Contenu connexe Similaire à Basic Transport & Fleet Mngt - AK2015 Similaire à Basic Transport & Fleet Mngt - AK2015 (20) Basic Transport & Fleet Mngt - AK20152. Basic Transport & Fleet
Management – © A Knipe,
20152
The Basic Experiential Learning Cycle
3. Basic Transport & Fleet
Management – © A Knipe,
20153
The Agenda
1. An overview of transport and fleet management
2. Role-players and their responsibilities for transport
and fleet management
3. Transport and fleet management based on asset
management practices
4. Government owned transport
5. Outsourcing of government transport
6. Loss control in transport and fleet management
7. Transport and fleet management performance
5. Basic Transport & Fleet
Management – © A Knipe,
20155
1. Overview of Transport and Fleet
Management
Transport management
– highly operational
– concerned with real-time information, incident control and daily
disciplines
– summarises data for fleet management to interpret in terms of
strategic fleet policies
– handles the daily crises of trucking via technical staff, drivers,
crews and accountants
Fleet management
– has to do with the strategic decisions that impact upon the
organisation’s fleet asset base
6. Basic Transport & Fleet
Management – © A Knipe,
20156
Activity
Draw a picture to illustrate your
understanding of transport management.
7. Basic Transport & Fleet
Management – © A Knipe,
20157
2. Role-players and their
Responsibilities
Department of Transport (DoT)
– Formulate policies
– Formulate guidelines & best practice documents
– Provide vehicles
User Department
– Implement policies
– Utilise guidelines & best practice documents, develop
procedures
– Ensure optimal use of vehicles
8. Basic Transport & Fleet
Management – © A Knipe,
20158
2. Role-players and their
Responsibilities
Accounting Officer (Head of the Department)
– Ensure effective, efficient & transparent systems of financial
& risk management & internal control
– Prevent unauthorised, irregular, fruitless & wasteful
expenditure
– Take disciplinary action
– Manage assets
– Budgetary control (prevent unauthorised expenditure
– Report on the use of vehicles
Chief Financial Officer (CFO)
– Delegated responsibilities
9. Basic Transport & Fleet
Management – © A Knipe,
20159
2. Role-players and their
Responsibilities
Head of Supply Chain Management
– Support CFO
Transport Officer
– Asset register
– Proper completion & administration of records & returns
– Monthly vehicles performance summaries
– Coordinate use of vehicles
– Provide budget input
– Control maintenance
– Safeguard vehicles
– Acts as a link
– Liaise with other departments
Drivers and other staff
10. Basic Transport & Fleet
Management – © A Knipe,
201510
Activity
Identify the various role players in transport
and fleet in your workplace; and
Briefly describe what their responsibilities
are.
11. Basic Transport & Fleet
Management – © A Knipe,
201511
3. Transport & Fleet Management based
on Asset Management Practices
Description of the term “assets”
Determining the value of assets
Classification of assets
Objectives of good asset management
12. Basic Transport & Fleet
Management – © A Knipe,
201512
Responsibility For Asset
Management
Accounting Officer’s responsibility
CFO’s responsibility – delegations
Asset Manager’s responsibility – delegations
Programme Manager’s responsibility
Line-manager’s responsibility – sec. 45 of
PFMA
13. Basic Transport & Fleet
Management – © A Knipe,
201513
Defining the Concept “Asset”
Term “asset” apply to object with a useful life
of greater than one year
Useful life limited because of wear and tear =
depreciation
Physical assets include land, buildings,
equipment, facilities and infrastructure, plant
and equipment and vehicles
Land in general do not depreciate -
appreciate
14. Basic Transport & Fleet
Management – © A Knipe,
201514
Defining the Concept “Asset”
Asset = resource controlled by entity as
result of past transaction/event – from which
future economic benefits are expected to flow
to entity
Implication:
– Must have some value for entity in future
– Entity must control/own asset
– Ownership depends on transfer of legal right to
asset to entity
15. Basic Transport & Fleet
Management – © A Knipe,
201515
Determining the Value of Assets
Historical costs – purchase price
Replacement value – replacement cost
Market value – selling price
16. Basic Transport & Fleet
Management – © A Knipe,
201516
Classification Of Assets
Fixed assets:
– Tangible – buildings, vehicles, equipment, etc.
– Intangible – patent or copyright
Current assets:
– Cash in hand
– Cash in bank account
– Stock at hand (warehouse) – consumable items
– Money owed by clients (debtors)
17. Basic Transport & Fleet
Management – © A Knipe,
201517
Objective of Asset Management
To obtain the best possible match / mix of
assets for optimal service delivery and
achievement of institutional objectives
To ensure that asset consumption is
regarded as real / significant cost of
programme delivery
18. Basic Transport & Fleet
Management – © A Knipe,
201518
Asset Register: Establishment,
Maintenance and Updating
Core mechanism for good asset management
Established as part of the computerised financial management
system
Should be an integrated system and not transversal system
that communicate through interfaces
Should enable CFO to compile financial statements timeously
when required
When updated?
– New assets acquired
– Former assets disposed off
– Every 6 months after asset verification
– After movement of assets
19. Basic Transport & Fleet
Management – © A Knipe,
201519
Requirement for Asset
Management
An asset register which must contain the
following information:
– Detail of purchasing transaction
– Description of the asset
– Accountability information
– Performance information
– Financial information – depreciation
– Disposal information
20. Basic Transport & Fleet
Management – © A Knipe,
201520
Asset Management Process
Includes number of inter-related processes:
– Asset planning (Demand)
– Procurement of assets (Acquisition)
– Operation/Maintenance of assets (Logistics)
– Replacement or Disposal of assets (Disposal)
21. Basic Transport & Fleet
Management – © A Knipe,
201521
1 Asset Planning
Full integration of physical assets strategic plan into
overall strategic plan
Principle: do not hold assets unless it is reasonably
necessary for economical, effective & efficient
delivery of programmes
Alternative strategies:
– Leasing
– Time-sharing
– Contracting out
22. Basic Transport & Fleet
Management – © A Knipe,
201522
The Physical Asset Strategic And
Operational Plan
Essentially subset of primary strategic and
operational plan of an organisation
Requirements:
– Must be consistent with primary strategic plan and
MTEF
– Must cover period of three years
– Updated annually on rolling basis
23. Basic Transport & Fleet
Management – © A Knipe,
201523
The Physical Asset Strategic And
Operational Plan
Make provision for:
– Analysis of key issues that may influence requirements for
assets in medium/long term
– Analysis of appropriateness of existing assets for realising
strategic objectives of organisation
– Identifying need for new assets – strategies to meet need
– Developing strategies for maintaining assets
– Identifying need for replacement of assets
– Developing strategies for disposing of assets that are
surplus (depreciation)
24. Basic Transport & Fleet
Management – © A Knipe,
201524
2 Purchasing of Assets
Procurement according to bidding &
provisioning administration procedures
25. Basic Transport & Fleet
Management – © A Knipe,
201525
3 Operation And Maintenance Of
Assets
Efficient & effective operation related to assignment of
responsibility for:
– Monitor performance against planned/rated performance
– Maintaining asset in sound working condition
Operational & maintenance plans assign responsibility for:
– Control of, access to & security of assets
– Programme of regular preventative maintenance
– Collecting data for monitoring of performance
– Initiating prompt corrective maintenance
– Training staff
– Keeping appropriate records
26. Basic Transport & Fleet
Management – © A Knipe,
201526
Asset Maintenance
Contributing factor i.t.o. good asset
performance
Should develop asset operation and
maintenance plan for each asset
To ensure that:
– Assets remain appropriate i.t.o requirements
– Are optimally utilised
– Maintained at lowest possible costs
27. Basic Transport & Fleet
Management – © A Knipe,
201527
Asset Maintenance
Asset operation and maintenance plan is
dynamic – should be reviewed regularly
Establishes standards for:
– Level of use
– Condition
– Maintenance
– Performance of assets
28. Basic Transport & Fleet
Management – © A Knipe,
201528
Asset Maintenance
Maintenance plan provides basis for
managing work & monitoring maintenance
performance
Indicate maintenance requirements
Include statement of resources:
– To undertake maintenance function
– Number/type of maintenance contracts/suppliers
– Expected funds – capital/recurrent costs
29. Basic Transport & Fleet
Management – © A Knipe,
201529
Asset Maintenance
Maintenance data captured as work is
performed
Kept records of maintenance history for
planning purposes
Used to prepare annual maintenance plan
30. Basic Transport & Fleet
Management – © A Knipe,
201530
4 Replacement or Disposal of Assets
Decision: whether or not service potential of asset
should be replaced, upgraded or reduced
Unserviceable/redundant/obsolete assets
Methods:
– Transfer to another department at market-related value
– Transfer to another department for free
– Selling per bid or auction
– (Issue voucher)
31. Basic Transport & Fleet
Management – © A Knipe,
201531
Disposal And Replacement Of Assets
Asset disposal terminates control over asset
Generate need for replacement
Crucial component of asset life cycle
Reasons: surplus, unserviceable assets
Requires disposal plan
32. Basic Transport & Fleet
Management – © A Knipe,
201532
Disposal And Replacement Of Assets
Disposal Plan (includes):
– Rationale for disposal
– Anticipated time
– Method
– Expected proceeds
33. Basic Transport & Fleet
Management – © A Knipe,
201533
Disposal And Replacement Of Assets
Disposal decision:
– Asset register – starting point
– Depreciation (accumulated)
– Condition of asset
– Performance of asset
34. Basic Transport & Fleet
Management – © A Knipe,
201534
Activity
Draw a simple diagram to illustrate the
vehicle life cycle. You can use the basic
asset management life cycle as a basis for
your diagram.
35. Basic Transport & Fleet
Management – © A Knipe,
201535
Safe-guarding Of Assets
Properly arranged/stored/preserved
Storage spaces must be safeguarded pro-
actively
36. Basic Transport & Fleet
Management – © A Knipe,
201536
Assets Verification/Audit
Conducted on all vehicles at least once every
year
AO to indicate how audit be carried out
Concerns:
– Discrepancies
– Redundant & obsolete items
– Disposal
37. Basic Transport & Fleet
Management – © A Knipe,
201537
Asset Audits And Spot Checks
Purpose:
– To verify existence of assets
– To determine condition of assets
– To determine performance of assets
38. Basic Transport & Fleet
Management – © A Knipe,
201538
Asset Audits And Spot Checks
Depends on:
– Type of assets
– Extent (number) of assets
– Personnel available
– Status of asset register
– Asset verification programme
– Demographics
39. Basic Transport & Fleet
Management – © A Knipe,
201539
Asset Audits And Spot Checks
Asset Verification Program include time
schedule for:
– Preparation – records and training
– Execution – actual verification
– Investigation of discrepancies
– Reporting
40. Basic Transport & Fleet
Management – © A Knipe,
201540
Asset Audits And Spot Checks
Asset Verification Report:
– Submitted at least annually
– Must indicate unserviceable, repairable,
redundant or obsolete assets
– Number and value of assets surplus/deficient
– Compliance with previous year’s recommended
preventative measures
41. Basic Transport & Fleet
Management – © A Knipe,
201541
Activity
Discuss how you check (safeguard) the
vehicles that you are responsible for every
day/week/month?
42. Basic Transport & Fleet
Management – © A Knipe,
201542
Alternatives To Asset Ownership
Principle choice is whether to lease or buy
Leasing represents choice between
‘operating’ and ‘finance’ leases
Finance lease – transfer risk and benefits of
ownership to entity
Operating lease – provide greater flexibility
43. Basic Transport & Fleet
Management – © A Knipe,
201543
Alternatives To Asset Ownership
Reason for non-asset solutions:
– Current asset base of entity is growing & steadily
ageing
– Changing expectations & technological
advancements
– Asset requirements can change
– Expenditure on fixed assets constrains
expenditure in other areas
45. Basic Transport & Fleet
Management – © A Knipe,
201545
4. Government Owned Transport
General rules relating to the usage of government
owned transport
Indemnity clauses applicable to all users
Record-keeping of official transport
– Trip authority
– Itineraries
– Monthly log sheets & returns
– Government Vehicle Management Register
– Equipment Record Card
– Accident Report
– Returns
46. Basic Transport & Fleet
Management – © A Knipe,
201546
Government Owned Transport (cont.)
Parking of government owned vehicles
Insurance
Accident procedure
Fuel card control
Repairs & replacement of tyres & spare parts
47. Basic Transport & Fleet
Management – © A Knipe,
201547
Activity
What are the most important rules that users
have to follow when using government
transport?
48. Basic Transport & Fleet
Management – © A Knipe,
201548
5. Outsourcing Of
Government Transport
Outsourcing contract include:
– Structure of service provider
– Details of service areas covered by contract
– Handling of trips
– Delegations
– Identification of controls
– Vehicle delivery procedure
– Vehicle return procedure
– Vehicle transfer procedure
49. Basic Transport & Fleet
Management – © A Knipe,
201549
Outsourcing Of
Government Transport (cont.)
Outsourcing contract include:
– Vehicle termination procedure
– Fuel consumption
– Fuel card administration
– Procedure – traffic fines
– Maintenance/repairs process
– Licensing
– Cross border transportation
– Emergency procedures
– Disciplinary procedures
– Penalties
50. Basic Transport & Fleet
Management – © A Knipe,
201550
Managing Transport & Fleet Services
Effectively
1. Establish and maintain policies and procedures for
use of vehicles
2. Provide systems to keep records of activities of
vehicles
3. Establish an organisational structure within which
vehicles can operate
4. Provisioning of human resource capacity and skills
to operate vehicles
5. Manage the expenditure for and income/revenue
from vehicles
6. Management of vehicles and equipment
51. Basic Transport & Fleet
Management – © A Knipe,
201551
Activity
Discuss how you can manage the transport
function more effectively?
52. Basic Transport & Fleet
Management – © A Knipe,
201552
6. Loss Control
1. Preventing fraud and corruption in transport and
fleet management
2. Preventing the abuse of government vehicles
3. Preventing damages to government vehicles
4. Preventing losses caused by theft and criminal
activities
5. Preventing losses caused by negligence of officials
6. Dealing with losses as a result of vis major
circumstances
53. Basic Transport & Fleet
Management – © A Knipe,
201553
Definition Of Risk Management
A comprehensive and systematic
approach aimed at identifying,
measuring and controlling
an entity’s exposure to accidental loss,
theft and liability involving human,
financial, physical and
natural resources
54. Basic Transport & Fleet
Management – © A Knipe,
201554
Risk Management Fundamentals
What is Risk?
– The impact of uncertain future events that could
influence the achievement of an organisation’s
objectives
– Risk creates uncertainty and makes planning
difficult
55. Basic Transport & Fleet
Management – © A Knipe,
201555
Risk Management Fundamentals
Risk directly impacts on the service delivery
objective of municipalities, because it
manifests as the chance of a loss due to
adverse events:
– Interruptions to service delivery and loss of
revenue (income statement, liquidity)
– Consequences of loss of revenue on
sustainability (balance sheet, performance
against budget, funding position)
– Perceptions of stakeholders (reputation)
56. Basic Transport & Fleet
Management – © A Knipe,
201556
Risk Management Fundamentals
Risk Management focuses on the ability of
the organisation to meet objectives in the
future by identifying risk and making
decisions to manage these risks
Risk Management starts with the strategic
planning process
57. Basic Transport & Fleet
Management – © A Knipe,
201557
Legal Mandate – Legislative
Requirements
Section 38(1)(a) – PFMA,
“the accounting officer for a department …
has and maintains :
– Effective, efficient and transparency systems of
financial and risk management and internal
control; and
– A system of internal audit under the control and
direction of an audit committee…”
58. Basic Transport & Fleet
Management – © A Knipe,
201558
Legal Mandate – Legislative
Requirements (Cont.)
Section 45(a) – PFMA
“An official in a department, _ _ _ _ :
Must ensure that the system of _ _ _ _
internal control _ _ _ _ is carried out within
the area of responsibility of that official;”
59. Basic Transport & Fleet
Management – © A Knipe,
201559
Legal Mandate – Legislative
Requirements (Cont.)
Section 3.2.1 and 27.2.1 of the Treasury Regulations of 2005
(issued i.t.o. the PFMA)
“The accounting officer/authority must ensure that a risk
assessment is conducted regularly to identify emerging risks of
the institution/public entity. A risk management strategy, which
must include a fraud prevention plan, must be used to direct
internal audit effort and priority, and to determine the skills
required of managers and staff to improve controls and to
manage these risks. The strategy must be clearly
communicated to all officials to ensure that the risk
management strategy is incorporated into the language and
culture of the institution/public entity.
60. Basic Transport & Fleet
Management – © A Knipe,
201560
Key Role Players
ACCOUNTING OFFICER
– The accounting officer is responsible for
managing the financial administration of the and
must for this purpose take all reasonable steps to
ensure:
that the organisation has and maintains effective,
efficient and transparent systems of financial and risk
management and internal control; and
of internal audit operating in accordance with any
prescribed norms and standards
61. Basic Transport & Fleet
Management – © A Knipe,
201561
Key Role Players
INTERNAL AUDITOR
– The internal audit unit must
Prepare a risk- based audit plan and internal audit
program for each financial year;
Advice the accounting officer and report to the audit
committee on the implementation of the internal audit
plan and matters relating to risk and risk management.
62. Basic Transport & Fleet
Management – © A Knipe,
201562
Key Role Players
In other words - Everyone is responsible!
– Accounting officer – Management of risk
– Audit Committee – Oversight and assurance
– Internal Audit – Independent monitoring, objective review
– Risk Officer (CRO) – Coordinate and integrate risk
management activities
– Executives and Management – Management of risk,
decision making
– Employees – Implementation, vigilance
63. Basic Transport & Fleet
Management – © A Knipe,
201563
Risk Management Process
Phases in Risk Management Process:
– Risk Identification
– Risk Assessment
– Risk Response
– Risk Control
– Risk Financing
64. Basic Transport & Fleet
Management – © A Knipe,
201564
Key Risks Associated With In-effective
Risk Management
Inappropriate internal controls
Risk management not incorporated in
organisation’s culture
Reactive responses, not pro-active
Inadequate plans
Inappropriate controls
Changing/new risks not considered &
managed
65. Basic Transport & Fleet
Management – © A Knipe,
201565
Risk Management Evaluation
The measurement of risk is not an easy step;
it is the most difficult and least precise step in
the art of risk management
66. Basic Transport & Fleet
Management – © A Knipe,
201566
Risk Management and
Internal Controls
Internal control
– Definition of the concept “internal control”
– Types of internal controls
– Need to maintain internal control
– Factors influencing the control process
Link between internal control and risk
management
67. Basic Transport & Fleet
Management – © A Knipe,
201567
Activity
Illustrate your group’s understanding of
transport and fleet risk management.
68. Basic Transport & Fleet
Management – © A Knipe,
201568
Transport And Fleet Management
Performance
Assessing the state of transport and fleet
management in the public sector
Determining the public sector’s ability to
improve Transport and Fleet Management
69. Basic Transport & Fleet
Management – © A Knipe,
201569
Transport And Fleet Management
Performance
Establishing measures to determine
economy, efficiency and effectiveness of
Transport and Fleet Management
– Components of performance management
– Value-for-money chain
– Performance indicators
70. Basic Transport & Fleet
Management – © A Knipe,
201570
Activity
Discuss how you would improve transport
and fleet management effectiveness in your
organisation.
Notes de l'éditeur The life-blood of South Africa's economy, the road transport industry, is slowly haemorrhaging under the weakness of old age. In 1996, all trucks over 3,5 ton gross vehicle mass (GVM) had reached an average age of 10,5 years. By 1997, this had become 11,1 years and by January 1999 this stood at 11,9 years. The disastrous decline in sales of new trucks in 1999 means that we will start the new millennium with a geriatric national fleet. Dave Scott, technical correspondent for FleetWatch, reckons one of the reasons for this decline is the lack of understanding of fleet management as opposed to transport management. With a plethora of fleet management systems being offered to the market, it is very necessary to understand the difference between the two.