Efficiency of vehicle usage: a look into the adoption of telematics on fleet vehicles for maximum optimization

Abstract

Since its inception in the late 19th, early 20th century, the automobile has had a deep impact on the agricultural industry from a global standpoint. Farming organizations around the world depend on automobiles, such as pick-up trucks to transport employees, goods, services, tools, etc., to complete jobs and tasks in order to continue to feed the human race. Florida Crystals Corporation (acknowledged further as FCC) is a family-owned, fully integrated, sugar cane company with approximately 500 employees in company vehicles throughout a given fiscal year. FCC operates with a fleet primarily made up of Ford vehicles. These vehicles are important to day-to-day operations. Understanding how they are being operated and maintained is crucial to ensure safety for FCC’s drivers, to reduce downtime, and be able to get the best return on investment (ROI) when it comes to replacing the vehicle. At this moment, there is useful information through Ford Pro Telematics on Ford vehicles for tracking and maintenance purposes. The purpose of this thesis, is to understand how Ford Pro Telematics data can help FCC examine and assess how efficiently their fleet is currently operating and the ways FCC can improve and enhance driver’s habits to effectively optimize the fleet. From the fleet of 500 vehicles, this study focused primarily on the F-150 model. Out of 200 F-150s, a sample of 10 F-150s and their drivers were taken into consideration. Selection was reviewed and approved by the FCC human resources department and all participating drivers were notified they were selected for the demo. Data collection was used from Ford Telematics as well as FCC’s internal management system, SAP, to create statistical methods to analyze vehicle and driver efficiency and performance. The indications and areas of consideration for FCC were vehicles being operated at excessive speed, hard acceleration, hard braking, oil changes past due, excessive idling, and drivers not wearing their seatbelt when the vehicle was in motion above 5mph. Although this data may provide value in narrowing down problematic drivers to reprimand them and reduce expenses, Ford Pro Telematics also shows positive driver and vehicle performance. Indications and areas of consideration for FCC were vehicles being operated at the posted speed, normal acceleration, normal braking, oil changes and preventative maintenance taken care of in a timely manner, low idle times, and drivers wearing their seatbelt. This data may provide value in a reward system for good behavior. Above all, the goal for FCC is to improve vehicle and driver performance to yield a safer environment for employees and ensure they are optimizing their vehicles’ performances. Telemetry technology comes with additional expenses to each vehicle as a subscription is needed in order to access the data each vehicle is providing. Justifying the added expenses with a return on investment is the purpose. Utilizing telematics the correct way, whether it is addressing the negative or positive driver habits, will add to productivity of FCC’s operation and reduce downtime when a vehicle is operated incorrectly. When drivers are addressed for their performance, it will improve overall efficiency and optimization of how the vehicles are being used. Incentive and motivation plans can be put into place after data is collected. As data is collected year-to-year, it can be used to further evaluate costs and benefits. The data provided from Ford Pro Telematics showed that preventative maintenance was an important factor in prolonging the life of a vehicle, and may have helped prevent the loss of a vehicle by informing management that the vehicle was past due an oil change. It also showed that if gallons consumed through idling were reduced, it would offset the cost of the subscription on a month-to-month basis, or an entire harvest season for the sample of 10 trucks. The other data, such as driver location, drivers’ daily routes, and driver safety, are added benefits that do not necessarily have a direct economic impact that is easily calculated through the demo. However, it could provide management with details to ensure that employees are completing their daily tasks in the most efficient way possible, i.e. taking the shortest routes possible to save fuel and additional wear and tear on vehicles.