“Put ideas on paper and visualize the end result,” he recommends, “as this can oft en highlight design confl icts.” REQUIREMENTS All too oft en, the specifi cation for a truck chassis is written fi rst, says Lyon of NTEA. “Designing the second unit – for example, a utility or dump body – fi rst is critical to following logical truck design. Th is is where the functional requirements are designed.” Once this is completed, match the second unit to the chassis, he says. Take a moment and do a fi nal sanity check. Did you identify everything – factors such as overall weight and dimensions and regulatory requirements and impacts?” Another requisite is to keep the equipment users and maintenance stakeholders close in the design process, adds Lyon. Look at current vehicle productivity. Are units over- or under-utilized? Why? Talk with maintenance personnel and review maintenance records to identify failure patterns and specifi c problems, he counsels. Also, visit with the equipment operators. Among the things to learn from them is whether the job environment they are working in aff ects vehicle design changes. “Understand you will always have to make compromises,” he says. “Finally,” concludes Lyon, “review and evaluate productivity aft er the unit has been in service to continue the cycle of improvement.” Medium Duty | Fleet vehicle costs have declined The inaugural Element Fleet Total Cost of Ownership (TCO) Index shows that the total cost of having a vehicle fl eet fell 14 percent from 2014 to 2015, and that companies with fl eets experienced their lowest expenses in at least fi ve years. The drop was attributed primarily to the decrease in fuel prices – one of the largest cost drivers. The TCO Index was created by Element Financial Corporation (www.elementcorp.com) – one of North America’s leading fl eet management and equipment fi - nance companies. A proprietary annual look at major cost categories affecting vehicle fl eets, it is intended to bring greater clarity to company vehicle expense for businesses, company offi cials say. The cost categories include vehicle depreciation, interest expense, fuel and maintenance costs. INDUSTRY TRENDS Looking at industry trends, the TCO analysis noted these key factors: • Average U.S. fuel costs fell 29 percent, driven by the price of fuel – $2.43 per gallon in 2015 versus $3.36 the previous year – and improvements in vehicle miles per gallon. • Depreciation costs rose 1 percent, attributed to a higher average initial cost of vehicles, and offset by continued strength in the resale market for vans and pickups. • A 1 percent rise in average monthly maintenance costs, driven by an increase in unscheduled repairs (1 percent) and an increase in preventive maintenance (PM) expenses (4 percent). • Tire costs remained static year over year. 2013 The Element Fleet TCO Index uses 2013 as the base year, with a starting value of 100. The Index showed a drop in TCO for fl eets to 96.8 in 2014 and then to 83.3 in 2015, a 14 point year-over-year decline. VehicleServicePros.com ❚ JULY 2016 ❚ FLEET MAINTENANCE 23
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