Roundtable organised by Plant Machinery Vehicles explores the major components of truck fleet operating costs, metrics that matter to fleet operations, and how to adopt a data-driven approach to fleet management.
Fleet managers are increasingly making the connection between better-quality lubricants and lower operating costs
Colin Hodgson, Chevron
The potential of low viscosity engine oils
Lubricants constitute less than 3% of the annual operating costs of a truck fleet; however, lubricant related costs can be quite significant, especially if failures occur due to the wrong choice or application of lubricants combined with other factors such as overloading and poor driver behaviour.
Fleet operators should be aware about the critical properties of lubricants such as viscosity, thermal stability, oxidation stability, pour point, flash point, etc., and a good lubrication strategy would involve a regular oil analysis for oil parameters, wear metals, oxidation and contamination.
The most important property of a lubricant is its viscosity and viscosity retention over the life cycle of the oil. The consensus in the past was that the higher the viscosity, especially for diesel engines, the better the lubricant. However, we have found the opposite to be true. High quality, lower viscosity oils optimally formulated are capable of increasing oil drain intervals, maintain engine durability and help achieve higher emission standards.
Lubricant viscosity is bolstered by the type of base oil. Chevron is one of the world’s largest suppliers of premium base oils, particularly Group II base oils, which have synthetic-like performance important in delivering better performance, longer oil drain intervals and contributing to lower wear. When blending premium lubricants, the quality of raw materials needs to improve significantly in order for the lubricant to be robust enough for use in a heavy-duty truck and reduce wear especially in high-performance engines.
The rapid transition to high-quality lubricants in the Middle East has been possible due to government regulation, particularly mandates from the Emirates Authority for Standardization and Metrology Authority (ESMA) and GCC Standardisation Organisation (GSO). High-viscosity monograde engine oils were discontinued in the UAE by ESMA via GSO 1785:2013. Chevron was one of the very first companies to be fully compliant with the regulation. Since then, we have introduced the Delo FleetPro SAE 20W50 API CH-4 range of multigrade engine oils, specifically formulated to provide older engines with better engine durability and extended oil drain intervals.
The positive outcome of government regulations is that fleet managers are increasingly making the connection between better-quality lubricants and lower operating costs. We’ve seen customer demand shift from low-specification monograde engine oils, such as SAE 40 and SAE 50, to higher-specification multigrade variants, such as the SAE 15W-40 and SAE 20W-50, and progressing to SAE 10W-40, SAE 10W-30 and SAE 5W-30.
Currently, the most optimal engine oil grade for the operating conditions in the Middle East is the SAE 15W-40, because it covers a wide temperature range and reduces wear during engine startup. The SAE 10W-40 variant is also gaining traction as it offers an even wider temperature operating.
With premium oils, oil parameters can be maintained for 10,000 to 40,000 km under all manner of operating conditions, unlike in the past where the maximum range would be in the range of 5,000 to 10,000 km. We have done some trials in the Middle East, where we have achieved up to 35,000 kilometers with on-highway fleets, which means customers would be able save at least 50% of their annual lubricant expenses due to longer drain intervals which results in lesser lubricant volume requirements.
Product rationalization and training
Mixed fleet operators in the Middle East tend to operate in multiple countries with different emission standards. As trucks transit from one country to another, the variation in fuel quality and emission standards creates performance issues for engine oils.
For example, a mixed fleet with 20 Euro 5 trucks and 80 Euro 3 trucks would need to stock two or three types of oils depending on the fleet age. This complicates procurement and creates challenges for tracking the use of different oils as lube technicians would need to place stickers on the engine to serve as a reminder of what goes where. If a compatible engine oil is not available, a technician will most likely settle for a non-compatible variant to keep the truck running.
When the correct products are not used, especially with newer engine technologies, they set up the engine for failure.
To solve these problems, we work very closely with the major truck original equipment manufacturers on our product development. Anticipating the challenges of operating trucks in different conditions, ur solutions need to address the requirement for trucking companies in the Middle East to use two different lubricants, say one type in the UAE and another in KSA, as well as if we can merge these requirements to create a single engine oil variant that can handle a wider range of fuel quality.
We are rationalizing our product line to make it more user-friendly. For that reason, we introduced a ‘bridging’ product compatible with Euro 3, Euro 4 and Euro 5 engines. The Delo 400 MGX SAE 15W-40 is an example of an API CJ-4 heavy-duty diesel engine oil specifically formulated for on-highway and off-highway applications, using either high-sulphur or low-sulphur diesel, which also provides protection for newer compliant low-emission diesel engines with selective catalytic reduction (SCR), diesel particulate filter (DPF) and exhaust gas recirculation (EGR). It is fully compatible with previous diesel engine models and previous API oil service categories, including API CI-4 Plus, API CI-4 and API CH-4. In that way, the Delo 400 MGX is a very unique oil.
The ‘MGX’ nomenclature indicates the lubricant is formulated for mixed fleets. Having such lubricant variants help mixed fleet operators avoid the use of inferior engine oils, reduce their inventory, and extend the uptime of vehicles.
Skill gaps in lubrication management have been more prevalent in the last five years because engine technology has been changing at a fast pace. Wrong application of lubricants is a common mistake we see in the Middle East, and there is a lot of confusion about SCR, DPF, and EGR technologies and the compatibility of lubricants with these technologies.
We have invested a lot in training programs to educate customers about the application of lubricants. My recommendation is to avoid trial and error, and switch to high-quality products. With all the supply chain challenges that we are experiencing globally, fleets using top-quality products will face fewer problems and benefit from a lower total cost of ownership compared to those using low-quality products.
Data-driven preventive maintenance
Running a fleet without data is like trying to drive a truck with a dirty windscreen. You will not be able to see ahead! That is why fleet operators need a data-driven strategy to support their fleet lubrication efforts. Incorporating real time data analysis into fleet management can help fleet managers gain full control of all the vehicle and lubricant parameters, enabling the isolation of any parameter and analysing its impact on the performance of their entire fleet or a selected number of vehicles over a period of time. The insights can then be used to identify trends, faults, and gaps to optimize the fleet operations. It can also help drive other decisions related to procurement and inventory.
Using the right lubricant is an integral part of any preventive maintenance program as it aids to reduce friction for equipment parts, such as the engine, gearbox, and more. Similar to conducting a blood test with a blood sample, we run tests on a lubricant samples and compare the results with the parameters of the original product or with predetermined in-use levels. We offer a service for routine testing and analysis of lubricants under the Caltex LubeWatch Oil Analysis program.
The oil analysis can be done either in a lab or at the job site in real time. For lab testing, we receive a sample from the customer and run tests to determine the oil parameters, wear metals, contaminants, all of which provide an indication of the operating conditions of a vehicle or equipment. This analysis provides a continuous influx of data, which if interpreted properly can help fleet managers improve their preventive maintenance programs to optimize and extend oil drain intervals and achieve significant cost savings. A good practice would be to combine the use of a high-quality product such as the Delo 400 MGX with the LubeWatch program and technical consultation from Caltex experts.
Real time monitoring of tyre parameters should go hand in hand with driver training
Juan Uruburu, Continental Middle East
Tyres constitute 10–15% of the total operating costs of a fleet, and up to 50% when combined with other factors such as fuel consumption, maintenance and breakdown. Therefore, purchase decisions related to tyre should also take into account tyre quality, tyre application, performance and maintenance.
The main KPI that fleet managers should monitor constantly is the cost per kilometer, which is also the metric that should justify investment in a premium tyre that offers better performance, safety and longevity than standard tyres.
Every tyre is designed for a specific on-road or off-road application. The same tyre cannot be used for transporting flowers and construction material. Therefore, tyre application should be an important factor influencing the purchase decision.
Another major factor affecting vehicle safety is tyre pressure. Our studies indicate that nearly 50% of the vehicles running in the Middle East are under inflated by more than 10%, a considerably pressure drop. Around 20% of the breakdowns in fleets are related to tyre failures. In more than 95% of breakdown cases related to tyre, the cause of failure can be traced to a small leakage of the tyre that could have been detected in advance to prevent accidents and fatalities.
The solution to avoid potential tyre failures is to have regular pressure checks or use tools such as Continental’s ContiPressureCheck, which monitors and transmits the pressure and temperature inside the tyre, continuously, using sensors. The real-time pressure and temperature data can be displayed in the cab for the driver to monitor as well as integrated with fleet telematics systems. Real time monitoring of tyre parameters and preventive maintenance should go hand in hand with driver training to ensure longevity of tyres, fuel economy and road safety.
The purpose of data should be to increase efficiency in fleet operations. For example, data can help with selection of tyres and the right pattern for an application, or determine the correlation between tyres and fuel consumption. The fleet manager should be aware about all the data points from tyres and other vehicle components and the levels of interpretation required to understand correlations among different parameters in order to make better data-driven decisions.
With regard to storage, cool, dark and dry environments are ideal conditions for tyre storage. The serial number located on the sidewall of the tyre indicates the manufacturing date of the tyre, which can help with the first-in first-out inventory management for tyre storage and usage. Tyres can easily last for more than five years in this region if they’re stored and maintained well. Continental Tyres provides a five-year warranty from the date of production.
All elements of fleet management can be aggregated with telematics and location-based services
Marius Anton, Location Solutions
Fleet management KPIs include a vast number of parameters related to vehicle utilization, maintenance and replacement, engine and parts performance, road safety and other regulatory compliance, and of course, driver behaviour such as idling, speeding, route adherence and hard braking.
All these elements can be aggregated with telematics and location-based services which provide tools and datasets to help fleet managers make data-driven decisions to improve operational efficiencies, and thus, control or reduce the operating costs by optimizing fuel consumption and minimizing unplanned downtime.
Having a data-driven system can also have a positive impact among drivers as it develops a culture of ownership and accountability with regard to their driving behaviour. We’ve seen a lot of fleet managers failing to optimize their operations because they have not put emphasis on driver behavior programs or considered rewarding good driver performance.
Our telematics solutions provide multiple data points needed for fleet operators to pinpoint any cause of failure. With the help of AI-powered driver evaluation tools, fleet managers can customize development programs for drivers by considering, for example, their acceleration, braking and idling patterns. These tools work in conjunction with other monitoring and assistance systems such as ADAS and TPMS.
The industry is moving towards predictive maintenance, which combines preventive maintenance and driver behavior. With the help of machine learning and artificial intelligence, fleet operators will be better informed and empowered to predict the likelihood of a failure and react to it instantly.
It is quite exciting to see the evolution of predictive maintenance technology and the role it will play in reducing the cost per kilometer for fleet operators.
We see a lot of platforms that are data-rich but insight-poor. Fleet operators are flooded with vast amounts of data on a daily basis, which could be difficult to track especially when fleet operations are intertwined with other functions such as sales and customer engagement. Therefore, it’s crucial that the data provided by the telematics partner highly insightful, reliable, accurate, and delivered in a timely manner.
There are gains to be had through proper fleet management, which takes into account all the elements of total cost of ownership.
As the industry is pressured further into cost reduction, it’s important to look at the environment and operating conditions of the vehicles to find if the vendor and vehicle are the best fit for each other. I would urge fleet operators to make the right decision in selecting their suppliers.
Data could solve the fundamental problem of selecting the right product and spare part for an application
Hossam Algamala, Al Masaood Commercial Vehicles and Equipment
Many fleet operators are unaware about the difference between genuine and non-genuine aftermarket parts. Original spare parts guarantee the original or intended performance of the truck. Buying non-genuine parts is a gamble that take a toll on the performance of the vehicle and eventually lead to unplanned downtime due to repairs. High quality is always worth the price and that holds true for original spare parts because the higher price is justified when the life cycle costs of vehicles are calculated accurately and the impact of downtime taken into account.
Fleet management should be a meticulous operation aimed at achieving the maximum uptime for trucks. The choice of tyres, fuels, lubricants and spare parts should be factored into the initial purchasing decision and specification of the truck itself, to enable fleet operators manage their future operating costs with a reasonable degree of certainty.
Data is available everywhere, and fleets with access to more data are likely to be managed well, but it’s up to the fleet manager to decide how to use data. For example, data could solve the fundamental problem of selecting the right product or part for an application. When we work with fleet operators and have access to their operations data, we are able to analyse their procurement requirements based on the intended application of the vehicle. This helps us optimize the truck specifications and maintenance contracts, which helps avoid over-specification and cost escalation.
Maintenance constitutes almost 5–6% of the total cost of ownership of fleets, and poor maintenance can lead to truck failures. By engaging with customers early on in the procurement process, we help control their operating costs with a preventive maintenance plan that ensure the maximum uptime. A thorough preventive maintenance schedule also ensures the availability of spare parts and services with very low downtime. To improve the accessibility of parts and speed of service, we aim to as close to customers as possible by having distributed service and parts centres.