FOCAS IN FOCUE
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Brian Chalmers-Hunt explains how this Ford service can ease operators' management pains and aid profitability
WHEN a fleet grows rapidly and this is accompanied by considerable capital investment, even senior management can find first-hand knowledge of the cost effectiveness of all aspects of the business virtually impossible to obtain in understandable form.
Any facility aimed at reducing this workload accompanied these days by more and more legislation to comprehend and industrial relations responsibilities to shoulder, is worthy of thorough investigation.
These managers need tools to control their operation, and a computer-based fleet costing system is one which can soon more than earn its keep.
This is why a computer can help. For instance, when considering the problems associated with fleet costing: • Large volumes of data must be recorded and filed.
• Tedious and repetitive calculations have to be performed.
• Information supplied is often out of date or inaccurate.
• Hours of clerical effort are required to-answer a non-standard costing question.
• Results need to be compared with a standard.
In return a computer has a capacity for storing data; it makes accurate calculations; its timetables tend to receive respect; and different companies can use one computer bureau to produce inter-company or interindustry comparisons.
Ford Motor Company Ltd recognised the need for a low-cost computer-based standard analysis system and in conjunction with a firm of management consultants introduced FOCAS (Ford Operating Cost Analysis System) in 1972. It was to be available to any fleet of commercial vehicles and psv, including forklift trucks and later ambulances.
The assessment and control of the full costs of fleet ownership and operation — particularly maintenance — can be made more accurately via details provided by FOCAS. It was the first UK system of its type to produce ratios covering all the costs, including fleet overheads. Such ratios include cost per tonne, cost per drop, and cost per mile.
The national average of costs for all FOCAS users is provided for comparative purposes without any operator's identity being revealed. However, the output can be only as accurate as the information supplied. So an operator who participates in the scheme will have an incentive to keep his input data accurate.
Data can be put into the FOCAS scheme in several ways.
Operators with their own com puter terminal may be able to transmit data along a post office telephone line direct to the FOCAS computer. Alternatively input documents can be com pleted and dispatched to the FOCAS office. If the standard forms are neither convenient nor suitable for existing documentary systems for the fleet, other methods of recording information are available.
If standard documents are used the following three forms must be completed for each period: CS2 Overheads (one for each location); CS5 Fleet Detail (at least one for each location); CS1 Vehicle Return (one for each vehicle).
For transport operators with their own workshops, the Workshop Job Card (CS41) can be used to avoid the time-consuming task of transcribing maintenance costs onto the CS1 form.
The job card is in three-part hard-back carbonless form. The top copy is forwarded to the FOCAS office and the bottom two copies are for the operator's use. One goes into the vehicle maintenance file and the other to the cost accounts office.
Other source documents are available and these include
forms CS3 and CS4 — not input, documents but working sheets used to collect data before being transferred to the Vehicle Return Form CS1
The FOCAS reports provide monthly statements of expendi ture backed by a detailed quar terly analysis of all operating costs. All subscribers receive the first four reports each quarter while the last three reports (5, 6 end 7) are optional extras.
Static Details Report: This report lists the vehicles based at each location in registration number or fleet number order. Most of the data is summarised' from previous periods inputs. The mileage is updated automatically at each processing stage.
Total expenditure Report: This report displays all the data relat ing to each vehicle for the quarter. Individual vehicle costs are added to produce category totals (eg rigid, artic), depot totals and a fleet total.
Operator's Vehicle Report: this report compares vehicles based at the same location. By comparing cost per mile in relation to miles per week, the high cost and/or under-used vehicles can be identified. The highly important mile per gallon ratio is shown on this report.
Additionally the last three lines of this report provide management information relating to the work carried out by each vehicle. Work Done Units are determined by the operator to match his established performance analysis, le tons carried, deliveries made and so on.
Operating Costs Analysis Report: Possibly the most important of the series, this report serves three purposes.
a) Each operator's data is compared with the national average, and computed from the data provided by all FOCAS participants.
b) Vehicles are categorised into mileage bands. Those which have completed less than 50,000 miles will be combined in the 0-49,999 mileage band. Those which have comple less than 100,000 miles will combined in the 50,000-99,! mileage band. Those having veiled 150,000 miles or less be combined in the 100,0 150,000 mileage band.
This will provide the inforr tion necessary to formulatr vehicle replacement policy. vehicles get older and pass fr one mileage band to the next pattern of maintenance cc can be monitored.
c) The last three lines of I report provide management formation relating to the w carried out by each vehicle ci gory. Work Done Units are de mined by the operator to ma his existing performar analysis, ie tons carried, liveries made etc.
Cumulative Expenditure Rep (Optional Extra): The format this report is similar to that the Total Expenditure Report instead of displaying data re ing to one quarter, the curni tive report displays two, threE four quarter results data. 1 !rater has the opportunity of ing this report to a financial r or accounting period, to duce his year-to-date costs. )rnatively by building up to r quarters and retaining four irters data a moving annual can be produced.
.up Operating Cost Analysis tional Extra): This report fol s the format of the Operating ,ts Analysis which gives innation on vehicles based at location. The group report ibines vehicles from all assoed locations.
nthly Expenditure Report tional Extra): This report imarises monthly expendii for close monitoring of fleet Es and the highlighting of unfitable vehicles or equip bulance Operating Sum
y: The adaptability of AS input data enables many arent programmes to be deaped as specialist needs e. An example of this is the antly introduced programme ambulances operated by 3 health authorities. This is in ition to the conventional w: FOCAS documentation can dapted to individual customer's Jirements. Monthly input of Itenance and running data can lade on a single form, on a cornnon of workshop job cards and ,mary returns, on adapted ver
s of the customer's own records y a "paperiess" computer termiiystem.
vehicles operated for the health service.
This special report analyses vehicle programmes and use with a section that can be tailored to meet local or specific needs. The items covered include: • Cost per ton moved; vehicle running and standing costs (prime mover and trailers can be treated separately).
• Hours used and percentage use.
• Cost per drop for local distribution to clinic, health centres, hospitals.
• Budget costs and variances.
The report layout can also be varied to analyse vehicles by type and model; highlight high cost per mile vehicles; depot and area performances; body type, utilisation and age. It will . also highlight the high cost per mile vehicle.
More than 300 operators subscribe to FOCAS — own-account and hire or reward operators, privately and, public owned companies, public health authorities, and a petroleum company. Household names include Weetabix, Woolworth, Cory Distributors, Ozalid (UK) Ltd, Essex, Lovell Christmas (Southern) Ltdr and J, P. Mcdougall & Co of Cheshire.
No matter what type of vehicle operation is being considered, several questions are common to all. Correct use of the FOCAS reports will provide the answers to questions which include: 1, What size of vehicle should be obtained?
2, When should the old vehicles (or trailers) be replaced?
3, How many operational days were lost through breakdowns?
4, How much should be charged per ton mile?
5, Is the fleet costing over the national average amount to run?
Additional information is obtainable from the reports which will assist management in taking decisions relative to: 1 Vehicle replacement.
What type? What size? When?
2 Cost Control.
How many vehicles and/or trailers?
Why do some vehicles (or trailers) cost more to run than others?
3 Isolating rogue vehicles (or trailers).
Which spend more time in the workshop and why?
4 Pricing.
How much to charge?
It's not too expensive to participate in the FOCAS 'Scheme, says Ford. The current maximum charge is £1.25 per vehicle per month with a range of discounts available dependent on the size of fleet.
Even when joining the scheme operators do not realise that once procedures have been determined it virtually runs itself. Initially there is bound to be some apprehension when a new costing system is introduced and staff know that management is looking for economies. Queries mainly arise on the filling out of the input forms. Users have found that there is no need to take on extra staff because the FOCAS forms replace the previously used forms.
Regular users have found that great savings can be made by correctly planned preventive maintenance particularly when correctly serviced vehicles are compared. Several operators running fleets of Ford vehicles run FOCAS in conjunction with Contrlact Confidence agreements with local Ford dealers.
Maintenance contracts are negotiated with the co-operation of the local dealer dependent on the average weekly mileage and the type of terrain over which the vehicles operate.
Contract Confidence is accepted without question by Licensing Authorities as meeting the terms of an operator's licence and the record sheets supplied by Ford dealers satisfies any DoE vehicle examiner.
For those operators involved with trunking work, particularly overnight or at weekends, the possibility of serious problems arising from breakdowns away from base are relieved by the use of the Ford Care System.
A credit system gives the drivers of member operators instant credit at most Ford Specialist Dealers.
When these two schemes are used in conjunction with FOCAS the costs are constantly monitored and any irregularities will be quickly spotted.
High-cost areas can be quickly investigated and remedial action taken while longer-term strategic planning can be made with a little more confidence. Historically, computers have been blamed for many business maladies, incorrect invoices, unpaid bills, and a multitude of other errors, but this is now virtually a thing of the past; FOCAS has proved itself and as even more operators participate so the benefits will increase.