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					Welcome
 Greg Haglin
Introduction
  Tom Johnson
If We Can Put a Man on the Moon
   – Delivering “Better, Faster,
        Cheaper” Results


                John O’Leary
                Ash Center for Democratic Governance and Innovation
                Harvard Kennedy School of Government
                John_O’Leary@hks.harvard.edu
                Fleet Webinar June 17, 2010



                                                                      3
                    The Challenge
   Challenge: To create real public value with
    diminishing resources:

       Revenue is down at all levels
       Demand for public services already exceeds capacity
       Incremental improvements will be insufficient to meet the
        public’s needs




                                                                    4
                The Response
   A ―Better, Faster, Cheaper‖ approach that
    focuses relentlessly on results.

   The ―BFC‖ approach is a two-step method of
    analyzing government that can be applied to a
    variety of functional areas




                                                    5
         Steps of BFC Approach
   Step 1: Reexamine and rearticulate the
    public purpose of every program.

   Step 2: Explore new ways of creating that
    public value using a variety of ―BFC‖
    techniques
             BFC Approach: Step 1
Reexamine the public purpose of every program.

   Articulate the goal of every activity in terms of the value being
    created for citizens. For example:
      Improved public health, not better Medicaid;

      Education for children, not just better public schools.

      Maybe – safe, reliable mobility at the lowest cost – not more
       efficient fleet management




                                                                        7
            “BFC” Approach: Step 2
Explore new ways of creating that public value
 using a variety of techniques:
   Competition/Outsourcing/Public-Private Partnerships
   Leverage Technology
   Change incentives for producers: Reward results, not effort
   Change incentives for consumers: Drive efficient behaviors
   Changing the rules of the game; revitalize the productive capacity by altering
    the framework in which public action occurs

   EXAMPLE 1– Instead of fleet maintenance, extend to use of ―Zipcars‖ or
    other at will vehicles…
   EXAMPLE 2 – Usage reports to identify ―unneeded‖ vehicles.
                                                                                     8
Effective Service Involves Both
Government and Private Sector
 The “Privatization” or “Outsourcing” Debate
           Reflects a False Choice


           The Left                        The Right
 • Government employees          • Privatize everything
   should perform all public
   services                      • Public sector always
                                   inefficient
 • Private contractors are
   often corrupt                 • Private sector always better
                                   than public
 • Citizens should receive
   similar services configured   • Privatizing makes
   by government, not by           government smaller
   choice




                                                                  9
Competitive Government Principles
Provide the structural foundation for competition
   • Activity Based Counting—If you don’t know how
       much it costs to accomplish the outcome then you have
       no idea whether you are effective.
   • Capital Budget with depreciation.
   • Measure, Measure, Measure-and reward results
   • Watch and recognize the Small Items that Help Make
       up the Culture
   • Contract procurement and program management are
       new skills require sophistication and technical
       knowledge


                                                               10
Contracting = New Challenges
•   Designing a contract that attracts bidders, aligns
    incentives.
•   Treat existing employees fairly
•   Choosing the right vendor / partner
•   Measure, Measure, Measure-and reward results
•   Deal with the unexpected
•   Document the results, both cost and quality




                                                         11
         “If We Can Put a
        Man on the Moon…”
•   Good Idea
•   Well designed plan
•   Get the ―Go Ahead‖
•   Implement effectively
•   Monitor Results




                            12
        Gale A. Blackburn
     Vice President, Marketing

            Driver’s Alert, Inc.
5340 N. Federal Highway, Lighthouse Point, FL 33064

          800-741-5454 (extension: 416)

           gblackburn@driversalert.com

                        Improving safety, lowering costs... One driver at a time.
                              Ed Finnegan

       State Auto Insurance
          Program Officer

    Risk Management Services

Department of Administrative Services
               State of Georgia

   We self-insure for Workers’ Comp, Property,
    General Liability and Auto losses.

   $160,000,000. per year in operating costs.

   $26 Billion in Property Coverage.

   Were we in the private sector, we would be
    the 25th largest insurance company in the
    world.
      Our Fleet/Our Exposure
   Over 20,000 vehicles
   Steve Saltzgiver is the Director.
   We also cover 125,000 state employees
    while performing their official duties in
    ANY vehicle.
            Comprehensive Loss
             Control Program
   We passed a law allowing us to bill premium to
    the 160 agencies based on their loss experience,
    rather than their head count.

   The CLCP addresses Loss Control measures in
    9 areas, one of which is Auto.
      The Auto Component
 Driver Qualification Program
 Accident Review Panel

 Report My Driving Program

 We provided deductible and premium
  incentives and training to cut losses.
Three Year Claims Count
800
700
600
500
400
300
200
100
 0
      FY-08          FY-09                     Fy-10
              FY-08 to FY-09, 14% drop in losses.

              FY-09 to FY-10, 13.5% drop in losses.
    Monetary Effect of the CLCP
 Estimated saving for Auto-related losses
  1.6 Million.
 Driver’s Alert provided an instant training
  library available to ALL employees.
 Cost of Driver’s Alert: $130,000.
                    Real Value
   We are saving lives and avoiding injuries.
   We are giving the public a voice in how we use tax
    dollars.
   It’s like having a supervisor riding in 15,000 vehicles.
   We are better trained and more aware of our
    responsibilities.
   We are the Face of the State.
               Driver’s Alert
    They are one part of our solution.
   Had a call during a theft of a vehicle!
   Identified 100 employees that account for 16%
    of our calls.
   Pointed out trends: lane change, no signals,
    drifting= phone use.
   Allowed us to pinpoint training and reduce
    claims.
   Great Job!
                  Ed Finnegan
   404-463-7490
   Ed.finnegan@doas.ga.gov

   www.doas.ga.gov
   All programs are up and available. Please feel
    free to use any part.
Fleet Ideas for Success
        June 17, 2010
          Webinar
    John E. Alley
Deputy Director, Fleet
       Services
City of San Diego, CA
      Jalley@sandiego.gov
         (619) 527-6020
                        Outline
   Business Process Reengineering (BPR)
   Internal Service Funds for GF Departments
   Fleet Creep – How to reduce your Fleet
   Other Ideas for running your Fleet like a business
Business Process Reengineering
   What BPR is Not
   What is BPR
   What are the BPR Fundamentals
   Organizing for a BPR
   BPR Activities
   How long does the process take
   How long does it take to implement
            What is BPR is Not
   It is not reorganizing
   It is not downsizing
   It is not incremental improvement or superficial
    changes; it is about dramatic leaps in
    performance
                  What is BPR
   A radical approach to business process redesign
   BPR is the redesign of work processes (activities,
    services or functions) for substantial improvement.
   These work processes can be offered within or between
    divisions and departments.
   BPR focuses on rethinking from the ground up, finding
    more efficient ways of working including eliminating
    work that is unnecessary.
             BPR Fundamentals
   The Mission is to Create Value for Customers
   It is an Organization’s Processes that Create Value for
    its Customers
   Success Comes from Superior Process Performance
   Superior Process Performance is Achieved by having
    Superior Process Design, the Right People to Perform
    it, and the Right Environment for them to Work in
          Organizing for a BPR
   Identify Sponsor and Team Leaders
   Organize Teams along Function Lines
   Pick the most knowledgeable and productive
    members for the teams
   Organize a Plan
   Define Activities
              BPR Activities
   Conduct ―AS IS‖ Process Mapping
   Gather Benchmarking Information
   Conduct ―TO BE‖ Process Mapping
   Conduct a SWOT
   Develop MEO
   Present MEO
   Approve MEO
   Meet & Confer
                   Time Line
   It took from April 2006 to May 2007
   Aggressive Time Line
   Some City organizations are still working on
    their BPR
   Meet & Confer – Major time investment
   We are still discovering things ―we did not
    know, that we did not know!‖
   Expect a time line of 12-24 months
                       Results
   Consolidation of three fleets into one
    organization
   Savings
     35 Full Time Equivalent (Staff)
     $3.5 Million Annually

     Eliminated two Unclassified Positions

   Established the Internal Service Fund for all GF
    Departments
   One Organization responsible for Fleet
New Organization
      Internal Service Fund (ISF)
   An Internal Service Fund in place for all
    Departments except Police & Fire
   Police & Fire had an overage/mileage fleet of
    50-75%
   Under the ISF, Public Safety took on a #1
    Priority
   Police will take another 1-2 years
   Fire will take another 4-7 years
   Lease-Purchase a good financial tool
                  Fleet Creep
   We ALL Face It!
   Establish a fix set of Criterion to start
   SD uses 5K Miles or 500 Operating Hours
   Run a report twice a year
   Establish a positive working rapport w/
    customers
   Take into account customer restrictions
   Use the authority of the Executive
   Savings of $12 Million
             Ideas to Consider
   Customer Visits / Rapport / Training
   Benchmarking – Fleet Answers
   Consortium Buying Power
   Staff, Fuel, Parts – Highest Costs – Know the
    details
   Printers versus Copiers
   Fleet Replacement Policy – Lifecycles
   Invest in your Staff Professionalism
   Recycling – Tires, Oil, Paper, etc.
    John E. Alley
Deputy Director, Fleet
       Services
City of San Diego, CA
     Jalley@sandiego.gov
        (619) 527-6020
            LEASE PLAN



         Place Image Here



100 Best Fleets
Maximizing Your Fleet Resources
                Today’s Agenda

   Government Fleet Goals      Consulting
    and Objectives              Reporting
   Helping You Reach Your      Maintenance & Repair
    Goals                        Management
   Solutions Employed          Accident Management
   LeasePlan Leadership        Fuel Management
   Strategic Fleet
    Management
   Benchmarking
Review of Government Fleet Goals & Objectives

          Current State              Desired State




      Reduced tax revenue       Meet goals & objectives
      Budget shortages          Acquire vehicles as
      Delayed purchases          needed
      Unhappy stakeholders      Provide optimum service
      Unsafe work conditions     within budget
      Unusable assets           Provide safe and reliable
                                  vehicles
    First Things First – The “O”
               Word
   Maximize Your Fleet Resources
   What Is The Most Efficient Way To
    Accomplish Your Goals?
   How Does It Work At Home?
       Yard Work
       Electrical
       Plumbing
       Major Construction
   How Can Outsourcing Work For You?
              Fleet Services
   Maintenance & Repair
    Management
   Accident & Risk Management
   Fuel Management
   Fleet Consulting
   Acquisition and Disposal
             Acquisition Management
•   Acquire Vehicles With
    Transparent Pricing Formula
•   Potential Savings Over “State
    Bid” Pricing
•   Reduced Acquisition
    Administration
•   Single Source For All Makes
    And Models
•   100% of Manufacturer
    Incentives Passed to Fleet
        Benefits to Government Fleets

   Measure fleet performance
   Data analytics
   Improve efficiencies
   Reduce spend
   Enhance savings
   Validate decisions
   Drive down total cost of
    ownership
                                Thank you!




Matthew Betz
VP, Government Fleet Services
404.610.4187
matt.betz@leaseplan.com
  Fleet Forum Webinar of Best
Business Practices and Innovations
     from the 100 Best Fleets

FLEET COST SAVING IDEAS
      COST SAVING IDEAS
 Dave Vasquez
 Currently - Manager Fleet Services

  SECO Energy Sumterville , Florida .
 Formally - Fleet Maintenance Director

  Lake County – Tavares, Florida.
 Winner - 2010 NAFA Larry Goill Award
Assignment Justification
       Model
     Vehicle Justification Model
 Calculates Justification for a Vehicle Assignment
 Uses Cost of Capital and Actual Vehicle Cost
 Defines cost of ownership by year, month and mile
 Identifies Business versus Commuting Usage
 Calculates Business versus Commuting Costs
 Uses variable data and adjustable LC parameters
 Defines Fuel, Maintenance, and Insurance Costs
 Uses Maintenance costs based on Accumulated
  Mileage
Hi Dave,
              I love what you have done with this spreadsheet model. I think your improvements are significant enough
that they could win you a Larry Goill Quality Fleet Ideas Award so consider submitting it. It is gratifying to see some
of my work put to use helping improve fleet management elsewhere. Oddly enough seeing that you are also presenting
a labor rate development model, I won a Larry Goill Award the first year it was so named for a budget model
spreadsheet that I developed in St. Louis County to set my fully-burdened labor rates, parts markup, fuel markup and
commercial markup.

I'd appreciate seeing your presentation file after you present and adjust it. It might make a great presentation to share
with other chapters or to use as a Webinar.

Thank you for sharing your work with me and NAFA. If you enjoy education development and presenting, I'd love to
discuss an appointment to a national committee with you. I have always found it fulfilling as a great opportunity to
grow as a professional.

Chris

Christopher D. Amos, CAFM
Commissioner of Equipment Services
City of Saint Louis, Missouri
MONEY
FUEL
Insurance
MPG
Mileage
Commuting
DAYS
IRS Rate
That concludes my presentation on the vehicle
   justification model.
As you have seen - the model is designed to
   simplify vehicle justification – making it hard to
   argue with the results.
It was recognized by NAFA as a simple method
   for helping control Fleet costs. Thank you.
         Best part … it is Free

Please send me an E-mail if you’d like a free
 copy or if have any questions.


David .vasquez@secoenergy.com
             352 -793 3801 ex. 1071
            Presenter
              Greg Haglin
           Contract Manager
National Joint Powers Alliance® (NJPA)



            Fleet Webinar
            June 17, 2010
GOVERNMENT

 HELPING

GOVERNMENT
R.F.P. ?

Not for me!
83
                    Who is NJPA ?
•   NJPA is the National Joint Powers Alliance®

    •   A governmental agency
         •   Created by State statute
         •   Governed by publicly elected board
    •   Directed to serve all:
         •   Government
         •   Education
         •   non-profits
    •   Membership - No cost, No obligation, No liability
    •   More than 31,000 member agencies
            NJPA - Our purpose

•   Create efficiencies for you
•   NJPA offers governmental purchasing contracts, which were
    competitively bid nationally
•   We bring buyers and suppliers together
     Contract Purchasing……..
•   No need to establish and/or duplicate bid docs or bidding and
    contract process
        •   Your membership ties your agency to our procurement files
•   National volume pricing and full line of contracted products
•   Purchase through your local dealers, referencing our awarded
    contract on your p.o.
•   A valid alternative for purchasing agents that won’t use ―piggy-
    backing‖ or negotiated bids
•   CHOICE…… is an option municipals deserve
        •   Products you want
        •   Ability to standardize - reduction of parts inventory
        •   ―Just in time‖ inventory in some cases
Features & Benefits of Leasing
National Cooperative Leasing
      •   Leverage annual appropriations by 3, 4 or 5 times!
            •   Ask Questions, Be Creative, Find the Best program for You.
            •   A $25,000 budget appropriation, may provide enough "buying power" to place $100-125,000 of new
                equipment into service, today!

      •   Faster, less complicated and much less expensive than other forms of public
          debt.

      •   A lease is not treated as debt. Nor does a municipal lease contribute to your
          debt ceiling. The obligation is a current expense subject to the annual
          appropriation of funds.

                             Carl W. Langner
                             220 22nd Avenue East, Suite 106
                             Alexandria, MN 56308
                             Cell:             320-491-7821
                             Phone:            866-763-7600
                             Fax:              866-763-9600
                             E-mail:           clangner@nationalcooperativeleasing.com
                             Website:          www.nationalcooperativeleasing.com
                    California Statute
                        Title 1 Div. 7 Chapter. 5 Article 1



   § 6500 Gov't.
   As used in this article, "public agency" includes, but is not limited to, the
    federal government or any federal department or agency, this state, another
    state or any state department or agency, a county, county board of education,
    county superintendent of schools, city, public corporation, public district,
    regional transportation commission of this state or another state, or any joint
    powers authority formed pursuant to this article by any of these agencies.
                             …continued…

   § 6502 Gov't.
   If authorized by their legislative or other governing bodies, two or more
    public agencies by agreement may jointly exercise any power common to the
    contracting parties, even though one or more of the contracting agencies may
    be located outside this state. It shall not be necessary that any power
    common to the contracting parties be exercisable by each such contracting
    party with respect to the geographical area in which such power is to be
    jointly exercised. For purposes of this section, two or more public agencies
    having the power to conduct agricultural, livestock, industrial, cultural, or
    other fairs or exhibitions shall be deemed to have common power with
    respect to any such fair or exhibition conducted by any one or more of such
    public agencies or by an entity created pursuant to a joint powers agreement
    entered into by such public agencies.
               Membership List
•   NJPA has more than 31,000 members nationally
•   To access membership list: www.njpacoop.org
•   Click on the ―marketing button‖ on the home page
•   Click on ―membership‖ and enter the password ―value‖
•   Bookmark this site - it is updated periodically
          Closing thoughts……
•   NJPA may not be the answer to all of your budget issues, but we
    can help in some areas.
•   Visit our website to reach your own comfort level with our
    agency and our contract purchasing alternatives.
•   Read your local purchasing laws regarding contract (cooperative)
    purchasing.
•   Contact your local dealer for pricing, using their NJPA awarded
    contract.
•   Why not start today by joining NJPA?
•   …another look at some purchasing solutions available to you…
92
          Thank You!
              Greg Haglin
           Contract Manager
National Joint Powers Alliance® (NJPA)
          200 First Street NE
           Staples, MN 56479
             (218) 894-5488
      greg.haglin@njpacoop.org
          www.njpacoop.org

				
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