UNPARALLELED OPPORTUNITY

Document Sample
UNPARALLELED OPPORTUNITY Powered By Docstoc
					                               A HIGH DEGREE OF VALUE
     The 2008 Electric Utility Fleet Managers Conference provided valuable
             information for a growing number of fleet managers



Held in June in Williamsburg, Virginia, the 2008 Electric Utility Fleet Managers Conference
(EUFMC) attracted another record number of fleet managers from investor-owned electric utilities
in the U.S. and Canada. For the 55th annual EUFMC, registration figures showed that more fleet
representatives were on hand than in 2007, including 25 first-time attendees

Quickly becoming the industry’s most valuable event of its kind, EUFMC featured a full schedule
of technical presentations and an expanded equipment show. From sessions to networking
opportunities, attendees report that a wealth of valuable information is available at this one-of-a-
kind conference.

“The annual Electric Utility Fleet Managers Conference offers the best of everything - equipment
show, informative speakers, roundtable discussion and networking opportunities. Since
becoming a Fleet Manager a few years ago, this is the one event I make sure is on my calendar
months in advance, and it takes precedence over other events or conferences that might try to
compete with it. What makes the EUFMC unique is that it is targeted to a very well-defined
group of companies (electric utilities) with specific equipment applications - it's not mixed in with
topics more relevant to the over-the-road trucking industry or to delivery fleet operations. For
me personally, the EUFMC is a great way to ensure I am aware of all emerging issues for electric
utility fleets. It's the most productive way to build relationships with my peers from all across the
country and to identify additional resources that I can call on when a need arises. There is no
substitute!”
Holly Brown
Fleet Operations Manager, Georgia Power Company

“I attended EUFMC for the first time in 2008 and I hope to attend again next year. The general
sessions at the conference were very informative and were valuable to me. I especially liked the
drive-through demonstration and utility equipment show. Everyone I came in contact with was
very professional and the programs ran smoothly.”
Clayton Yoshida (WAG-VA)
Fleet Engineer, Hawaiian Electric Company

“I always enjoy EUFMC for a variety of reasons. It is good to be with a group of my peers from
across the country and to learn from them as we share best practices. The speakers are always
very good and I especially enjoyed the presentation on biodiesel this year. It is also very helpful
to hear about legislative issues and to gain insight into future federal laws and regulations. The
show is always interesting as well as it's an opportunity to be able to see many different types of
equipment in one location. With the high cost of fuel it was very interesting to see the different
hybrid configurations that manufacturers brought to this year’s show.”
Jim Freind
Manager - Fleet Services, Alabama Power Company

“This conference was my first experience with EUFMC. All the events were well planned and well
organized. The seminars had relevant and interesting topics and the outings provided a chance to
meet with other fleet managers in a relaxed setting. Overall, it was a great experience to meet
with other fleet professionals and discuss topics that were common to all attendees.”
John Ejsmont
Fleet Administrator, PECO

“As a first time attendee at EUFMC I was very impressed with all the speakers who provided a lot
of information about things that affect fleets, such as hybrids and biodiesel. The conference was
a great place to learn about and exchange ideas I could bring back and use in our fleet. I was
impressed with the entire program and am looking forward to attending EUFMC next year.”
John Martin
Transportation Supervisor, Dayton Power and Light Company

Joining the fleet managers at EUFMC 2008 were over 260 manufacturer representatives from 91
companies, including 17 new registrants. The conference’s newly expanded outdoor equipment
display was the site of more than 75 exhibits, including 15 new companies, where suppliers find
value in the event as well.

“Overall I thought the conference was very good and of value to both our company and to me
personally. The sessions on hybrids were informative and I appreciated the flexibility of the
organizers in accepting a short presentation on recent legislative efforts to create competitively
awarded grants for the development of plug-in hybrid technology.”
Joe Dalum
Vice President, DUECO, Inc.

“The drive-through was very well organized and very well attended. Additionally, there was a
great deal of time to network with prospective clients and current customers. Overall, this is an
event we value.”
A.N. Gosline
Commercial Business Manager, Ford Motor Company

“This was the first year we participated in EUFMC so we didn’t know what to expect. We found
the event well organized and a great opportunity to network with utility fleet decision makers.
We’re already looking forward to EUFMC next year and talking about how to participate in a
larger way.”
Ricardo Urdaneta
Vice President U.S. Sales, TireStamp Corp.


                                     KEYNOTE ADDRESS
          A Balanced Approach to Navigating a Turbulent Business Environment

Leading off EUFMC 2008 was David G. DeCampli, President of PPL Electric Utilities, whose
keynote address covered steps being taken at PPL to foster continuous improvement.

At PPL, DeCampli noted, those steps include being accountable and setting goals, and changing
old paradigms by asking questions. Those topics include things like in house and outsourced
maintenance options and fueling programs, as well as discussing truck specifications and needs
with line managers. In addition the approach includes benchmarking and learning from others by
looking for best practices, and becoming more agile by adapting quickly and responding to
challenges such as a dramatic rise in fuel prices with ways to lower idle time and improve job
planning.

“We need to be more be flexible to succeed, to anticipate and evolve,” DeCampli stated. “The
challenges of working to continuously improve operations include rising energy prices and
customer expectations, infrastructure investment and employee needs, regulatory scrutiny and
pressure to cut costs that is greater than ever.”
                    POWERING YOUR FLEET TOWARD THE FUTURE
During EUFMC 2008, presentations covering the meeting’s theme reflected the pressure on utility
fleets to become more environmentally friendly, reduce vehicle acquisition and maintenance
costs, lower fuel consumption, and use fleet data to measure performance and make better
decisions. A range of speakers, including fleet managers, suppliers and industry experts, offered
valuable insights into effective fleet management practices, technology developments and
industry issues.

Climate Change/Carbon Footprint
Bill Van Amburg
Senior Vice President, WestStart-CalStart
Trends and drivers of change in transportation that utility fleet managers have to address include
reducing greenhouse gas emissions, improving fuel economy and energy security, and fuel
supply and cost issues. Fleets can address climate change challenges by learning about options
for increased efficiency such as hybrids, eliminating idling, downsizing vehicle sizes, fuel
switching and changing operations. Comparing options based on a fleet’s mix, geography and
operational profile can lead to putting the correct technology and fuel into use. Fleets need to
look at their entire operation because planning has become more complicated and requires a
sophisticated approach.

Washington Update
Pat O’Connor
Kent & O’Connor, Inc., Legislative Counsel, National Association of Fleet
Administrators
Current issues for utility fleets include EPACT legislative updates, AFV and hybrid tax credits and
diesel retrofits. For fleets that operate medium-duty trucks, EPA’S National Clean Diesel Funding
Assistance Program will award grants to assist in building diesel emission reduction programs
that improve air quality and protect public health. Covered eligible uses of funding include
technologies such as Diesel Oxidation Catalysts and Diesel Particulate Filters, Closed Crankcase
Ventilation Systems, Biodiesel, Engine Upgrade Kits and idle management options. Climate
change legislation is also set to impact fleets with mandatory reporting of greenhouse gas
emissions and policy objectives that focus on outcomes that mandate technology or increase
efficiency.

Getting the Most Value of My Information System
Leslie C. Rucker, Jr.
National Director, Fleet Management Consulting, Maximus, Inc.
Whether the analysis is industry wide or particular to one utility fleet, capturing data to drive fleet
decisions is essential. Administration needs data for equipment assignment and utilization and
fleet managers need accurate data for lifecycle costing and replacement planning, among other
things. Some key indicators that fleet data can help define and address include performance
measures. Quality data leads to thorough analysis and better decisions. Excellent data, analysis,
decisions and reports all lead to lower costs and higher vehicle availability, and satisfied
customers.

Vehicle Life Cycle Initiatives
Tom Allen
Manager Fleet Services, First Energy
Maintenance and depreciated value are limited views. Instead, address how vehicle lifecycle
impacts company objectives. For example, looking at financial performance, the fleet learned that
depreciated value and maintenance costs of vehicles are less than the cost of replacement but
also that utilization decreases year-over-year. The lesson is that while maintenance costs per
hour may decline as a vehicle ages, when layering in utilization it becomes more expensive. Also
learned was that increased truck reliability will translate into improvements. In addition, newer
equipment contributes to attracting, developing and retaining employees because vehicles are
the face of a company and one of the first impressions it makes.

Different Life Cycle Costing/Modeling
Chris Shaffer
Partner, Utilimarc
The goal for fleets is to develop a defendable equipment lifecycle plan to secure the necessary
funds needed to consistently replace equipment. Effective economic modeling requires gathering
important data such as the purchase price of equipment and annual figures including the
depreciating or residual value, operating costs for mechanic labor, contract labor and parts,
mileage and or gallons consumed and vehicle availability as measured by downtime or mean time
between service. Internal customer input and satisfaction should also be on the list of
considerations for lifecycle analysis. A newer factor, but one that is growing in importance in the
lifecycle equation, is a fleet’s carbon footprint and related implications regarding technology,
safety and productivity. Tips for determining successful vehicle lifecycles include establishing
minimum annual utilization targets, and requiring justification of low usage units.

PHEV Technology
Gus Sfakianos
Executive Vice President, Odyne Corporation
A PHEV (Plug In Hybrid Vehicle) is an HEV (Hybrid Electric Vehicle) with a significantly larger
battery system that can plug in to the electric grid and recharge its batteries. PHEV technology
can make a positive impact on a utility fleets through the elimination or reduction of worksite idle
and fuel consumption, quieter and safer operation, and reduced maintenance costs. PHEVs can
also be fuel-agnostic and run on CNG, diesel, gasoline or propane. Drawbacks include the need
to install charging facilities, provide additional driver, mechanic and first responder training,
reduced vehicle carrying capacity or the need to increase GVW, and higher capital costs that
make ROI difficult to justify with fuel savings only.

ANSI Standards
Gary McAlexander
President, Intercontinental Equipment Company
ANSI standards affecting utility fleets include the newly enacted A10.31-2006 for Digger Derricks
that expands the required responsible parties to include lessors and lessees and the duties of
manufacturers for training, and made historically optional equipment mandatory while adding
other requirements in some applications. Fleets should incorporate the standard in specifications,
and training, use and risk policies. Open for comment, the draft ANSI A92.2 Standard for Aerial
Devices includes design issues and changes that would become effective on aerials already in
service, such as new periodic test requirements and expanded responsibility for retraining by
owners.

Telematics/Aware Vehicle Intelligence
Kyle Howard
Sales & Account Management, Navistar Electronics
Telematics can address fleet management and vehicle productivity issues. As a complete system
solution, for example, it can improve help fuel economy by providing visibility into driver
behaviors such as idle time, speeding, sudden deceleration, excessive braking and other factors
that effect fuel economy and safety. This information can provide real-time feedback and assist a
driver with improving behavior. Fuel economy management with telematics can also include
chassis monitoring while understanding a vehicle’s operating status is also critical to addressing
environmental challenges.
Biodiesel Fuel Quality, Sustainability and Implementation into Utility Fleets
Randall von Wedel, Ph.D.
Founder and Principal Chemist, BioSolar /CytoCulture International Inc.
The benefits of biodiesel include public support of reduced exhaust smoke and a proactive move
to reducing greenhouse gas emissions. This flexible, relatively low cost fuel is similar to ULSD but
does not require a capital investment in infrastructure. It may also be a solution for older diesel
engines that are not amenable to aftertreatment retrofits. Biodiesel is compatible with most
aftertreatment devices and can extend the longevity of traps and reduce maintenance needs.
Most or all problems associated with biodiesel use are due to fuel quality issues, not to the
biodiesel. Fleet managers can set up their own Quality Assurance programs and set requirements
for their fuel vendors to do the same.

Overview of Lean Thinking Methodology: The Six-Sigma Process
William D. Kokemor
Fleet Director, Henkels & McCoy
Lean thinking is about maximizing value, minimizing waste and pursuing perfection. In fleet
operations, providing the right service, at the right time, for the right price must be defined from
a customer’s perspective. The process of achieving that objective can follow the “5S” steps to
stay clean, organized and safe. Those include Sort (Unload the truck. Throw out the trash. Sort
tools and consumables.); Set in Order (A place for everything and everything in it’s a place.
Organize spots on the truck for all tools and consumables. Use visual markers to indicate where
everything goes. Always keep safety in mind.); Shine (Clean the truck and tools.); Standardize
(Create best practice standards that can be communicated and trained. Make all trucks the same
as much as possible depending on truck type and work mix.), and Sustain (Once you do the
trucks, do the yards, and office.) Create 5S metrics that can be tracked, periodically review
results and continuously look to remove waste and make improvements.

Quality Approaches
James T. Woods, Vice President
Dan Lindsey, Senior Quality Manager
Penske Truck Leasing Co.
A Penske approach has led to improved PM quality and cycle time. The previous process was
subject to wide variation as the time it took to complete a PM averaged 2.9 hours, but ranged
from 1.8 to 3.8 hours. Standard tools and equipment were not utilized at all locations and the
process was very demanding on technicians, requiring an average of six trips around the top of
the vehicle and five complete passes underneath. A complete restructuring of existing PM
processes and the use of standardized equipment in all shops has resulted in only one and a half
trips around the top of the vehicle and one complete pass underneath and a reduction in the
average PM cycle time to 2.1 hours, a 28% improvement, and a 58% improvement in the
variation in cycle time. Penske has also reduced vehicle disposal cycle time. Previously, the
average time to dispose of units was in excess of 60 days with some units exceeding 100 days. A
revision of the process, including development of an Out of Service planning document, has
resulted in a process requiring review of each unit 90 days prior to a planned out of service date,
a reduced average cycle time to 32 days, a 54% drop in repairs completed after a vehicle is
placed out of service and a reduction in the variation in cycle time to ten days.


About EUFMC
The objective of the Electric Utility Fleet Managers Conference is the dissemination of information
pertaining to the procurement, application, operation and maintenance of equipment used by
electric utilities. The meeting provides a forum where utility fleet managers can exchange
information and discuss mutual challenges. The conference promotes close cooperation between
manufacturers, suppliers and fleet managers engaged in the development and design of vehicles
and equipment associated with the electric utility industry. The 56th annual EUFMC will be held
June 21-24, 2009 in Williamsburg, Virginia. For more information, visit www.eufmc.com.

EUFMC’s 56th annual conference will be held June 21-24, 2009. Fleet managers of investor-owned
utilities interested in learning more about EUFMC can call (757) 220-1795, email to
abrownhailey@cs.com or visit www.eufmc.com.

                                             ###