REDUCING TRANSPORT COSTS
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IN last week's issue of The Commercial Motor there appeared the first instalment of an article dealing with transport costing, in which were enumerated the data necessary to keep a complete record of the value and working of a fleet. This week we conclude the article and outline a system of collecting all the information given on the analysis sheet referred to in last week's issue. The system is planned to suit an organization which has its own ma intenance staff and repair shop.
Maintenance is divided into three groups:—(1) Engine and chassis; (2) body ; (3) washing, cleaning,
oiling and greasing, petrol and oil supply, battery and tyres.
The mechanics under the charge of an engineer attend to the first group, the bodybuilders attend to the second and the garage attendant looks after the third.
The drivers do their own vehicle washing, cleaning, oiling and greasing, under the supervision of the garage attendant, who is supplied with a time-table giving the days and times for each job for each machine. He checks the level of acid in the battery of each lorry once a week and tests the tyre pressures twice weekly.
The garage attendant issues the petrol, oil, grease and gear oil required. He returns to the costs office each night a report sheet, giving details of the washing, cleaning, oiling and greasing, battery and tyre testing that have been done during the day, also the quantity of oil, grease and petrol that has been issued to each vehicle. His report is checked with the timetable for the different tasks.
Every driver hands into the office each day a report sheet giving details of every run that he has made, the mileage for the day, petrol and oil received, his starting B38
Evidence of the growing interest in the oil-engined vehicle as an economical transport unit is borne out by this Picture showing a group of Foden lorries of this type ready for delivery to their respective purchasers.
and finishing hours, the length of time for meals, repairs or adjustments that he considers necessary, and full particulars of any accident in which he has been involved. The driver's report is compared with that of the garage attendant and with the driver's routine timetable, Stores Procedure.
In the engineer's store a stock of engine, front and back axle, and lighting-equipment spares are kept, together with a small stock of tyres and tubes.
For every component in stock there is a stock card in the store and a corresponding stock sheet in the costs office. When any stock enters the store it is recorded on the stock card and the stock sheet in the office receives its corresponding entry from the invoice.
When any stock leaves the store it is taken off the stock card and is entered on the job sheet for the repair on which it is being used, the stock sheet in the costs office receiving its entry from the job sheet. Every item in stock bears a number. The stock sheets in the costs office have noted on them, together with the quantity of the part in stock, -the manufacturer's or supplier's name, the Dart number, the price, the maximum and minimum quantities that must be kept in stock and the stock number. This information facilitates the ordering of supplies.
On repairs and adjustments -being reported to be necessary by the drivers, an instruction authorizing repairs is issued to the engineers, a copy being kept in the office. The engineers carry out the repairs, enter on their time sheets the time spent on the work and write out a job sheet giving details of all the material that has been used. The time sheet, job sheets and jobauthorization forms for completed repairs are sent to the costs office at the end of each week.
When new tyres are required the garage attendant draws them from the stores with a store requisition, giving particulars of the tyres and for which vehicle they are required. These requisitions are also sent to the office at the end of the week.
The costs office then deducts from stock all material shown on the job sheets and on the stores requisition, and all petrol, oil, grease and gear oil registered on the garage attendant's daily report, the balance shown on the stock sheets being from time to time checked with stock on hand.
After this has been done, the job sheets are priced and the cost of each repair is charged. up against the vehicle concerned. Tyres are charged in the same way, and, at the same time, the fact that new tyres have been fitted is recorded on the machine's record card for the purpose of checking up the mileage per tyre.
Charging for Outside Work.
Where it is necessary to send out jobs for repair, the cost is charged against the vehicle from the invoice, as is also any material 'bought exclusively for the work. When body repairs are necessary, ,the bodybuilders receive a similar job authorization to that of the engineer and they fill up a job sheet for the repair and return this to the costs office.
From the garage attendant's maintenance report we obtain particulars of all oil, grease and petrol used by each vehicle, from the engineer's, time and job sheets the cost of all repairs and overhauls, from the bodybuilders' time and job sheets the cost of all body repairs. and from •the stores requisitions the cost of tyres. These costs for the four weeks, together with the four weeks' allowance for depreciation, insurance, garaging and wages, give on the analysis sheet the running cost per vehicle.
From the drivers' reports are
obtained the mileage run and the petrol used. The total of these items on the analysis sheet gives the miles per gallon. of petrol, whilst the total running cost divided by the mileage gives the cost per mile. From the drivers' reports the quantity or value of goods carried by each vehicle can be traced, and the running cost for each machine 'is shown on the analysis sheet as a percentage of the goods carried or their value.
In some organizations, at the end of each financial year, the total cost of repairs, overhauls and painting is divided by the year's mileage of the fleet, and for the following year this cost per mile is charged against each vehicle for every mile run, to cover the cost of repairs.
To obtain average figures this method is quite good, but it does not bring to light on the analysis those units of the fleet that are becoming expensive luxuries.
The accuracy of the costing system outlined can he checked each year, when the annual Recounts are made up, as the year's totals for all the items mentioned will he contained in the ledger accounts.
Inspection of the fleet is carried out regularly, and from this re newals, repainting and kindred matters are -decided.
Spare power units are kept in stock, and when a complete engine overhaul is necessary, the component is taken out and a spare is installed. Every vehicle is examined according to a fixed routine, which, with• the maintenance of spare units ready for service, keeps the engineers' time fully occupied when they are not actually carrying out rd'airs.
Overhauling Costs.
Details of the cost of overhauling any unit are collected in the same way as those of the cost of repairs; the cost is charged against the vehicle to which the repaired unit is permanently fitted, or, if it be only a temporary fitment, a percentage of the cost is charged.
As already mentioned, there is a record card for each machine and a record of all the accidents in which it has been involved. There is a furtlibr record related in a certain degree, to these, and that is one for every driver, containing particulars of every accident in which he has been involved, the cost of •repairs occasioned by it and to whose fault the mishap is attributable.
From a study of the costs every four weeks, expensive .units can easily be discovered, and the cause of their expensiveness determined.
The delivery fleet can be the greatest unit of service both to its owners and their customers, its costs can also be a menace to both, but the method of control outlined should enable every fleet owner to control his fleet so that the nightmare of mounting costs should disappear in the light of the know-* ledge of where these costs arise.