ROCK -BOTTON :OSTS FOR MAINTENANCE
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An Assessment of Minimum Charges Based on a Maintenance Schedule Operated by Lever Bros. and Unilever, Ltd. IN assessing the cost of transport, one of the greatest difficulties is to obtain accurate figures for maintenance. 1 suppose in my time I have examined many scores of accounts kept by operators. Rarely is it possible by reference to these accounts to determine what is really being spent or maintenance. So many .items are left out; so many are debited to maintenance 'when they are not maintenance at all. Iii the end I have always had to make certain assumptions in order to reach a figure that is acceptable.
Different concerns adopt different procedures. Some have all the work done on the premises, but often, especially in the case of a generaL overhaul, the driver takes a share in the work and his hours are not included in the charge to maintenance. Again, wages and materials may be set against the cost, but no provision is made for overheads. Then there are concerns which have part of the work done inside and part outside. The commendable habit of using reconditioned parts is also a complicating factor. .
An opportunity to assess maintenance on a logical basis comes from last week's article, in which a complete and property scheduled scheme of maintenance, put into force by Capt. J. B. Walton, chief transport engineer of Lever Bros. and Unilever, Ltd., was described.
Problems in Assessing Costs
By assessing the cost of each item in each schedule, running through the whole 48,000 miles of the cycle, it ought to be possible to arrive at a figure for cost per mile. It is not quite so easy as all that, however. For instance, the matter is affected by whether the operator carries out the work himself and charges only labour and materials without provision for overheads, or, at the other extreme, has all the work done by a local garage. The former method does not give a true figure for cost of maintenance if it does not include overheads, for a large weight of overhead costs ought to be charged against labour in the repair shop.
Even if a way be found of bridging the gap between those two extremes, there still remains the problem of assessing the man-hours needed to carry out specific operations, as well as judging the quantity of materials required.
I remember that I wrote an article similar to this after the earlier presentation of Capt. Walton's first published scheme for maintenance. The only criticism that followed that article, came from Capt. Walton himself and was to the effect that I had allowed too many man-hours for the work, implying that his figures for cost were lower than mine.
Nothing daunted, however, I am having another shot, and this time I am aiming at what I regard as minimum figures. In assessing man-hours I am keeping to a low level and, in many cases, allocating less time for an operation than I think would probably be the average; moreover, I am taking an -intermediate figure for wages plus overheads. I am aware that in these days 8s. per hour is the average charge made for labour by first-class repair shops. That is equal to 250-300 per cent, overheads on wages. '
Overheads in Maintenance
The standard wage for mechanics in the provinces is a fraction over 2s. 5d. per hour, and it is questionable whether the average haulier, in assessing cost of maintenance, would debit the job with more than 3s. an hour. In the calculations that follow I have not quite split the difference, but have taken a reasonable mean figure of 6s. per hour. In considering man-hours required for various operations I have in mind a 30 m.p.h. 5-ton tier.
Reference should be made to the schedules of maintenance operations set out in the previous article. In my view, the daily service, comprising seven simple operations to be carried out by the driver each morning, could be done in five minutes, or 10 minutes at the outside. Those jobs could be completed while the engine was warming up and I do not propose to make any debit against maintenance for them The next series of operations was described as " Valeting Service," designed to be carried out every week. The first was "wash and grease vehicle thoroughly (renewing grease nipples where necessary)." A thorough wash and polish will, in my opinion, take an hour and greasing, as well as spraying the springs, another half-hour. The cost is 9s. The other small operations, checking gearbox and rear-axle oil levels, topping-up battery, correcting tyre pressures and so on, account for another 3s., so that this weekly valeting service costs the operator 12s.
A34 Now that cost is part of what is described in "The Commercial Motor" Tables of Operating Costs as "Maintenance (d)" —something that must be costed on a time basis and subsequently reduced to a mileage •rate. What that means in effect is that the greater the weekly mileage the lower the cost per mile. For example, if the vehicle runs 240 miles per week, the cost will be 0.6d. per mile. If it runs 360 miles per week the cost will be 0.4d. per mile. If, as is likely, the normal weekly mileage lies between those two extremes, the average cost per mile for weekly valeting is id.
Operation 1 comprises 11 small items to be carried out after 4,000 miles, the first being to clean plugs and adjust points. The time required will obviously depend upon the number of cylinders. To-day, most 5-tonners of the type I have in mind have six-cylindered engines. The operative will be a reasonably fast worker if he does the job in a quarter of an hour, that is to say at the cost of is. 6d. I have allowed a similar period for examination of coil, distributor, ignition wiring and cleaning and adjusting points. Sometimes this work may take a little longer, but on the next occasion it may take less, and I think a quarter of an hour is a fair average.
For item 3, "Adjust tappets if necessary," I have allowed half an hour, but for item 4, "Examine and check waterpump gland," only a few minutes, charging 6d. for it. My assessment of the probable cost of Operation 1, which applies also to 1A, 1B and IC, etc., is Is. 6d. I feel sure that is an underestimate.
Overhaul at 12,000 Miles Operation 2 which falls due at 12,000 miles, comprises 13 items. Of these there are two—" decarbonize and grindin valves, clean or renew oil filter, carry out all relative engine adjustments, drain sump and refill, clean petrol filters and carburetter, examine and check water-pump gland," and "carry out all necessary body repairs; paintworktouch-up and varnish exterior and redistemper interior "— which, in my view, will occupy a long time. For the first I have allowed 10 man-hours, and if there were two people engaged on it it could be done in five hours, and at 6s. per man-hour the cost would be £3.
I am not sure how much work would be involved in the repairs to bodywork, but I think it would vary widely. I have allowed five man-hours for it, so that the cost is £1 10s.
All the other operations are set down as needing half an hour or quarter of an hour and in that way I arrive at a total of £5 9s. 6d., but that is for'labour alone. Certain materials will be required, including a complete set of sparking plugs retailing at £1 10s. but probably costing a haulier £1 2s. 6d. A new oil filter and certain grease nipples may be needed, as well as paint, varnish and distemper for the body. I have allowed £2 12s. 6d. for materials, so that total cost of Operation 2, according to my reckoning, is £8 2s.
Operation 3, which takes place at 24,000 miles, is fairly large, having 18 items. It may be useful to deal with this schedule in some detail. The times and descriptions of some of the items are the same as in Operation 2, and this detailed description will help readers in determining what I have allowed in considering, in particular, Operation 2.
The first item is " decarbonize and grind-in valves, clean or renew oil filter, carry out all relative engine adjustments, drain sump and refill, clean petrol filters and carburetter, examine and check water-pump gland, fit reconditioned
petr.)1 pump, check ignition wiring with view to renewal." That is generalist-similar to item 1 in Operation 2, but there are some additional items, and I have allowed 12 man-hours, instead of 10, and have costed the work at £3 12s. Incidentally, I have included item 3 with that work—" measure cylinder bore wear and record it."
Item 4 is " renew water-hose connections and wash out radiator and water jacket." That, I think, will take not less than an hour if the washing be thorough and especially if, as is usual, the hose connections be a little difficult to remove and almost equally difficult to replace.
Item 5 might take a long time or might be finished in a few minutes. It is to "examine transmission, universal couplings, Spicer couplings and adjust clutch-pedal travel if necessary." A good deal depends on the amount of examination which is discovered to be necessary, and I have allowed three-quarters of an hour for it, charging 4s. 6d.
Item 6, "remove all hubs, examine for wear and make necessary adjustments, replenish with lubricants," is also one which is difficult to assess without knowing the work involved in removing hubs and replacing them. I think 1 have been extremely moderate in assuming that it can be done in half an hour at a cost of 3s.
have grouped items 7, 8 and 9 because in effect they constitute almost an overhaul of the brake gear. I have allowed four man-hours for that work (II 14s.).
The cost of No. 10 depends upon the thoroughness with which the work is carried out and the maintenante man's interpretation of the instruction. It is, "check electrical system throughout, oil auto advance and dynamo bearings, examine batteries and terminals. Renew lamp bulbs and refocus head lamps." I cannot imagine its being completed in less than one man-hour, and it would probably take longer. In this, therefore, I am working at minimum cost and 1 suggest a figure of 6s.
Labour Costs for Operation 3
For No. 11, "rectify play in ball pins and caps, and check track," I have allowed half an hour (3s.). To the next item, "drain gearbox, wash out, examine (including locating plungers, selectors and reverse catch) and replenish," 1 have allotted an hour. For each of the remaining items up to and including No. 17, half or quarter of an hour should be sufficient and for 18, which deals with the bodywork, as in item 13 in Operation 2, I have allowed five man-hours. The total labour cost for Operation 3 amounts to E8 8s.
Among the materials required I have included a reconditioned petrol pump, one or two new brake connecting pins, oil-filter element, wire, a set of plugs, lamp bulbs, grease and oil, paint, varnish and distemper, altogether at £5 2s. 6d„ bringing my total cost for Operation 3 to £13 10s. 6d.
The final operation at 48,000 miles is in effect a complete chassis and body overhaul. A reconditioned power unit with components is fitted, the chassis is thoroughly examined, all worn parts are replaced and finally, the body is repaired, to ensure a further 50,000 miles service, and the van is completely repainted.
At a modest estimate the materials comprise an engine at, say, £55 to £60, new parts for chassis which would probably include brake facings, king-pins and bushes, steering gear ball pins and sockets, brake cables, brake pins and shackles, sundry ball bearings, possibly even a main bevel drive gear, spring shackle pins and maybe some spring leaves, costing at least £20 to £25. Body costs could not fall below £25 to £30. Materials for Operation 4 would thus cost £100 to £115.
£180 for Major Overhaul
1 am not going to attempt to assess the man-hours necessary for this job, but I have worked out the labour charge on this principle: In the ordinary way, labour charges could be expected to be 1 i times or twice the cost of materials. In this case, however, a good deal of that labour charge is accounted for by the use of a reconditioned power unit. Clearly, on that reconditioned engine charged at £55 to £60, a large proportion of labour charge is included, so that if I take £100 to £115 for materials, I can assess labour as £70 to £80, giving a ,total of £170 to £195 as the cost of Opera tion 4. I am going to assume a mean figure of £180. It is now possible to set out a bill of costs for these four principal operations from the day the vehicle is put into commission until, at the end of 48,000 miles, it is thoroughly overhauled.
That expenditure on maintenance has been incurred in 48,000 miles and the equivalent in pence per mile is 1.08d., to which must be added the average figure of kd, per mile for the weekly valeting service, making 1.58d. per mile for• the reasonable—I might almost say minimum—cost of maintenance of a 5-ton petrol-engined 30 m.p.h. vehicle. It is of interest to note that in "The Commercial Motor" Tables of Operating Costs the corresponding figure is precisely 1.58d. per mile. Incidentally, I looked up this figure in the Tables only after I had finished the foregoing assessment and calculation, and was myself surprised, but naturally gratified, to find the figure exactly the same. Of course, if the vehicle be running only 300 miles per week, the cost will increase and is, according to the Tables, 1.65d. per mile. S.T. R. A 35