Internal Service Funds Their Mission Impact and Using Performance Measurement to Employ Best Practices

1. Internal Service FundsTheir Mission Impact and Using Performance Measurement to Employ Best Practices Gary McLean, Fleet Manager, City of Lakeland

2. Agenda • Introduction • A Reminder of What ISFs Represent • Tailoring Measurement to the Customer • Tailoring Service to the Customer • COL Fleet’s Best Practices • Conclusion

3. Introduction • About Me • Born and raised in Melbourne, Florida • In fleet maintenance/management 30 years • Military and municipal fleet management • Experience in all fleet aspects, parts, body shop, mechanic, supervisor, manager • FBC Fleet Management service lead since 2009 • COL Fleet recognized as one of North America’s 100 Best Fleets in 2011 and 2012

4. Internal Service Funds • What ISF organizations represent • Usually, ISFs directly support all missions, ISF examples: • Facility Maintenance • Fleet Management • Information Technology • ISFs escape the attention of the public, but are very visible to government leadership, for better or for worse • ISF performance directly translates to operational effectiveness, organization-wide • Inefficient ISFs must improve themselves, or their customers/leadership will find other alternatives • Effective, data-driven ISFs enable the success of the entire local government organization

5. Tailoring Measurement to the Customer • Different departments, different challenges • Paramilitary requirements • Customer-driven service provided to citizens • Funding sources for revenue • The little guys versus the big guys • Curiosity must drive true data interpretation • Different departments, different support solutions

6. Tailoring Service to the Customer • Paramilitary Organizations (Police, Fire) • Require adequate reserve vehicles (spares) • Difficulties with timely turn-in of units for PMs • Special needs for vehicle equipment outfitting • Service Delivery Solutions • Active inspection of pool and spare vehicles • Dedicated PM cell ensures quick turn-time • Large PM parts inventory • Contracted vehicle outfitting with deadline

7. Tailoring Service to the Customer • Enterprise Fund Organizations • Utilities, Refuse/Recycling Collection/Airport • Customer expectation for service generally high • “Paying” customers (citizen revenue) drives very high priorities • Service Delivery Solutions • Service level agreements to ensure prioritization • Dedicated technicians for early shift starts, emergency operations • High level of parts inventory for priority vehicles

8. Tailoring Service to the Customer • The “Little Guys” • Small departments with a few vehicles • Budgets are tight • Stereotypical view is they are a low priority • Lots of mission support problems from low priority • Service Delivery Solutions • Aggressive, on-time replacement of vehicles for better reliability • Fleet-based loaner vehicles outfitted for their needs • Case-by-case leasing for required units with low utilization

9. COL Fleet’s Best Practices • Contracted Operated Parts and Inventory • NAPA Integrated Business Solutions, June 2010 • Full management of inventory, parts, tires, materials, fluids • Flexible staff availability for weekends, emergency operations • Performance measurement products on demand • Total elimination of technicians losing time to parts research and sourcing • Material costs are essentially flat-lined compared to past trends compared to organic process • Single biggest factor in Fleet’s improvements

10. COL Fleet’s Best Practices • Contracted Tire Servicing • GCR Tire Centers, June 2011 • Full on-site tire repair and replacement • On-site tire tread wear management in all heavy truck yards • Works with NAPA in-house parts store for tire ordering and inventory replenishment • Tread wear management improved retread tire use by 30% • Zero wait time for customers that need tires fixed or replaced • 30% drop in tire servicing expense, 20% drop in tire material expense

11. COL Fleet’s Best Practices • Preventive Maintenance Cell • Formally established October 2012 • Dedicates 4 technicians to preventive maintenance work to the exclusion of all else • Aggressive pursuit of overdue PM turn-ins • Appointment system ensures vehicle is serviced immediately upon drop-off • 100-plus PM inspection backlog reduced to zero in 2 months • Anticipated reduction in unscheduled maintenance cost expected at 10% - 15%

12. COL Fleet’s Best Practices • Change from Two to One Work Shift • Formerly ran two shifts, day and evening • Performance measurement validated lack of evening shift productivity • Changed to one 10-hour shift, 5 days weekly • Staggered shifts for Monday – Thursday, Tuesday – Friday coverage • Increased vehicle availability across the City • Enabled elimination of PM backlog • Enabled robust enterprise fund mission support • Quality of life improvement for employees with 3-day weekends throughout the year

13. Conclusion • Internal Service Fund organizations must look at data differently, tailored to the customer • Don’t compare customers with assumptions or baselines—curiosity drives interpretation • Work closely with the customer to develop the solutions and benchmark your neighbors • Data validates, not demands adjustments • The BEST best practice is customer focus and agile response to the need to improve