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Roles AND Responsibilities: R O M R D O R D A (DOA) R G ' E O S L R F G
Roles AND Responsibilities: R O M R D O R D A (DOA) R G ' E O S L R F G
CHAPTER 4
FLEET MANAGEMENT
Table of Contents
Chapter 4 4-1
January 7, 2016 MAINTENANCE MANUAL Fleet Management
TABLE OF FIGURES:
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4-1.0 INTRODUCTION
Fleet Management is not simply about operating the equipment and keeping it
working. Fleet Management is very wide in scope and includes the full circle of justification,
specification, acquisition, assignment, scheduling, utilization, and disposal.
As of 2012, MnDOT has about 11,000 equipment units in the fleet, valued at
nearly $255 million. About 3100 of the units are licensed as road vehicles. MnDOT expends
over $14 million annually on equipment maintenance and repair and invests about $14 million
each year on new purchases.
MnDOT employees are charged with the safe operation, proper maintenance and
efficient use of all equipment they operate. Operating equipment requires continuous learning,
both on the job and at special training courses offered by the Department. Operators are
required to know and understand all laws, regulations, and policies pertaining to the operation
of MnDOT equipment, especially those related to safety.
The Equipment Section of the Office of Maintenance has the general overall fleet
management responsibility of administering, acquiring, issuing, and repairing equipment. A
substantial part of Department funds are used to purchase and operate this equipment, which
necessitates economical administration.
All equipment operating out of the Central Office is under the maintenance control
of the Central Shop. All other units are under the direct maintenance control of the Districts and
Maintenance Areas in which they are operating, either on temporary or permanent assignment.
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The Office of Maintenance is organized into sections in order to carry out its
responsibilities. The following is a list of those sections:
Building Services
Fleet Management
Financial and Support Services
Maintenance Operations, Research and Training
Most day-to-day operations are managed at the district level, including highway
construction project development & administration, as well as maintenance of existing state
highways.
To carry out the operations, each district is provided with a fleet of equipment. In
fact, the vast majority of MnDOT’s total fleet is assigned directly to the districts. Each district is
responsible for the maintenance of the equipment.
Several offices of the Central Office also have significant numbers of equipment
assigned to them, including the Offices of Materials, Maintenance, Administration (Central
Office Motor Pool), Electrical Services, etc. These offices receive preventive maintenance and
repair service from the Equipment Section of the Office of Maintenance.
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All advertisement of bids for MnDOT equipment purchases, which are processed
through the Materials Management Division of DOA.
Oversight of the Asset Works M5 Equipment Management System used by MnDOT as
well as being a standard for other major State Agencies.
Disposing of surplus equipment through the State Auctions, administered by
Fleet and Surplus Services of DOA.
Liability and accident insurance for MnDOT’s fleet, provided by the Risk Management
Division of DOA.
State statute can influence fleet composition. One such example is Minnesota
Statutes, Section 16C.137, which states that all agencies, using 2005 as a base, shall reduce
the usage of gasoline by 25% by 2010 and by 50% by 2015. Additionally petroleum diesel
usage shall be reduced by 10% by 2010 and 25% by 2015. This program drives the effort to
purchase alternative, cleaner fuel vehicles and purchase high efficiency vehicles that exceed
30 mpg/city or 35 mpg/hwy. It promotes the use of alternative fuels such as ethanol, biodiesel
and hydrogen from agricultural products as well as promoting the greater use of electronic
information technologies to reduce Agency reliance on fleets to deliver products and services.
A motor vehicle with greater than 26,000 pounds gross vehicle weight rating (GVWR).
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A combination of motor vehicles greater than 26,000 pound GVWR inclusive of a towed
unit with a GVWR of greater than 10,000 pounds.
A vehicle designed to transport 16 or more passengers, including the driver.
Any vehicle used to transport hazardous materials. For MnDOT, this includes, among
other equipment, all snow plow trucks.
All MnDOT operators of CMVs are governed in part by the FMCSR regulations.
This includes Commercial Driver’s License (CDL) requirements, random drug testing, Pre-Trip
and Post-Trip daily inspections, training session attendance, etc. Class A licenses are required
to operate truck/trailer combinations. Class B licenses are required for single units and trailers
under 10,000 pounds GVWR.
All MnDOT operators of CMVs must learn and know about federal as well as
state laws, regulations, and policies and must stay current with the FMCSA regulations.
Based on the current 2012-2015 Highway Systems Operation Plan, There are
several key performance measures with set targets that operating units within MnDOT are
monitored and measured against. The following are the performance measures:
While they are listed as individual goals, they are all related. Making progress
toward meeting one goal may affect the progress in meeting another. For example, increasing
average Utilization may reduce Fleet Size. If reducing Fleet Size leads to surplusing units
rather than replacing them, Life Cycle is enhanced. Increasing Scheduled Maintenance may
reduce downtime and permit lower Fleet Size. Effectively monitoring and scrutinizing high cost
add-on features may free up equipment investment funds to improve Units within Life Cycle.
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The goals are set by management as attainable targets to strive for. Districts or
Offices can be compared against similar Districts or Offices. As a continuous improvement
strategy, when Districts and Offices apply creative and progressive measures and achieve the
assigned targets, the “bar is raised” and targets may be adjusted. As times change, so do
targets.
District Engineers and Office Directors need to understand that for a fleet
manager to be successful in managing its fleet against these performance goals, the engineers
and directors needs the entire organization, in particular the operators of equipment and their
supervisors, to work together in concert to reach the targets.
Minimum utilization targets have been set for selected classes of equipment.
Examples include:
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The Operations Performance Measure of Fleet Size does not have a goal or
target per se. Instead, it is comparing the number of units, perhaps by class, of one District
or Office compared to a similar District or Office. It can be used in comparing the number of
units per mile or per unit of work performed from one organization to another.
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This measure is intended to compare the portion of the work done in repair shops
that is considered preventive maintenance, inspection or modification as opposed to
reactionary, operator reported or breakdown maintenance or repair. When a vehicle is down,
not available for service, the organization has lost the use of that item which results in less
efficient operations. When this down time is unscheduled maintenance an entire crew and job
could be idled.
Targets have been set on the percentage of total shop work that should be
preventive rather than reactionary maintenance.
Districts and Offices should base all decisions on purchasing a 4WD vehicle on a
need/benefit/cost analysis i.e., the vehicle’s intended application against its higher annual
ownership costs.
Districts and Offices that currently have high numbers of 4WD vehicles should re-
evaluate past decisions and justifications for existing 4WD units. Do not automatically assume
that future replacements of 4WD vehicles must be 4WD. Follow MnDOT Guidelines: Four-
Wheel Drive (4WD) Vehicles and the questions listed in Four Wheel Drive Considerations.
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budgeting, acquisition, in-service, maintenance schedules, repair history, fuel, lifecycle and
disposal.
In addition, M5 tracks work flow in the mechanical shops and work order costing
including labor, parts, and commercial charges. MnDOT’s motor pool locations can use M5 for
tracking motor pool units.
Economic life, the length of time over which the average total unit cost is the lowest.
Technological life, the length of time before it is considered obsolete and no longer
efficient or effective given new technology currently available.
Service life, the length of time before the unit is no longer able to perform (because it
is simply worn out) or is no longer serviceable (because of unavailability of
replacement parts).
It should be noted however that life cycle cost analysis applies best to equipment
whose replacement cycle is governed mostly by economic life.
In the case of economic life, several cost factors need to be taken into
consideration when determining whether to buy vs. lease vs. rent, purchase new vs. used,
whether to keep the unit another year or replace it, etc. There are two basic types of costs
associated with a fleet operation. Those are Ownership Costs and Operating Costs. Ownership
costs are those costs which are incurred by simply owning the piece of equipment, whether the
unit is utilized or not. Operating costs are incurred through the use of the equipment. Examples
of those two types of costs are listed below:
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Remarketing Downtime
Shop Labor Storage
Operator Training Parts Inventory
Field Labor Obsolescence
Value of Money
During the life of the unit, these costs vary; some will increase with time,
some will remain level and others will decline. Together, they comprise the total cost of
the unit.
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all times, personal liability for traffic violations and fines, etc. The Minnesota Driver's
Manual explains the safety rules and state laws you need to follow in order to drive
safely and legally in Minnesota.
Any person towing a trailer behind a State vehicle must read and comply
with the guidelines outlined in the pamphlet entitled “Fleet Safety Standards for Towing
Trailers”, published by the Risk Management Division of DOA.
MnDOT’s Warning Light guidance requires that at least one approved light
be visible 360 degrees from a 60 foot radius around the unit.
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out his work (like a Field Mechanic) or when the assigned vehicle will meet minimum
daily business usage needs per year or portion of a year.
Regular inspections will provide a safe vehicle for the operator and others
in the travel or work area. When inspections are properly performed, equipment
downtime will be decreased and cost of maintaining the vehicle will be lowered.
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what procedures are to be followed. A copy of this book should be available in the cab
of every CMV.
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The CVI can only be performed by trained, certified mechanics. The forms
used must be approved by the Minnesota State Patrol who also issues the Inspection
Decals.
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NTREC (New Technology, Research and Equipment Committee), if the total cost is
greater than $15,000, or by MOR (Maintenance Operations Research), if the total cost is
less than $15,000.
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The annual equipment budget specifies the amount of money available for
the purchase of equipment each year. The Fleet Manager, after receiving
recommendations from the maintenance areas, is responsible for the preparation
of specifications and requisitioning of all equipment for purchase. After the
requisitions have received the proper administrative approval, they are forwarded
to the Equipment Section for purchase and delivery. Delivery is made to the
destination specified in the requisition. At that point, the newly purchased
equipment is inspected by the Shop Supervisor, or his delegate, to check its
condition and compliance with the specifications and is accepted or rejected for
use by the Department.
4-8.04 MODIFICATIONS/BETTERMENTS
Modifications are any changes to the equipment.
Betterments are an improvement that is not merely a repair but that also
adds to the value of real property. The key is that it has to add value to the original unit.
An example would be adding a lift gate to a pickup truck.
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Liability - what are the liability implications? For example, who pays for damaged
or lost equipment?
Accountability – how can we ensure MnDOT gets the results it is paying for?
MnDOT has undertaken efforts to establish “master” partnership agreements with local
governments, making it easier to receive compensation for routine services provided by
districts, without committing the time and resources necessary to prepare an agreement
specific to each type of service.
A Microsoft Outlook Vehicle In Service Form and the Unit Items Form is
filled out at the point of delivery at the time the new unit is initially delivered. Contact
Shop Supervisor for these forms.
The MnDOT Vehicle in Service Form identifies the Unit Number, In-Service
Meter(s), and In-Service Date for each vehicle.
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These forms must be turned in to the Shop Supervisor who in turn will see
that the Equipment Management System M5 is kept current.
The Unit Data Sheet shall include, when applicable, the unit number, the
unit numbers of attachments (like plow, wing, sander), types and grades of fluids used
(like for coolant, power steering fluid, engine oil, transmission, front hubs, power take off,
hydraulic system, differential, etc.), special grades of grease used, tire specifications
(sizes, load range, air pressure), and brakes (maximum strokes).
The preparation and installation of the Unit Data Sheet should be done
under the direction of the Shop Supervisor or his designee.
After the District has determined which unit(s) it has selected for disposal
they will follow the Direct Sales Procedure and submit to the Equipment Section a
completed Property Disposition Request (Form 761) listing the unit number, description,
serial number and meter reading, three weeks prior to the estimated sale date. The
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Equipment Section will forward the form to the Fleet and Surplus Services section of
DOA for approval. Upon receiving approval the Equipment Section will notify the district
to flag the units in the Equipment Management System (M5) for disposal. The district
will be responsible for flagging the units for disposal and note any known defects.
For purposes of this section, crash and incident will be used interchangeably. Crashes
are any circumstance that causes equipment damage or injury to an operator,
passenger or pedestrian. All vehicle crashes involving MnDOT fleet equipment will be
reported and investigated. Crash reports will be immediately filed with the Risk
Management Division of the Department of Administration (DOA ) through MnDOT’s
Safety Units. MnDOT Safety and DOA’s Risk Management will support management to
determine incident trends and develop risk assessment reports developed for the
incident database. Auto crashes and abuse will be looked at on a case-by-case basis
and appropriate employee accountability actions will be taken.
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them, are often sought after by criminals and terrorists in an effort to pose as
“government officials” while committing a crime. Special care must also be taken to
prevent MnDOT logos, State of Minnesota license plates, and other official identification
and insignia from getting into illicit hands.
The ignition keys should be removed when the unit is parked, except when
safe on highway property with the transmission in “park” position and the emergency
brake on.
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INDEX OF LINKS
http://www.dot.state.mn.us/maintenance/pdf/manual/chapter-6-contracts-and-
agreements.pdf
Contract Management
http://ihub.dot.state.mn.us/contracts/
Equipment Section
http://www.dot.state.mn.us/maintenance/fleet.html
Federal Motor Carrier Safety Administration (FMCSA)
http://www.fmcsa.dot.gov/
Lease Program
http://ihub/maintenance/equipment/forms/Lease%20Program%20Lease%20Agreement
%20for%20FY14%20-%20Revised%2020130104.pdf
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Minnesota Statutes
https://www.revisor.mn.gov/index.php
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Office of Maintenance
http://www.dot.state.mn.us/maintenance/
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