Case Studies

Client: Major OEM

Fleet Size: 500 vehicles

Involved Shop Operations with 90 Team Members Supporting Vehicle Builds

Results:

• On-time delivery improved from 80% to 99%
• As efficiency improved, overtime was reduced to completion of work on straight time; saving $3.1M annually
• As costs were reduced and performance improved, additional work continues to be sent to our shop for completion

Background:

• No line of sight to upcoming work resulting in a lack of production planning
• Lack of urgency to complete vehicle builds
• Communication to team members was inconsistent
• Extra vehicles maintained in the fleet due to delayed turnaround of vehicles

How we did it:

• Implemented daily production board meetings with shop leaders
• Drove accountability to all team members for task completion
• Established monthly key performance indicators (KPIs) to measure improvements and identified barriers to continuous improvement. Removed barriers allowing performance to improve to the next level
• Regular meetings with all clients to gather the line of sight for upcoming work. Drove planning requirements to our clients, improving both their process and ours

Client: Automotive OEM

Fleet Size:10,000+ vehicles

Results:

• Reduced loaner pool fleet by 83% through improved policies
• Decreased departmental fleets by 15%
• Improved reporting between finance and payroll resulting in $300,000 of post-audit savings
• Improved pre-auction inspection and logistics execution reducing ground time by nearly 100%
• All auction vehicles shipped to auction within 24 hours of vehicle turn in
• Improved order matching to ground stock, achieving an 84% match rate

Background: The OEM did not have a national platform to manage their internal company vehicles and was looking for a platform to host this information with users across the country that needed to be able to view and update vehicle files.

How we did it: Penske Vehicle Services studied the system in place and then reviewed the OEM's objectives,priorities and business requirements. After completing a thorough analysis, Penske Vehicle Services customized its proprietary fleet management software meeting the client's needs. After working through the development and testing phase, a national platform was available within 6 months and additional functionality has continued to be built in as the OEM identifies additional needs.

Client: Automotive OEM

500 vehicles requiring work

Results:

• Transferred some key resources to our facility, hired additional technicians and completed the program on time with accolades from the client
• Added paint, body and general mechanical repairs to the services provided at this facility

Background: One of our OEM clients approached us with the need to complete vehicle retrofit work. Not an unusual request as we're accustomed to expanding and contracting team members as volumes dictates. However, the client was also seeking a solution to space constraints, as their current facility would not accommodate the increase in throughput on a single shift.

How we did it: Penske Vehicle Services was able to accommodate the client's request by utilizing existing shop space and locating the necessary technical talent to meet the needs of this high volume, urgent, vehicle retrofit work.

Client: Automotive OEM

Results:

• Completed more than 400 executive drives with Fortune 1000 companies
• 100% of surveyed participants feel the program was an effective way to expose the vehicle to customers who otherwise may not have considered this product
• 100% of surveyed participants said it expanded their knowledge of the product
• Over 62% of participants responded they had exposed the new product to at least 5 or more people

Background: The OEM was launching their new luxury vehicle and wanted to promote and obtain feedback from chief level executives likely to drive a luxury product on a daily basis.

How we did it: Penske Vehicle Services conducted a weeklong test drive with Fortune 1000 chief level executives as the centralized demo program administrator. Penske Vehicle Services handled the invitation process, securing vehicles, white-glove delivery of the vehicle, vehicle return and survey for the OEM.

Client: Major OEM Regional Technical Location

Results:

• Technicians exceed 100% daily productivity, as a result of continuously improving their process and methodology
• Reduced garage costs by over $350,000 annually through recognition of efficiencies and tool utilization studies
• Increased daily output capacity
• Improved resource alignment and facility utilization

Background: This OEM was challenged with six different functional jobs in one garage location. The areas included: PDI, additionally installed vehicle accessories, reconditioning and warranty work, scrapping of full vehicles, engine scrapping and regular maintenance.

How we did it: Penske Vehicle Services conducted an analysis of the workflows in the shop and implemented a redesign including:

• Cross trained technical staff
• Improved stall and technical skill level placement
• Increased inflow/outflow of the shop

Client: Major OEM

Fleet Size: 10,000+ vehicles

Results:

• Reduced pool fleet by 38%
• Increased garage operations productivity by 50% or $280k savings per year
• Reduced repair processing time resulting in $1.2m annually

Background:

• Low productivity of garage staff
• Preventative maintenance and repair coordination was inconsistent
• Numerous vendors driving up cost
• Excess pool fleet, due to extensive repair downtime

How we did it:

• Implemented process improvement
• Outlined new policies and procedures
• Established monthly key performance indicators (KPIs)
• Modified employee training program and off line technical support process

Client: Major OEM

Fleet Size: 10,000+ vehicles

Results:

• Maximized vehicle utilization resulting in an inventory reduction of 60%
• Reduced vehicle hold time resulting in $2.2 million annual cost savings

Background: Penske Vehicle Services was contracted to provide complete vehicle lifecycle management services for Engineering, Prototype, Employee Lease, Pool and Security vehicles.

How we did it:

• Implemented our proprietary fleet management software
• Took on all engineering vehicle related activities
• Reengineered processes to eliminate redundant systems
• Automated manual processes
• Consolidated reporting with increased visibility into fleet financial data