Health Business - Responsible fleet management

Responsible fleet management

John Webb, council member of the Institute of Car Fleet Management, discusses the key elements of professional fleet management in the health sector and the issues that need to be addressed if value for money is to be delivered

With the recent launch of the new framework for vehicle conversion by NHS PASA, there has never been a better time to focus on fleet management within the NHS. Recent months have also seen a change in the way that NHS transport related procurement is managed since the transfer of non-clinical goods and services procurement from NHS PASA to Buying Solutions Health.

While the new framework, together with other comprehensive frameworks for vehicle acqusition, offer cost effective and legally compliant routes to market, this does not mean that fleet, transport and finance managers in the NHS can take their eye off the ball in managing the ongoing challenges of managing fleet running costs and keeping expensive business critical assets on the road. After all there is little point in spending tens of thousands of pounds on vehicle conversion if the vehicle in question is off the road or running costs are out of control.

Supporting targets
In common with all fleet operators, public and private, NHS fleets will be continually trying to balance a number of elements if vehicles are to support key business targets:

Operational performance – is the vehicle fit for purpose?
Downtime management – optimising vehicle on road time thereby delivering ‘payback’ for the investment
Cost – not just the cost of acquisition but ‘whole life costs’ including fuel
Safety – a paramount consideration that must never be compromised
Environment – reducing CO2 emissions in line with government targets.

This means that, more than ever, those responsible for fleets – in finance, procurement or the more traditional fleet managers – need to be competent in a wide range of skills and expertise if they are going to be successful.

Fit for purpose
Once a business requirement for a vehicle has been identified a crucial step will be to identify a vehicle which is fit for purpose. Complying with the requirement for the vehicle to be fit for purpose requires a fleet operator to have addressed two key management issues:

Ensuring that the vehicle, by design and specification is suitable and appropriate for the functional requirement – including the design of any internal and external conversion.
Ensuring the vehicle is maintained in good condition.

Particular consideration needs to be given to selection and specification of the vehicle with reference to:

Ensuring the vehicle is of an appropriate size and configuration for the passengers, patients and equipment which must be carried, for example ease of and safe access as well as to the specific role requirements for the vehicle.
Requirement for specialist equipment and consideration of the impact such equipment will have on overall weight and potentially on driver licensing.
The ability to carry the planned payload without breaching the maximum vehicle weight.
Special licence requirements for drivers.
Health and safety considerations for the driver, passengers and the general public.
Making sure that loads can be safely and fully secured in the vehicle and the driver protected from hazards associated with the load itself
Accessing the operating zone with particular reference to vehicle size and its height.
The operating cycle – does the vehicle have to drive at high speed, make frequent stops and starts in an urban environment or long distance journeys on motorways or dual carriageway?

NHS operates a huge and complex range of vehicles that present enormous challenges to those who are responsible for managing them. They must provide suitable infrastructure and working practices to ensure that vehicles are properly maintained.

Fleet operators must ensure that the vehicle manufacturer’s servicing schedule is applied and to an appropriate standard and that any further inspections or tests determined by the vehicle or its equipment are carried out on time. Appropriate basic safety checks must be carried out and recorded.

Fuel efficiency
An effective vehicle maintenance programme can go a long way towards improving and maintaining your van’s fuel efficiency. For example, tyres that are under-inflated by 20 per cent – equivalent to 10 psi for most van tyres – can increase fuel consumption by up to three per cent. This can also reduce their expected lifespan by as much as a quarter. Over a year, this could add up to about £250 in extra fuel and tyre costs.

Managing the drivers is an important part of the fleet operator’s considerations. NHS vehicles often operate on a shift basis and multiple driver operating styles bring additional areas of management focus which include ensuring that each driver is familiar with the correct procedure for adjusting the vehicle for his/her use. Managers must also ensure that there is a robust system for collecting and acting on vehicle faults and malfunctions.

We occasionally hear fleet managers saying that they have ‘learnt by experience’. Another way of expressing this is ‘learning by mistakes’ which can be very costly and life threatening mistakes indeed in the case of NHS vehicles.

Vehicles are expensive, business critical assets and the total cost of fleet, if known, is usually one of the highest costs to an organisation after salaries, estates and IT. Wrong decisions can also result in far higher fuel bills and CO2 emissions. However, it is still an area where untrained staff can be asked to make decisions which may cost millions of pounds. This also applies to those professionals whose core competence is in areas like finance or procurement where the focus is on delivering value for money contracts, but not necessarily managing the ongoing service delivery.

The right skills
So what skills do NHS managers need for effective fleet management? The core requirements remain the same regardless of the type and size of organisation as follows.

Strategy and planning

working with key business stakeholders in understanding business requirements
developing an action plan for implementation in line with business and financial plans
project management

Stakeholder and risk management

identifying key stakeholders and having a plan for managing their input to the project
identifying and managing risks Market knowledge and basic principles
understanding the basic principles of fleet management from policy development and legal compliance through to acquisition, management and disposal

The Institute of Car Fleet Management (ICFM) recognises the different levels of competence required to meet these needs and has developed structured modular Certificate and Diploma programmes courses supported by work based assignments that underpin the programmes and ensure that the employers paying for the training have a return on their investment.

A common organisational dilemma – particularly in these times of economic constraint – is how to justify the cost of employee training and development, even for programmes directly linked to the individual’s own job. Not only has all ICFM training been designed to develop the key competence elements linked to various levels of fleet administration and management but it has also produced a wealth of evidence to demonstrate how participants have applied their learning, leading to new initiatives for improving policy and, invariably, tangible savings in fleet running costs.

Participants sometimes share their successes while attending successive modules but more often detail them in the assignments or project work used to assess competence associated with the attainment of a particular award, e.g. the Certificate or Diploma in Car Fleet Management. At Certificate level, the assignments need to be verified by the individual’s line or sponsoring manager so the improvements, cost savings, etc. resulting from the training are tangibly real and not just a ‘figment of the imagination’ of the trainee. For example, focused assignments include requirements for demonstrating best practice for safety or green fleet management and evidence that an action plan for CO2 reduction has been developed and outcomes achieved.

Value for money
By the time they have acquired their qualification most participants find it easy to provide evidence of savings that far exceed the cost of the initial investment in their training and many have accumulated evidence of significant savings that are far in excess of the cost of their initial training.

Our successful students have gone on to win many national awards for fleet management. Our courses are also increasingly popular with police fleet managers and other central government fleets.

It is a profession to be proud of and accredited qualifications will bring the individual into line with industry leading best practice and a network of professionals in public and private sector.

What is the framework?
The framework comprises of three lots, cars, vans and CEN, which runs to 14 July 2012.

Lot 1 – car: This lot allows for any car to be converted through the framework, from a complex fast response vehicle (FRV) to a doctor’s car with some lights on top and everything in between.

Lot 2 – van: This lot allows for any van to be converted through the framework, from a patient transport service vehicle to a minibus and everything in between.

Lot 3 – CEN: This lot allows for any van conversion which is CEN compliant to be converted through the framework. This lot does not support the conversion of the box body A&E front line ambulance, these can only be bought via the A&E Framework.

For more information
For further information including how to apply for membership and training courses please go to icfm.com