A money saver: software systems can track pricing and wear and tear on parts

Concrete Producer, The, Feb, 2005 by Daniel C. Brown

In these days of rapidly changing prices for materials and equipment--almost always going higher--there's nothing like some help in lowering your costs.

Fleet management software saves money for Standard Concrete/CSM Inc., a ready-mixed producer based in Chino, Calif. The producer, which is owned by Lehigh Southwest, runs more than 300 ready-mix trucks in Southern California.

"When parts prices move up, you catch it right away, and the software prevents us from losing money," says Mark Cavender, the producer's parts manager. "When prices move up, you have to overwrite the old price. If the new price moves up substantially, you can question the supplier." CSM has used Transman fleet software from TMT Software since 1998.

Cavender also likes the software's warranty capture feature. "When a mechanic puts a part on a truck, if it's an item under warranty, the Transman software will raise a flag that it's a part under warranty," says Cavender. When CSM buys a new truck, they go through it and enter the warranty information into the computer for the truck. That information only needs to be entered once for each model of truck; it can be copied over for identical models.

CSM recently switched from a system in which mechanics entered repair data online back to a batch system of data entry. The company is spread out, with 17 mechanics working at 13 different shop locations. Mechanics would rather fill out a form and send it in than type the data into the system. A desk clerk enters the data from the forms.

"Mechanics are not as concerned about data as they are about fixing the truck," says Cavender. CSM has been on a batch system of entry since last summer.

The producer is now setting up a parts requisition system on Transman. Mechanics will key in a parts requisition on their shop computers and get a printout. "We open the same window on our computer, and we generate a purchase order," says Cavender. "We have centralized purchasing."

Public works

Producers can also learn from public works department managers in how to use software to track fleet costs.

For example, tracking software helps manage 3400 pieces of equipment that are monitored at the Fleet Maintenance Division of the Denver Department of Public Works. The city managers started using software from Trinodal Systems Inc. (now managed by Starry Associates) several years ago, and recently upgraded to a new platform of software and hardware, says John Mohler, staff IT systems administrator, Fleet Maintenance.

With the new upgrade to an Oracle database and Unix operating system, the city manager chose a report writer called Crystal. This made the entire system ideal in running all kinds of reports, including a PM forecast, vehicle assignment histories, and fuel usage histories. The system generates monthly maintenance and fuel bills and enables seven shops to bar code parts.

Fleet maintenance also has used Multiforce Systems Corp. software to track fuel, fluids, and lubricant use. Someone enters an employee identification number, a vehicle ID, a mileage or hour reading on the vehicle, and the type of fuel or fluids used. The fueling system interfaces with the maintenance system, allowing monitoring of vehicle performance, scheduling preventive maintenance, and developing rental rate analyses.

FASTER software enables the Department of Public Works in Anaheim, Calif., to track 1200 pieces of equipment and their repair parts. "We can track our costs better than before when we used an older DOS (disk operating system)," says fleet superintendent Karl Hopfer.

Parts are tracked from when they come in to when they're used, and "we get reimbursed more accurately," says Hopfer. "We rent equipment to police, fire, parks and recreation, and other departments. Parts and repairs are billed to them."

The software assists with vehicle replacement analysis. Points are assigned, indicating how close each vehicle is to replacement. Maintenance costs, time of service, and the odometer or hour meter are given a value of up to 10 points. Replacement is triggered at 15 points. "We don't replace a piece too soon, and we replace them before maintenance costs get too high," says Hopfer. "We want to replace at the break-even point."

For more, visit www.tmtsoftware.com, or circle 2 on the reader service card; www.starry-associates.com or circle 3; or visit Multiforce Systems Corp. at www.fuelforce.com or circle 4.