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Don't Overlook the Smaller Costs

17th November 1950
Page 58
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Page 58, 17th November 1950 — Don't Overlook the Smaller Costs
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Which of the following most accurately describes the problem?

IN the previous article I demonstrated that a considerable proportion of the total cost of maintenance is made up of items which are often overlooked by the average operator. I dealt specifically with washing and polishing and painting and varnishing. These maintenance operations I showed would be likely to cost not less than id. a mile for an average type of vehicle covering a mileage of between 400 and 500 per week.

I admitted that a vehicle will still continue to run even if it never be washed, polished, repainted or revarnished, bin pointed out that it will not last so long if these operations be omitted. That is to say that the owner will lose in depreciation what he has apparently saved in maintenance expenditure. At least, he will lose some of that saving, for I will not pretend that he would lose id. per mile on depreciation merely by neglecting to keep the vehicle in a reputable condition so far as its external parts are concerned. However, he may run the risk of losing some of his customers to competitors who do spend a little on these maintenance items.

Variations in Maintenance Casts

must reiterate that the foregoing items are independent of weekly mileage. This means that the total cost of maintenance, which includes the cost of these items, is likely to be greater per mile for vehicles covering a small weekly mileage than it is for those which cover long distances.

In "The Commercial Motor" Tables of Operating Costs, provision is made for this characteristic by providing maintenance (d) and maintenance (e). If the reader scrutinizes the Tables, he will see that as the weekly mileage increases. the amount appearing under the heading "maintenance (d)" diminishes, whereas that under the heading "maintenance (e)" stays unaltered.

Practically all the other maintenance operations are in direct contrast. They vary directly as the mileage and can he debited as direct costs per mile, and they are essential to the operation of the vehicle.

Let me consider two points which are certainly in the last-named category, filling up with petrol and oil. They can be described as maintenance operations as they constitute an item of expense in connection with the running of the vehicle which cannot be debited under any of the other nine headings of operating costs.

Fuel and Oil Supply

The storekeeper in charge of petrol and oil pumps can probably deal with 10 vehicles in an hour. His wage may be 2s. 6d. per hour, and the proprietor's expenditure is increased by overheads to a total of at least 4s. 6d. per hour. These overheads include the upkeep and depreciation of the petroland oil-supply equipment, the ordering and checking of supplies, recording of issues to each vehicle, renting of space occupied and a host of other small items. A sum of 4s. 6d. divided amongst 10 vehicles is 51d. each. If each vehicle covers 150 miles for each renewal then the cost is 0.03d. per mile.

Greasing and oiling the chassis come next in the list of maintenance operations. These items are definitely running costs per mile. All vehicle manufacturers in their instruction books recommend that they should be carried out at intervals which are generally in the region of 1,000 to 2,000 miles. Whatever the figure, the period is in terms of mileage.

A vehicle covering say, 240 miles per week, requires the operations to be carried out once per month, but if it covers 480 to 500 miles per week, the greasing and oiling ought to be done at least once a fortnight, and so on. I appreciate the fact that many operators ignore the instruction and do

824 the job as and when they think they will, perhaps only waiting for squeaks. The point 1 wish to make is that the operation if it costs 4s. is to be debited at the rate of 0.04d. per mile regardless of the distance the vehicle covers in a week, Before going further, it may be as well to get some idea of what is involved in arranging maintenance according to the instructions of the manufacturer of the vehicle. Manufacturers try to impress buyers with the fact that neglect . to carry out maintenance operations will prove more costly in the long run than the expense involved in effective maintenance and periodic chassis lubrication. Greasing and oiling cost much less than new parts which are likely to become necessary as the result of premature wear resulting from neglect. Lack of care shortens the life of a vehicle and accelerates the rate of depreciation.

In this connection, incidentally, careful tyre maintenance, especially as regards inflation pressure, is one way to reduce fuel consumption, as well as economize in expenditure on the tyres themselves. Experience has demonstrated that the cost per mile for tyres alone may be doubled lithe tyres be neglected, J stated above that the mileage period between lubrication times was from 1.000 to 2,000. In an instruction book which I have before me there are two figures quoted —1,000 and 5,000. The following is the work which is assumed to be done at intervals of 1,000 miles.

Lubrication Items First, with the grease gun all steering-rod connections, clutch-release shaft, brake shaft, water pump, brake pedal and clutch pedal, spring shackles and spring seats. Engine oil must be put in the sump, gear oil in the gearbox and rear-axle case, universal joints must be greased, the springs spread with penetrating oil, the cam lobes of the ignition distributor smeared with petroleum jelly and the carburetter air filter washed and dipped in engine oil.

This schedule of operations can be moderately assessed as costing 4a. If it be done at a service station it costs about 7s.. which is equivalent to 0.7d. instead of 0.4d. I have not included the cost of lubricants.

The operations of a similar nature to be carried out over 5.000 miles include the draining, flushing arid refuelling of the 'rear-axle case and the gearbox, and packing the wheel bearings with grease. The charge for that work, if it be carried out by a service station, is 15s. That is equivalent to a further 0.4d. per mile run.

Among minor adjustments and attentions are inspection of the battery connections and their cleansing and smearing with jelly, if corroded, inspection and tightening of body bolts, checking the amount of free travel in the clutch pedal and adjustment if required, and corresponding attention to the brake pedal. These items obviously cast little but the work cannot be done for nothing.

Preventive Maintenance

It might perhaps be of greater interest if, instead.of referring to the manufacturer's instruction book, I applied the pninciples I have been discussing to a preventive-maintenance scheme actually operated by a haulier. I will take the one which described in "The Commercial' Motor" dated July 9, 1949.

The scheme provides for four specific operations plus what is called a valeting service. There is not space in this article to republish the schedule of these operations: in dealing with it from the cost angle I shall refer only to the principal items.

The valeting system provided for daily and weekly operations by the driver. The daily operations are those which every driver must normally be expected to do. The work which is to be carried out weekly includes washing and polishing and each driver is allowed half a day for this work. The traffic which is carried is such that there is no objection to this from the cost angle as it fluctuates to such an extent that half a day can be set apart each week for each vehicle. If 1 take half a day's wages to be 10s. and add 5s. for overheads. then I get a cost of 15s. per weele for this valeting service. The cost per mile will, of course, vary according to the weekly mileage.

The first principal operation which is timed to take place every 4,000 miles includes checking gearbox and rear axle refills, cleaning filters, examining the battery, checking the steering gear and connections and refilling the sump. There are sundry minor operations which I have not listed.

• 4,000-mile Check

In all, I .am of the opinion that 6 man-hrs. will be necessary to do the work efficiently. The cost for the work. to be done in the operator's own workshop, allowing 4s, per hour for wages and overheads, will be 24s., which is 0.07d. per mile. If it be carried out by the local agent, the cost will be at the rate of 7s. per hour, that is, 42s., which is equivalent to approximately 0.13d. per mile.

The next operation is carried out at 12,000 miles and provides for a checking of brakes and brake facings, examination of transmission and universal joints, checking of the electric system, rectifying play in steering parts, changing tyres and -lubrication of door hinges, locks and so on.

Nlo more than 4 man-hours should be necessary for this. so that the cost at the rates mentioned above will be 18s on the operator's own premises and als. 6d. if it be done by a garage. There may be some new parts necessary and an average figure for this I have taken as 22s. for each occasion. Adding that 22s. to the labour costs, I get 40s. and 53s. 6d. respectively. As the operation just described is only called

for every 12,000 miles, we get 0.04d. per mile and 0.055d. per mile according to whether the work is done at home or away. The third operation covers a long list of items, the principal of which is' a top overhaul (which will necessitate the renewal of gaskets, sparking plugs, water and hose connections, and soon), the radiator to be washed out, the clutch and differential to be examined and adjustments made if necessary, hubs and brake drums to be renewed and brake facings checked and renewed, if need be, gearbox and rear axle drained and refilled and any essential repairs to bodywork and touching-up to paint effected.

Altogether I have taken it that 24 man-hrs. will be necessary, which means that the price at home will be £4 10s. and the price, if the work be done outside, £8 8s. If! allow £3 as a minimum for materials, then the total costs are £7 16s. and £11 8s. respectively. This operation is carried out at intervals of 24,000 miles so the costs per mile will be approximately 0.08d. and 0.12d.

Complete Overhaul

The fourth operation, which is due to take place at intervals of 48,000 miles, is a complete chassis overhaul. including the -fitting of a reconditioned engine, repairs to bodywork, painting and varnishing and all that is normally done at a time when the vehicle is in the works for this major operation. The cost done in the operator's own workshop will be approximately £180, which is 0.9d. per mile. If if be done outside, then it will probably cost as much as

£240, which is 1.20d. petmile. .

The totals of these four items, including the valeting. is 1.09d. per mile if the work be done at home and, 1.52d. if it be done elsewhere. The valeting service will cost 0.75d. per mile for 240 miles per week, which brings the total costs per mile to I.FAd. and 2.27d. respectively. S.T.R.


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