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Analyzing Your Lift Truck Fleet for Optimum Efficiency

Analyzing Your Lift Truck Fleet for Optimum Efficiency. . Click to continue. Purpose of This CD. This presentation demonstrates the necessity and advantages of a well coordinated fleet management strategy. It is designed to be a simple introduction to the principles of fleet management.

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Analyzing Your Lift Truck Fleet for Optimum Efficiency

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  1. Analyzing Your Lift Truck Fleetfor Optimum Efficiency  Click to continue

  2. Purpose of This CD This presentation demonstrates the necessity and advantages of a well coordinated fleet management strategy. It is designed to be a simple introduction to the principles of fleet management. Please contact your Equipco Dealer for a complete and personalized fleet analysis. Use the arrows in the lower left corner to move forward and back through the slides. Alternately, use the buttons on the top of the slides to go directly to a specific topic.

  3. Fleet Facts – Understanding Costs • 20% of the total cost of materials handling is associated with the acquisition cost of the equipment. • 80% of total cost is related to operator and maintenance expense. 80% 20%

  4. Fleet Facts – Lifecycle • The average lift truck is over 12 years old. • The average lift truck has an estimated economic life of 10,000-14,000 hours. • As a fleet ages, the cost of operation increases: • Repair expenses increase • Downtime increases • Productivity decreases

  5. Fleet Facts – Utilization • On average, companies have 10% to 20% more units in operation than are required to do the job. • Short term rental units are often used to address shortages created by excessive downtime. • Lift trucks are often sourced through multiple vendors, limiting flexibility related to equipment rotation and re-location.

  6. Fleet Facts – Maintenance • Many companies do not have scheduled or preventative maintenance programs for their lift truck fleets. • Lift truck fleets typically consist of a diverse mixture of brands, requiring an extensive inventory of parts to support them. • Record keeping regarding lift truck maintenance is generally poor or non-existent.

  7. Fleet Management – Defined • Fleet Management is a reduction of materials handling costs resulting in increased efficiency. • This requires a planned replacement program which optimizes the economic life of the equipment. • The overall goal is universal: to reduce costs. • However, each customer’s definition of, and expectation from, fleet management is unique.

  8. Fleet Management – Optimum Life Economics • Understanding the point at which acquiring a new lift truck for your fleet is more cost-effective than continuing to repair your current equipment is critical to the deployment of an effective fleet management program. • The graph on the following slide demonstrates the concept of Optimum Life Economics to determine a vehicle’s “Break Even” point.

  9. Fleet Management – Optimum Life Economics Ownership costs + Maintenance costs = Total costs (ownership + maintenance) Break Even Point “Break even” occurs when cumulative costs per operating hour reach their lowest point on the total cost curve.

  10. Fleet Savings Calculator • Use our interactive calculator to understand the dynamics of maintenance expenses associated with typical lift truck fleets. • Based on your input, see possible savings that can be realized with a fleet management program. Click here to go to the calculator NOTE: The Fleet Savings Calculator requires Microsoft Excel and uses macros to support interactivity. Click Yes to Enable Macros when the on-screen message displays*. No will Disable Macros, and the interactive options will not work. You will, however, see a sample analysis based on a default profile. When you are done using the calculator, close the spreadsheet to return to this screen. * If you don’t see any message, your copy of Excel is using “High” security and has automatically disabled the macros. Change this in Excel by going to Tools, Macro, Security and selecting “Medium.”

  11. Hyster Fleet Services • A well designed fleet management program can: • Lower operating costs • Reduce fleet size • Increase utilization • Train operators/technicians • Evaluate contract maintenance • Determine financing alternatives • Improve or eliminate parts inventory • Redirect head count • Monitor costs • Reduce supplier base • Maximize efficiency

  12. Equipco Fleet Services • At Equipco, Fleet Management is not a one time event, but a continuous process that provides for continued cost reductions and savings over time. • Sound fleet management programs consist of regular fleet surveys and analysis. • On the following slide, start with “Survey” and click through the five steps to better understand our Fleet Management Process.

  13. Fleet Management Process Begin Here Monitor Survey Begin at “Survey” to step through and see the details on our continuous process Implement Analysis Proposal

  14. Fleet Management Process – Step 1: Survey • Gather Information on the Existing Fleet • Make/Model • Age/Serial Number • Current/Anticipated Operating Hours • Utilization/Required Availability • Specifications/Special Requirements • Application/Operating Conditions • Maintenance History Return to Process Flow

  15. Fleet Management Process – Step 2: Analysis • Compare Existing Fleet to Replacement • Maintenance History Interpretation • Utilization Studies • Projected Maintenance • Potential Savings • ROI Analysis Return to Process Flow

  16. Fleet Management Process – Step 3: Proposal • Equipment Recommendations • Replacement Units and Configurations • Financing Alternatives • Lease vs. Buy • Maintenance Options • Contract Maintenance or Parts Inventory • Training Recommendations • Operator and Mechanic Return to Process Flow

  17. Fleet Management Process – Step 4: Implement • Finalize Action Plan • Standardize Proposed Recommendations • Product Supply Plan • Equipment Disposal Plan • Establish Training Schedule • Maintenance Arrangements • Customer Commitment Return to Process Flow

  18. Fleet Management Process – Step 5: Monitor • Regular Review of Plan • Condition of Equipment • Hours • Utilization • Maintenance Cost • Fleet Size and Replenishment • Management Reporting Return to Process Flow Step 5 completes the process. Click forward arrow to continue.

  19. Applications • Information on the following slides provides examples of how Equipco Fleet Services delivered cost savings to major manufacturers in several industries. • We can do the same for your company. • As you review each example, please don’t hesitate to contact us with any questions.

  20. Applications – Automobile Manufacturer • NEED: A major automotive manufacturer looked to Equipco Fleet Services for a fleet management program that would result in immediate and long term cost reductions. • SOLUTION: We recommended a planned replacement program and other cost saving opportunities such as financing alternatives, centralized billing, and maintenance outsourcing. • RESULT: Annual savings in excess of $3,000,000.

  21. Applications – Paper Manufacturer • NEED: A major paper industry company enlisted the assistance of Hyster Fleet Services to help improve their corporate ROI. • SOLUTION: We implemented an annual fleet survey and analysis of their entire lift truck fleet. • RESULT: The program reduced the average age of the fleet by 50% and trimmed fleet size by nearly 10%. The company realized approximately $800,000 in savings the first year, with projections of saving over $4,000,000 in the next 5 years.

  22. Applications – Food Processor • NEED: A major food processing company wanted to centralize material handling procurement and implement a fleet management program. They explored several options before selecting Hyster. • SOLUTION: We assisted in establishing a Master Lease Program with Hyster Capital. We also conduct regular fleet surveys and facilities analysis to identify other opportunities. • RESULT: The company now has a planned replacement program. Plus, with central purchasing, they achieved savings through economies of scale and enjoy the benefits of a dedicated Account Manager.

  23. Put Equipco Fleet Services to Work for You • Redirect resources into core business • Reduce maintenance expenditures • Reduce capital expenditures • Reduce administrative costs • Increase utilization and productivity • Implement equipment rotation program • Track your materials handling costs • Take you out of the forklift business

  24. Contact Us • Thank you for your interest in Equipco Fleet Services. • For more information: • contact Equipco • call 1-412-221-2800 or 1-800-245-6484 • e-mail ddale@equipco.com

  25. Thank you for your interest in Equipco Fleet Services (Press the Esc key on your keyboard to close this presentation)

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