MAINFRAME TO MEASURE
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Transfleet is investing ,i3m in a bespoke computer system. Colin Sowman finds out what benefits the company expects to gain from it.
Transfleet's computer system is much more than just a workshop or accounting package. It is the central tool which allows the company to do business efficiently.
Data from each part of the system feeds back into the other parts to allow the sales force to make the most accurate quotes. "In our business we quote for five-year contracts. A 5% error means we make a loss, so we must know our repair and maintenance costs," says information services manager, Peter Moorhouse.
Implementation
Several functions in the company were already computerised but setting up the mainframe would take time. So the plan was implemented in two (originally three) stages.
You must sort out your requirements first then judge the packages against them not the other way round," says Moorhouse. Consultants helped develop the strategy with each part of the system design being signed off by the relevant director. For the workshop computer system Transfleet looked at several off-the-shelf packages for the first stage. This was to cover invoicing, job control and vehicle history.
None of the compatible packages had weekly-based service scheduling as many were derived from car-based programs.
Booking a vehicle in one week in advance and allocating a fitter to do the job could not be handled by many packages and impress stock caused havoc with the accounting side of the systems. One system scored highly with the stock control but Transfleet operate just-in-time parts delivery. "We need parts control not stock control," says Moorhouse.
"A truck has so many things to cover", says Moorhouse, "We were making demands on the package supplier that they hadn't been asked for before. They kept saying 'that's a good idea'.
Moorhouse's team found the 'fit' achieved by the package was often only around the 30% mark. "Its OK if you are into the 80% as most companies will adapt the system to your needs. Below that mark the final system is so different to the package that the supplier has difficulty giving the back-up so you get a bespoke system anyway-, he says.
Having drawn a blank on the packages Transfleet turned to computer company Chart Associates. This company was born out of Transfleet's takeover of Charthire in 1989.
Chart offers a number of core programs which are put together to suit the customer's requirements, halfway between a package and a system designed from the ground up. With its truck fleet management background Chart has the knowledge and flexibility to meet Transfleet's requirements coupled with the cost advantage over one-off systems.
A stage-one workshop system has been installed in seven locations since November last year. Stage two is nearing completion and should be signed off by the autumn.
Fast lane
In the second stage parts in stock and their price is taken directly from the advice notes with a 'fast lane' to allow parts to be fitted directly on to a vehicle without booking into the stores (allowing for just-in-time deliveries).
Daily stock movements, stock record and the cost of the stock will all be available. Branch coded job numbers will be allocated by the computer which will also print the job card. In stage one job times are governed by the vehicle weight, in stage two they will be taken directly from the manufacturer's data for each vehicle. All work done, at any branch, is automatically written into the vehicle's history record.
Workshop utilisation is currently worked out from the total hours available against hours sold. In stage two a fitter-by-fitter breakdown will be possible. Income by customer, gross profit margin on parts by manufacturer will also be available. The total spend on each contracted vehicle will be calculated and automatically fed into the costing program for new quotes.
Schedule
When a contract is signed the computer draws up a service schedule chart for all the vehicles for the next year.
Transfleet expects the computer to save it Cm on a £16m turnover.
Moorhouse has several recommendations for those considering a similar move: decide what you want before looking at packages; make sure each part of the system links to all the others; larger organisations should use consultants for the strategy but use their own knowledge for implementation; take time to train your staff and, finally, you need procedures as well as systems.
Vehicle history record (left) showing every job done. All the work going through a branch is recorded (below) allowing parts sales, hours sold, utilisation and total income to be calculated at the touch of button.