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Table of Contents
2. Approach and Methodology 4
3. Strategic Framework 6
4. Situational Analysis Key Findings - Assets 8
Findings 8
Size and Shape of the Assessed Fleet 8
Fleet Condition 10
Recommendations 11
5. Organisation 14
Findings 14
Recommendations 15
6. Managing Vehicle Abuse 17
Findings 17
Recommendations 17
Findings 32
Recommendations 32
7. Fleet Management Business Process Maturity Assessment 33
8. Operations Control Processes 38
Findings 38
9. Fleet Systems and Technology 39
Findings 39
Recommendations 39
Recommendation - Centralised Fleet Control 40
10. Business Processes and Practices – Management Interviews 41
Findings of Management Interviews 41
Findings for Head Office Interviews 41
11. Essential Vehicle User Scheme (EVUS) 46
Background and Description of the EVUS 46
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Fleet Management Strategy
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Fleet Management Strategy
The following diagram outlines the fleet improvement methodology that was applied:
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Fleet Management Strategy
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Fleet Management Strategy
2. Strategic Framework
The following diagram outlines the recommended ROASIS Strategic Fleet Management Framework
(SFMF).
This diagram centres the ROASIS Fleet Management Strategy on four key elements:
Driver Management;
Fleet Operations Management;
Fleet Financial Management;
Asset Management.
These key elements and focus areas should work together in harmony to produce the following
desired outcomes:
An available and reliable fleet;
An economically run and cost effective fleet operation.
The fleet should support ROASIS management strategy together with the service delivery mandate
of the municipality.
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Fleet Management Strategy
This report outlines the key findings of the ROASIS situational analysis, the fleet
management integrated approach, as well as the strategic recommendations.
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Fleet Management Strategy
Findings
The current ROASIS fleet size and shape is adequate for purposes of service delivery. The fleet is in
a good condition, but fleet availability is a problem.
A total of 297 ROASIS vehicles were assessed out of an expected fleet size of 330 vehicles as stated
in the tender requirement document. A small portion (10%) of the fleet was not available for
assessment due to operational demands.
This assessment could be regarded as a representative sample (90%) of the overall ROASIS fleet
condition.
Mobile technology was applied whilst conducting the fleet assessments.
The overall condition of the ROASIS fleet was assessed.
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Fleet Management Strategy
From the table it is clear that the bulk of the ROASIS fleet consists of 1 Ton LDV (194) vehicles,
followed by sedans (30) and trucks (30). The remainder of the fleet consist of various small
categories.
Concluding the situational analysis business review process and considering the various interactions
with key role players, the following key aspects regarding the fleet size and shape became clear:
There is no formal documented business process at ROASIS to determine the size and shape of
the fleet; and
The relevance of the current fleet size, shape and utilization is being questioned.
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The vehicle classification codes be standardised and that all vehicle related descriptive
information be updated between the various systems;
A formal fleet size and shape review process be introduced and that this process be
synchronised with a fleet budgeting process that needs to be introduced; and
The fleet utilization management process be aligned with the fleet size and shape review
process.
Fleet Condition
The table outlines the overall fleet condition of the assessed vehicles:
Condition Percentage of Fleet
1=Very Poor 2%
2=Poor 3%
3=Average 19%
4=Good 60%
5=Very Good 17%
Grand Total 100%
The bulk of the ROASIS fleet is in a Good to Very Good condition (77%) whilst 19% is in an Average
condition. Only 5% is in a Poor to Very Poor condition.
The following bar graph illustrates the overall fleet condition:
From the fleet assessments it is clear that the ROASIS fleet is in a good technical condition with
95% above Average condition. This condition compares favourably to other municipalities in South
Africa.
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The 5% of the fleet which is below average could impact on fleet availability and service delivery.
In the absence of good fleet practice, the 5% poor fleet condition could increase over time.
Below is a further breakdown of condition by Vehicle Type:
Vehicle Type 1=Very Poor 2=Poor 3=Average 4=Good 5=Very Good Grand Total
EQUIPMENT - PUMP 1 1 2
EQUIPMENT - TLB 1 2 3
EQUIPMENT - TRACTOR 1 1 1 2 5
FIRE TRUCK 1 6 7
LDV < 1TON 1 3 1 5
LDV > 1TON 3 6 31 119 35 194
LDV DOUBLE CAB 3 3 1 7
PANELVAN / BUS 16 SEATER 1 2 3
SEDAN < 2L 1 1 2 18 8 30
SEDAN > 2L 1 1 2
TRAILER 2 1 3
TRUCK 1 6 19 4 30
TRUCK - TANKER 4 2 6
Grand Total 5 9 55 177 51 297
The current ROASIS fleet management approach is fragmented and not integrated with the satellite
offices.
Systems are not integrated with the ROASIS Venus financial systems which results in a lack of
management information, data integrity and integrated fleet operation and financial reporting.
Maintenance management systems are lacking and vehicle repair and maintenance scheduling is
absent in the municipality. This impacts negatively on service delivery due to the fact that vehicle
availability is not managed.
Recommendations
The following recommendations should be taken into consideration when compiling the 2015/16
fleet operational budget together with the fleet replacement programme:
Vehicles which are in a Very Poor to Poor condition should be rehabilitated or considered for
replacement.
It is recommend that the Venus Fleet Master be verified and updated accordingly. It then
needs to be reconciled as part of a potential phase 2 of the project.
A business processes need to be adjusted to ensure that the Venus Fleet Master is accurate at
all times and correct asset detail is always available. Preferably this needs to be reported on a
monthly basis and the Financial and Fleet Department need to co-ordinate this effort.
The Venus Fleet Master needs to be synchronised with the Wesbank fuel and maintenance
transaction records.
A business process needs to be introduced to ensure that ONLY authorised vehicles in Venus
are maintained. Currently it is clear that there is a disconnection between Venus and Wesbank
transactions.
Service Scheduling – All service intervals of vehicles needs to be recorded in a fleet
management system. All trip sheets must to be captured in Venus to keep track of vehicle
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odometer readings. This will enable ROASIS to predict vehicle service intervals and manage fleet
availability.
Regular vehicle audits must be introduced at a Satellite Office level to ensure that vehicle abuse
is managed and the known vehicle defects are recorded. The mobile technology used during
the analysis could be deployed within the ROASIS fleet function which will enable ROASIS to
continue with this business process. This should serve as a building block for future fleet audits.
Maintenance best practice needs to be introduced in order to preserve and extend the useful
asset life of the ROASIS fleet.
The current lack of an integrated maintenance management and fleet management systems
could be regarded as a strategic impairment. It is strongly recommended that an integrated
fleet maintenance management system be introduced as a matter of urgency.
The proposed fleet management integrated approach highlights the four key elements which should
be managed in an integrated manner:
People – Fleet users and drivers of ROASIS;
Fleet Operations – Scheduling fleet operations and comparing the actual use of the vehicle /
fleet unit against a scheduled operation on a daily, weekly and monthly basis;
Asset Management – Scheduling vehicle services, maintenance and repairs using a reliable
system. The management of this process is imperative to ensure optimal fleet availability and
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preserving the useful fleet asset life cycle for as long as possible.
Fleet financial management – Ensuring that the ROASIS Venus financial management
systems and finance management processes are integrated with the fleet management
processes. The effective and integrated fleet financial management process should ensure
accountability by the User Department for vehicle abuse and misuse.
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4. Organization
Findings
The current fleet structure is centred around a Head Office fleet function with its main focus being
that of the management of the Car-Pool operation. Currently the ROASIS fleet is managed by a
team of
1 Manager, 1 Assistant Manager, 2 Officers and 2 Admin Clerks and supported by a Car Wash
Supervisor, 3 Car Wash Assistants and a Driver.
This fleet staff structure is inadequate to manage 330 vehicles across all Satellite Offices due to the
following reasons:
The ROASIS fleet is operated across 7 satellite offices and the day-to-day fleet management
processes are not managed across these regions due to a lack of structure;
ROASIS fleet structure does not support the fleet management business processes required
to manage the fleet on a day-to-day basis at a satellite office;
The following organogram outlines the current ROASIS fleet structure:
Fleet Unit
Manager
Fleet Utilisation
& Maintenance
Manager
The key functions currently managed by the fleet management structure are:
Management of the ROASIS vehicle pool;
Coordination of all vehicle maintenance activities;
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Payment of suppliers for maintenance activities;
Procurement of new vehicles;
Disposal of old vehicles;
Hiring in of replacement vehicles;
Licencing of vehicle;
Payment of traffic fines;
Contract Management;
Vehicle tracking supplier management and contract meetings;
Managing Cost and Performance; and
Driver behaviour Management.
Recommendations
With regards to Fleet Staff Structure, the following is recommended:
The ROASIS fleet structure requires the deployment of Fleet Control Officers at the Satellite
offices within the regions;
The revised fleet structure should also support the execution of fleet management business
processes at the Satellite Offices;
The fleet structure should be supported by a 24/7 Fleet Risk Control Centre at the ADM Head
Office;
Fleet Control Offices should be trained and developed to support the fleet control function at
the Satellite Offices within the region.
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The following diagram outlines the proposed Fleet Management structure:
eet Utilisation
Fl aintenan &
M ce
Manager
Risk C Carwash
Fleet ontrol
Admin Clerk(7) Financial Clerk Fleet Admin Clerk Fleet Admin Clerk
Centre Supervisor
Page 1
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5. Managing Vehicle Abuse
Findings
The current ROASIS Vehicle Abuse Management could be improved and should be integrated with
the other ROASIS business processes.
The tracking vehicle technology deployed at ROASIS has the capability to report and deal with
vehicle abuse.
The system has the capability to report driver behavior on the following driving aspects:
o Harsh Braking
o Harsh Acceleration
o Speeding
o Over-revving
The process to manage driver behavior is fragmented. The Legal Department from the Office of
the Municipal Manager informs the ROASIS fleet department to conduct driver misconduct
investigations.
Abuse management mechanisms and processes that have been identified as lacking:
o No monthly consolidated reporting on vehicle abuse;
o Vehicle abuse management information is available but reporting is lacking;
o Tracking system is not optimally configured and utilized in this regard; and
o Actual vehicle abuse not measured against pre-set norms and drivers scoring.
Recommendations
The corrective actions are recommended to minimize vehicle abuse:
The tracking system should be integrated into the ROASIS fleet management processes;
Driver behavior monitoring should be incorporated into the ROASIS Fleet Department which, in
turn, must be managed by the proposed ROASIS Fleet Risk Control Centre.
Vehicle abuse management mechanisms and processes to be introduced;
Monthly consolidated reporting on vehicle abuse;
Vehicle abuse management processes to be introduced;
Vehicle abuse management information to be extracted and integrated with management
processes;
Current tracking system to be reconfigured and optimally utilized in this regard;
Reports per driver to be produced;
Preset norms and drivers scoring mechanisms to be introduced; and
“Driver of the month” and “Driver of the year” recognition systems to be introduced.
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6. Managing Vehicle Mis-use and Utilizations
Findings
The assessment of the current ROASIS vehicle utilization and misappropriation of business practices
highlighted the following:
Current utilization management mechanisms and processes are not being optimally utilised:
No monthly consolidated reporting on vehicle utilization is done;
Operating budget process are not linked to utilization;
Trip authorization process is not being followed through;
Utilization management information is not being communicated effectively;
Current ROASIS Venus Financial System is not optimally integrated and utilized;
Actual utilization is not measured against scheduled utilization; and
Vehicle misuse is not currently detected and reported.
Recommendations
Mis-use management mechanisms and processes are to be introduced:
Monthly consolidated reporting on vehicle utilization to be introduced;
Operating budget process to be linked to utilization and business processed to be introduced;
Trip authorization processes to be revised and implemented;
Post-trip printouts of trip tracking information to be signed off by the driver, RFO and
departmental head.
Utilization management reporting systems to be implemented;
ROASIS Venus Financial System to be utilized for trip sheet capturing and should be configured
for vehicle utilization management;
Business process to be introduced to measure actual utilization against scheduled utilization;
and
A centralized forum to be introduced to deal with vehicle mis-use issues.
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Findings
In summary, the following has been established:
Fleet cost could be considered as reasonable with an estimated 3% overall running cost above
the norm.
Fleet cost information on a month-to-month basis cannot be used for analysis purposes.
There are more consistency in the cost information provided by the bank system;
The bank system reports on odometer readings per transaction whilst the system does not;
The bank system does not report on operating hours per machine unit for plant and generators
which represent 15% of the total fleet cost. No analysis on costs of these fleet types could be
performed;
In addition, plant and generator fuel consumption could not be analyzed due to hour meters
readings not being recorded in the system;
Engineering, Budget & Treasury, Generators, Health and Protection Services makes up 93% of
the total fleet cost;
Currently there is no formal documented system and process for reporting fleet cost;
The fleet transactions in Venus do not incorporate any odometer or hour meter readings to
facilitated vehicle utilization analysis.
Recommendations
Vehicle fixed and variable costs should be recorded in one system at the vehicle registration /
fleet number level;
Monthly fleet cost analysis reporting should be developed and introduced;
Truck running cost should be investigated as it is estimated as 30% above the industry norm;
Fleet cost should be allocated to the correct period in the Venus financial system;
Fleet cost in the Venus financial system should be reconciled with the fleet cost and a business
process should be introduced in this regard;
A fleet management systems should be introduced in order to assist with the accurate
recording and reporting on fleet and related cost together with fleet utilization information
(Operating Hours and Kilometers );
Vehicle life cycle cost recording and reports should be introduced through a fleet management
system in order to guide the ROASIS vehicle replacement and disposal decisions;
A formal fleet budgeting process should be introduced. This budgeting process should be
based on planned fleet unit utilization;
Fleet utilization budget plans should be driven by the demand for fleet in the annual service
delivery plans;
The fleet budget should be based on planned kilometers travelled for sedans, LDV’s and Trucks
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and in the case of the Yellow plant it should be based on operating hours;
The anticipated vehicle maintenance services should be scheduled, costed and incorporated
into the fleet budget;
Ad Hoc vehicle repairs should be budgeted for separately;
Fleet budgets should be compiled per functional user group;
Venus should be configured to incorporated fleet budgets per user department;
Monthly expenditure reports reflecting actual performance against budgeted performance
should be produced and distributed to the ROASIS fleet department, functional departmental
heads and Satellite senior management structures;
Fleet Cost and Utilizations budgets should be signed off by the user departments to ensure
responsibility and accountability for fleet utilization, vehicle mis-use, vehicle abuse and fleet
costs;
Accurate fleet cost performance reports should be circulated on a monthly basis be user
department per region. These mentioned reports should include a minimum of total variable
and fixed cost per kilometer or operating hours per fleet units per month; and
Vehicles which is in a Very Poor conditions incurred no fleet cost and should be disposed as
soon as possible.
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8. Fleet Utilizations
Vehicle Utilizations
The following section outlines the ROASIS fleet Utilization. Utilization of vehicle and equipment was
assessed using the latest odometer readings on the vehicle cost data.
This table depicts total kilometers driven by vehicle category per month. This excludes all types of
equipment for which utilization is measured by operating hour.
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9. Fleet Administration
Findings
No files per vehicle is kept.
Only spare keys and vehicle papers are kept by the Fleet Department.
Recommendations
Fleet administration should be centralized and information shared and generated by the RFO.
A fleet management system needs to be introduced which should serve as a centralized data base
of all fleet and related administration. The following functional aspects needs to be recorded on
this system:
Fleet register
Vehicle audit information
Known vehicle defects
Fuel consumption norm and actual fuel consumption
Accidents, which includes formal investigation, report and corrective action taken
Insurance claims
Traffic fines
Incidents
Vehicle technical specifications
Vehicle utilizations
Planned / scheduled services
Driver licensed details and renewal dates
Driver permit details and renewal dates, i.e. PODs, medicals where applicable
Vehicle licensed details and renewal dates
Special permits and requirements, e.g. access permits
Authorized suppliers
Warranties on vehicles and maintenance work done
Supplier invoices for maintenance done
Tyre brand numbers
Tyre replacement per vehicle per position on vehicle
Technical details of an auxiliary equipment fitted to the vehicle and inspection dates, i.e. fire
extinguishers, PTOs, etc.
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10. Fleet Management Business Process Maturity Assessment
The following section summarizes the evaluation performed of the maturity of the ROASIS fleet
management business processes.
For each standard fleet management process the table below indicates whether it is applicable to
ROASIS, the current maturity level of the execution thereof and comments.
Note that execution level is rated between 1 and 10, where 1 is very poor and 10 is excellent.
Fleet Asset Procurement & Yes 2 It is our opinion that the current
Capital Budgeting Process process is driven from a historical
and financial management
perspective only.
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Process Applicable Execution Level Comments
(1-10)
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Process Applicable Execution Level Comments
(1-10)
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Process Applicable Execution Level Comments
(1-10)
4 Tyre Management
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Process Applicable Execution Level Comments
(1-10)
Monthly Fleet Cost Analysis Yes 1 No fleet cost reports are available
Process expect for which reports on fleet
variable costs only.
No visibility of total cost of
ownership costs which is inclusive
of fixed and variable costs.
Fleet Policy & Procedure Yes 1 A regular fleet policy review and
Amendment Process amendment process needs to be
introduced.
8 Pool Vehicles
8.1 Vehicle Pool & External Yes 8 Pool vehicle management agent
Hiring of Vehicles process is in place.
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11. Operations Control Processes
11.1. Findings
Trip Authorities
Information required to complete a Trip Authorities is open for operators to manipulate the system.
This approach needs to be precise to the area of operation for each foreman and it should be town
or location specific.
A unique identification system for vehicles should be introduced as per the satellite office they are
allocated to. This will assist Senior Managers in the satellite office to control and react timeously
when they see their vehicle outside their jurisdiction.
Accidents
Satellite offices need to be given the mandate to investigate locally occurred accidents and should
not have to rely on officials from Head Office to come and do the investigation. The delay in waiting
for the Head Office officials may have a negative impact on the investigation as evidence can be lost
due the delays.
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12. Fleet Systems and Technology
Findings
A high level investigation into the fleet systems currently used by ROASIS concluded that:
Vehicle Tracking
The vehicle tracking system is currently implemented on the ADM vehicles. Two support
technicians are on-site to support the system.
The Netstar system is not widely used and training is required to enable the Satellite Office
Management to use the system.
Recommendations
It is highly recommended that ROASIS develop an integrated fleet management systems approach
that will integrate the current Venus financial system with other fleet management systems and
technologies to support the fleet management strategy of the ROASIS.
The integrated fleet management system must deliver on the following:
o A consolidated fleet master which is visible to all at all times.
o Must be real time updated so that everyone can see the latest information.
o Must have a service schedule plan for each vehicle.
o Must be able to monitor and report on the service schedule on a weekly, monthly and
annual basis.
o Must have one schedule of all the ROASIS’s vehicle’s licenses renewal dates.
o Must have a formal accident reporting process in place.
o Must have an improved service management strategy.
Training is required for all staff members to ensure the uptake of fleet reporting.
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Recommendation - Centralised Fleet Control
Fleet Risk Operations Control Centre
It is recommended that a Fleet Risk Operations Control Centre to be established for ROASIS.
A fleet risk operations control centre is a physical location which is has 24/7 fleet risk and operations
control through centralized fleet management systems which include the following:
Vehicle movement monitoring through tracking
Maintenance management
Asset management
Fuel management
Etc.
The FROCC would typically be depicted as follows. A customized FROCC model needs to be
designed for ROASIS:
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13. Business Processes and Practices – Management Interviews
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.
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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.
5. Could they take informed decisions on the All fleet related issues are handled by Head
level of fleet reporting? Office.
6. Is their fleet cost in line with budget and Currently all fleet budget issues are still
industry norms? handled by Head Office.
7. Is the fleet management structure adequate Not as yet, a fleet office is required.
to address the fleet needs, management and
control?
8. How do they measure and manage trip Not measured.
sheets?
9. Are the trip sheets recorded and do they Manual filing.
receive a monthly report?
10. Are there driver briefing and de-briefing No.
procedures?
11. Are there pre and post trip vehicle No.
inspections?
12. Are the vehicles assessed on a regular basis Not done, but planned to be done monthly.
and do they receive reports in this regard?
13. Is there a need to discuss fleet management Yes, there is a need. A fleet item is going to
and fleet operational issues on a structured be included in the monthly meetings with
forum? staff.
14. Do you partake in the fleet budgeting Not participating currently.
process?
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Questions Summary of Responses
15. Is their service delivery budgets translated Currently centralized in departments.
into fleet budgets?
16. Is the current fleet budget adequate? Currently centralized to departments
17. Licenses administration - do you have a Currently not done, the driver reports on
record of valid driver licences and expiry dates expired vehicle license disk.
and a notification process of when which
driver licenses is to be revenue (inclusive of
PRDP’s)?
18. Do they have the same for vehicle licenses? Same as above.
19. Are all vehicles scheduled for maintenance Drivers inform the engineering department
and do they have a prediction of when which when service is due and they’ll send a mail
vehicle needs to be serviced? 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 No.
the CPK basis and do they have it from
“cradle to grave” for the vehicle?
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 Currently handled by head office.
violations?
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 ADM Policy stipulates what action to be
is there a formal investigation? taken.
27. Vehicle license renewal – who notifies and Drivers advise Supervisor and head office.
renews the license?
28. Do they have a copy of vehicle insurance Currently handled by head office.
schedules and is it up to date?
29. Is fuel consumption measured in L/100 km No.
and measured against a norm?
30. Is fuel consumption measured in L/hour for No.
equipment and measured against the norm?
31. Are trip sheets filled in and captured on the No.
Venus computer systems?
32. Is monthly utilization actual vehicle utilization No planning is done.
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Questions Summary of Responses
compared to scheduled vehicle utilisation
against the norm?
33. Do they have access to tracking information The system is available and is in the process
and is it useful? of being implemented. User access is
currently in the process of being
implemented.
34. Do they have access to driver behaviour No. Same as above.
information from the tracking system (Harsh
Braking, Harsh Acceleration, Over Speeding,
Excessive Idling and Out of Green band
driving)?
35. Are drivers scored for their individual No.
performances on a monthly basis?
36. Are rogue drivers identified and provided with No
corrective training?
37. Is a monthly fleet report compiled and No.
submitted to senior management?
38. Is there a need to improve fleet performance Latest vehicle selection for the new buy
and why? does not accommodate operational
requirements and contradicts ADM Policy.
Single cab LDVs were bought instead of
double cab LDVs and the ROASIS 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 Latest vehicle selection for the new buy
perspective? does not accommodate operational
requirements and contradicts ROASIS
Policy.
Replacement policy to be reviewed.
Access to tracking system, maintenance
policy to be reviewed.
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The Head Office function should take centralized 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 centralized and adequate reports should be distributed
to the regions.
The current tracking system should be centralized at head office with visibility at a satellite
level.
The current 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 behavior 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 kilometer.
Fleet budget should be initiated at a satellite level and consolidated into a centralized 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 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 practice through a SAQA approved institution.
Service level agreements with currents fleet service provides needs to be reviewed.
Practices 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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14. Essential Vehicle User Scheme (EVUS)
The following section outlines the assessment of the ADM Subsidized Motor Vehicles Scheme for
Essential Users, which is commonly referred to as the “Essential Vehicle User Scheme” (EVUS).
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EVUS Cost Levels Post Implementation
The period from December 2013 to November 2014 was assessed (12 months).
A total of # 140.4m was paid out in claims based on # 85.8 per kilometer.
A total of #25,142,000 was paid out in fixed cost.
Total cost benefit of the scheme if compared to the situation if ADM had to procure the vehicles on
an FML basis is #2,438,800 to the benefit of ROASIS.
Cost Norms In the policy, mention is made of the DOT cost parameters
which is applied.
It is unclear as to which cost reimbursements cost reward
levels are applicable – SARS or DOT.
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ANNEXURE A: Fleet Management Strategy Implementation
Plan
ANNEXURE B – List of Assessed vehicle with condition
ANNEXURE C – Vehicles with Transactions not
Assessed
ANNEXURE D– CPK Repairs & Maintenance per Vehicle
ANNEXURE E – Fuel litre per 100km per vehicle