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1 1 www.conexpoconagg.com Making a Business Case for Telematics Presented by Tim Morgan Greg Puckett Dan Samford Stan Orr, CAE, Moderator

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Page 1: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

1 1www.conexpoconagg.com

Making a Business Case for Telematics

Presented by

Tim Morgan Greg PuckettDan Samford

Stan Orr, CAE,

Moderator

Page 2: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

2 2www.conexpoconagg.com

Speaker Introduction

• Tim Morgan

Equipment Foreman

Branch Highways, Roanoke, VA

• Greg Puckett

Director of M2M Solutions

Oldcastle Materials, Charlotte, NC

• Dan Samford,

Vice President Equipment Assets

Herzog Contracting Corp, St. Joseph, MO

Page 3: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

3 3www.conexpoconagg.com

About AEMP

• The premier resource for professionals in

equipment maintenance & management.

• Our Mission:

– provide education & support to users

of heavy equipment, serving as a

clearinghouse for technical, industry, &

regulatory information.

– Develop, coordinate, & implement

programs to enhance the profession &

industry.

– Interact with other organizations

sharing common resources, purposes,

and goals.

Page 4: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

4 4www.conexpoconagg.com

About AEMP

• Coined the phrase The Equipment

Triangle in 2002, serving as the

cornerstone of AEMP’s philosophy

regarding the vital relationship between

the End User, Distributor, and

OEM/Supplier in the life cycle of a piece

of heavy equipment or product.

• It serves to remind us that everyone in

the Triangle is entitled to receive the

respect they deserve, and together with

AEMP’s Standards of Ethical Conduct it

creates a level playing field for all sides

of the Triangle.

Page 5: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

5 5www.conexpoconagg.com

About the AEMP Standard

• In the spirit of the Equipment

Triangle Philosophy, AEMP in

2008 worked with Caterpillar,

John Deere, Komatsu, and Volvo

to seek a solution to effectively

utilizing telematics.

• Resulted in the first AEMP

Standard, featuring 5

standardized data points in one

feed.

Page 6: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

6 6www.conexpoconagg.com

About the AEMP Standard

• Data included:

– Make/Model/ID/Serial #

– Cumulative Operating

Hours

– Location

– Fuel Used

– Distance Traveled

Page 7: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

7 7www.conexpoconagg.com

About the AEM/AEMP Standard

• Serial Number*

• Asset ID*

• Hours*

• Location*

• GPS Distance Traveled*

• Machine Odometer*

• Fuel Consumption*

• Fault Codes

• Idle Time

• Fuel Level

• Engine Running Status

• Switch Input Events

• PTO Hours

• Average Load Factor

• Max Speed

• Ambient Air Temp

• Load Counts

• Payload Totals

• Active Regen Hours

* In Current Standard

Page 8: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

8 8www.conexpoconagg.com

About the AEM/AEMP Standard

* In Current Standard

• Engine Coolant Temp

• Engine Oil Pressure

• Coolant Level

• Engine Oil temp

• Hydraulic Oil Temp

• Transmission Oil Temp

• Engine Overspeed

• Transmission Oil Pressure

• Water in Fuel Indicator

• Transmission Oil Filter, Blocked

• Air Cleaner

• Fuel Supply Pressure

• Air Filter Pressure Drop

• Coolant System Thermostat

• Crankcase Pressure

• Cool Water Temp, Outlet Cooler

• Rail Pressure System

• ECU Temp

• Heater

• Boost Pressure

Page 9: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

9 9www.conexpoconagg.com

About the AEM/AEMP Standard

• Axle Oil Temp, Front

• Axle Oil Temp, Rear

• Intake Manifold Temp

• Secondary Steering Pressure

• After-treatment Reagent internal Filter

• Crankcase Ventilation

• Outgoing Brake Pressure Status

• Brake Pressure, Output

• All Wheel Drive

Hydraulic Filter, Blocked

• Brake Pressure ACC

Status

• Injection Control

Pressure

• Brake Circuit Differential

Pressure

• Brake Pressure Actuator

Page 10: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

10 10www.conexpoconagg.com

About the AEM/AEMP Standard

• Reserve Steering Control Pressure

• HVAC Water Temp

• Rotor Pump Temp

• Refrigerant Temp

• Alert & Alarms to help power down machine

quickly

• Multiple Pressure Indicators

• Switching Gear Events

Page 11: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

11 11www.conexpoconagg.com

Terms

Size

0

2000

4000

6000

8000

10000

12000

Size

For purposes of today’s

discussions, fleet sizes as

defined by AEMP are:

Small: <500

Medium: 501-2,500

Large: 2,501-10,000

Mega: >10,000

Page 12: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

12 12www.conexpoconagg.com

Terms

Fleet Definition

• Fleet is any asset for which a valid

use case for telematics exists.

– E.g. Theft Recovery non-mobile tools

– Light fleet in support of equipment-

pickups, mechanics trucks, fuel trucks

Page 13: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

13 13www.conexpoconagg.com

The Business Case

In this session we’ll outline how Telematics can

address current business concerns and the

benefits, recommendations and justification for

its use.

We’ll discuss detailed project goals,

performance measures, assumptions,

constraints, and alternative options.

Page 14: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

14 14www.conexpoconagg.com

The Issue

Most fleets do not have the capability to electronically gather hours, fuel burn, equipment

location, or equipment health. In Addition, there are other opportunities for improvement that

can be found leveraging telematics:

Equipment Utilization

Excessive Idle

Preventive Maintenance Compliance

and Management

Equipment Location

Equipment Availability

for jobs

Pre and Post Inspection

Electronic Proof of

usage-3rd

Party verification

Page 15: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

15 15www.conexpoconagg.com

Equipment Utilization

Page 16: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

16 16www.conexpoconagg.com

The Issue

Most fleets do not have the capability to electronically gather hours, fuel burn, equipment

location, or equipment health. In Addition, there are other opportunities for improvement that

can be found leveraging telematics:

Equipment Utilization

Excessive Idle

Preventive Maintenance Compliance

and Management

Equipment Location

Equipment Availability

for jobs

Pre and Post Inspection

Electronic Proof of

usage-3rd

Party verification

Page 17: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

17 17www.conexpoconagg.com

Excessive Idle

Page 18: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

18 18www.conexpoconagg.com

The Issue

Most fleets do not have the capability to electronically gather hours, fuel burn, equipment

location, or equipment health. In Addition, there are other opportunities for improvement that

can be found leveraging telematics:

Equipment Utilization

Excessive Idle

Preventive Maintenance Compliance

and Management

Equipment Location

Equipment Availability

for jobs

Pre and Post Inspection

Electronic Proof of

usage-3rd

Party verification

Page 19: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

19 19www.conexpoconagg.com

Preventative Maintenance

Page 20: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

20 20www.conexpoconagg.com

The Issue

Most fleets do not have the capability to electronically gather hours, fuel burn, equipment

location, or equipment health. In Addition, there are other opportunities for improvement that

can be found leveraging telematics:

Equipment Utilization

Excessive Idle

Preventive Maintenance Compliance

and Management

Equipment Location

Equipment Availability

for jobs

Pre and Post Inspection

Electronic Proof of

usage-3rd

Party verification

Page 21: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

21 21www.conexpoconagg.com

Equipment Location

Page 22: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

22 22www.conexpoconagg.com

The Issue

Most fleets do not have the capability to electronically gather hours, fuel burn, equipment

location, or equipment health. In Addition, there are other opportunities for improvement that

can be found leveraging telematics:

Equipment Utilization

Excessive Idle

Preventive Maintenance Compliance

and Management

Equipment Location

Equipment Availability

for jobs

Pre and Post Inspection

Electronic Proof of

usage-3rd

Party verification

Page 23: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

23 23www.conexpoconagg.com

Availability for Jobs

Page 24: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

24 24www.conexpoconagg.com

The Issue

Most fleets do not have the capability to electronically gather hours, fuel burn, equipment

location, or equipment health. In Addition, there are other opportunities for improvement that

can be found leveraging telematics:

Equipment Utilization

Excessive Idle

Preventive Maintenance Compliance

and Management

Equipment Location

Equipment Availability

for jobs

Pre and Post Inspection

Electronic Proof of

usage-3rd

Party verification

Page 25: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

25 25www.conexpoconagg.com

Electronic Vehicle Inspection

• RFID/QR Codes

Page 26: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

26 26www.conexpoconagg.com

The Issue

Most fleets do not have the capability to electronically gather hours, fuel burn, equipment

location, or equipment health. In Addition, there are other opportunities for improvement that

can be found leveraging telematics:

Equipment Utilization

Excessive Idle

Preventive Maintenance Compliance

and Management

Equipment Location

Equipment Availability

for jobs

Pre and Post Inspection

Electronic Proof of

usage-3rd

Party verification

Page 27: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

27 27www.conexpoconagg.com

Electronic Proof of Location

Page 28: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

28 28www.conexpoconagg.com

Solution

Fleets can leverage OEM and 3rd party telematics as asolution for the issues identified previously. Some of theways that this technology will achieve its desired resultsare…

Low Earth Orbiting

Satellite Network or cellular

Provider

Server

OEM Application

Hardware

AEMP User Databases and Applications

Page 29: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

29 29www.conexpoconagg.com

End User Collection Programs:

Now a Reality

Copyright © 2014 Iron Portal, Inc. All rights reserved. Iron Portal is a trademark of Iron Portal, Inc. All other

trademarks, trade names and logos are the property of their respective companies or mark holders.

Page 30: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

30 30www.conexpoconagg.com

Solution

Telematics can provide:• Equipment Managers with a real-time view of

equipment availability and location

• Equipment Managers with idle time data, which if

managed leads to less fuel, and less frequent PMs

• Stakeholders with actual equipment hours, vs.

manually gathered or guessed hours

• Fuel Burn information for reconciliation, did we budget

correctly, did we have theft

• Operations folks with equipment utilization

Page 31: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

31 31www.conexpoconagg.com

Idle as business case:

We all understand that limiting

idling improves your efficiency but

it’s also good for your equipment’s

engine. During idle, a modern

diesel doesn’t combust fuel as

efficiently, which over time can be

detrimental to component life.(*Assumption is 200HP or greater)

I Hour of Idle

Time

Cost

Fuel 4.00

Maintenance and

Repairs

6.00

Total 10.00

• 200 assets* 2000 hours of production

• 20% reduction=200K

• 30% reduction=400K

• 50% reduction=600K

Small Fleet (assumption 30% Idle)

• 1000 assets* 2000 hours of production

• 20% reduction=1.2M

• 30% reduction=1.8M

• 50% reduction=3.0M

Medium Fleet (assuming 30% Idle)

For purposes of today’s discussions,

fleet sizes as defined by AEMP are:

Small: <500

Medium: 501-2,500

Large: 2,501-10,000

Mega: >10,000

Page 32: Making a Business Case for Telematics - Map Your Show€¦ · location, or equipment health. In Addition, there are other opportunities for improvement that can be found leveraging

32 32www.conexpoconagg.com

Making a Business Case for Telematics

Thank You

Tim Morgan Greg PuckettDan Samford

Stan Orr, CAE,

Moderator

For More Information Go To www.AEMP.ORG

Or contact Stan Orr, [email protected]