A Theoretical _Solution Misfires
Page 52
Page 55
If you've noticed an error in this article please click here to report it so we can fix it.
How Conditions "on the Ground" Affect Calculations of Relative Costs of Operating Four-Wheelers and Articulated Vehicles on Factory Shuttle Services
IN my article "What Does the Shuttle Service Save," which appeared in "The .Commercial Motor" on November 5, I stressed that it was based on insufficient information. I knew practically nothing of the conditions prevailing at the factory where the vehicles were employed. I was not even told where the place was and I certainly knew nothing of any unfavourable operating conditions which would materially affect my theoretical scheme. This lack of information not only affected any calculations of operating costs, but also the comparison between the results of operation when all the vehicles were orthodox fourwheelers or, alternatively, when they were all of the articulated tractor-trailer type.
My solution of the problem as to which was likely to be more economical, orthodox four-wheelers or articulated vehicles, was therefore theoretical in conception and execution. It was, however, correct in that a considerable potential saving was credited to the tractor-trailer method as opposed to that employing ordinary four-wheelers. I suggested the replacement of five vehicles by two tractors and half-a-dozen trailers and sowed that this would result in a saving of £345 per annum, or very nearly £7 per week.
In dealing with that problem I was under the false impression that the transport was operated by the owners of the factory. I have now heard from the haulier who is doing the job, and although he is an old friend of mine that has not in any way softened his criticism of my little plan: in fact, he blows it to smithereens, Customer Checks Costs
The publication of my article might have had very serious consequences for him. For example, if his customer had read my article and not appreciated the great differences between my theoretical planning and the actual conditions, he might have thought he was being seriously overcharged by the haulier with the possible result that my friend would have lost the contract. Fortunately, no harm was done, for the haulier tells me there is no fear of misunderstanding as the company for which he is working keeps a careful check on transport costs and is well aware of the true position,
Now let me get the worst over first. My friend points out that there is an error in my figures in that I have set down only £286 for wages, and that for one man, whereas in the article I provided for two. That mistake, although regrettable, does not affect the result of my calculations because I made the same mistake on both sides of the equation. In other words, I am £286 short on my assessment of cost of the four-wheelers and am incorrect to the same
B18 amount and in the same way in my figures for the cost of the tractors and trailers.
My correspondent then states that in his opinion the nominal figure of £10 per year per vehicle for garage space•in the works is too low. In these days, he says, few factories have garage space available and in consequence any shed on the premises has a high relative ground value. The management of this particular factory pride themselves on the organization and layout. They would not tolerate the parking of vehicles in any old shed, preferring to build suitable garages. I am to assume, although no figure is stated, that my correspondent would expect me at least to double the allowance for garage rent and rates.
• His next criticism is the amount set aside for insurance premiums. In my article I suggested £15. He says this compares rather oddly with the ordinary haulier's tariff premium, recently increased, which for a 5-ton truck is £54 6s. (subject, of course, to fleet users' rebates).
Higher Insurance Premiums The difference here is that in my article I was dealing with vehicles operating under a C licence, whereas my correspondent, being a haulage contractor, has to pay the considerably higher premiums which is expected from those in that branch of the industry. For C licence figures relating to vehicles operated under the conditions as I visualized them, and making provision for fleet users' rebates, £15 is not wide of the mark.
Now we come to the real gist of the matter: the practical conditions, of which I was not aware, under which this haulage is carried out; conditions which materially affect the method and, even more so, the cost of operation. First, the yard is a network of railway lines and crossings. Secondly, the factories are constantly growing and there is always a number of roads in course of repair, diversion or construction. Tyres are cut to ribbons on the railway lines and half-made roads, and the working parts of vehicles are subject to constant vibration and shock. All this has a serious effect on maintenance costs.
In addition, the materials carried are mostly chemicals, and these have a very deleterious effect on the paintwork. The allowance in my figures for washing, he states, would not pay for the painting alone. These chemicals also have a bad effect on all metal and rubber parts, particularly the braking system, and my friend's figures indicate that an allowance of lid. per mile for tyres and 3d. per mile for maintenance would be much nearer the mark than the figures set out in my article. So much for the conditions and their effect on operating costs. It is now necessary to turn to the effects on the operational scheme to which I devoted the major part of the article in question._ My layout, as already mentioned. provided for two men operating five vehicles. This, my friend says, would be a very good plan provided the conditions were ideal, as is assumed in the article, but under the actual conditions it would be hopeless to attempt to operate in that manner. Anyone attempting it would run into trouble immediately. Five vehicles with five drivers are necessary to give that fluidity and control which is essential to meet all the daily variations.
Exigencies of Transport Service In the best-regulated factories there are always factors arising which are beyond the control Of the transport staff. Moreover, the general attitude of most works managers, is that road transport must adapt itself to working conditions in the factory. For example, writes my friend, there are two swing bridges over the river which bounds one side of the factory. If one of them happens to be off; if shunting is:taking place within the factory area; or if there is a delay in any one of the many production processes in a go-ahead busy works, then these two men with their five vehicles would be absolutely dizzy, and would probably in the first half-hour collect their cards and go in search of another job. In actual fact, he adds, the additional cost of manning each vehicle with a driver is not so great, even apart from the above-mentioned conditions, because the drivr is there with the vehicle, and .whether or not he helps to stow the load he certainly sheets and secures it and, gets away quickly, thus enabling more work to be done.
My friend then sets out his own figures for the :actual operating cost of the four-wheeled .vehicles which are actually being operated by him on this work. First, drivers' wages, which, he states, may be from £312 to £338 per annum. ,This he 'considers an inadequate figure since it does not mike slificient allowance for the overtime which will be worked, and he makes the significant point that he has yet to hear, of any employer, in his own district at any rate, who can retain a good driver on the pay for the minimum 44-hour week. The remainder of the standing charges he puts down as follow:—Licence, £30; insurance, £35; garage, £50; interest, £20; depreciation (on a sevenyear basis), £70.
The total annual standing charge per vehicle, according to his figures, is between £517 and £543. On a 48-week year this gives a figure of between £10 10s. and £11 5s. a week.
Next he turns to the running costs. Fuel and lubricant costs arc heavy. This is to be expected in view of the special conditions; excessive waitings at sidings and swing bridges, the character of the ground over which the vehicles have to work, and the low mileages. He says that the cost of those two items is likely to be over rather than under the 3d. which he proposes to assume. For tyres he estimates lid. per mile and for maintenance 3d. Here again, he says, a fraction over rather than under 3d. is more nearly correct. He makes the stipulation that this is the amoont which will have to be spent if the vehicles are to be kept reasonably well painted. The total there is 7ird. but he chooses to take 8d. as being nearer the mark.
Late Afternoon Forecast
As to weekly mileage he points out that there is a three-mile journey night and morning for each vehicle so that the mileage varies from 150 to 180 per week, giving the running cost of £5 to £6. The total cost per week, therefore, is from £15 10s. to £17 and with the addition of overheads, establishment and profit, the hiring charge should be at the rate of not less than 10s. 4d. per hour and this is for the hire of vehicles for inter-works transport on a day to day basis. This latter point is important, of course, for my friend points out that the hirer does not forecast his requirements for the next day until 4.30 p.m.
He concludes by suggesting that had I spent a fortnight at the works investigating the conditions, my story would have been' very different. Actually I wanted to do this but could not obtain the necessary permission.
I would like to have included in this article some figures to compare with the above to indicate the cost of operating tractor-trailer combinations instead 'of four-wheelers on this work. My friend, however, has given me on information which would enable me to plan a satisfaetory method of using such vehicles instead of the four-wheeled trucks now employed. Indeed, it would be impossible to make such a comparison without a personal investigation over a considerable period.