What is Fleet Management?
What is Fleet management?
Fleet management entails overseeing and coordinating vehicle operations to ensure the efficient delivery of services.
Our focus
Balance operational uptime with maintenance cost efficiency
Reactive
Preventative
Cost
Downtime penalty
Cost as a function of Risk
- How likely
- Penalty

Risk as a function of reliability
- Failures over time

RO Data
- Repair description
- Associated costs
Models
- Univariate
- Univariate Weibull
- Multivariate
- Cox Proportional Hazards
Simplicity > Complexity
| Penalty | Risk 30k | Risk 60k | Risk 90k | |
|---|---|---|---|---|
| Transmission | $ 300 | 10% | 33% | 57% |
| Population | 30k | 60k | 90k |
|---|---|---|---|
| 5th year | 5% | 50% | 45% |
1000
Vehicles
1000 * 0.05 * 0.1 * 300 +
1000 * 0.5 * 0.33 * 300 +
1000 * 0.45 * 0.57 * 300 +
Take away
- Simpler models
- Easier to inspect
- Easier to explain
- Easier to simulate
Part 2
Can we prevent repairs? If so, how they change our reliability curves?
Preventative Maintenance
Actions to mitigate risk
- Cost
- Reward
Evolving Complexity
| Penalty | Prev cost. | Gain | Interval | Risk 30k | Risk 60k | Risk 90k | |
|---|---|---|---|---|---|---|---|
| Activitiy A | $ 300 | $ 70 | 10000Km | 15000Km | 10% | 33% | 57% |
| Population | 30k | 60k | 90k |
|---|---|---|---|
| 5th year | 5% | 50% | 45% |
1000
Vehicles
Risk = preventative cost + updated risk
Effect modelling


Final Results
Take aways pt. 2
- Consistent tools
- Managed complexity
- High quality SME work
- Lots of research to propose a solution
Conclusion
Effective fleet management enhances service delivery and operational efficiency.
Questions?
fcruz@msxi.com
Fleet Management
By Felipe Cruz
Fleet Management
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