Fact-Based Decision-Making

1. Using FAST Data to Improve Fleet ManagementPresentersAdlore Chaudier Ph.D., Mercury AssociatesJustin McLeod, Mercury Associates

2. Fact-Based Decision-Making • Government Executive Today, May 23, 2012 • Even as more federal agencies embrace the idea of increased data analysis, many don’t know what to do with this newfound information. • Association of Government Accountants and Accenture survey • 67 % of federal officials said • their organization analyzes data • use the findings to make fact-based decisions • 46 % of the “yes” responses reported a “low” integration of analytics into agency management • low level defined as data analytic processes conducted in silos with little consistency or standardization • A process known as “data analytics”

3. Your Strategic Goals Develop and implement fleet management processes and tools to meet your fleet management reporting and management needs at all organizational levels. Implement a set of standard performances measures that provide on-going benchmarks and improvement goals for fleet management.

4. Best Practice • Performance measurement is part of a strategic (that is, planned and forward looking) approach to fleet management. • Counterproductive to have a plan but not know whether the plan is being followed and producing desired results. • Performance measurement allows an organization to: • Reduce reliance on subjective judgment and speculation • Track performance against standards and benchmarks • Hone in on areas that require improvement • Track trends over time

5. Data Required for FAST Specific reporting categories, by agency, included in the Federal Fleet Report (1) Inventory (2) Acquisitions & Disposals (3) Operating costs (4) Miles traveled (5) Fuel used • FAST continues to add data inputs to meet new reporting requirements

6. Why Are FAST Reporting Errors Common? • No FMIS in place to standardize data-gathering and reporting • Insufficient information gathered by the field FAST reporter (need a FAST Handbook) • Unaware of FAST reports available on GSA Reports Carryout • No standard processes for gathering and reporting data • No standard performance measures • Unaware of the FAST Data Quality Consistency Report or how to read and apply the data tables and charts • Increased data demands but no increase in personnel • Everyone is too busy as data moves up the hierarchy

7. Why Are FAST Reporting Errors Common? • Because reporting FAST data has become an end in itself rather than a means to an end In other words . . . Use FAST data to improve fleet management!

8. FAST Data Metric 1: Fleet Size

9. Where Should I Look? • Data Validation Report • The Data Validation Report consists of 12 metrics that use basic logic to delineate potential errors in reporting. Direct Links! • When validated, this report shows where you can improve upon distinct anomalies.

10. Data Validation Report • Data Validation Report Flags

11. Where Should I Look? • Data Quality and Consistency Report • Presents overview trends and supporting data tables • Includes your agency and subordinate fleet elements within the FAST reporting hierarchy • Starts FY2003 through the current FY • Goal is to help ensure consistency and quality of the data for corresponding fleet element(s), both across years and within different data segments (vehicles, fuel, costs, and mileage) for the current FY.

12. Where Should I Look?

13. Quick Analysis • Cleanliness of Sub-Agency/Sub-Component Reporting • High confidence level in data • Drives succinct conversation • Site-visits • Best practices • FMIS potential adoption

14. FAST Alternative Fuel Consumption

15. FAST Fleet Inventory

16. FAST Inventory: Sedans/Station Wagons

17. Where Should I Look? • Reports Menu • Query Tool • Ad-Hoc Reporting • Pull from each section of FAST

18. Query Tool Section 2 Report

19. Query Tool Detailed Analysis Example of Section 2 Query elements. True Ad-Hoc Reporting!

20. FAST QC Question

21. Average Miles Per Vehicle by Type

22. Average Miles per VehicleBy Organization and per Day

23. FAST Fleet Performance Measures By Type of Ownership

24. FAST Metrics Summary Matrix

25. FAST Metrics Summary Matrix

26. Cost per Vehicle by Reporting Organization

27. Cost per Vehicle by Ownership

28. Average Cost per Vehicle Mile2009 & 2011

29. FAST Fleet Costs by Type of Ownership

30. FAST Cost per GSA Fleet Vehicle

31. FAST Fleet Costs for Owned Vehicles

32. FAST Fleet Costs for Owned Vehicles

33. FAST Maintenance Costs For Owned Vehicles

34. FAST Depreciation Sample Number of owned vehicles varies Reported depreciation per vehicle varies Many with owned vehicles do not report deprecation at all 34

35. Improved Depreciation Reporting

36. The Costs of Ignoring Depreciation • Poor Decision-making: Lease vs. ownership financing methods are incorrectly evaluated • Pay before you go versus pay as you go • Sunk cost versus ongoing depreciation • Poor Communication: Financial communication for replacement planning is inadequate • Life-cycle Costs Ignored: Focus on marginal M&R rather than total costs • Marginal Costs Climb: Fleets get old • Poor Fleet Management: Fleet expenses and budgets understated; cost of the owned fleet is unknown.

37. Depreciation Matters What gets measured, gets managed. Does your organization manage depreciation?

38. Depreciation Defined • For Accounting • A system (and process) of accounting methods that distributes (allocates) the cost of an asset, less salvage value (if any), over the estimated useful life of the asset. • For replacement planning • The decline in value of assets. • The initial purchase price minus the current fair market value (FMV). Note: Residual value -- another name for salvage value.

39. Depreciation Defined

40. FAST Depreciation Template • Click on the Help Tab • Select the Section II Simplified Depreciation Worksheet

41. FAST Depreciation Template • Populate Rows 4-7 for each type of Agency-Owned Vehicle (Sample data is provided in Column B highlighted in gray) • Yellow Cells Only

42. FAST Depreciation Template • The remainder of the values will be auto-populated from populating rows 4-7. • The totals on row 35 should be reported in FAST.

43. FAST Depreciation Template

44. FAST Depreciation Template • Transfer values from Depreciation template (Row 35) to Section II of the Agency-Owned vehicle calculations for depreciation.

45. FAST Depreciation Template • Data Quality and Consistency Report: Flagged Data • Actual Note in FAST • Highlighted cells in the table represent vehicles in inventory without corresponding required cost data, or cost data has been entered without corresponding vehicles shown in inventory. Maintenance costs and depreciation are required for agency owned vehicles. Actual Depiction of Flagged Data in FAST because of Depreciation being unaccounted for.

46. MERCURY ASSOCIATES, INC. “Specializing in the science of fleet management.” For more information, contact: Adlore Chaudier Ph.D. Director, Federal Fleet Consulting achaudier@mercury-assoc.com 262-215-5566 (cell) Justin McLeod Fleet Management Consultant jmcleod@mercury-assoc.com  202-573-4254 (cell)