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ROASIS FLEET STRATEGY

Fleet Management Strategy

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

EVUS Cost Levels Post Implementation 47


ANNEXURE A: Fleet Management Strategy Implementation Plan 48
ANNEXURE B – List of Assessed vehicle with condition 49
ANNEXURE C – Vehicles with Wesbank Transactions not Assessed 50
ANNEXURE D– CPK Repairs & Maintenance per Vehicle 51
ANNEXURE E – Fuel litre per 100km per vehicle 52

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Fleet Management Strategy

1. Approach and Methodology


The following key elements were considered:
 ROASIS fleet related financial and operational source information;
 Structured interviews were conducted with the key role players and a formalised view of the
current ROASIS fleet management situation and practices were established and considered;
 The ROASIS fleet was physically inspected and the overall condition established;
 All relevant and available documentation was reviewed within the allocated timeframe;
 Project Steering Committee Meetings were conducted and input was obtained from
management; and
 Structured workshops and interviews were conducted with the ROASIS fleet management
department.

The following diagram outlines the fleet improvement methodology that was applied:

The diagram above outlines action steps during Phase 1:


 Project mobilisation;

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Fleet Management Strategy

 Assessment and measurement of the fleet function;


 An optimised solution was envisioned and agreed upon; and
 Strategy design and planning.

This report is the final deliverable of Phase 1.


Phase 2 will deal with strategy implementation and does not form part of this project phase.
The key activities during this phase includes:
 Assistance with implementation; and
 Progress review and assistance with implementation.

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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

3. Situational Analysis Key Findings - Assets

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.

Size and Shape of the Assessed Fleet


The pie graph below outlines the fleet configuration of the assessed vehicles:

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Fleet Management Strategy

The following table provides a breakdown by vehicle type:

Vehicle Type Quantity


LDV > 1TON 194
SEDAN < 2L 30
TRUCK 30
LDV DOUBLE CAB 7
FIRE TRUCK 7
TRUCK - TANKER 6
EQUIPMENT - TRACTOR 5
LDV < 1TON 5
TRAILER 3
PANELVAN / BUS 16 SEATER 3
EQUIPMENT - TLB 3
SEDAN > 2L 2
EQUIPMENT - PUMP 2
Grand Total 297

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.

Fleet Size – Key Findings


There is a discrepancy in the ROASIS Fleet Size reported the following table indicates the various data
sources and number of fleet units reported:
 ROASIS Tender Document 8/2/20/2014-2015C = 330 fleet units;
 ROASIS Venus Financial Systems = 409 fleet units; and
 Wesbank System (Maintenance reporting & fuel) = 388 fleet units.

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.

Fleet Size – Key Recommendations


It is recommended that:
 The Venus financial systems be updated with the actual ROASIS fleet master and that it be
used as the master data file for vehicles, plant and equipment;
 The Wesbank and Netstar Vehicle tracking system be updated with the Venus vehicle master
data;
 Business process be implemented to ensure synchronisation of the various vehicle databases;

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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.

Proposed ADM Fleet Management Integrated Approach


The diagram below outlines the proposed ROASIS Integrated Fleet Management Approach :

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.

These four key elements should be supported by:

 Fleet Management Systems;


 A Fleet Management Staff Structure; and
 Fleet Management processes, procedures and policies.

The fleet management systems currently deployed by ROASIS are:


 Fuel Management – fuel card system;
 Vehicle tracking and driver behaviour monitoring – vehicle tracking system;
 Fleet maintenance management system – maintenance transaction authorisation
services and electronic card payment system;
 Fleet operation control systems – vehicle tracking supported with route optimisation; and
The fleet management systems currently deployed by ROASIS should be integrated with the ROASIS
fleet management business processes.
There is also a requirement for continuous vehicle auditing, scheduled inspections and defect
recording with monitored repairs being conducted;
Fleet user training is also lacking.
It can be concluded that an integrated fleet management approach should be adopted and instilled
within ROASIS.

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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

Fleet Compliance Fleet Admin


Officer Officer

Carwash Fleet Admin Fleet Admin


Driver
Supervisor Clerk Clerk

General Assistant General Assistant General Assistant

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:

ROASIS – PROPOSED FLEET MANAGEMENT


STRUCTURE
,

Senior Manager (7) Fleet Unit Manager

eet Utilisation
Fl aintenan &
M ce
Manager

Satellite Fle Comp et Fina eet Admi


et Fleet liance Fle ncial Fl n
Officer(7) Officer Officer Officer

Risk C Carwash
Fleet ontrol
Admin Clerk(7) Financial Clerk Fleet Admin Clerk Fleet Admin Clerk
Centre Supervisor

General Assistants General Assistants General Assistants Driver

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Summary of staff structure related recommendations:


 The introduction of 7 Satellite Fleet Officers (RFO);
 The RFO’s need to be supported by Fleet Administration Clerks;
 A Fleet Risk Control Officer (RCO) needs to be introduced at Head Office and needs to report to
the current Fleet Compliance Officer;
 A Fleet Financial Officer needs to be introduced and should assume overall control for the
production of daily, weekly and monthly fleet management reports;
Fleet management processes, procedures and policy administration should be standardized and
integrated with the revised fleet management structure;
Job descriptions and performance management systems should be developed for each position.
This needs to be translated into Win-Win performance management agreements.
A training strategy must be developed and implemented to ensure that the ROASIS fleet function is
adequately skilled and operating at high levels of efficiency.

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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.

From the table the following observations could be made:


 A total of 3,4 mil kilometers were driven by all vehicles for a period of 6 months; and
 The estimated annual distance travelled for the ROASIS is 6.8 million kms.

Key Findings Vehicle Utilization


The following key observations could be made:
 Vehicle utilization should be evaluated against pre-budgeted kilometres and operating hours;
and
 Service delivery plans by user departments should inform fleet utilisation in terms of kilometres
and operating hours.

Key Recommendations – Vehicle Utilizations


 Business processes should be introduced to manage vehicle utilization;
 Vehicle utilization should be the responsibility of the functional user departments; and
 Functional heads of user departments should be evaluated against conformance to fleet
budgets.

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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.

Process Applicable Execution Level Comments


(1-10)

Fleet Asset Management

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.

Fleet Asset Take-on Process Yes 1 There is no current business


management process to ensure
data integrity in this regard.

Asset Disposal Process Yes 7 There are assets on the ROASIS


fleet which needs to be disposed
of.
The condition of these fleet
assets are poor, and no fuel or
maintenance transactions are
visible for these vehicles.
Annual Licensing Process Yes 8 All vehicles which were assessed
had valid licenses. Vehicle
licenses renewal should be
controlled from a central point. A
fleet management system should
enable early warning on license
expiry dates.

FML/Hire Contract Yes 1 There are no systems in place to


Management manage the hiring in of vehicles.
The ROASIS fleet department
does not have oversight in this
regard.

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Process Applicable Execution Level Comments
(1-10)

Fuel Management Yes

Bulk Fuel Purchasing Yes 1 Bulk fuel is procured for


generators and plant units. Fuel
consumption for these vehicles
are not determined accurately.

Fuel Dispensing from Yes 1 Limited centralized records are


Bowsers available to determine the exact
liters of fuel that were dispensed
to the plant units.

Fuel Stock Control and Yes 1 No system in place.


Reconciliation

External Fuel Purchases Yes 7 It is assumed that accurate liters


and odometers are recorded
Only monthly summarized reports
from the system were made
available for analysis.
Detailed fuel transactions should
be available from the system as
and when required.

Monthly Fuel Management Yes 8 Fuel consumption reports for


Reports vehicles are available from the
system.
Operating hours are not recorded
for plant units and equipment and
therefore accurate fuel
consumption in liters per hour is
not possible.

Fuel Management System Yes 9 The current fuel management


Requirements - Policy system should be extended to
incorporate plant units and
equipment e.g. generators.
Fuel consumption reports should
be generated per user
department, and thus making

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Process Applicable Execution Level Comments
(1-10)

functional managers accountable.

Vehicle & Driver Operations

Driver Code of Practice Yes 10 ROASIS has a code of driver


good practices.

Trip Authorisation and Yes 7 Trip Authorizations and Vehicle


Vehicle Inspections Process Inspections are executed only for
pool vehicles.
This process should be extended
to all vehicles deployed at
ROASIS and should be inclusive
of hired vehicles.

Vehicle Utilisation Yes 4 Vehicle utilization management


Management Process process could be improved.
Special attention should be
applied to authorization of trip
and post trip control.

Accident Management Yes 10 Process in place.


Process

Fines Administration Process Yes 10 Process in place.

Monthly Driver Licence Yes 8 Process could be controlled


Renewal Process centrally.

Driver performance Yes 5 Driver scoring and performance


management and training training processes are not in
process place.

Vehicle Monitoring Process Yes 5 tracking system is in place but


(Vehicle tracking) not utilized for pre and post trip
briefing.
Limited utilization of the
information which gets generated
by the tracking system.

Control System Contract Yes 5 No visible performance contract


Management management system with system
providers in place.

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Process Applicable Execution Level Comments
(1-10)

4 Tyre Management

New Vehicle Tyre Take-on Yes 1 transaction processing, cost


Process recording and approval system
in place. No tyre management
process in place.

Tyre Inspection Process Yes 1 Pre and post trip inspection by


driver. This is, however, not
controlled.

Workshop Management Yes Although ROASIS does not


have its own maintenance
workshops, it is important to
manage the maintenance
service providers.

Process Yes 4 All maintenance work gets pre-


authorized.

Warranty management Yes 6 All warranties on vehicles and


related work done on the asset
should be managed through a
centralized system.

Internal Job Process Yes 4 Maintenance work is executed


through external maintenance
service providers. Processes to
manage quality, service
turnaround times and price is
limited needs to be implemented.

Planned Maintenance Yes

Service Take-on Process Yes 1 Vehicle services are not centrally


scheduled.

Weekly Service Planning Yes 1 Services are not planned


Process centrally.

Maintenance Contracts Yes 1 Process needs to be introduced.


Management

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Process Applicable Execution Level Comments
(1-10)

Management, Financial & Yes


Budgeting

Fleet Operational Budgeting Yes 1 Process not in place and should


Process be driven from an operational
point of view.

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.

Fleet Card System


 A card system is utilized for all Fuel and Repairs costs. Costs are recorded per unique
registration number.

Venus Financial System


 The Venus Fleet Management module is available. The functionality of the module is not
extensively utilized.
 Serious integrity issues with the fleet transactions need to be addressed.
 Fleet reporting is currently very limited, although the current ROASIS Venus financial system
has the capability to produce fleet reports.

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

Findings of Management Interviews


Background
Structured interviews were conducted by a 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.

Findings for Head Office Interviews


 The Engineering Department owns the majority of the fleet of ROASIS. 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 ROASIS 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 ROASIS 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

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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.

Summary of Responses from Area Management

Questions Summary of Responses


1. Fleet adequacy for service delivery – (size and The size is adequate
composition)
2. Fleet availability and reliability – what are the The fleet is available but not in good
current levels and is it adequate? standing.
3. Current control mechanisms regarding vehicle Only Trip Authority no access to the system.
abuse and mis-use and is it adequate?
4. Do they receive cost fleet reports (daily, No, handled by East London. Regular fleet
weekly and monthly)? reports are required to manage the fleet.

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.

From the assessment it is clear that:


 The fleet management function at ROASIS 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 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).

Background and Description of the EVUS


It is our understanding that the EVUS was introduced with the aim to supplement the current
ROASIS fleet and reduce the fleet operational risk whilst improving the overall mobility of ROASIS
employees in the execution of their duties.
The EVUS has the following key attributes:
 Mobility of employees should be improved;
 Fleet operational risk should be minimized;
 Qualifying EVUS participants takes full financial accountability for the vehicles and the related
financial obligations;
 Travelling should be an integral part of the duties of the participant;
 ADM subsidies the vehicle installments by 70% and the participant 30%;
 The vehicle is to be used 70% or more for business purposes and a maximum of 30% for
private purposes;
 The minimum contract period is 32 months and the maximum period 48 months;
 The vehicle is contracted for 200 000 kms over the full contract period;
 Maintenance and insurance is paid by the participant;
 The participant is reimbursed for actual business mileage travelled on a monthly basis
according to a per kilometer rate as determined by the National Department of Transport;
 The intention of the abovementioned is to reimburse the participant for:
o Fuel;
o Wear and tear;
o Maintenance & repair;
o Insurance; and
o Tracking devices.
 Vehicle types for non-scarce skills participants:
o Sedans with 1800 engine capacity;
o LDV’s a maximum of 2500 engine capacity;
 Vehicle types for scarce skills category participants :
o Sedans with a 2000 engine capacity;
o LDV’s with a 3000 engine capacity;

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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.

Potential risk and consideration of the EVUS


The following table illustrates the relevant risk elements and implications to the ADM EVUS
programmed:

Key Risk Element Risk Consideration

Administration Administrative intensive.


The ratio private to business kilometers could be open to
abuse.
Inaccurate odometer readings and travel claims could be
submitted and approved.

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.

Capping of capital 70% of the capital installment is reimbursed to the


expenditure participants.
The capital expenditure is not capped and it is quite
possible to buy a very expensive vehicle;
This could be aggravated by the fact that the effectiveness
of the EVUS is not tested on a monthly basis.

Kilometers Control Relevant, accurate and time-outs travel kilometers is


required.
Electronic devices should be able to supply accurate travel
information which will enable the participant to report on
private and business travel and kilometer expense claim.
Accurate distance travelled information should be recorded
electronically and classified accordingly.

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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

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