Tuesday, September 9, 2014

Figure your personnel changeover times into replacement costs

Let’s face it, no matter how underpaid or underappreciated your workforce claims to be, their time is expensive. Depending on who’s talking, you will hear numbers suggesting that an employee actually costs the company 1.4 – 1.7X their gross salary, variable based on company-provided benefits.

In many fleet operations new vehicle assignments are as easy as giving the operator a set of keys and watching out the window as they move their golf-clubs from one car to another. After they get their garage door opener and cell phone charger, they are on the road.

Work vehicle fleets, not so much. I have seen some operators putter around for three days just to transfer tools and fittings from one ¾ ton to another -- whereas another tech got it done in five hours. You scratch your head as you watch.

The point is, operators and their perceived vehicle setup requirements are all individual, but none can accomplish an equipment assignment move without impacting their actual work in some way.  So the fleet department isn’t the only one incurring expense.

Generally, if something can go wrong, it will.  The tech needed a new vice-mount and didn’t have it, the old bolt-on tool box is rusted and needs to be replaced – insert problem here.

More likely the upfit was delayed due to an ordering glitch, and the trucks didn’t deliver until rush season. No one can get more irritable than a supervisor whose star performer is locked in the shop moving onto a new truck while orders are stacking up.

They have a point.


The operator’s time does have a cost. It can cost not only the dollars he expends making the move, but also lost opportunity and the resulting overtime to make up for it. Does this mean you don’t change out the equipment? No, but it does mean their manager needs to be aware of the variables so that they aren't caught off-guard. 

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