Chapter 8 -
Maintenance: The critical component

In today’s competitive environment, there is no time for service failures. This fact makes quality maintenance a competitive necessity.

Maintenance falls into two categories: scheduled and unscheduled. Scheduled maintenance is the planned servicing of vehicles to maximize efficiency. It consists of preventive maintenance inspections, driver inspections and scheduled component repairs or replacement.

Breakdowns caused by component failures and other unexpected failures that involve road calls require unscheduled maintenance. Generally speaking, unscheduled maintenance is more expensive and can result in service failures and accidents.

A strong maintenance program should begin with effective preventive maintenance, a systematic approach to inspecting vehicles or equipment at planned intervals measured in terms of time, mileage or hours. These inspections should help diagnose problem areas and identify sources of premature failure. Base these inspections on manufacturers’ recommended intervals and your company’s operating environment, be it continuous service, dirty operating conditions or extensive temperature ranges.

Supplement preventive maintenance inspections with a driver inspection program, as required by federal law. These inspections can help identify problems in the formative stages, allowing the shop to schedule repairs without interrupting vehicle use and help uncover safety-related defects.

You also should conduct a thorough breakdown analysis for any unscheduled maintenance and evaluate your equipment spec in light of the information reported. Facts about parts failure are available from three primary sources: the operating environment, the failed product and metallurgical labs.

The root cause of the failure is the specific condition that started the problem. After you identify the root cause, you must identify the responsible party and, when possible, take the steps necessary to prevent its reoccurrence.

Proper failure analysis and correction involves eight steps that must be followed in order. The object is to identify the cause and fix the problem. Performing steps out of sequence, or skipping steps, might not lead to discovery of the root cause.

1. State the problem clearly and concisely.
2. Organize the fact-gathering.
3. Observe and record facts, including failed or defective parts.
4. Using those facts, apply logic to identify possible root causes and eliminate those that are unlikely.
5. Identify the most probable root cause.
6. Communicate with the party responsible for the failure.
7. Make repairs as directed by the responsible party.
8. Make sure that the problem is fixed and steps are taken to prevent a repeat of the problem.

In evaluating facts, remember that information can be based on several kinds of data:

• False data, which is always wrong;
• Assumptions, which are often wrong;
• Opinions, which depend on the credibility of the source;
• Feelings, which are often exaggerated or erroneous;
• Hard data, which reflects the actual occurrence

You should insist on getting hard facts by asking quantitative and qualitative questions.

Evaluating maintenance alternatives
Although some trucking companies have strengthened their commitment to in-house service, many fleet managers have opted out of the maintenance game altogether. They do not want to plan their operations around their own captive, costly and rigid infrastructure of service and repair shops staffed by high-priced technicians and consuming resources that distract their focus from their customers.

Surveys have shown that use of outside vendors for maintenance is growing, especially for specialized services. Several factors contribute to that growth

• Carriers are concentrating on their core businesses.
• Carriers are having difficulty attract ing and retaining qualified technicians.
• Trucks are lasting longer and growing in technological sophistication. The era of the shade-tree mechanic is over. Laptop computers are standard diag- nostic tools, and the technological sophistication of today’s vehicles has eclipsed the ability of many mechan- ics to maintain them. In fact, the term “mechanic” is out of vogue. In today’s technically sophisticated environ- ment, mechanics are now referred to as technicians.
• Tooling and diagnostic equipment are becoming more expensive.
• Compliance with environmental and workplace safety regulations is growing more onerous, complex and time-consuming.
• Liability for shoddy repair and service work is mounting.
• Trucking companies are ill-prepared to stock all parts and components needed to keep trucks rolling.

The benefits of outsourcing include:

• Vehicle-specific maintenance programs;
• Increased warranty leverage with key suppliers and manufacturers;
• Better information for spec’ing original equipment;
• Reduction of operating expenses via overhead reduction;
• Improved service levels through increased availability and improved responsiveness;
• Increased productivity and efficiency in specific areas of the company through the introduction of more
  rigorous procedures and policies;
• Ability for the fleet to focus on its core competency; and
• Reduction of development costs by capitalizing on the outsourcing firm’s advanced capabilities.

One risk of outsourcing is that fleets wash their hands of their service and maintenance responsibilities. The fact that maintenance is no longer conducted in-house, however, does not mean that you are not responsible for servicing the fleet. You must work closely with your outsourced partner to keep the equipment serviced on a regular basis.

Who provides maintenance?
Fleet managers have a wide range of choices when it comes to servicing equipment:

Dealers. Traditionally focused on new truck sales, today’s dealers recognize that they must compete on service and repair. They know they can capture a great deal of business if they control the parts and service end, which has not typically been viewed as the most profitable part of the business. But as more fleets walk away from in-house service, dealers are pushed to fill the void.
Another reason for the surge in dealer-provided service is reduced trade cycles. With more carriers trading their equipment after 24 to 36 months, dealers want to ensure that they have the greatest residual value in that equipment. By controlling servicing, they give themselves a “pedigreed” truck that will fetch a higher price in the used truck marketplace.

At the same time, faster trade cycles allow fleets to use warranty for maintenance. As such coverage has extended farther beyond the sale, fleets are coming back to the dealer.

There are many other advantages of using dealers for service. They often are open longer hours than most other sources. They offer guaranteed parts pricing, warranty protection and parts availability, which reduces costs associated with storing inventory — space, parts, taxes, insurance, personnel, obsolescence and the cost of money. Many dealers offer parts on consignment, meaning that fleets are not charged for a part until it is pulled from inventory. This program minimizes the cost of carrying parts (storage space, inventory stores, taxes, insurance, personnel and obsolescence) without sacrificing service capabilities.

Engine, transmission and tire manufacturers all have service outlets that may not be as broad or inclusive in scope, but still can provide consolidated purchasing, invoicing, negotiated service levels and standardized pricing.

The availability of these services leaves most trucking companies to handle light maintenance such as conducting safety inspections, changing fluids and maintaining preventive-maintenance schedules. And even such preventive maintenance is a ripe target for outsourcing today.

Lessors. Providing vehicle maintenance and repair to outside companies has always been the heart and soul of the commercial vehicle leasing industry. The advantage of this outlet is an extensive service network and familiarity with broad product lines.

Independent repair facilities. As warranties are growing longer and more involved, many carriers use them for maintenance. For that reason, fleets consisting of late-model equipment are increasingly tied to OEM truck dealers for service.

When the warranty lapses, however, trucking companies often turn to independent repair facilities. Independent shops can work on any nameplate, conduct different types of service work and deliver all makes of parts, whether genuine or will-fit. You may not save a great deal of money, but you will have more predictability in costs every month.

Other fleets. With most motor carriers looking to wash their hands of maintenance operations and turn that responsibility over to an outside party, a few are taking the opposite tack. Instead of closing their shops, they are hanging out a shingle and turning them into profit-making enterprises.

For such fleets, the upside is the capability to spread their maintenance investment over a larger customer base, thus improving their bottom line. Facilities can be operated at a higher capacity, and manpower can be more fully utilized. In-house maintenance also allows carriers to update tools and to keep technicians employed.

But the strategy has pitfalls. It often requires an investment in support functions, a broader understanding of equipment and more attention to developing and maintaining a customer base.

Firms are looking for more innovative strategies to keep them challenged and prevent downsizing. The challenge is devising the right kind of work and the right support structure.

In Summary
Today’s competitive environment leaves no time for service failures, making maintenance a competitive necessity. Increasingly, fleets are outsourcing all or part of their maintenance to dealers, lessors, independent repair facilities and other fleets. Should you elect to outsource your maintenance, keep in mind that outsourcing does not relieve you of all service and maintenance responsibilities. You must work closely with your outsourced partner to keep the equipment serviced on a regular basis.