When a series of catastrophic equipment failures hit Schlouch Incorporated in 2005 it prompted a change in the way the Pennsylvania-based heavy civil construction firm managed their fleet.\u00a0\u00a0Instead of relying on a traditional siloed approach to fleet management, where operations, fleet management and accounting are often at odds, they chose to take a collaborative approach. They call their method the Internal Equipment Triangle and it\u2019s an extension of the idea behind the equipment triangle\u2014 that equipment end-users, manufacturers and distributors all deserve respect and that transactions should be a win-win for all parties.<\/p>\n
\u201cAt most construction firms the\u00a0fleet manager\u00a0is\u00a0responsible for all three areas. What we try to do is bring expertise from\u00a0different areas to the decision. \u201cWe believe the best decision for the\u00a0organization is one that all parties agree on,\u201d says Kevin Reimert, Fleet\u00a0Coordinator for Schlouch\u00a0Incorporated based in Eastern Pennsylvania.<\/p>\n
A TEAM AND RESOURCE-BASED APPROACH TO FLEET\u00a0MANAGEMENT<\/p>\n
Reimert is responsible for fleet operations and his\u00a0group reports to Operations, led by Don Swasing, COO. The third member of the\u00a0equipment triangle is Rich King, CFO. \u00a0The team meets weekly to discuss\u00a0pending decisions each bringing their unique perspective and expertise to the\u00a0process. \u00a0King examines the financial impact of decisions, coordinates\u00a0fuel hedging and financing along with analyzing and reporting fleet results.\u00a0Reimert offers data on performance related to equipment maintenance,\u00a0changing the P.M. program, comparisons of fuel efficiency and\u00a0maintenance\u00a0costs, and analysis related to equipment disposal. Swasing is responsible for\u00a0the overall vision for the fleet as well as relationships with OEMs and dealers.\u00a0He brings production data from the field and updates the group on their\u00a0equipment needs. He also ensures Reimert has\u00a0the resources he needs.<\/p>\n
According to Swasing, the collaborative process to\u00a0equipment management eliminates decision-making based on gut judgments or good\u00a0old boy connections rather than quantitative methods. If the three team members\u00a0don\u2019t agree, they won\u2019t move forward. \u00a0It also eliminates some of the\u00a0finger-pointing between operations and maintenance that happened before the\u00a0change. Their overall equipment philosophy has changed as well. \u201cPurchase decisions\u00a0aren\u2019t\u00a0always based on lowest price,\u201d says Swasing. \u201cWe will pay more for\u00a0top-performing equipment.\u201d<\/p>\n
MEASURING THE BENEFITS<\/p>\n
The success of the approach has been proven over\u00a0time, as evidenced in improved uptime, gains on the sale of equipment or at\u00a0trade-in, and scheduled vs. unscheduled repairs. The team from Schlouch was awarded\u00a0with The Association of Equipment Management Professionals\u00a0Fleetmasters Award\u00a0in 2016.<\/p>\n
The move toward a more collaborative approach had\u00a0the full support of top management including CEO Barry Schlouch, which made it\u00a0possible to get through a challenging transitional period. \u00a0Top management\u00a0also pursued Certified Equipment Manager (CEM) accreditation from AEMP.\u00a0\u201cOnce\u00a0implemented, the rest of the organization saw the benefits, that the equipment\u00a0was more reliable, and uptime was there,\u201d says King. \u201cWhen maintenance said\u00a0they would do something, it happened.\u201d<\/p>\n
LEARN FROM THE EXPERTS AT CONEXPO-CON\/AGG 2020<\/strong><\/p>\n To learn how the\u00a0Internal Equipment\u00a0Triangle\u00a0might benefit your operations, you can attend an educational\u00a0session on the topic at\u00a0CONEXPO-CON\/AGG\u00a02020.\u00a0\u00a0During the session, the equipment management team from Schlouch will\u00a0provide examples of how the process works in the real\u00a0world.<\/p>\n In addition, they will discuss the key results they\u00a0have been able to achieve including improved reliability, lower operating costs\u00a0and improved operator satisfaction. It\u2019s a session designed to get you thinking\u00a0about how you can improve fleet management, whether you are in finance,\u00a0operations, or maintenance.\u00a0Register today\u00a0for\u00a0CONEXPO-CON\/AGG, March 10-14, 2020 in Las Vegas.<\/p>\n For more information attend the education session “Your Internal Equipment Triangle: The Key to More Successful Fleet Management<\/em>” on Thursday, March 12, 2020 from 1 p.m. – 2:30 p.m. at CONEXPO-CON\/AGG.<\/p>\n REGISTER NOW<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"