Operational Cost Controls

The client – one of the US big 3 automobile manufacturers – had no process for identifying operating costs of their in-plant tuggers (equipment used to move materials from railcar and truck-trailers to the assembly line).

The Challenge

The client – one of the US big 3 automobile manufacturers – had no process for identifying operating costs for their in-plant tuggers (equipment used to move materials from railcar and truck-trailers to the assembly line).

Project Solutions

Project Solution 1

After assessing the equipment utilization demand (operational hours) versus available up-time a fleet rightsizing strategy was developed
Project Solution 2

A planned attrition plan was implemented based on time and economic useful lifecycle assumptions
Project Solution 3

Specified replacement asset parameters. Vetted and validated equipment manufactures. Created a usages based financing solution

Project Completion 92%

Customer Satisfaction 100%

* Reduced OPEX 22%

Asset Utilization Improvement 39%

Asset Uptime Improvement 50%

Asset ROI Improvement 31%

* OPEX, as used in this graph, is limited to the assets defined within the project.