chapter 3 operational control. study objectives understand the importance of transport planning. be...

Chapter 3Operational Control

STUDY OBJECTIVES

• Understand the importance of transport planning.

• Be able to explain the link between vehicle control and utilisation, availability and fleet size.

• Be able to explain the role of, and factors which affect, routing and scheduling and the efficiency of a transport operation.

STUDY OBJECTIVES cont’

• Have insight into the need for documentation and record-keeping in a transportation undertaking.

• Be able to identify the various areas in the organisation in which the establishment of standards is essential and why this is so.

• Become well-acquainted with traffic-related safety issues, internationally, nationally, and on a company-specific basis.

3.1 INTRODUCTION

3.1.1 TRANSPORT PLANNING

• Goods are not moved by choice - it is an additional burden of cost, a cost which should be kept to a minimum

3.1.1 TRANSPORT PLANNING cont’

These factors for consideration will therefore include the cost as well as:

Security of the goods while in transitPackaging requirementsDelivery time availableLoading and unloading problems at ‘in transit’

depotsUnloading problems at the customer’s premisesCompany image and company impact

Before starting to develop any transport plan or procedure involving vehicle management, a number of questions need to be answered:

i. Does the distribution of the product need vehicles?– Pipeline, conveyor, direct collection by customer

ii. If vehicles are needed, must they be road vehicles?

i. Railway, aircraft, waterway more efficient?

iii. If road vehicles are needed, are the services of a haulier more efficient than a company operating its own fleet?

iv. If road vehicles are to be operated by the company on an own-account basis, should they be leased, used on contract hire, or owned?

v. If the final decision is to use company-owned vehicles, how many are required, what types are needed, and where are they to be based?

Not only should basic costs be taken into account, but looking at ‘real costs’ which include service, to the customer and the total value of the whole operation to the overall profitability of the company.

3.1.2 VEHICLE CONTROL

Management has four basic functions, namely:1. planning, 2. organising, 3. leading and 4. Control

• Operational control addresses two main areas, namely driver and vehicle control.

3.1.2 VEHICLE CONTROL cont’


Operational control begins at the fourth stage and ends at stage seven (as illustrated in Figure 3.1).

• The main aim of vehicle control is to obtain the maximum possible productivity from the vehicle within certain time, load, and on-vehicle staff constraints.


• Documents are necessary to control the flow of activities and to maintain current and permanent records.

• Transportation documents includes:bills of lading, waybills, and freightbills.


• Waybills are activity records. • These three kinds of documentation are used

regularly and relate directly to the transportation service.


Transport Admin documents would include:arrival notices, delivery receipts, inspection reports, and claim forms.• (not required on all shipments)


• Transportation documents categorised as management documents include :

• contracts, • tariffs, • average and actual weight agreements, • average demurrage agreements, and • insurance policies.


• Apart from these forms of documentation, the driver is often required to keep a logbook with departure and arrival times noted at customers, as well as kilometre readings at each offloading point.

• From logbooks the transport manager can easily determine where the driver delivered goods first, as well as the distribution route followed for routing exercises.


Logbook cont’

• Standing time at each customer can also be determined compared to the goods offloaded

(standing time = arrival time – departure time)• If standards have been set for goods to be off-

loaded these standards can now be compared to actual time taken.


Utilisation factors, for which exercises need to be conducted on a regular basis, are as follows

a) Time utilisationb) Distance utilisationc) Load utilisation


a) Time utilisation• To obtain maximum benefit from an

investment in a vehicle it is important to maximise the time it is in use, compared to its available time.

• If driving time is too high for the type of business, it could point to a:

• driver not knowing his route, • where his customers are, etc.


a) Time utilisation cont’

E.G.• Truck has available 8hours in a day to do pick up

and deliveries• From the logbook we can see that 7 of the

8hours are spent driving.• We see that the driving time for this type of

business is too high that could point to:Driver not knowing the route orWhere the customer is

• If the standing time is too high, it could point to an unproductive, unmotivated crew, handling difficulties, queuing at customers, paperwork, etc.

• E.G.• Truck has available 8 working hours and from

logbook it can be seen it is only working for 5 of that 8 hours available.

a) Time utilisation cont’

b) Distance utilisation

• The longer the vehicle travels with a load the more fixed costs are divided by the payload.

• Space on a vehicle cannot be stored and is immediately wasted if the vehicle travels with a partload (leftover space)

• Successful operators are always aiming at eliminating unladen kilometres.

• Minimise the distance that the vehicle travels empty

c) Load utilisation

• By concept, only volume (m³) or mass (kg) is transported in the freight industry.

Transported by mass, usually expressed in tons:bags of cement, steel, bricks, etc. isTransporting of volumetric commodities

expressed in cubic metres are:furniture, fibreglass rolls, etc.

• Every vehicle has a certain capacity - whether it is in tons or cubic metres.

• Capacity is arrived at by subtracting the vehicle tare (unladen mass) from its gross vehicle mass (laden = including the load).

c) Load utilisation cont’

• Gross Vehicle Mass (GVM) is the maximum allowable total mass of a fully loaded motor vehicle, consisting of the tare mass (mass of the vehicle) plus the load (including passengers)

• Tare (unladen mass)

GVM – Tare = Capacity


http://en.wikipedia.org/wiki/Mass

http://en.wikipedia.org/wiki/Motor_vehicle

http://en.wikipedia.org/wiki/Cargo

http://en.wikipedia.org/wiki/Passenger

• By optimising each load, in other words the full capacity (fully laden) of the vehicle, the operator could achieve the lowest cost per unit transported.


• Vehicle availability is the number of days that a vehicle should be available to the company to deliver/transport goods.

• Used to determine whether fleet size is at an optimum


Reasons for low availability are: lack of drivers, downtime due to repairs and maintenance,waiting for spares, etc.• Generally speaking, the lower the availability

given a specific workload, the more vehicles are required.

• End - 01March2013


• Efficient vehicle utilisation (Time, Distance and Load) is the key to a minimum-cost operation.

• Particular attention must be given to vehicle preparation, loading, running time, delivery of the goods, load assessment, and route planning.


3.1.3 VEHICLE PREPARATION

• The driver is the only person who should check a vehicle before a day’s deliveries.

• The roadworthiness of the vehicle is his responsibility.

• Drivers need to be trained to check their vehicles in accordance with a standard drill, in the same way in which an airline pilot will carry out his pretake-off checks.

The sequence should start outside of the vehicle with the checking of the:

tyres, the security of the load,

3.1.3 VEHICLE PREPARATION cont’

the doors on box vans, the pins in side- and tail-boards of flat-bed

vehicles, container fastenings, oil, water, lights, rear and side reflectors, and so on

3.1.3 VEHICLE PREPARATION cont’

3.2 ROUTING AND SCHEDULING

3.2.1 INTRODUCTION

The main purpose of routing and scheduling is to optimise vehicle usage while maintaining a given predetermined level of service.

RoutingSend or direct along a specified course or route

SchedulingA list of times of departures and arrivals; a timetable/ A plan for

performing work or achieving an objective, specifying the order and allotted time for each part

This can be achieved through:1) Maximising time utilisation2) Maximising capacity utilisation3) Minimising distances travelled4) Minimising fleet size

3.2 ROUTING AND SCHEDULING Intro cont’

Various factors could influence the above, ie.:Volumetric or mass restrictions of vehiclesDistance and/or time limitations


• The modern techniques of route planning by computer are being applied successfully in many industries – but experience of staff is still necessary

• The most efficient and economical routing has been carried out by producing a computer solution, and then adapting this to a practical application


• Practical experience of routes and delivery rounds, has many advantages over the computer.

• Factors such as factory or school times and holidays, a football match, or even a level crossing with a late train, cannot always be dealt with by the computer.


Information required for the routing and scheduling of vehicles:

Product itemsProduct groupsMass (per unit or in total)Volume (per unit or in total)Carton/crate/parcel detail


Unit loads (pallets, cages)Delivery points (number, extent and

distribution)Vehicle data (mass/volume restrictions, etc.)Customer detail


Factors that affect routing and scheduling:1. Customer restrictions– Specified delivery times– Lunch times– Parking facilities etc.

2. Vehicle limitations– Number and type of vehicles available– Capacity limitations


Factors that affect routing and scheduling cont’:3. Route Limitations– Distances - in time and kilometres– Time limitations (limits the number of deliveries

per day)

4. Product/unit load limitations– Product separation requirements due to

contamination, danger and pilferage– Dimension arid/or mass


Factors that affect routing and scheduling cont’:5. Personnel– Efficiency at the depot– On-vehicle staff performance and motivation

6. Level of customer service required


• The driver is also able, by his practical knowledge, to provide the answers to most of the everyday problems of vehicle routing.

Transport managers can produce substantial cost savings - by encouraging drivers to:

use the most economic and fastest routes, to take advantage of maximum speed limits of

the roads and their vehicles, and to return to base without undue delay


• Route planning enables loads to be ready as soon as vehicles return to a depot.

• Scheduling by computer, or even manually, will help to provide information about the most efficient route for a particular set of circumstances.


Load assessment means the workload of the vehicle and includes an assessment of the effort and time needed by the driver and crew to :

load, unload and distribute the contents of the delivery schedule,

the time needed to arrive at the delivery area, the time needed to manoeuvre the vehicle from one

delivery point to the next, the time needed to return to base, and the time needed for the driver to prepare his vehicle

and carry out routine administration.

3.2.2 LOAD ASSESSMENT

• Qperational management’s responsibility is to estimate the total workload for a particular operation and to convert it to a standard time.

• This standard time is used to assess the crew’s productivity based on actual performance.

3.2.2 LOAD ASSESSMENT cont’

3.2.2 LOAD ASSESSMENT cont’

• Load assessment is a technique used mainly by industries engaged in regular retail deliveries such as the soft drink industry, breweries and the grocery industry.

• It is of little value to trunk operations where the vehicle travels from A to B.

3.2.3 ROUTING SYSTEMS

• Routing and scheduling systems are manual or computerised.

• Traditionally simple but effective manual systems are found in the industry.

Pigeon-hole Routing System

Pigeon Hole Routing Steps:When orders are received from customers they

are allocated to a box which represents the area.

The orders are then grouped together to represent a full vehicle load.

Surplus orders are held for the next delivery. The orders are then sorted in delivery sequence

bearing in mind various aspects.

3.2.3 ROUTING SYSTEMS

3.3 VEHICLE LOADING AND UNLOADING

3.3.1 INTRODUCTION

One way of achieving a higher productivity from a fleet of vehicles is to keep the loading and unloading time to a minimum.

3.3 VEHICLE LOADING AND UNLOADING intro cont’

• The use of:• “swop bodies”,• containers, • and trailers are all ways of pre-loading and unloading

vehicles while the actual motive unit is out on the road with another load.

Methods of cost reduction when loading and unloading vehicles:

• Using the correct size of pallet, • Using the correct type of package, • Correct unit loads in cages or containers, • loading at the rear and side simultaneously, • double-deck loading

3.3 VEHICLE LOADING AND UNLOADING Intro cont’

To ensure the minimum delay in turning round vehicles (turn-around-time)

use modern equipment in the loading, dispatch and warehouse areas,

controlled by an efficient well-trained team of skilled operators.

3.3 VEHICLE LOADING AND UNLOADING Intro cont’

3.3.2 DELIVERING THE GOODS

Company policies may include:• a requirement for assistance to be given by

the staff of the premises receiving the goods, and

• priority may be given to the unloading of own company vehicles.

3.3.2 DELIVERING THE GOODS cont’

The vehicle should be loaded and delivery notes assembled so that the driver is able to:

• deliver goods in sequence, • working from the rear to the front of the vehicle, • easily opened shutters and doors, • there is adequate interior van lighting, • access from the cab into the van, • and small side tail-gates, all help in reducing the time taken for delivery.

• Onus on the driver to obtain maximum co-operation at the delivery areas, and to try to minimise his working day without affecting his total earnings.


• Efficient vehicle utilisation therefore does not always mean “speed”.

Nothing is achieved (i) By demanding speed when goods will lay idle

for days when delivered(ii) by demanding that a vehicle return to base

in a set time if, when it returns, the vehicle also stands idle.


3.3.3 PARKING

• Regulations exist regarding the parking of vehicles, where public reaction

• for example has forced delivery vehicles off the streets during the day and

• limited mid-city deliveries, to medium-sized vehicles, which may only deliver at night.

• Parking of commercial vehicles has definite environmental and operational problems if there is inadequate control and management thereof.

• The parking, washing, repairing and servicing of vehicles causes pollution due to spilled oil, fuel, packaging and tin cans, litter, as well as aerial pollution and noise.

3.3.3 PARKING cont’

3.3.4 LOADS CARRIED AND INFORMATION SYSTEMS

Comprehensive records need to be kept of the:• nature• size and • detail of the goods loaded onto the vehicle, as the driver

becomes liable for the load once it has been loaded onto the vehicle.

• Any shortages need to be explained and the system must be foolproof.

3.3.4 LOADS CARRIED AND INFORMATION SYSTEMS cont’

• Return loads need to be controlled very carefully to avoid serious problems with inventory and delivery schedules.

• Pilferage also often occurs when control in this area is not strict enough.

• The loading sheets must be signed by the warehouse as well as the driver, after the driver has checked the contents of the warehouse cage, and before it is loaded onto the vehicle.

• Any damaged goods need to be explained in detail and it is necessary to keep a record of these damaged goods, per driver, to determine possible trends.

3.3.4 LOADS CARRIED AND INFORMATION SYSTEMS cont’

3.4 TRAFFIC SAFETY MANAGEMENT

3.4.1 INTRODUCTIONAnother important aspect of operational control

is the matter of safety – Safety on the premises, Safety on the roads, Safety with respect to the cargo, andCompliance with safety regulations (nationally

and internationally),

3.4.2 AN INTERNATIONAL PERSPECTIVE

Solve current problems and find future solutions.

Future plans need to be adapted to the developments in society and projected to continued improvements in the transport and traffic safety fields, so as to tackle the problems on a world-wide basis.

3.4.2 AN INTERNATIONAL PERSPECTIVE cont’

The following factors need to be considered when solving transport problems on a world-wide basis:

i. Explosive world population growthii. Geographical imbalance (95% of the population

growth is in developing countries and urbanisation is constantly increasing world-wide)

iii. Increasing transport needs (passenger and freight transport are a direct result of population growth)

iv. An increasing number of vehiclesv. Overloaded international and national road

networksvi. The exhausted environmentvii. Population ageing (life expectancy will continue to

rise and the older generation will continue to increase) .

All of these factors result in higher accident rates and therefore have many direct, traffic safety related, consequences.

3.4.2 AN INTERNATIONAL PERSPECTIVE cont’

3.4.3 COMPLYING WITH NATIONAL REGULATIONS

• The Department of Transport and traffic authorities need to be charged with the task of positively reducing the collision rate and to improve the unsatisfactory traffic safety situation by means of:

education, engineering and enforcement.

3.4.3 COMPLYING WITH NATIONAL REGULATIONS cont’

• South Africa has one of the worst road traffic records in the world.

• Currently, collisions on South Africa’s roads cost the country R9 billion per annum, not to mention the resulting human tragedy and trauma.

Reasons for bad traffic record:• increase in mobility of the population, • lack of driver skills and education • as well as the anticipated increase in tourism

and trade with neighbouring states.


South Africa uses a Traffic Management Systems Approach:

• which aims to regulate the various activities of the authorities and the relationships between them and the system’s elements such as the road user, the vehicle, the road environment, and the transportation of goods, both passenger and freight.


• The Directorate of Traffic Safety of the National Department of Transport is responsible for marketing traffic safety on a macro-level.

• The objectives of their campaigns are to educate road-users and in so doing change their attitudes towards traffic safety and encourage safe and responsible road usage.


• A very important aspect is how to utilise attitudes and motivate attitude change in road safety.

Attitudes of road users cannot be analysed properly without taking account of:

• political, • cultural, • economic and • technological factors and influences.


3.4.4 SAFETY IN TRANSPORT OPERATIONS

(a) Road traffic safetyThe factors which cause road traffic accidents

can be classified into three major groups – those caused by the driver, or the road (way) or the vehicle.

(a) Road traffic safety cont’

An organisation using road transport can usually only control:

• the vehicle and • the driver And not the roads or way

• Training is essential if safety is to be improved.

• The control of the vehicle factor in road safety can be outlined as follows:

• Vehicles should be adequately specified, in terms of engine power, braking ability, load carrying capacity, lashing points, body shape and type, driver comfort and the provision of additional safety features such as mud-flaps, under-run bumpers, double taillights, premium quality mirrors, and power steering.


• Maintenance of the safety systems is vital and no deviation from the planned maintenance standards or frequency should be permitted or tolerated in these areas.

• These safety systems include: breaking systems, tyres, steering, mirrors, windscreen wipers, lights and indicators, seatbelts, anti-jack-knife devices, speedometer/tachograph, and warning lights (triangles).


• With respect to the drivers it is advisable to install tachographs in commercial vehicles in order to control both engine abuse and excessive speeding.

• A tachograph is a device fitted to a vehicle that automatically records its speed and distance, together with the driver's activity selected from a choice of modes


• Drivers should also be taught company accident reporting procedures as well as the regulatory requirements involved.

• The driver needs to be taught a strong basic motivation to develop and maintain safe driving skills.


• Driver’s must understand that motor vehicle accidents are not the result of chance, but are caused by factors, most of which can either be controlled or compensated for by the driver himself.


Accidents are caused be these factors:physical, mental and emotional condition of

the driver, the mechanical condition of his vehicle, and the acts of pedestrians and drivers of other

motor vehicles.


• Although training is designed to keep drivers out of accidents, they should be taught the correct accident procedures should they be involved in an accident with a company vehicle..


Correct accident procedures would involve: 1. to protect others at the scene of the accident, 2. to care for the injured and/or the freight, 3. to obtain all necessary details so that an

accurate and complete accident report can be written,

4. and return the vehicle to service as soon as possible


Accident records should also be kept for each driver and the following details are recorded:

Nature of accident (head-on, sideswipe, reverse, etc.)

Extent of accident (damage, number of vehicles)

Responsible personCont’


Where the accident occurredTime of day and day of weekWeather conditionsType of vehicle involvedPossible causes of accidentDriver’s physical details such as eyesight,

health, night vision, illnesses, family detail, hours worked, etc.

THE END


chapter 3 operational control. study objectives understand the importance of transport planning. be...

Documents

vehicle control cont

operational control

vehicle control management

minimum slide

company impact slide

main aim of vehicle

vehicle management

transport planning cont