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Improving Service & Efficiency in your Dispatch Office CC-003

Improving Service & Efficiency in your Dispatch Office CC-003. James Wagner jwagner@commandalkon.com Cell 612-991-5912. Improving Service & Efficiency in your Dispatch Office.

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Improving Service & Efficiency in your Dispatch Office CC-003

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  1. Improving Service & Efficiency in your Dispatch OfficeCC-003

    James Wagner jwagner@commandalkon.com Cell 612-991-5912
  2. Improving Service & Efficiency in your Dispatch Office We will help you to identify what is hindering service and efficiency in your dispatch office.  This session is designed for those who manage the dispatch function Improving Service & Efficiency in your Dispatch Office
  3. Statistics fromReady Mixed Concrete Co. Division of J.L. Shiely Co (aggregates)Minneapolis, MN Improving Service & Efficiency in your Dispatch Office
  4. Statistics fromReady Mixed Concrete Co. Division of J.L. Shiely Co (aggregates)Minneapolis, MN Improving Service & Efficiency in your Dispatch Office
  5. A most unusual company Jim Wagner, 1965 Improving Service & Efficiency in your Dispatch Office
  6. A most unusual company Robert Shiely – presidentSyd Reed – Sales Manager Improving Service & Efficiency in your Dispatch Office
  7. A most unusual company Early Innovation Telautograph for tickets Truck tracking Reach signal system Manual scheduling Improving Service & Efficiency in your Dispatch Office
  8. A most unusual company Early Innovation Central dispatch Hydraulic scheduling machine Improving Service & Efficiency in your Dispatch Office
  9. Statistics 1964 - 65 trucks; Volume = 185,000 cy 138,000 m3 Qty/ truck/year = 2,846 cy 2,173 m3 1972- 32 trucks Volume = 264,000 cy 211,000 m3 Qty/ truck/year 8,250 cy 6,298 m3 Qty/driver hour 4.20 cy 3.20 m3 Average load 6.70 cy 5.11 m3 Improving Service & Efficiency in your Dispatch Office
  10. How did we accomplish this? Reduced dead and wasted time Improved round trip times Improved average load size Improving Service & Efficiency in your Dispatch Office
  11. How did we accomplish this? More focus on Dispatching Built teamwork Bid for profit not volume Traded customers with competition Gained control of our business Guaranteed good service Improving Service & Efficiency in your Dispatch Office
  12. How did we accomplish this? More focus on Dispatching Getting the order correct Reaching consensus with customers Hired based upon skill, not knowledge Scheduling - promoted to full time job Truck tracking - demand dispatch Took chief dispatcher off tracking duties First mobile signal system Improving Service & Efficiency in your Dispatch Office
  13. How did we accomplish this? Building Teamwork Meetings w/ sales, management, dispatch, production Set common goals Common measurements Supported each other If sales “forced” an order into the schedule, he had to decide who gave up trucks and had to call those customers. Improving Service & Efficiency in your Dispatch Office
  14. How did we accomplish this? Bid for profit not volume Measured profitability Courted profitable customers Met with and retrained poor performers “fired” poor customers Charged small load and unloading time Sold FOB jobsite or FOB plant Rebated if unloaded quicker Improving Service & Efficiency in your Dispatch Office
  15. How did we accomplish this? Traded customers with competition “dumped” unprofitable customers “discouraged” terrorists Courted competitions good customers Gained control of our business Eliminated Will Calls first round Discouraged Will Calls thereafter Established guidelines Kept customers from hurting each other Charged for small loads/ unloading time Improving Service & Efficiency in your Dispatch Office
  16. How did we accomplish this? Provided good service Delivered instead of promised If sales forced order into full schedule Salesperson decides who doesn’t get service Salesperson calls those customers Booked but did not overbook >15% Told the truth Paid if late Guaranteed on-time delivery Improving Service & Efficiency in your Dispatch Office
  17. Guaranteed on-time delivery Order placed by 15:00 day before No changes allowed to; time travel time rate quantity (+/- 10%) Will Calls not accepted first round Improving Service & Efficiency in your Dispatch Office
  18. USA averages cy m3 1 truck hauls loads/day = 4 4 Average load size = 7.80 5.95 Average order (2 loads) = 18.18 13.88 1 truck services, orders = 2 2 Utilization (%) = 64 64 Quantity/driver hour = 2.70 2.05 Improving Service & Efficiency in your Dispatch Office
  19. Remove unproductive time Trip times (North America) wait to load 6 loading 4 slumping 10 travel 23 wait to pour 20 pour 42 wash 12 return 21 Total 138 minutes - 20 (wait to pour) 118 ÷ 60 = 1.97 hrs Improving Service & Efficiency in your Dispatch Office
  20. Proof of data 7.80 cy ÷ 1.97 hrs = 3.96 cy /trip hr 64% of 3.96 = 2.50 cy /hour 5.95 m3 ÷ 1.97 hrs = 3.02 m3 /trip hr 64% of 3.02 = 1.91 m3 /hour Improving Service & Efficiency in your Dispatch Office
  21. Conclusion? The national average data is correct Improving Service & Efficiency in your Dispatch Office
  22. Concrete Components (2009) cy m3 Improving Service & Efficiency in your Dispatch Office
  23. Concrete Components (2009) cy m3 Delivery cost $24.23 pcy, $31.88 / m3 Improving Service & Efficiency in your Dispatch Office
  24. Truck operating cost calculation Improving Service & Efficiency in your Dispatch Office
  25. Quantity per driver hr Improving Service & Efficiency in your Dispatch Office
  26. What savings is possible? An easily attained example Improving Service & Efficiency in your Dispatch Office
  27. What savings is possible?An easily attained example Improving Service & Efficiency in your Dispatch Office
  28. It costs $65.42/ hr to operate a truck Should you charge $65.42 per hour ? Improving Service & Efficiency in your Dispatch Office
  29. Can you charge $ 65.42/ hr? No, because you will lose money $ 65.42 = cost for all hours operating. Delivery time averages 64% of total time in North America. One needs to charge MORE during productive time to keep from losing money. Improving Service & Efficiency in your Dispatch Office
  30. Can you charge $ 65.42/ hr? $ 65.42 ÷ 0.64 = $ 102.22 This covers ONLY the truck. It does not include sales, dispatch, plant, G&A, profit and other costs. Improving Service & Efficiency in your Dispatch Office
  31. Should you charge $ 102.22/ hr? If all you want to do is recover delivery cost, yes. What if you want to recover the contribution to overhead compared to an average load? Improving Service & Efficiency in your Dispatch Office
  32. Should you charge $ 102.22/ hr? Improving Service & Efficiency in your Dispatch Office
  33. Key Performance Indicators Improving Service & Efficiency in your Dispatch Office
  34. What should KPI targets be? Service 90% + on time first load of order 85% + on time subsequent loads Qty/hr could be 40% load size 3.0 cy/hr = 40 % of 7.75 cy 2.4 m3/hr = 40 % of 5.90 m3 Utilization 75% + Improving Service & Efficiency in your Dispatch Office
  35. What if you improve utilization only? Improving Service & Efficiency in your Dispatch Office
  36. What if you improve utilization only? What should targets be? Qty/hr is now 34.6% load size (2.70 ÷ 7.80) (1 trip each 2.77 hrs) Qty/hr could be 40% load size (1 trip each 2.50 hrs) Retain current trip times and load sizes (customer mix) Improving Service & Efficiency in your Dispatch Office
  37. Utilization improvement- current 118 min = 1.97 hrs/trip ∴ 1.97 ÷ 65% = 3.03 One trip takes 3.03 paid hours 7.80 cy ÷ 3.03 hrs = 2.70 cy/hour 5.93 m3 ÷ 3.03 hrs = 2.05 m3/hour Keep utilization at 65% Improving Service & Efficiency in your Dispatch Office
  38. Utilization improvement- to 70% 118 min = 1.97 hrs/trip ∴ 1.97 ÷ .70 = 2.81 One trip takes 2.81 paid hours 7.80 cy ÷ 2.81 hrs = 2.78 cy/hour 5.93 m3 ÷ 2.81 hrs = 2.11 m3/hour Improve utilization to70% Improving Service & Efficiency in your Dispatch Office
  39. Utilization improvement- to 75% 118 min = 1.97 hrs/trip ∴ 1.97 ÷ .75 = 2.63 One trip takes 2.63 paid hours 7.80 cy ÷ 2.63 hrs = 2.97 cy/hour 5.93 m3 ÷ 2.63 hrs = 2.25 m3/hour Improve utilization to75% Improving Service & Efficiency in your Dispatch Office
  40. Possible results Retain current trip times (customer mix) What should targets be? Utilization should be 75% (7.5 hours hauling in 10 hour day) 118 minutes RTT @ 7.75 cy or 5.92 m3 64% utilization = 2.70 cy/hour or 1.91 m3/hr 70% utilization = 2.77 cy/hour or 2.11 m3/hr 75% utilization = 2.97 cy/hour or 2.25 m3/hr Improving Service & Efficiency in your Dispatch Office
  41. What if you improve utilization andround trip? Improving Service & Efficiency in your Dispatch Office
  42. What if you improve utilization andround trip? improve trip times from 118 to 108 minutes Focus sales efforts on closer jobs or Incent quicker unloading Improving Service & Efficiency in your Dispatch Office
  43. What if you improve utilization andround trip? improve trip times from 118 to 108 minutes Focus sales efforts on closer jobs or Incent quicker unloading 108 min = 1.80 hrs/trip 1.80 hrs ÷ 0.75 utilization = 2.40 hrs 7.80 cy ÷ 2.40 hrs = 3.25cy/hour 5.93 m3 ÷ 2.40 hrs =2.47 m3/hour Improving Service & Efficiency in your Dispatch Office
  44. What if you improve utilization, round trip andload size? Improving Service & Efficiency in your Dispatch Office
  45. What if you improve utilization, round trip andload size? Improve current load sizes from 7.80 cy to 7.90cy 5.92 m3 to 6.02 m3 Alter the market by eliminating the delivery part of concrete and charging a flat rate for delivery Improving Service & Efficiency in your Dispatch Office
  46. What if you improve utilization, round trip andload size? 108 min = 1.80 hrs/trip 1.80 hrs ÷ 0.75 utilization = 2.40 hrs 7.90 cy ÷ 2.40 hrs = 3.29 cy/hour 06.00 m3 ÷ 2.40 hrs =2.54 m3/hour Improving Service & Efficiency in your Dispatch Office
  47. Improve utilization, round trip and load size? 2.70 to 3.29 cy/hour $65.42 ÷ 3.29 = $19.88 $65.42 ÷ 2.70 = $24.22 $ 4.34 pcy 2.11 to 2.54 m3 /hour $65.42 ÷ 2.05 = $31.91 $65.42 ÷ 2.54 = $25.76 $ 6.15 / m3 Improving Service & Efficiency in your Dispatch Office
  48. How to improve You control or influence Utilization In-yard time Wait to pour Travel time (sell closer to plant) Improving Service & Efficiency in your Dispatch Office
  49. How to improve The market you target or your pricing determines Load size Unload time Improving Service & Efficiency in your Dispatch Office
  50. How can qty/ hr be improved? Fewer trucks Same hours, fewer trucks for same quantity Less hours (better utilization) Same quantity and fleet but fewer hours 27 cy or m3 in 10 hours = 2.70 cy or m3 /hr 27 cy or m3 in 9 hours = 3.0 cy or m3 /hr Bottom line for both Fewer hours Improving Service & Efficiency in your Dispatch Office
  51. How are you cheaper than your competition? How much less do you pay for materials? How much less is your overhead? Fewer salespersons? Less pay? Fewer dispatchers? Less pay? Lower paid management? How much less do you pay your drivers? What is left to reduce? Improving Service & Efficiency in your Dispatch Office
  52. Improving profit Most competitor’s costs are similar. Reducing delivery is all that is left. More volume will not equal more profit. More volume per hour is the solution. Improving Service & Efficiency in your Dispatch Office
  53. Improving volume Concrete is poured during the day More hours cannot be the solution Any kind of business is not the solution Business with more qty/hr is the solution More volume per hour is the solution. Improving Service & Efficiency in your Dispatch Office
  54. What’s the difference between COMMANDconcrete and the worlds most expensive ticketing system? None If you don’t put it to use Improving Service & Efficiency in your Dispatch Office
  55. Improving service Schedule accurately Plan ahead Avoid large overbooking Learn from the past performance Learn why you are late after “1st round” Plan for the unexpected Improving Service & Efficiency in your Dispatch Office

  56. Identify Your Problems

  57. NRMCA’s root problems of Ready Mixed Industry Moderate return on sales last few years Job cost of concrete is unknown No tools to cost and price jobs No pricing controls by top management Volume is more important than profitability. Pricing is based only upon cement content. Improving Service & Efficiency in your Dispatch Office
  58. Home Concrete Footings Foundations Interior Slabs Exterior Price Placement Competition Difficult Difficult Medium Easy None Little None Many $ $ $ $ Cheapest is most difficult - no competition Improving Service & Efficiency in your Dispatch Office
  59. Components of a driver’s day A Driver’s Day 1 Clock in, prep 2 Queue 3 Load 4 Slump check 5 Travel 6 Wait 7 Unload 8 Wash 9 Travel 10 Wait for next load (recycle @ #2) 11 Wait and wash out Improving Service & Efficiency in your Dispatch Office
  60. Who can improve these times? A Driver’s DayWho can improve? 1 Clock in, prep 2 Queue 3 Load 4 Slump check 5 Travel 6 Wait 7 Unload 8 Wash 9 Travel 10 Wait for next load (recycle @ #2) 11 Wait and wash out Dispatcher Management Management Management Sales Dispatcher Sales Sales Sales Dispatcher Dispatcher Who can improve? Dispatch Batching Sales Management Improving Service & Efficiency in your Dispatch Office
  61. Who is the main influencer? A Driver’s DayWho can improve? 1 Clock in, prep 2 Queue 3 Load 4 Slump check 5 Travel 6 Wait 7 Unload 8 Wash 9 Travel 10 Wait for next load (recycle @ #2) 11 Wait and wash out Dispatcher Management Management Management Sales Dispatcher Sales Sales Sales Dispatcher Dispatcher Conclusion, dispatch can improve only 4 elements but these occupy 36% of the driver’s day. Better efficiencies for travel, unload time and load size involve management and sales Improving Service & Efficiency in your Dispatch Office
  62. What prevents dispatchers from achievinggood service&good utilization? Improving Service & Efficiency in your Dispatch Office
  63. Weather Finish up loads Breakdowns Add-on orders Incorrect spacing Long unloads- slow turnaround Absenteeism, tardiness Cancellations Will Calls Driver screw ups Site conditions Short notice orders Long hours for Drivers Improving Service & Efficiency in your Dispatch Office

  64. Customer Service in the Ready Mixed Concrete Industry

  65. “We never screw the same customer twice in a row”. Improving Service & Efficiency in your Dispatch Office
  66. What is good service? On-time delivery No gaps in service Correct product Improving Service & Efficiency in your Dispatch Office
  67. Whose time determines on-time delivery? Customers? You? Your agreed time? Can you always be there when he wants it? Improving Service & Efficiency in your Dispatch Office
  68. What is good service? On-time delivery No gaps in service Correct product Is that all? What else is needed? Improving Service & Efficiency in your Dispatch Office
  69. Sample Service Statement 1.One, direct dispatch phone number. 2. Answer phone within 3 rings. 3. Not put customer on hold. 4. Recognize the customer and his needs. 5. Don’t rush the customer. 6. Knowledgeable, commitment enabled phone staff. 7. Explain rules and policies ahead of time. 8. Set reasonable expectations. 9. Tell the truth. 10. Read the order back. 11. Arrive on jobsite time +/- 15 minutes 12. No gaps in service 13. Call customers if deliveries will be late. 14. Send correct and understandable invoices. Improving Service & Efficiency in your Dispatch Office
  70. You must first gain control of your business if you ever hope to provide good service. Improving Service & Efficiency in your Dispatch Office
  71. Excellent service is not; Forcing orders into a full schedule. Placing a new priority customer at the head of the queue each day. Alternating who gets poor Service. Hero acting by overriding your dispatchers decisions Never saying “No”. Taking an order in 30 seconds or less. Taking the blame for customer’s mistakes. Waiting 'til evening to decide who gets service. Improving Service & Efficiency in your Dispatch Office
  72. Guidelines Cemstone’s Sample Guidelines Improving Service & Efficiency in your Dispatch Office
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  79. Delivery Efficiency

  80. Delivery Efficiency “We are the most efficient when running late” Is like stating “I manage money best when I’m deeply in debt, behind on my payments and hounded by collection agencies“ Improving Service & Efficiency in your Dispatch Office
  81. Delivery Efficiency 2 hours ? 1 hour ? 30 minutes ? 10 minutes ? How late do you need to run to be efficient? Improving Service & Efficiency in your Dispatch Office

  82. Proper Operation

  83. What does the system do? Captures data for reporting and KPI Aids improvement of KPIs Service Deliver costs Makes everyone’s job easier. Reduces mistakes Simplifies the job of dispatching Integrates other systems Mix management, batch interface Signaling Captures data for reporting Reduces invoicing preparation Improving Service & Efficiency in your Dispatch Office
  84. How can hours be reduced? Schedule! You can’t dispatch your way to efficiency and service Improving Service & Efficiency in your Dispatch Office
  85. Drivers time is fixed Once called to work, a driver’s time tends to be a fixed cost. Improving Service & Efficiency in your Dispatch Office
  86. Getting the data Scheduling data comes from Dispatch Correct data must be part of job description Correct data must be part of compensation Goals need to be set Accomplishments measured Improving Service & Efficiency in your Dispatch Office

  87. The Location

  88. Batch room at the plant Advantages Does not depend upon leased lines Dispatch can batch Can see trucks Disadvantages No pool of extra help Imperfect conditions Interruptions by drivers Dispatchers think like their associates Improving Service & Efficiency in your Dispatch Office
  89. We tend to think and act like those we associate with. Improving Service & Efficiency in your Dispatch Office
  90. Office with sales & management Advantages Sales & management can readily visit Dispatchers think like management Best practice companies organized this way Job appeals to more qualified candidates Ready pool of help Better office conditions Disadvantages Can’t see the trucks (can’t see 90% anyway) Depends upon technology Improving Service & Efficiency in your Dispatch Office
  91. Dispatch configurations Plant (non-central) Orders, scheduling, tracking Central dispatch Orders, scheduling, tracking Distributed dispatch Orders, scheduling, centrally Shipping at the plants Improving Service & Efficiency in your Dispatch Office
  92. Plant (non-central) dispatch Advantages Batchman can dispatch Simplest Customers talk to one person Disadvantages Dispatchers tend to hoard trucks Which plant does the customer phone? Nearest, one remembered, one he likes Trucks will drive out of market area for volume Customers talk to only one person Discourages teamwork Improving Service & Efficiency in your Dispatch Office
  93. Plant Dispatch. Plant 2 is overbooked, plant 1 has trucks idle. Improving Service & Efficiency in your Dispatch Office
  94. Plant Dispatch. Plant 2 is delivering into plant 1s territory Plant 1 is delivering into plant 2s territory Improving Service & Efficiency in your Dispatch Office
  95. Central dispatch Advantages Improved customer Service One phone number to remember/call. Order can be accommodated from any plant. Order can be serviced from several plants. If problems, more access to trucks. Customer Service can visit customers on slow days. Customer service people on phone. Improving Service & Efficiency in your Dispatch Office
  96. Central dispatch Advantages Reduced delivery Trucks can be kept delivering more easily. Trucks can be moved towards business in “segments”. Trucks can be reallocated to the jobs that require them. Tracking trucks permits re-deploying them where needed. Not all plants need to be open every day. Improving Service & Efficiency in your Dispatch Office
  97. Central Dispatch. Both plants share the workload. Improving Service & Efficiency in your Dispatch Office
  98. Central dispatch Advantages Improved working conditions. Shorter work days. Hours can be staggered. Slow days can be taken off Dispatchers can specialize. Quiet, dust free working conditions. Professional atmosphere. Improving Service & Efficiency in your Dispatch Office
  99. Central dispatch Advantages Improved management. One stop to see days business. Briefing dispatchers is easier. Dispatchers associate with management instead of drivers/ batchmen Improving Service & Efficiency in your Dispatch Office
  100. Central dispatch Disadvantages New hires often put on phones to learn. Requires better dispatch skills. Requires a manager who is a team player/builder. Easy to forget drivers & batchmen & their needs. Requires costly equipment. Requires organization and processes. Improving Service & Efficiency in your Dispatch Office
  101. Distributed dispatch Advantages Shippers can be at the plant Improved driver management Central order taking and scheduling Orders can be shipped from closest plant Disadvantages May require customer to call two different phone numbers (future orders and today's) Customer may have to talk to two different people Discourages teamwork Separates “promise makers” from “promise keepers” Improving Service & Efficiency in your Dispatch Office
  102. Distributed Dispatch. Central takes orders, schedules Plants ticket and track trucks Office Improving Service & Efficiency in your Dispatch Office
  103. Distributed Dispatch. Problem; central and plants don’t agree. They form opinions about each other. Office Improving Service & Efficiency in your Dispatch Office

  104. Reporting Relationships

  105. General Manager Distribution Production Sales Improving Service & Efficiency in your Dispatch Office

  106. The Dispatch Positions

  107. Job Positions CSR (Customer Service Representative) Takes orders, probes and influences customer. Scheduler Plans ahead, advises order takers, manages office. Shipper Generates tickets, tracks trucks, captures times. Each position has specific duties. Improving Service & Efficiency in your Dispatch Office
  108. Averages 1 order = 18 cy (2 loads) 1 trip = 7 statuses 1 truck = 4 loads (2 orders) 3.5 calls = 1 order Improving Service & Efficiency in your Dispatch Office

  109. Staffing andDispatch Layout

  110. Staffing Improving Service & Efficiency in your Dispatch Office
  111. Staffing 1 person for each 15 trucks operating. 1 shipper can track up to 45 trucks (without signal system = 25 trucks) 180 tickets 1,260 status changes 1 Order taker can take about 120 calls. 45 orders worth Multiples of 45-50 trucks make for the most efficient dispatching staffing Improving Service & Efficiency in your Dispatch Office
  112. Staffing A shipper can; Ticket 100 trucks Glance at the status of 90 trucks Track 60 trucks Manage 45-50 trucks Improving Service & Efficiency in your Dispatch Office

  113. Be careful of subtle training of customers

  114. How do you rate your customers? Demanding Rigid Unreasonable Quick to anger Wildly optimistic Reactive Reasonable Flexible Realistic Understanding Planners Reactive Improving Service & Efficiency in your Dispatch Office
  115. Why are they that way? Is it the market or Did we made them that way. Improving Service & Efficiency in your Dispatch Office
  116. Causes Management accepts an order when booked and dispatch has turned it down Result; Customer gets his concrete but others are hurt. Lesson learned; Don’t trust dispatchers. Try someone else or go over their head. Management or Sales is the Hero. Dispatcher’s & Co’s credibility is shot. Improving Service & Efficiency in your Dispatch Office
  117. Causes You are often late Result; Customer complains to management or sales about service. Gets service the next day. Lesson learned; Become “squeaky wheel”. Abuse gets results. Improving Service & Efficiency in your Dispatch Office
  118. Causes You run late after the first round Result; Customer cannot rely upon your service Lesson learned; Customer orders sooner than needed Improving Service & Efficiency in your Dispatch Office
  119. Causes You run late after the first round Result; Customer waits if orders are after first round Lesson learned; Customer insists on ordering first round Improving Service & Efficiency in your Dispatch Office
  120. Causes You sometimes cannot keep customer supplied Result; Customer cannot rely upon your service Lesson learned; Customer orders faster than needed Demands trucks waiting on the job before unloading Improving Service & Efficiency in your Dispatch Office
  121. Causes You find at night that you are overbooked and call customer to set back orders Result; Customer cannot count on your commitments, feels deceived Lesson learned; Threaten to take business elsewhere Improving Service & Efficiency in your Dispatch Office
  122. Causes You are understaffed an place customers on hold to answer other calls Result; Customer often placed on hold during order process Lesson learned; Order quickly before delayed by being placed on hold Improving Service & Efficiency in your Dispatch Office
  123. Causes Too many incoming phone lines Result; Customer hears chaos in background, hears stress in your voice Lesson learned; Order quickly and leave off details Improving Service & Efficiency in your Dispatch Office
  124. How can hours be reduced? Reduce round trip time Select quicker turnaround jobs to bid Control load size and unloading time Don’t over truck Monitor the drivers Improving Service & Efficiency in your Dispatch Office
  125. How can hours be reduced? Reduce dead time Start up time in morning Use Driver call in report Dead time in the plant Schedule to keep the graph flat Negotiate with customers re start time Control number of trucks assigned to a plant Improving Service & Efficiency in your Dispatch Office
  126. How many trucks can a plant support? Average round trip ÷ plant loading time = max load times x 70% = trucks to support Improving Service & Efficiency in your Dispatch Office
  127. Example 120 min average round trip÷ 6 min Plant load time= 20 max load times x 0.70 (70%) = 14 trucks Improving Service & Efficiency in your Dispatch Office
  128. Why 70%? Trucks don't return 6 min apart They come back in groups. Improving Service & Efficiency in your Dispatch Office
  129. Delta plant Plants cost $ 13.30 pcy $17.50/m3 Trucks cost $ 24.23 pcy $ 31.88/m3 Which one should wait? Improving Service & Efficiency in your Dispatch Office
  130. How can hours be reduced? Reduce dead time Start up time in morning Use Driver call in report Dead time in the plant Schedule to keep the graph flat Negotiate with customers re start time Control number of trucks assigned to a plant Waiting to unload Use Time Analysis reports to check past performance Probe for rate and qty/hr Wash up at night Improving Service & Efficiency in your Dispatch Office
  131. How can hours be reduced? Reduce dead time Factors you can control Which jobs you bid Which customers you service Waiting to pour time (Over trucking) Factors the customers control Load size Unloading time Waiting to pour time (Over ordering) Improving Service & Efficiency in your Dispatch Office

  132. Priority Customers

  133. Rule #1; For there to be Kings there must be peasants. Rule #2: It takes many Peasants to serve a King Priority customers are Kings Improving Service & Efficiency in your Dispatch Office
  134. Priority Customers Priority Volume % “Kings” Top Priority 1/3 5 “Nobles” Important 1/3 20 “Peasants” “Screw at will” 1/3 75 Improving Service & Efficiency in your Dispatch Office
  135. How to accommodate Priority Customers 1. Ensure they are first in the schedule. Try training them to call you early. Call them each afternoon. Assign an internal contact. 2. Target for partnering. Show performance statistics 3. Save some trucks for them. Don’t fully book your fleet Improving Service & Efficiency in your Dispatch Office
  136. How to accommodate Priority Customers Identify priority customers to dispatch by flagging the credit code for display when customer chosen Establish 3 “OK to Sell” levels AAA OK to Sell = Priority AA OK to Sell = Nobles A OK to Sell = Lowest All customers are “A” customers Improving Service & Efficiency in your Dispatch Office
  137. Schedule Kings first Get priority customers into the schedule first. Fit medium priority jobs around priority customers. Fit low priority jobs around medium priority jobs. Peasants Nobles Priority Improving Service & Efficiency in your Dispatch Office
  138. Schedule Kings first The problem arises when a priority customer must be fit around medium and low priority jobs. Nobles Peasants Priority Improving Service & Efficiency in your Dispatch Office
  139. Subsidizing bad By allowing last minute orders and not charging small load & holding time charges, you are subsidizing your bad contractors to the detriment of your good contractors. Improving Service & Efficiency in your Dispatch Office
  140. The problems Improving Service & Efficiency in your Dispatch Office
  141. Problems Weather Finish up loads Breakdowns Add-on orders Incorrect spacing Long unloads- slow turnaround Absenteeism, tardiness Cancellations Will Calls Driver screw ups Site conditions Short notice orders Long hours for Drivers Improving Service & Efficiency in your Dispatch Office
  142. How can hours be reduced? Address the biggest problems Finish up loads Add-on orders Incorrect spacing Long unloads- slow turnaround Will Calls Site conditions Short notice orders Improving Service & Efficiency in your Dispatch Office
  143. Finish up loads Unexpected loads to complete the order Possible solutions Ask if possibly that ordered quantity won’t be enough. Suggest full loads then measure for balance Plan a few extra loads in schedule. Send full load and credit for returned. Improving Service & Efficiency in your Dispatch Office
  144. Add on orders Unexpected additions to the order Possible solutions Ask what the maximum may be. Guess a ridiculous high quantity Explain what may happen if more is needed. Get consensus on action Improving Service & Efficiency in your Dispatch Office
  145. Incorrect spacing Unexpected unload rate Possible solutions Compare rate with unloading method. Ask what time he expects concrete placed by. Learn from past experience. Suggest rate instead of asking. Improving Service & Efficiency in your Dispatch Office
  146. Long unloading Unexpected long unload time Possible solutions Ask unload time estimate. Compare unload with pour type. Use 60 or 90 minute on all single load orders. Improving Service & Efficiency in your Dispatch Office
  147. Will Calls Will Call orders that do not release when expected Possible solutions Ask why on Will Call. Suggest making it a firm order Agree a time for release. Explain repercussions if not released. Improving Service & Efficiency in your Dispatch Office
  148. Site conditions Unexpected poor site conditions Possible solutions Ask about site conditions. Explain leaving road rules Explain who pays if truck gets stuck Improving Service & Efficiency in your Dispatch Office
  149. Short notice orders Unexpected orders with inadequate notice Possible solutions Take the order if possible Explain problem with short notice May not have trucks Good customer, want to serve him Ask about future business-take now? Agree time to place order. Improving Service & Efficiency in your Dispatch Office
  150. Please Complete Your Evaluation Be sure to circle the session you are evaluating on the back of your card Concrete CC-002 Managing Concrete Dispatch Thank You! All breakout session materials can be accessed online at: www.commandalkon.com/cc2011/update/index.htm Improving Service & Efficiency in your Dispatch Office

  151. End

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