Chatham Consulting, Inc.

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Electric and Combination Utilities

Major Nuclear Plant Fleet
A major nuclear utility engaged Chatham Consulting, Inc to conduct a business assessment of the number of cranes needed at its nuclear generating stations. As part of this assistance, we:
  • Examined if there was sufficient workload to generate the need for such equipment?
  • Determined what fleet equipment is really needed now?
  • Assessed which units, if any, should be replaced?
  • Benchmarked the crane fleet operation with other comparable nuclear stations.
  • Developed breakeven utilization rates needed to justify crane acquisition.
  • Provided recommendations to improve crane and other fleet unit asset management.

Combination Electric and Gas Utility
Chatham Consulting conducted both a comprehensive vehicle replacement analysis and buy versus lease study for this 4,000 unit electric and gas utility. Some of the key study deliverables were:
  • Replacement model for all major vehicle classes that optimized life cycle costs.
   (The model was calibrated for both the owned and leased segments of the fleet.)
  • Economic sensitivity analysis of deviating from the optimum vehicle life.
  • Benchmarking vehicle maintenance costs, replacement criteria, and average ages.
  • Financial planning model
   (This model examined:
      - flow of funds
      - internal rate of returns.
      - operating savings attributable to increased replacement spending.)
  • Analysis of alternative financial scenarios like purchase versus lease and funding levels.

Large East Coast Electric Utility
Chatham Consulting conducted an information systems assessment for this 5,200-unit utility. The goals of this study were to: define future fleet management information and tracking and cost distribution requirements, assuming that any or all parts of the business could be regulated and competitive at some point in the future; and, identify and assess any risk, omissions or inefficiencies related to the fleet management business process.

Southwestern Electric Utility
Chatham Consulting completed a comprehensive fleet benchmarking and work practices review for this 3,170-unit fleet. Both quantitative and qualitative comparisons and assessments were made in:
  • Preventive maintenance parameters
  • Component repair and replacement parameters
  • Contractor utilization
  • Purchasing and invoicing
  • Parts inventories
  • Vehicle and equipment repair budgets
  • New vehicles and equipment budgets
  • Training
  • In-house warranty repair
  • Fleet availability by class
  • Fleet rehabilitation
  • Quality assurance
  • Pool administration

Large Combination Utility
Chatham Consulting, Inc. in a joint venture with D. L. English Consulting completed an independent assessment of the multi state fleet assets that totaled 6,450 vehicle and equipment units. The overall objective was to develop a table of organization and equipment (TO&E) to determine the appropriate size and complement of the fleet. The study team:
  • Prepared baseline of vehicles and equipment by department and location,
  • Conducted a fleet size benchmarking analysis
  • Developed models to analyze number and types of vehicles needed by location,
  • Facilitated informational workshops to achieve buy-in regarding recommendations,
  • Prepared table of organization and equipment (TO&E),
  • Assisted in the preparation of a transition plan to phase inrecommend TO&E.
We found that the total number of vehicles and equipment units are could be reduced by over 18% over a period of two years. The reductions were found primarily in the light duty and pool fleet categories

Midwestern Electric Utility
Chatham Consulting, Inc. conducted a comprehensive fleet management and benchmarking study of this 1,600 unit fleet operation. The study assessed how competitive fleet operations were, identified which fleet activities the utility was doing well and which ones need to be improved, developed recommendations for those areas needing improvement, organized these recommendations into a fleet improvements plan, and addressed the following operational and maintenance issues:
  • Organization size, structure and reporting relationship
  • Overall competitiveness of the fleet operations
  • Fleet management information system needs
  • Outsourcing and insourcing issues
  • Specification and standardization of vehicles and equipment
  • Alternate fuel issues
  • Vehicle acquisition, assignment and utilization practices
  • Vehicle replacement issues
  • Purchase versus lease of vehicles and equipment
  • Preventive maintenance practices
  • Facilities
  • Spare parts management
  • Rebuild program
  • Competitiveness of maintenance operations
  • Training issues concerning mechanics

Electric Utility (maritime province Canada)
Chatham Consulting conducted a high level review of the 890 unit fleet operations of this utility. This review assessed how well and cost effective fleet operations were; developed recommendations for more effective ways to operate the fleet; and provided guidance to management regarding the future direction of its fleet operations. Other areas reviewed were: fleet size and composition; current cost of operations; vehicle specifications; staff size; and, outsourcing. In addition, the fleet operations were benchmarked to other utilities in Canada and North America.

Western Combination Electric, Gas & Water Utility
Chatham Consulting conducted a Fleet Performance Study of the 3,000 unit fleet operations operated by the City's utility and municipal departments. The study evaluated the Fleet Management Department's performance relative to comparable utility, municipal and private sector benchmarks in the areas of:
  • Overall staffing and organization structure
  • Staffing ratios
  • Cost of service
  • Work standards
  • Direct/indirect time
  • Productivity
In a subsequent study, Chatham Consulting evaluated existing fleet utilization practices and provided technical assistance to improve these practices and develop methods to size the fleet.

Electric Utility
For this 840-unit fleet Chatham Consulting developed replacement models for major categories of vehicles to optimize capital versus operations and maintenance expenditures and overall life cycle costs. The models also contained modules that quantified the economic impacts of deviating from the optimal vehicle life. Chatham Consulting also reviewed and critiqued the following fleet practices, in light of local operating requirements and industry best practices:
  • Vehicle and equipment specifications
  • Preventive maintenance program
  • Vehicle costs
  • Maintenance procedures
  • Crew size
  • Other performance data

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