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Oilers Pa on Municipal

14th September 1956
Page 97
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Page 97, 14th September 1956 — Oilers Pa on Municipal
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Which of the following most accurately describes the problem?

• •

Duties

Precise Cost Records Essential in Operating a Public cleansing 'Fleet

THE petrol versus oil controversy is bound to continue, because those operators who cannot find a place for the oil engine in their minds arc unlikely to be convinced by the production of cost figures. The objection to the oil engine is probably more widespread among providers of municipal services (except bus services) than in commercial haulage, as one of the controversial points is its value or otherwise •on work involving concentrated mileage and frequent stoppages.

Careful Costing

However, the high capital expenditure and operating costs which have to be incurred by a local authority in providing cleansing services necessitate careful consideration of all the factors involved and a careful costing system is essential.

Costing systems should produce an hourly charge and a mileage running cost, the standing charge to consist of wages, National and other insurances, licences and an allocation for establishment charges. Overhead costs vary and are a matter for the officials concerned.

There is a wide divergence of view as to what is an equitable sum. Whilst commercial undertakings appear, on the whole, to adopt a figure of 20 per cent, a 10-per-cent. charge would appear equitable for municipal purposes.

Standing Charges Standing charges on a typical sideloading refuse collector of a 10-12cu.-yd. capacity, and representing what would in commercial undertakings perhaps be a 3-4-ton vehicle, are shown in the following table:—

From this tabulation, an hourly charge of 5s. 6d. is produced, based upon a 44-hour week and including the services of a driver. A commercial figure, of course, would be substantially above that, as in addition to an increased establishment charge there would be a profit margin, usually at 20 per cent.

The hourly cost of municipal vehicles compared with commercial vehicles of a closely related tonnage provides an interesting study and offers a picture of the influence of increased establishment and profit margins on the cost per hour:

Whilst standing charges throughout a fleet vary little and usually, on municipal vehicles, only in relation to insurance and licensing fees, wide variations occur in relation to running costs per mile, and it is in this section of a costing account that the opportunity occurs to look for excessive expenditure. From a mixed fleet of 20 vehicles including both petrol and oil engines, the following fuel costs per mile were extracted: Refuse collectors: Petrol-engined 10

12-cu.-yd. side-loaders, 6.74d., 6.20d., 6.26d., 6.8Id., 9.34d. Petrol engined 18-20-cu.-yd. rear-loaders,

12.13d., 10.17d. Oil-engined 1820-cu.-yd. rear-loaders, 5.75d.,

5.58d., 4.37d. Petrol-engined 15

. cu.-yd. rear-loader, 7.06d. Oilengined 7-cu.-yd. side-loader, 2.56d.

Cesspool-emptiers: Petrol-engined, 7.22d., 6.26d., 6,63d. Oil-engined, 2.68d.

General-purpose vehicles: Petrolengined 5-cwt. vans, 1.57d., 1.21d. Petrol-engined 2-cu.-yd. lorry, I.67d. Petrol-engined 15-cwt. lorry, 2.05d. Oil-engined 1-2tonner, 1.39d.

The figures offer substantial support in favour of the oil engine. An average of 64d. per mile for fuel is required for the 10-12-cu.-yd. sideloading 'refuse collectors driven by petrol engines, yet it is possible to carry double the weight of refuse on the more modern type of rear-loading vehicle and fore-and-aft tipper for a fuel cost less than 6d. per mile.

Low Fuel Cost

These larger vehicles, if operated with a petrol engine, cost as much as is. per mile for fuel. One of the exceptional figures in the tabulation is that of 2.56d. per mile for a 7-cu.-yd. side loading oiler, especially when it is realized that this figure represents a running cost of only about Id. per mile more than is involved in the operation of a 5-cwt. van.

Acknowledging the fact that the fuel consumption of refuse-collection vehicles is heavy by comparison with ordinary lorries, one must agree that the figure is exceptional. For cesspool-emptying appliances there is usually, within the areas of most local authorities, little variation in the work and mileages performed by an individual machine, and the 2.68d. per mile shown by the oiler is a clear indication that this particular type of vehicle can be operated for substantially less than half the running cost of a petrol model.

Oiler's Influence

The figures which follow show the influence of the oil engine on total running costs per mile, the mileage involved being shown in each case:

Refuse collectors: Petrol-engined 1012-cu.-yd. side-loaders, Is. 4d. (8,886 miles), Is. 2d. (10,292 miles), Is. 2d. (8,735 miles). Petrolengined 15-cu.-yd. rear-loader, 2s. 4d. (4,316 miles). Petrolengined 18-20-cu.-yd. rear-loaders, Is. 11d. (8,061. miles), 2s. 3d. (8,105 miles). Oil-engined 18-20-cu.-yd. rear-loaders, 2s. id. (6,665 miles), is. 11d. (6,063 miles), is. 9d. (4,996 miles).

Cesspool-emptiers: Petrol-engined, 2s. (8,154 miles), 2s. 6d. (3,726 miles), Is. 10d. (5,924 miles). Oil-engined, 2d. (8,860 miles).

General-purpose vehicles: Petrolengined 5-cwt. vans, 6d, (4,790 miles), 5d. (6,289 miles). Petrolengined 2-cu.-yd. lorry, 9d. (16,515 miles). Petrol-engined 15-cwt. lorry, 6-1-d. (9,735 miles). Oilengined 1-2-tonner, 7d. (3,256 miles),

Here is an example of a runningecist analysis: Fuel 6.74d, per mile, oil 0.36d., depreciation 3.48d., tyres arid repairs 4.71d., total 15.29c1. The vehicle to which these costs relate is eight years old; thus the depreciation figure is perhaps substantially lower than it would be in the case of newer and heavier models of recent registration. In the case of newer vehicles, depreciation can be as high as 15d. per mile.

Alarming Variations

It is difficult to appreciate how a fleet of vehicles can be maintained without careful attention to an adequate system of costing, as it is only by this means that the responsible officer becomes aware of the stage at which a particular vehicle has become no longer economical to maintain. Costing arrangements from one local authority to another vary to an almost alarming degree. In many cases no attempt is made to meet this need, whereas in others most involved sets of figures are produced.

To be valuable, any costing system should be kept to simple proportions, and, indeed, in the more involved systems it becomes questionable whether the cost of administration does not exceed any saving which has been achieved on the practical side. On the other hand, it is true that the information should be available sufficiently easily to be of use.

Watch Tyre Costs

It will have been noted, no doubt, that no separate reference has been made to tyre costs, and in the figures quoted these have been included with repairs. It is essential to keep accurate records of tyre mileages, as tyres represent one of the most expensive items of expenditure. Nevertheless, unless it proves possible conscientiously to record dates and speedometer readings at which tyres are taken out of, and returned to service, annual figures cannot haVe an accuracy sufficient to give a true overall picture. Without this the expense and time involved in costing will largely be wasted.

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