair hours and minimizing unplanned repair requests. b. 90% availability (This is a fleet maintenance industry best practices bench mark from the National Industry of Fleet Administrators NAFA) for other HD vehicles, means that of the 2080 hour annual duty cycle, it will be our goal for any HD vehicle/equipment (other than Sweepers) to not be out-of-service > 208 hours per year or 17 hours per month. This availability guarantee is contingent to pre-scheduling the majority of repair hours and minimizing unplanned repair requests. c. VM will track scheduled vs. un-scheduled repairs. Breakdowns determined by VM to be the result of operator abuse will be exempt from promised availability. Page 4 of 6
15 d. Operational design issues, which VM staff helps resolve will be exempt from promised availability. 6. VM will publish a policies and procedures manual for all supervisor and operators to use as a guide to life-cycle plans for all fleet vehicles. Summary of Goals: 1. VM agrees to provide support to and Divisions for any operational issues. Our goal is to maximize vehicle efficiency while minimizing out-of-service time during scheduled duty cycles. VM will upon request, assist Superintendent and Crew Supervisors in training operators on the proper use of vehicle equipment. & VM promise to maintain dialog on needs and expectations. Through mutual agreement to this MEA channels of communication will remain open and productive to each of our respective Divisions. 2. Non-Compliance Reporting: a. If monthly availability does not achieve promised average X%, VM will provide a non-compliance report defining the cause of the deficiency with a detailed explanation. If either VM and/or Customer feel that the cause was preventable, both parties will jointly work towards creating and implementing a process to prevent any future repetition of circumstances. b. If customer is non-compliant with any scheduled PM s or scheduled repair dates, VM will provide a non-compliance report defining the vehicle or vehicles, description of scheduled work and the dates of no-show. If either VM and/or Customer feel no-show was unavoidable, both parties will work towards creating and implementing a process to prevent any future repetition of circumstances. c. Reports will be sent to Supervisors, Division head and Department head for their review. d. Supervisory personnel changes: In the event any key personnel (who have signed this agreement) leaves their present position, the replacement personnel must meet with appropriate parties, read and understand expectations of this document and resign as a new responsible party. Page 5 of 6
16 SLA/MEA SIGNATURES: After signing this agreement, & VM will meet every three months to review the performance measurements of each Division regarding this agreement. Adjustments by both & VM may be necessary to reach a mutual compromise on the goals outlined in this agreement. After each Division mutually agrees that no further operational changes are needed to achieve set goals, one meeting per year can be scheduled. The Division heads and supervisors, who sign this agreement, agree to make every effort to mutually work towards achieving the goals set forth in this agreement. Through on-going meetings, and & VM promise to keep this MEA a living document. (Customer Division) Superintendent: Date: (Customer) Crew Supervisor: Date: (Customer) Crew Supervisor: Date: (Customer) Crew Leader: Date: (Customer) Crew Leader: Date: (Customer) Crew Leader: Date: (Customer) Crew Leader: Date: (Customer) Crew Leader: Date: VM Fleet Manager: Date: VM Shop Supervisor: Date: VM Service Writer: Date: Page 6 of 6
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