When It Comes To Lift Truck Ownership, You Can Uncover Hidden Costs

While it may not be murder or another serious felony, paying too much to keep lift trucks operating is like a crime - it's robbing your business of money that could be used in better ways.

How do you know if your lift truck fleet is embezzling funds? Be a detective who scours the crime scene for clues, interviews people, tests theories and compiles the needed evidence to catch and convict the bad guys.


Search For Clues
It's difficult to reduce lift truck costs if you have no idea of what they are. Records and data are what you need. Specifically, the best clues come from knowing labor and parts costs, plus each truck's utilization percentage. Data gathering is not difficult, but it must be done consistently. Be sure to:

Fit each lift truck with an accurate hour meter. Research has found that more than two-thirds of lift trucks either have no hour meter or the one they have isn't working. You need the reading to determine costs per hour for each vehicle in the fleet. A comparison with other lift trucks is especially helpful when deciding when to replace a lift truck, and which one to retire first.
Create a complete file for each lift truck. It should include the truck's make, model, fuel system, serial number, year, basic specifications and options.
Be sure to update the file each time the lift truck has its scheduled maintenance (based on hours of use) and undergoes repairs. Keep track of parts costs and hourly charges for labor. If you have an in-house maintenance staff, include the cost of benefits and administrative support.
Determine each truck's utilization percentage. You get this clue by dividing the total number of hours a lift truck could be in use by the hours it was actually operating (from the hour meter).
Talk To Folks The data already gathered will lead you to the people with whom you'll want to converse about suspect practices or high costs. For example, if you notice one lift truck has high repair costs, dents and scratched paint, you'd want to talk with the person who services the lift truck. You may discover the lift truck is old and past its economic service life (when it costs more to repair it than replace it). You could learn that a certain operator is always rougher on equipment and you have a training problem. Maintenance people can fill you in on which repairs they perform on a consistent basis, and which ones are suddenly cropping up. Radiator problems may mean dust or airborne fibers are causing blockages - a prescreen filter could save you repair bills. Premature damage to differentials, transmissions and axles could indicate the rough floor and potholes out in the plant need attention.
Don't forget operators. They may tell you why lift truck No. 17 has very low hours - it's so uncomfortable, no one wants to use it! Meanwhile, electric lift truck No. 18 has high hours because it maneuvers well and has fast response.

Alter Viewpoints

Sherlock Holmes could catch criminals because he observed things closely and asked experts for help when needed. You can emulate his techniques by stepping back and watching material handling practices in your facility. You'll want to assess lift truck operators' skills and look at how material flows through the building. Are there wasted movements? Do lift trucks sit idle while operators perform tasks better left to others or duties that could be eliminated? Are methods used suitable to products that are no longer in inventory?

You'll want to see if lift trucks really match their loads. Here is where you may want help. Our lift truck experts can assist you by objectively auditing your operation. They know what material handling techniques work best in various applications, and they have no built-in preference for "this is the way we've always done it."

In fact, if you don't have the time or personnel to be lift truck cost detectives, we'll be happy to keep records for you and reduce costs with a Planned Maintenance or Total Maintenance and Repair agreement. We can also put you in touch with the Caterpillar Fleet Management Services group who are pros at uncovering hidden lift truck costs. Just call us today.