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Solving the Problems of the Carrier

9th August 1935, Page 44
9th August 1935
Page 44
Page 45
Page 44, 9th August 1935 — Solving the Problems of the Carrier
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Which of the following most accurately describes the problem?

ISHOULD like to make it clear that criticisms of The Commercial Motor Tables of Operating Costs are welcomed—indeed, they are invited. It is often helpful for someone to disagree with the figures, or their presentation. If there be any-thing in the criticism offered, the ultimate repult is that the Tables, and all those who use them, benefit.

It is rare, nowadays, for anyone to be able to show us anything which needs amendment. The continuous attention of a score of years and more is sufficient to eliminate errors, either of omission or commission. However, it is quite clear, from a recent experience, that there may be those who have comments to offer, but do not do so lest they give offence. That is the reason for this preamble to the description of a conversation I had, the other day, with such a haulier.

Disagreement on Costs.

He was an Irishman. His original idea was that I should call upon him, and I was quite agreeable, provided that he was willing to wait until I next Visited the Delectable Isle. In the meantime, he had come to London to take delivery of a new vehicle, and he kindly made an opportunity of visiting me. When he did arrive, he talked about all sorts of things ; anything under the sun but commercial vehicles and their costs of operation, and I myself had to start the ball rolling.

"What was it you really wanted to see me about," I asked, "when you were so anxious for me to come over to Dublin? "

"Well, er "—long pause—" I hope you don't mind, but—er" (and then, with ,a rush), "my figures for operating costs do not quite agree with these you give in your Tables."

" I'm not surprised at that," I replied. It is seldom I find anyone who owns to having exactly the same expense."

3338 "But mine are a long way out," he objected.

"Never mind," r said, "that makes them more interesting."

He looked surprised. "Then you don't mind my criticizing your figures? " he asked.

" Not in the leas-b." I replied. "That is the way I learn. That is how the Tables have been built up. The dissenters are wrong, or they have some special reason for differing, or the Tables are inaccurate, in which case I am pleased to know about,it, so that the error can be corrected the next tithe they are revised. And, by the way, I am in the middle of revising them now, so if you have found a mistake or two, let me know at once."

He produced a sheet of foolscap on which was set out a series of tables of operating costs of his own vehicles. The arrangement of the figures was not the same as that • familiar to users of The Commercial Motor Tables of Operating Costs. Apparently, toy visitor was operating nine vehicles, ranging from a 2-tonner to a 10-tormer. The annual mileage differed considerably from vehicle , to vehicle. Table I reproduces the first six columns of figures, as shown to me.

A Misleading Discrepancy.

"There is not a great deal of difference," I observed. "You don't think so? "he said, and continued, without awaiting my reply, "Well, I do. It's nearly £38 a year." . "Yes, but it's only £38 in nearly £3,040, or little over 1 per cent.—and, by the way," as a thought struck me, "how much do you pay for petrol? "

" One-and-four."

" Well, there you are, then. The Commercial Motor figures are based on is. 3d. a gallon. If you correct your figures for that item, You will find that your results are slightly better than those given in the Tables."

" I never thought of that," he confessed. "But, in any case, the figures in the Tables are wrong. How do you account for that? "

" Very easily. The figures in the Tables are averages, calculated from a great many sets of data collected from operators all over the country. Your results are rather better than average. That's all that is meant by the discrepancy between the two."

" You mean that my results are good? " he said, with a snide.

"I'm very pleased to hear you say that," he remarked; "but that's not all. ."

" Wait a moment, if you please," I interrupted. " I'd rather like to make a note of your fuel consumptions. Can you give me an idea how much of these amounts is due to expenditure on lubricating oil?"

"I cannot give you the exact figures," he replied, "but if you take an average of about 4 per cent. ol the total, you will not be far out."

An Excellent Fuel-consumption Return.

"Then the 2-tonner has cost alitout £1 3s. 6d. for oil, leaving £27 16s. 6d. for petrol—the cost. of 423i gallons at is. 4d. per gallon. As this machine covered 6,000 miles, that is equivalent to 13.8 m.p.g., as compared with The Commerekil Motor figure of 13 m.p.g.—an excellent result."

I went op to compare the other figures for cost of fuel The results, showing my Irish friend's experience, as compared with those given in our Tables, appear in Table H. It will be observed that this inquirer's figures for consumption are rather better than average, right through the schedule. Actually, that is what I usually find. If a man be able to show results rather better than the average with one vehicle, it is more than likely that the same will apply throughout the fleet, which goes to show that economy of operation is, to a certain extent, a matter of organization. I explained this to my friend and then asked him to proceed with his criticisms. "You were saying that the figures for petrol and oil were not all you wished to discuss," I said.

" Yes. I differ from you radically as regards main

tenance costs, and I do not agree with your data for depreciation. Here are the figures for maintenance."

The reader will find them set out in Table III. They disclose a considerable discrepancy between average results and the experience of this inquirer. The discrepancy is, however, not so real as is apparent from the figures, as the further conversation showed.

"Can you not let me have details of your expenditure?" I asked.

"I haven't brought them with me,". he answered, " but does it matter? Surely the total suffices for pur• poses,of comparison? "

"By no means. I must l know what the details are, otherwise I cannot tell whether we are comparing the same things.", A Question of Maintenance Cost.

"1 still don't see your difficulty. The amount stated, £1,300, is the total spent on materials and labour throughout the year."

" ask you two questions. First, is the total greater or leSs 'than it has been other years? "

I-cannot say, ,without refenring to my books. What difference does it make?"

" Just this—that if it has been greater, that will bring up the average."

"I see. And your second question?"

"I gather that you carry out all maintenance work and repairs in your own building, and with your own staff of mechanics?"

"Yes, that is so."

"Is there any provision, in these figures, for the rent of the building and its upkeep, for lighting and heating, for the cost of equipment, its maintenance and occasional replacement? "

" Why, no. That surely should come under the heading of 'Establishment Costs '?

" Not in this case. It is part of your expenditure on maintenance and must be debited accordingly."

"I hadn't realized that. I had better withdraw the figures for maintenance and let you have thorn when I have had the opportunity of revising them."

" Very well. I shall be interested to see them. And now there is depreciation."

The discussion concerning depreciation must be left over for another article. S.T.R.

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