ADMINISTRATIVE UNIT REVIEW RECOMMENDATION #4

 

Title:                             Service Intervals

Description:                  Explore options for maintenance service intervals

Team Leader:               Ed Conners, Larry Amerman

Team:                           Brad Rutherford, Dennis Lepenske, Phil Sevall, Mitch Roath, Henry Bruneau

Identified Issues:           The team looked for the best way to set up our preventive maintenance program.  The AUR recommended that Fleet Services review SMUD's program of servicing vehicles once a year instead of every six months.  Currently Fleet Services uses the manufacturer's recommendation for service intervals.

Fleet Proposal:             The team recommends that Fleet continue to perform maintenance according to the manufacturer's recommendation during the warranty period.  When the vehicle warranty expires, the mileage interval will be increased from an average of 5,000 (current average) miles to 7,500 miles. The vehicles will be serviced at a minimum of every six months if they do not meet the above mileage criteria. 

Justification:                  Fleet Services reviewed the SMUD servicing program.  Most of SMUD's vehicles return to their corporate yard every night, where SMUD has personnel to fuel and inspect the vehicles.  Fleet Services' vehicles do not return to the Fleet yard daily.

 

                                    Because safety is Fleet's top priority, Fleet feels that our vehicles need a safety inspection at least twice a year, especially given the variety and number of people who use the vehicles. 

 

                                    Failure to follow the manufacturers' service intervals during the warranty period (typically 3 years) would result in warranties being voided. Additionally, oil viscosity breaks down over time and even one engine failure would eliminate any saving from not changing the oil every six months.

 

                                    Fleet researched other Fleets regarding their service intervals.  All U.C. Fleets with the exception of UCSB service their vehicles at least every six months.  A request for information was emailed to the NAFA (National Association of Fleet Administrators) University listserve.  All respondents service their vehicles on a mileage and time basis.  The minimum time for services for their vehicles was at least every six months. 

 

                                    On-line research of Fleets and Manufacturers recommend servicing vehicles at regular mileage intervals or at least every six months.  Examples of this can be found at www.carcare.org.

 

                                    Currently, 20% of the leased and 70% of the pool vehicles are serviced on mileage. Changing the service interval at the end of warranty will only impact 10% of the leased Fleet vehicles and 15% of the pool vehicles.  These seventy-five vehicles will then be serviced every six months rather than the recommended mileage level.  These vehicles are currently serviced every 3-4 months when using mileage.  According to the Fleet shop, this will not have an impact on the general maintenance condition of the vehicle.

 

 

Impact:                         The impact on the current service level provided to Fleet Customers will be minimal. The change will result in cost savings to our customers because Fleet will be performing fewer services.  It is difficult to put a $ amount to this savings. The change can be implemented immediately and will be included in our records for setting rates in the fall.