2nd July 2013

tyre_management.jpg

Evaluating a TMS

Author: Mike Fitzmaurice

Transport Logistics Consultants

There are a number TMS software solutions available to the end user or transport fleet operator, all of which are off the shelf products designed around the traditional tyre card-ex system using tyre change slips to record tyre movements on and off the vehicle and tyre history cards to record the life of the tyre and CPK. However it is important to understand that not all transport operations are the same and they will have different business scenarios not all of which can be accommodated by these off the shelf software solutions. So before deciding on a TMS software solution it is recommended that you evaluate the available options to see which option best accommodates your business scenarios bearing in mind that you may have to adapt some of your business scenarios to suite the TMS Solution of your choice and we are going to show you how to do this by taking a typical business scenario and evaluating them against two off the shelf products which will not be named for obvious reasons.

Before we do this however we are going to take a brief look at the basic principals of tyre management:

  • Data Collection Effort
  • Understand your CPK
  • Product Applications and Variations

1.       Data Collection Effort:

  • 2% Acquisition
    •  Date, Vendor, Invoice, Tire ID#, Product Specs
  • 76 % = Mounting / Dismounting / Inspections
    • Date
    • Vehicle: ID#, Odometer, Wheel Position, Visual Report
    • Tire: ID#, Tread Depth, Air Pressure, Inspection Report or Dismounting Report
  • 20 % = Retreads and Repairs
    • Service Supplier, Service Performed, Date, Cost
  • 2% Scrapping
    • Date, Scrap Report, Residual Value, Scrap Buyer, Invoice#

2.       Understanding Your CPK

What is CPK/CPH?

  • CPK is quite simply;

 

  • Cost  per KM

 

  • Cost (in Rands & Cents)

 

  • divided by

 

  • Km that the tyre/s have achieved.

 

  • We need to manage tyres so that the CPK reduces to the optimum level for the operation

Costs associated with CPK:

Directly Affecting CPK:

◦ New Tire Acquisition

◦ Utilization ◦Retreading Costs

◦ Repair Costs

◦ Credit /debit (Residual Casing Value)

  when tire is Sold or Scrapped.

Indirectly Affecting CPK:

◦ Labor Costs

◦ Inventory

◦ Breakdowns Costs

◦ Vehicles’ Downtime

Factors Affecting Tyre Life:

Affecting Tread Wear:  

◦ HIGH Air Pressure

  (15% less km)

◦ LOW Air Pressure

  (25% less km)

◦ Imperfect Pairing

  (25% less km)

◦ Inadequate Tread Pattern  

  (15-40% less km)

◦ Irregular Tread Wear / Mechanical 

  (15-60% less km)

◦ Lack of Rotations

  (10-20% less km)

Affecting Casing:  

◦ Inadequate Air Pressure

◦ Imperfect Pairing

◦ Overload

◦ Road Conditions

 

CPK = Cost per Km:

INVESTMENT COSTS

= ------------------------------------

TOTAL CASING KM

Fleet Savings - R .00082 in Perspective:

 R 0.00082    =  Savings per kilometer
       80000    =  Mileage run per vehicle each year
              8    =  Tyres per vehicle
           100    = Vehicles in a fleet

R0.00084 x 120000 x 8 x 100

= R 52 480 (per year)

or

About 40 retreads!

3. Product and Application Variations

Product Variations

1 - Tyre Size and Load Range

2 - Tyre Model

3 - # of Retreads

4 - Re-treader and Retreading System

5 - Retread Design

6 - Retread Brand

Application Variations

1 - Fleet’s Main Activity (Transport Industry)

2 - Vehicle Type

3 - Routing or Road Conditions

4 - Wheel Position

5 - Geographical Location / Weather

Compare Apples to Apples !

6 Product variables

5 Application variables

5         =        7,776*

*Mileage and CPK Variations per Tyre

Today’s Situation:

  • Fleets do not benefit from their current tyre management efforts.
  • Current data collected is not put into a proper database that can track the thousands of variations of CPK and provide INFORMATION.
  • The true CPK is unknown.
  • Every fleet is unique and requires different efforts to manage and decrease CPK.
  • Tyres are the second largest maintenance cost, in some cases the first.

Given the above scenarios it is obvious that it is not possible to determine these facts without the aid of TMS software, but how do we decide which will be the best TMS solution for our fleet, it is quite simple list all your business scenarios related to your fleet and tyre operation in an Excel table then compare the different available TMS solutions available by evaluating how and if they blanket your business scenarios like the example shown below:-

CONCLUSION:  It is quite clear from TMS Evaluation Matrix that the TMS Solution One blankets 90% of the business scenarios detailed in the matrix and would therefore would be the TMS of choice.

 

 


 

Download TMS Evaluation Matrix xls. here.....

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