FASTER National Conference FASTER National Conference High Tech – High TouchHigh Tech – High Touch

New Initiatives at Loudoun New Initiatives at Loudoun County VirginiaCounty Virginia

By: Kent Carneal, Fleet Maintenance Supervisorand John Mercer, Fleet Account Clerk

A little about Loudoun CountyA little about Loudoun CountyThe Consolidated Fleet numbers as of June 30, 2008The Consolidated Fleet numbers as of June 30, 2008

Consolidated Fleet Size Consolidated Fleet Size 2,364 2,364Employee CountEmployee Count 60 60Fleet Usage (miles)Fleet Usage (miles) 25,116,464 25,116,464Fleet AvailabilityFleet Availability 96% 96%Production Hrs BilledProduction Hrs Billed 61,940 or 84% 61,940 or 84%Scheduled vs. Unscheduled HoursScheduled vs. Unscheduled Hours 75 / 25 75 / 25Billing (including $8M in fuel)Billing (including $8M in fuel) $15,368,782$15,368,782Inventory ValueInventory Value $478,579 $478,579Physical Inventory TurnsPhysical Inventory Turns 3.4 3.4Inventory Net-Value TurnsInventory Net-Value Turns 4.9 4.9Warranty RecoveryWarranty Recovery $331,800 $331,800

Loudoun has been in the Top 5 Fastest Loudoun has been in the Top 5 Fastest Growing US Jurisdictions since 1996Growing US Jurisdictions since 1996

What does that mean?What does that mean?

In 12 years from 1996 to 2008In 12 years from 1996 to 2008

Fleet Growth Fleet Growth 814 to 2,364 814 to 2,364

Fleet Miles Fleet Miles 9.6M to 25M 9.6M to 25M

Fuel Gallons Fuel Gallons 720K to 2.75M 720K to 2.75M

Employees Employees 20 to 6020 to 60

Fleet Growth Chart

400

600

800

1000

1200

1400

1600

1800

2000

2200

2400

Organizational GrowthOrganizational Growth

As demand increasesAs demand increases

814

1812

1208

2364

You Must Change!

A Period of Fast Paced ChangeA Period of Fast Paced Change

In a 16 month period from Aug 06 to Dec 07In a 16 month period from Aug 06 to Dec 07

Implement Faster Payment Module, 8/06Implement Faster Payment Module, 8/06Began Heavy Shop Second Shift, 8/06Began Heavy Shop Second Shift, 8/06Implement Automated Payment Transfer, 11/06Implement Automated Payment Transfer, 11/06Implement Core & Credit Demand Tracking, 3/07Implement Core & Credit Demand Tracking, 3/07Opened 10,000 sq/ft Addition at our Main Facility Opened 10,000 sq/ft Addition at our Main Facility including a relocation of our Tire Shop, 8/07including a relocation of our Tire Shop, 8/07Began operating a Radio Shop, 9/07Began operating a Radio Shop, 9/07Began Light Vehicle Shop Second Shift, 12/07 Began Light Vehicle Shop Second Shift, 12/07 Began Imaging Work Orders and Payments,12/07Began Imaging Work Orders and Payments,12/07

Two New Initiatives

Implementation of the FASTER Payment Module

&

Core and Credit Demand Tracking

Invoices are Pulled into Payment Table

Payment Records

Sublet Invoices

Part Receipts

Credit Invoices

So what?

Before Payment Module Invoices keyed for Parts & Sublets Invoices keyed again in the Business Office Invoices keyed a third time at Accounting

With Payment Module (& transfer utility) Invoice Information keyed one time! Every dollar is accounted for (paid or unpaid) Because we have the data reporting is possible

Core and Credit Demand Tracking

Prior to Payment Module

We did not receive cores and returns into inventory Part Issue Returns were returned to inventory then the

receipt record was deleted to remove it from inventory The original invoice would be held until a credit was

received then both were processed for payment If a credit never came through, the invoice would

eventually be paid I assumed a 95 to 98 percent recovery with this process

Have you ever heard the phrase, ‘Trust but verify?’

NOW We receive all parts and cores into inventory Part returns and Cores are in inventory until they leave

the building All Returned items are Transferred to Vendor and a

Pending Credit is created in FASTER Once a credit invoice is received a Credit Record is

created and the associated Pending Credit is deleted Actual Credit Recovered is much higher than before

New Part Generator

Process Review

Receive Cores into Inventory Attach the Barcode Label to a Core Tag and

record the Vendor #, Invoice # and Amount Attach the Tag to the Part Issue Part (We don’t issue the core, but

probably should) Core is returned to Parts by Technician Transfer the Core to Vendor Create a Pending Credit Post Actual Credit & Delete Pending Credit Check Your Work (Accuracy is Everything)

WHY DO ALL THAT WORK?!!!

The Results

$0

$25,000

$50,000

$75,000

$100,000

$125,000

$150,000

Wro

ng

Warra

nty

Ob

so

lete

Co

res

Ven

do

r

To

tal

FY/07

FY/08

The Difference is…

$44,000 or a 46% increase in credits recovered during FY/08

That’s a lot more than a new pair of shoes 100% Credit Recovery Rate Short $0 out of $140,000 requested for FY08

The Difference in a Nutshell

We know where all our valuables are!

All Items of Value (physical inventory on hand) are received into the FASTER Inventory Control System

There is a record of every item that leaves the inventory (Part Issues and Transfers to Vendor)

Credit Demands and Credits are posted All other Invoiced Items (+/-) are transacted in

FASTER and therefore in the Payment Module

QUESTIONS ?

Loudoun County Central Garage 703-771-6485 Position Justification Job Description Process Cheat Sheet Pending Credit Report (Crystal XI) http://www.ccgsystems.com/notes08

Do you know where your valuables are?Do you know where your valuables are?