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Business Processes and Practices – Management Interviews

13.1. Findings of Management Interviews

Background

Structured interviews were conducted by a Carrus Tshenolo fleet consultant for each of the seven regions.

Four departments were interviewed at Head Office, mainly;

1. Engineering – water services;

2. BOT;

3. Supply Chain Management; and 4. Protection services.

Below is a summary of comments from the interviews conducted with personnel at the area offices consisting of Senior Managers, Area Managers - Engineering and Admin Assistants.

13.2. Findings for Head Office Interviews

The Engineering Department owns the majority of the fleet of ADM. They have 221 fleet of vehicles and the majority of them are used for technical services. The last batch of vehicles purchased do not meet the end user requirements as the LDV’s purchased are single cabs that seat x2 people and as the ADM policy on fleet does not allow municipality officials to be transported on an open vehicle. This leads to multiple trips being done to services one call as a team leader has a minimum of 2 assistants.

The other departments have a limited number of vehicles but Protection Services, who is also responsible for the fire department.

The Fire Services fleet utilises fire engines. The current technology being used is outdated. In the interview it became clear that that the municipality has to consider the upgrading of the entire fleet of the fire department.

The departments also have a challenge of supporting the community with essential needs like water and sanitation. This service is offered by utilising water tankers. These vehicles are currently in short supply to ADM and that leads to the municipality having to hire these vehicles for service providers.

The costly hiring-in of water tankers was stated as a matter of concern. This absorbs funds which could have been applied to improve service delivery to the community. It is proposed that the issue of hiring-in water tankers be investigated in more detail and that the root cause be identified, verified and that a strategy be formulated to solve this matter of concern.

It is proposed that this investigation be incorporated into Phase 2 of the project.

In the BTO Department the individual interviewed did not have much knowledge of fleet management but was very assisting in understanding the financial side of the business. It is proposed that the BTO department be trained in the business processes of fleet operational

budgeting processes. An extensive fleet management training strategy will have to be developed as part of a Phase 2 of the project.

The Supply Chain Management Department is responsible to facilitate the procurement process of vehicles.

Summary of Responses from Area Management

Questions Summary of Responses

1. Fleet adequacy for service delivery – (size and

composition) The size is adequate

2. Fleet availability and reliability – what are the

current levels and is it adequate? The fleet is available but not in good standing.

3. Current control mechanisms regarding vehicle

abuse and mis-use and is it adequate? Only Trip Authority no access to the Netstar system.

4. Do they receive cost fleet reports (daily,

weekly and monthly)? No, handled by East London. Regular fleet reports are required to manage the fleet.

5. Could they take informed decisions on the

level of fleet reporting? All fleet related issues are handled by Head Office.

6. Is their fleet cost in line with budget and

industry norms? Currently all fleet budget issues are still handled by Head Office.

7. Is the fleet management structure adequate to address the fleet needs, management and control?

Not as yet, a fleet office is required.

8. How do they measure and manage trip

sheets? Not measured.

9. Are the trip sheets recorded and do they

receive a monthly report? Manual filing.

10. Are there driver briefing and de-briefing

procedures? No.

11. Are there pre and post trip vehicle

inspections? No.

12. Are the vehicles assessed on a regular basis

and do they receive reports in this regard? Not done, but planned to be done monthly.

13. Is there a need to discuss fleet management and fleet operational issues on a structured forum?

Yes, there is a need. A fleet item is going to be included in the monthly meetings with staff.

14. Do you partake in the fleet budgeting

process? Not participating currently.

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Questions Summary of Responses

15. Is their service delivery budgets translated

into fleet budgets? Currently centralised in departments.

16. Is the current fleet budget adequate? Currently centralised to departments 17. Licence administration - do you have a record

of valid driver licences and expiry dates and a notification process of when which driver licence is to be revenue (inclusive of PRDP’s)?

Currently not done, the driver reports on expired vehicle license disk.

18. Do they have the same for vehicle licences? Same as above.

19. Are all vehicles scheduled for maintenance and do they have a prediction of when which vehicle needs to be serviced?

Drivers inform the engineering department when service is due and they’ll send a mail to head office.

The driver will take the vehicle to East London for service.

20. Is the vehicle maintenance cost reasonable? Do not see invoice, all invoices are sent to head office.

21. Is the vehicle maintenance cost expressed on the CPK basis and do they have it from

“cradle to grave” for the vehicle?

No.

22. How often are the vehicle drivers trained? No driver training program exist (policy to be reviewed and look at health issues).

23. Do they have record per driver of traffic

violations? Currently handled by head office.

24. Who pays for traffic violations? Currently not clear as to who pays for the fines.

25. Is drivers disciplined on traffic violations? Do not know, head office handles fines.

26. How accidents are handled – who reports and

is there a formal investigation? ADM Policy stipulates what action to be taken.

27. Vehicle licence renewal – who notifies and

renews the licence? Drivers advise Supervisor and head office.

28. Do they have a copy of vehicle insurance

schedules and is it up to date? Currently handled by head office.

29. Is fuel consumption measured in L/100 km

and measured against a norm? No.

30. Is fuel consumption measured in L/hour for equipment and measured against the norm? No.

31. Are trip sheets filled in and captured on the

Venus computer systems? No.

32. Is monthly utilisation actual vehicle utilisation No planning is done.

Questions Summary of Responses compared to scheduled vehicle utilisation

against the norm?

33. Do they have access to tracking information

and is it useful? The system is available and is in the process of being implemented. User access is currently in the process of being implemented.

34. Do they have access to driver behaviour information from the tracking system (Harsh Braking, Harsh Acceleration, Over Speeding, Excessive Idling and Out of Green band driving)?

No. Same as above.

35. Are drivers scored for their individual performances on a monthly basis? No.

36. Are rogue drivers identified and provided with

corrective training? No

37. Is a monthly fleet report compiled and submitted to senior management? No.

38. Is there a need to improve fleet performance

and why? Latest vehicle selection for the new buy

does not accommodate operational requirements and contradicts ADM Policy.

Single cab LDVs were bought instead of double cab LDVs and the ADM Policy does not allow for employees to sit at the back of the LDVs, this leads to multiple trips being done when employees are attending to call outs for repairs.

Replacement policy to be reviewed.

Access to tracking system, maintenance policy to be reviewed.

39. What are the main “pain points” from a fleet

perspective? Latest vehicle selection for the new buy

does not accommodate operational requirements and contradicts ADM Policy.

Replacement policy to be reviewed.

Access to tracking system, maintenance policy to be reviewed.

From the assessment it is clear that:

The fleet management function at ADM is not adequately structured and staffed.

A system of fleet reporting should be introduced whereby regions are held responsible and accountable for fleet operational and financial performance.

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The Head Office function should take centralised control of maintenance scheduling and license renewal and should be the custodian of a monthly fleet forum and consolidated fleet reporting.

The structure should incorporate the introduction of satellite fleet officers and administrative clerks in order to facilitate fleet management activities at a satellite level.

The current Venus Financial System should be set up to facilitate satellite fleet budgeting, capturing of trip sheets and enable fleet cost control on a satellite bases.

Vehicle maintenance schedule should be centralised and adequate reports should be distributed to the regions.

The current tracking system should be centralised at head office with visibility at a satellite level.

The current Wesbank maintenance and fuel consumption reports should be set up on a satellite bases and daily reports should be made available to satellite transport officers and senior managers.

Driver behaviour should be measured and monitored and rogue drivers should be trained and performance managed.

Vehicle misuse should be identified through comparing the tracking system information and the actually vehicle trip sheets.

Fleet budgeting should be aligned with services delivery demand and translated into size and shape of the fleet, operating hours and kilometre.

Fleet budget should be initiated at a satellite level and consolidated into a centralised fleet budget which should be primarily driven by services delivery demands and not historical trends.

Satellite managers should be hold accountable for cost performance against budget. The financial system should be aligned to incorporate these budgets and vehicle cost should be recorded on a per vehicle budget in the Venus financial system.

The fleet policy should be adjusted to incorporate the above changes, it is further recommended that the central and satellite fleet management incumbents be trained up in fleet management best practise through a SAQA approved institution.

Service level agreements with currents fleet service provides needs to be reviewed.

Practises which will enhance fleet availability whist reducing fleet operational cost needs to be introduced, providers of fleet information will need to make fleet information more accurate, relevant and reliable.

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