Monday, December 7th, 2009
Keystone Excavating
Keystone Excavating Ltd., of Calgary, Alberta, is regarded as a leader, not only for its strong hold on the excavating market over the past 30 years, but for its decision to implement a mobile workforce solution. They wanted a solution that would let them streamline job costing, billing and timesheet management. The chosen solution includes in-vehicle computers installed in their more than 250-pieces of heavy equipment, which work together with mobile resource and process management software.
The Challenges
Before installing this new technology, Keystone’s manual paper processes and radio communications were no longer making the cut when it came to managing workflow in relation to employees, hours, clients, locations, and equipment. As Holly Goulard, Keystone’s Controller, explains, “When I started at Keystone, one timesheet was handled 11 times before being filed.” In another example, truck tickets and timesheets could be lost or submitted after the client was billed for the job, and Keystone would have to absorb those costs.
The Results
Since installing the mobile workforce solution, Holly says that one of the biggest benefits is the ability to capture real-time information. “We see real-time hours and know where every piece of equipment is. We’re billing the real deal. Our HR department knows who worked when and can verify that information.
In addition to reducing the number of people reviewing job codes and hours worked, Keystone has also been able to downsize scheduler staffing requirements, removing four full-time scheduler positions.
It was originally thought that this technology would save about 20 minutes per piece of equipment each day due to better time management, so each operator would get to their next job 20 minutes earlier. In reality, Holly believes the system is exceeding this number. She has also seen a quick return on investment. “The money we invested in this technology was expected to be returned in three years, and it has been returned in one. That isn’t even accounting for the overtime hours we’re saving.”
Because subcontractors make up 30 to 40 percent of Keystone’s business, Holly hopes that round two of this technology implementation will include these subcontractors adopting electronic devices in their vehicles in order to improve efficiencies in this segment of the business as well. But for now, mobile workforce management technology is helping Keystone streamline its operations and minimize its staffing requirements in order to remain competitive, regardless of the economic climate.
To read the full case study about Keystone Excavating, click here.
Monday, August 10th, 2009
Rick Mayer installing his new system
Located in picturesque Vancouver Island, British Columbia, Island Pumping provides concrete pumping services to not only the city of Nanaimo, but all of Vancouver Island. President and Owner, Rick Mayer, founded Island Pumping in 1988. Since then, Island Pumping has seen continuous growth and expansion. Rick has been involved in the construction industry all his life and has some great experiences to share with us today.
1. Why did you decide to invest in a fleet management solution?
Before this system was in place we relied on drivers to keep track of their hours, to write down when they arrived or left a job site, and we billed by the hour. With our equipment costing $125 to $230 per hour, the minutes can add up. We were losing an average of 15 minutes per job, which translates to about $100,000 a year.
We also had some problems with security. On a couple of occasions, we found vehicles in places they weren’t supposed to be, doing jobs they weren’t supposed to be doing. Because of this, we had to implement security policies where the trucks returned to the yard each night. This wasn’t cost effective, but we didn’t have another option. With the new system, we can have trucks in different cities and there is never a need to bring the vehicle back. This saves us money on fuel, and wear and tear on the vehicles. It also allows us to be much more productive, as we are spending our time at the job site as opposed to driving.
Also, our dispatch system wasn’t at the level it could be. It took a lot of guesswork and was time consuming. Our new system lets us track the vehicles and what stage they are at in the job. Sensors feed back to dispatch and we know, for example, that the truck is pumping or washing out. We don’t have to bother the driver anymore because we always know what they’re doing.
2. What one piece of advice would you give someone considering a similar technology purchase?
Be prepared for a lot of work, and find a company that is very supportive. You need a company who will be there for you if you need to pick up the phone for help at ten o’clock at night. Once you get started on a project like this you’ve got to keep it moving forward. You need to find companies that are willing to put in that effort with you.
3. How has your organization changed since implementing this technology?
We discovered that before this system was in place, two operators doing the same job could each be using a different billing format, making it hard for customers to understand their bill. For example, say one of our operators had a problem onsite, and decided to give the customer a free wash out. They wouldn’t necessarily write that on the bill so customers wouldn’t realize they were getting a discount.
We are much more standardized now, and customers really like that. If the same scenario happened today the operator tells dispatch about the discount and dispatch issues a credit on the bill in real-time. By the time the operator prints the bill out onsite, the discount is already on the bill and the customer can see they’re getting a break. Being able to present the bill correctly in the field and instantly having that information back in the office is great. Literally seconds after the job is done, the dispatcher is able to print out the invoice and mail it. That’s a key benefit.
4. What do your customers think of the system?
Customers are enjoying the technology. It’s made us a premier choice because everything we do now looks professional. The bill isn’t someone’s chicken scratch on a piece of paper. It’s printed out professionally, it is dated and time stamped, and the customer just has to sign it.
There has definitely been a reduction in customer complaints. Now we have a reliable way of backing up our invoicing because we can pull the detailed ticket if needed. We don’t get any calls about invoicing concerns because customers know they are being billed accurately.
5. What do your drivers think of the system?
Occasionally we’ve had to assign drivers to an older truck that doesn’t have the in-vehicle computer installed yet and they’re lost! I even experienced this myself in an older truck, where I went out to a job site without any billing paperwork or anything [laughs]. With the computer in the truck, everything is right there. My stress level goes right down. I hop in the truck, print out my pre-trip, do my work, finish the job, and hit print ticket. I don’t even have to remember what time I got there!
Time-wise, drivers are probably saving at least thirty minutes to one hour per day because there is so much less paperwork. The system makes our drivers’ jobs a lot less stressful as the hassle of filing paperwork is eliminated. We actually had a field operator who came to work for us from a competitor because we were using this system.
6. Have you seen a Return on Investment? If so, how much and how quickly?
We saw a return on investment instantly. At the beginning, we had the drivers hand-write bills like they always did and then we compared them with the printouts from the mobile computer. We started finding discrepancies in time and charges right away. Sometimes they’d just forgotten to write things on the bill. We stopped using the hand written bills immediately.
We are now able to very accurately predict how much time it will take to complete a job. Customers then know what to expect. There is an industry standard to charge a minimum number of hours per job, but we have been able to eliminate this because we are much more efficient now. If everything was status quo with the economy, I expect we would be saving between $50,000 and $100,000 per year with this technology.
We also used to have two people working to dispatch job assignments. Now there is hardly enough work for one person. There is less congestion for dispatchers as they can continually send jobs to drivers to be stored on their in-vehicle computer instead of having to reach them by phone.
And finally, we’re able to expand our business. We’ve remotely located trucks in different areas, and we couldn’t have done this before. It gives us a real edge. Being able to track the equipment, where our operators are, and where they have been, all from the office gives us peace of mind that we won’t be taken advantage of. The long-term use of the technology will probably save us millions of dollars because we won’t have to invest the money into opening new offices in order to expand our business.
To learn more about Island Pumping’s technology solution, click here.
