Friday, September 11, 2009

MPG Per Driver – Is this a valid KPI for Fleet Management?

Since the 2008 fuel crisis, many fleet managers are being convinced to measure and track miles per gallon (MPG) in an effort to reduce fuel consumption. Newer engines and vehicle designs boast lower fuel usage, but most companies are using their older vehicles longer and have very few new, fuel efficient vehicles.

So a common request among many fleets is to leverage on-board computers and fleet management systems measure MPG not only by vehicle, but by driver. Their goals are to identify drivers that violate established acceptable standards for MPG for training purposes or potential replacement. Is this a valid measurement?

Tracking MPG across your fleet makes perfect sense. Identifying those units that are consuming more fuel than others and ultimately costing more money may indicate when it makes more sense to repair or replace a vehicle. When this information is integrated with vehicle maintenance systems, there are clear efficiencies gained. Tracking MPG by route also provides useful data.

However, can accurate data be gained with KPIs that track MPG per driver? Consider these questions:
Are the drivers using the same vehicles every day?
Are the drivers driving the same routes every day?
Are they delivering the same cargo every day?
Are the driving the same routes at the same time each day?
Are the driving the same routes on a weekday vs a weekend?
Are you alerting drivers when they are exceeding MPG goals?

Optimizing fuel consumption is one of the most fundamental goals of any fleet manager, and analyzing MPG (in addition to idling, speeding, over RPM) make perfect business sense. MPG by driver may however provide inaccurate information.

If you are tracking MPG by driver, please comment on how you use it. Are these pitfalls real? How does your fleet avoid these?

Author: Frank Moreno