Monitoring Key Performance Indicators and its Importance
Not monitoring KPIs (Key Performance Indicators) could cost you. They help you evaluate overall performance of your asset-driven operation and help you stay pro-active in keeping it running smoothly. With the right software, being able to create and monitor useful KPIs is easily achievable.
By implementing a process that shows you the data-driven KPIs, you’re going to be able to manage more efficiently as well as make sure that things are going as planned. If something if off you’ll know it, and you’ll be able to correct issues before they become larger ones.
Tracking some of the following data found in fleet management software will allow you to monitor a variety of KPIs:
- Equipment in/out of service count or any custom status of equipment
- Equipment registrations/warranties/PM’s coming and overdue
- Equipment average age/mileage/hours
- Employee licensing/certifications coming due
- Maintenance requests assigned/unassigned
- Work orders of a selected status
- Parts needing re-ordered
- Parts inventory value total and by warehouse
- Back ordered/other status of purchase orders
Example KPI: Fleet Availability
For example, if your goal is to have a 90% fleet availability rate for your vehicles and you have a fleet of 200, you would want to monitor the out of service counts to never fall below 20. Beyond that you would know something is wrong and you could look deeper into why so many vehicles are getting taken out of service.
Example KPI: Preventive Maintenance Compliance %
Once you set your goal for on-time preventive maintenance compliance (let’s use 85% for an example), you can be monitored using reporting and filters within the Collective Data system.
By setting a simple filter by due date in Collective Data’s PM Scheduled Tasks report, you’d have a total number of preventive maintenance items that were due last month. You could then see the number of items that are currently overdue to find your on-time PM compliance percentage. A custom report could be created to the specific needs of any organization and what threshold they’d like to monitor.
These are just a few of the KPIs that could be monitored with a good fleet management system. This kind of data helps fleet and asset managers be more proactive and correct smaller performance issues before it becomes a larger one. If you’re not taking action as needed, at the end of the year there is a chance you will be over budget and not able to reach your goals.
Overall, can you afford not to have a system that helps manage your KPIs? In the end what will it cost you? A fleet and asset management software system will track your KPIs and require less work on your side to monitor them. Let the software do more of the work so you can work on things that software can’t do. This can help you and your organization have a winning operating cost at the end of the year.