GOOD PRACTI CE CASE STUDY 342

BEST PRACTICE
PROGRAMME
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Fuel management for
transport operators
Thorntons plc
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Lower fuel costs
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Lower maintenance costs
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Lower pollution
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Lower accident rate
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Payback one year
THORNTONS PLC
Originated in Sheffield in 1911, Thorntons plc
is an established manufacturer and retailer of
high quality confectionery with over 580
outlets in the UK and France.
The company employs over 2,000 people in its
shops and three manufacturing sites at
Somercotes, Belper and Flixborough.
Thorntons participation in thefuel saving programmehas generated
significant cost savings, whileenhancing our imageas an environmentally
conscious company.
Thesimplified, but rigorous, fuel monitoring system that is now in placehas
almost eliminated theneed for off-siterefuelling, with all its potential pitfalls.
This, allied to theuseof data-logging equipment, has provided thetools to help
managethedrivers and address theroot causeof high fuel consumption,
namely thedrivers right foot!
Jon Pollard, Distribution Executive, Thorntons plc
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HOST ORGANISATION
3
FUEL MANAGEMENT FOR TRANSPORT OPERATORS
BACKGROUND
Thorntons plc manufactures high quality
chocolates, toffee and ice cream. These are
delivered to 520 retail outlets throughout the UK
using a fleet of articulated and box van refrigerated
vehicles. The fleet, based at Belper in Derbyshire,
uses 26 vehicles from different manufacturers,
ranging in size from 7.5 to 38 tonnes.
Prior to this project, Thorntons had a policy of
monitoring fuel consumption. However, as the
data were inaccurate due to the omission of many
off-site re-fuellings little use was made of the
information relating to individual vehicles. As a
result, the data could not be published and drivers
were unaware of their fuel performance.
As a first step towards improving fuel efficiency,
Thorntons installed speed limiters set at 56 mph
on its vehicle fleet. This has since become a legal
requirement for all goods vehicles.
Keen to improve the environmental image of the
company, and to reduce fuel consumption costs
further, senior management embarked on a two-
phase fuel management programme.
PHASE I - FUEL MONITORING USING
MANUALLY RECORDED DATA
In 1994, Thorntons was invited to take part in a
project funded by the European Commissions
SAVE Programme. The aim was to devise a simple
method of fuel management for goods vehicle
fleets, which could be replicated widely.
The methodology of the project was to:
I accurately monitor the fuel performance
of a group of similar vehicles selected from
the fleet;
I inform the drivers how their vehicles were
performing;
I train and encourage the drivers to improve the
fuel performance of their vehicles;
I measure and report the improvements.
The first step was to introduce a manual method
for collecting fuel consumption data. Weekly
Sheets were introduced on which each driver had
to enter the amount of fuel put into the vehicles
tank and the odometer reading
at the time.
In addition, an In-Cab Computer (ICC) was fitted
to one vehicle. This instrument, as well as
providing very accurate fuel performance data, gave
information on the driving style being adopted by
the driver.
The fuel consumption data highlighted clearly the
sources of inaccuracy in the manual data. In
response to this, the off-site fuel receipts, which
were originally sent directly to the Accounts
Department, are now firstly verified by the
Transport Department.
The fuel monitoring system was improved further
by drivers completing a daily route log and work
summary sheet.
PHASE I - MANUAL FUEL MONITORING
This project was monitored independently by: March Consulting Group. Tel: 0161 872 3676
The equipment was supplied by: Leafield AVM Ltd. Tel: 01827 311912
and
Lucas Kienzle Instruments Ltd. Tel: 0121 328 5533
There may be other suppliers of similar energy efficiency equipment in the market. Please consult your
supply directories or contact ETSU who may be able to provide you with more details.
The sheets are checked every day for accuracy and
any discrepancies are discussed with the driver
immediately. This makes it far easier to rectify
inconsistencies and is a very important way of
keeping the drivers aware of their effect on fuel
performance.
As fuel consumption varies throughout the year due
to seasonal weather conditions and different load
factors, data were collected for a complete year.
Targets were then set for each driver and vehicle,
based on the previous years performance.
Thorntons is convinced that the manual recording
system is an essential part of its fuel management
programme.
Costs and Savings for Phase I
Phase I of the fuel management programme achieved
a 3% improvement in the fuel efficiency of the
whole fleet during one year, corresponding to a cost
saving of 7,300/year.
Allowing for staff running costs of 4,200/year, the net
annual savings were therefore 3,100, resulting in a
payback period of one year for Phase I of the
programme. The set-up costs are shown in Table 1.
PHASE II - FUEL MANAGEMENT USING
DATA-LOGGERS
While manual fuel monitoring allows poor
performance to be identified, it gives little help in
indicating the source of the problem.
Data-loggers assist by:
I providing accurate and indisputable data;
I offering instantaneous in-cab advice
to the driver;
I providing easily understood reports for drivers
and management;
I identifying fuel performance improvement
opportunities.
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FUEL MANAGEMENT FOR TRANSPORT OPERATORS
COSTS AND SAVINGS FOR PHASE I
ROUTE
IDENTIFICATION
DRIVER
MATE
DATE
VEHICLE
TRAILER
*START SPEEDO
*FINISH SPEEDO
*SPEEDO READINGSAPPLY FROM START TO FINISH OFROUTE
FUEL/OIL USAGE RECORD
VEHICLE REFRIGERATION UNIT
LITRES COST LITRES COST
SITE FUEL
OFF-SITE FUEL
SITE OIL
OFF-SITE OIL
OTHER
Item Cost ()
ICC with fuel meter 1,200
Software* 550
Management time 1,300
Total 3,050
* Thesoftwareneed only bepurchased once,
regardless of thenumber of vehicles using it.
Table 1: Phase I set-up costs
DEPART TIME ARRIVE TIME DELIVER OTHER BASE B/DOWN ADMIN REST COMMENTS
Start time
Delivery 1
Delivery 2
Delivery 20
Delivery 21
Finish time Totals in minutes only
Fig 1: Examples of driver
log sheets
supplier. Most users, however, produce their own
reports using software provided by the supplier.
Logger Performance
The data-loggers have been very successful in
identifying the reasons for poor fuel performance.
For example, on one vehicle, a brake which was
continuously dragging was quickly discovered and
other vehicles were found to have faulty speed
limiters. In all cases, the data-loggers have helped
drivers to run their vehicles more efficiently.
As the vehicles are now being driven more
sympathetically, maintenance and accident costs
should also be reduced. During the six months
since the data-loggers were installed there
has been only one road accident,
compared with an expected 2.5.
Experience with other vehicle fleets
confirms that using data-loggers
usually helps to cut the
number of accidents by
approximately 50%.
Downloading information for analysis
Thorntons therefore decided to fit eight vehicles
with new data-loggers in August 1995.
The new data-loggers measure the following
parameters:
I date and time;
I road speed;
I engine speed;
I idling time;
I distance;
I number of brake applications;
I harsh braking;
I rapid acceleration.
Although the fleet is not fully equipped with data-
loggers, most drivers regularly use a vehicle with a
logger fitted. Each driver has a personal
identification card which is inserted into the logger
before each journey. The card is then used to
download the information to a computer for
analysis.
A warning is given to the driver each time the
vehicle parameters move outside pre-set limits.
These limits can be set individually according to
each vehicles operating characteristics. When the
driver exceeds a parameter, the unit beeps, flashes at
him and the violation is recorded. Regular reports
are produced for Thorntons by the data-logger
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FUEL MANAGEMENT FOR TRANSPORT OPERATORS
PHASE II - FUEL MANAGEMENT USING DATA-LOGGERS
Data-loggers allow problems,
such as dragging brakes,
to be identified quickly
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FUEL MANAGEMENT FOR TRANSPORT OPERATORS
The information available also makes it
easier for management to assess the most
economical routes and the most suitable types
of vehicle. Thorntons has already adjusted its
vehicle purchasing policy to suit its operations
more closely.
Costs and Savings for Phase II
Since fitting the data-loggers in August 1995, fuel
efficiency has improved for all classes of vehicle
(Table 2).
Savings have continued to be achieved on vehicles
which were not fitted with data-loggers. This is due
in part to the manual fuel monitoring system and
the speed limiters, but also to the culture change
since the introduction of the
data-loggers.
The set-up costs for Phase II of the project were
9,000 for eight data-loggers and 700 for
management time. Annual running costs include:
I 1,040 for the production of the
weekly reports;
I 3,080 in staff time for running the manual
fuel monitoring system and, to a lesser extent,
the data-loggers.
Experience has resulted in less time being spent on
operating the manual fuel management system,
hence the lower staff running costs during Phase II
of the project.
The 5.8% improvement in fuel efficiency is worth
14,500/year. The net annual cost savings are
therefore 10,380 giving a payback period of 11
months for Phase II of the programme. Lower
maintenance and accident costs, which are not
included here, should reduce this further.
FEEDBACK TO DRIVERS
Most drivers have reacted favourably to the fuel
management programme and are keen to play their
part. Every month a graph showing each drivers
COSTS AND SAVINGS FOR PHASE II
7.5 tonne 17 tonne Articulated Fleet
vehicles
Number of vehicles 2 5 19 26
Vehicles with data-logger 0 5 3 8
mpg Aug 94 - Jan 95 14.17 11.69 7.83 8.66
mpg Aug 95 - Jan 96 14.79 12.67 8.24 9.16
% Improvement in mpg 4.4 8.4 5.2 5.8
Table 2: Improvement in fleet fuel consumption
Data enables drivers to
compare their performance
with that of others
The company plans to equip the remainder
of the fleet with data-loggers
performance is displayed on a noticeboard. This
shows the current fuel performance, last years fuel
performance and the drivers individual target. In
addition, a league table is displayed showing each
drivers variance from his target. The drivers can
thus compare performance, a feature which
introduces some friendly competition and
motivation. A further incentive is a prize, which is
given to the driver who has improved his
performance most, compared with the same period
in the previous year.
THE FUTURE
Thorntons target for improving average fuel
efficiency across the fleet was 4% for the year up to
July 1996. The results achieved thus far suggest
that this target will be exceeded. The company
plans to invest a further 20,000 to equip the
remainder of the fleet with data-loggers.
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FUEL MANAGEMENT FOR TRANSPORT OPERATORS
THE FUTURE
Each drivers performance is displayed
on a notice board
FUEL MANAGEMENT FOR TRANSPORT OPERATORS
Fuel performance can be improved by adopting
simple measures involving the monitoring and
publishing of fuel performance results. However,
eliminating errors from manually collected data is
essential if good results are to be obtained. This
can be achieved by:
I drivers and management adopting a disciplined
approach to fuel management;
I regularly calibrating the on-site pump;
I correctly recording the fuel obtained in transit;
I ensuring that vehicle tanks are completely full
each time odometer readings are taken;
I checking the record sheets for mistakes.
Additional savings can be achieved by the use of
suitable on-board data-loggers. For most operators,
the payback period on such equipment
is likely to be in the range 6 to 18 months, which
would be acceptable to most financial directors.
Senior management at Thorntons have been
involved with the project right from the start.
The importance of this cannot be overstated; the
success of the fuel management programme is
directly related to the commitment and support
given to it.
The management of Thorntons Transport
Department has made special efforts to involve
the drivers during the development and
implementation of the fuel management
programme. The feedback of improvements in
performance and the provision of incentives
continue to maintain driver interest.
CONCLUSIONS
For industrial and transport topics please contact:
Energy Efficiency Enquiries Bureau
ETSU
Harwell, Didcot, Oxfordshire,
OX11 0RA
Tel 01235 436747
Fax 01235 433066
E-mail [email protected]
For buildings-related topics please contact:
Enquiries Bureau
BRECSU
Building Research Establishment
Garston, Watford, WD2 7JR
Tel 01923 664258
Fax 01923 664787
E-mail [email protected]
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CROWN COPYRIGHT FIRST PRINTED MAY 1996
REPRINTED J ULY 1999