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Rental Management 101: Introduction to Rental
Module 5: Operational Process - Part 4
Module 5: Operational Process - Part 4
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Video Transcription
Continuing to follow the service process to support a rent-to-rent fleet, we look at routine service in step number six. We'd see that typically you're lubing the machine, checking the fluids, cleaning the filters, and such. You're checking the machine for safe operation, make sure all the levers, everything's working in accordance with manufacturer's specifications. So suppose that everything is okay. So we're asking ourselves the question, any repairs needed, yes or no? If there's no, then this machine can move to a final inspection phase because there's nothing else to do to it in terms of service. But for any reason that it might need repairs, then we'd move to step number seven where we're going to actually open a work order. We're going to schedule that in the flow of our other service work. We're going to assign a mechanic to it and potentially order the parts. So once we have got the work completed, that's step number eight. We finished the detail. Now step number nine, we're closing the work order and we're updating the availability status in the computer. This is very critical in terms of process. We can do all the work. We can be very efficient there, and if we do not change the status in the computer to rental ready, then the salesman in the rental department has no visibility that this machine's ready to go. So it's quite possible that we turn away business because the machine just wasn't updated in the computer. So make sure that this is a part of your process, that there is no time lag from the time that we close out a work order and we change the status for this particular piece of equipment in the computer. Now we're in the final inspection phase. And so what are we doing at this point? We are really kind of giving it a once over. We're making sure that everything's clean. Potentially the cab is, the glass is clean. There's no cracks in mirrors. The seat's clean. All the buttons and everything work. The gauges all work. That everything is... The fluids are topped off. Tires are inflated. All the safety warning decals are in place. So somebody could sit on our machine and begin to operate it and not have any question about whether this thing had been properly maintained. So this starts, this completes our quality control process in the service department because if you recall, when the machine came back from rent, the first thing we did was put a quality control tag on it. That same tag is still associated with the machine. It's still in place. And at this point, we're going to tear off the yellow and the red on this machine because it has completed those steps and it's now available for rent. Thus, the green being on the end. And we have checked the machine over. It's met our quality control standards. Somebody puts the time and the date in their initials as to when this actually occurs. And now this machine is ready to go back on the rental line. Now when a customer receives this machine, they should be very impressed with the overall condition of the machine, but they're also seeing this tag. Which is reinforcing to the customer that we have a process to be able to maintain our equipment. What that does for the customer is makes him confident to begin using your machine as opposed to a tag that might be three weeks old and there's not a new one on there. And it's got a date that's way old and that causes the customer to wonder, did this machine get checked out? And so this is a tremendous marketing and confidence builder in the customer that we know what we're doing. We're professionals at product support and we take great pride in going through a stringent checkout process before we send equipment out into the field. So let's put all this in plain view. We've looked at segments of this. So that you can understand what should happen quickly, what should happen in sequence. So that we've got the right personnel and the right space to be able to do these things. So the machines come back from rent. We're checking it out on the job site or when it gets unloaded in our yard. The next thing we're doing is putting a service tag on that machine. We're refueling it. We're cleaning it. It goes into an initial inspection area. Does this thing need to have any type of periodic maintenance done to it? Yes or no. If not, then we continue with our routine service. And when we're checking that, if there happens to be any repairs needed, then we have to do a work order on that. After we do the work order, then it gets assigned to a mechanic. We do the work. And now we're ready to close the work order. Update the availability of the status in the computer. And now that thing goes through a final inspection. And it's ready for the rental line again. This is critical. That this really gets mapped in your service department. So that you know who does what. And where is it going to be done. And what amount of time is reasonable for these tasks to take place. Completing our review of the service process, I'd like to share a few tips with you that maybe will help you streamline things through your service department. Or potentially help you save money. So don't make rookie mistakes. But clearly, as you can see through that process that we looked at, we don't want highly skilled people doing non skilled work. So that's everything from washing the equipment, to the lubrication, to blowing out filters, that kind of stuff. That's something that an entry level technician can do those types of tasks. Because they know what they're doing. We can show them exactly what they need to do. They don't have to have any troubleshooting capabilities or skills. They can learn those in the future. So one of the keys to running an effective service shop and supporting your rental fleet, is to don't occupy yourself with a lot of manual work. And don't spend a lot of time on manual work. And don't spend a lot of time on manual work. And don't occupy your highly skilled technicians with doing basically mundane routine maintenance jobs on rental equipment. You can also develop technical expertise by types of engines. So some of you may have some small gas engines. And some of you may have some diesel engines. And some of you may have some machines that have electric over hydraulics. And so one of the things I would recommend to you is that your staff in the service department kind of gain expertise in a certain area. As opposed to trying to be a generalist knowing a little bit about everything. I think you want expertise and you wanna build it as fast as you can. So having people work on the same type of stuff over and over, they should become real experts in a short period of time. The rental business is also something that customers are looking to get equipment very early in the morning as soon as the sun comes up. And often times the equipment doesn't come back until late in the day. So what that creates a problem for the service department is that we have peak demand. Meaning that everybody wants the equipment first thing in the morning. And everybody wants to turn it in late in the afternoon. So if you've got a normal routine of service techs that might work from 7 to 3.30 or 8 to 4.30, something like that, it's quite possible that late in the afternoon all of a sudden you've had three or four machines come back from rent and no one's had a chance to even inspect them or fuel them up or potentially wash them. So at 7 o'clock in the morning, somebody may want that exact machine and you're not gonna be able to provide it. So I would suggest that you stagger some of the start times for your service techs so that you can have somebody there early in the morning to deal with things and someone there late in the afternoon to do some routine inspections and cleaning and prepping rental machines. And if at all possible, get everything washed before you go home that day so that you get that out of the way for the next day and if somebody does call you and put pressure on you, you can reach into that pile of equipment that just came back yesterday and you're closer to being ready as opposed to no, we've got to spend another 45 minutes or an hour washing that machine. And I would also suggest that you not try to open a work order for every $5 and $10 part that you put on a machine. Those things don't make material differences when it comes to analyzing that machine and what kind of parts did we spend on it. So I would recommend that you open a work order maybe for the rental fleet for the day or maybe by the week and anything that is routine stuff such as just common filters, various hoses, anything that's just kind of nondescript parts. We want to record the cost of those parts against the maintenance cost of the fleet, but to open an individual work order to try to put a $15 hose against a specific machine, from my perspective, is a kind of waste of energy because at the end of the day, it doesn't really matter about that particular machine and that particular hose. So I would suggest you try to group those things and a daily open work order might be the solution. Also, try to get telematics on your equipment if you haven't already. This is a huge time saver for service and support of your rental fleet. Knowing where your machines are out in the field, knowing how many hours are on the machines, and when they're calling for service. That way you can get there just in time. You don't go too early. You don't go too late. You can also group your activities in terms of field service and makes you much more efficient in touching those machines. And then lastly, there are seasonality swings in our business and so you may need some additional labor for washing equipment or refueling or whatever. Maybe it's even prepping machines to be refurbed. But don't be scared of part time labor. I talk to dealers all the time and they say, the labor force around here is weak. I can't seem to find anybody. Well, there's a lot of folks that could use another 15 hours or 20 hours a week work that I think you should expand your view of where labor can come from. And sometimes the inexpensive labor, I'll give you an example. You could have somebody coming in the afternoon and work an afternoon shift from 1 to 5 working your wash rack. And if they can push another couple of machines through every day that the main guy can't seem to get to, then what you're doing is you're pushing real live dollars and assets closer to being rented and the cost of that person's wages are minuscule compared to missing the rental opportunities that those assets represent. So in closing, I hope that this particular module has been very enlightening and eye opening so that you'll look at your own dealership facility and layout and processes maybe with a little more critical eye and try to figure out how can we do this better so that we can spin equipment through here faster which helps us have higher utilization which drives our profitability.
Video Summary
This video discusses the routine service process for a rent-to-rent fleet. It covers steps such as lubricating the machines, checking fluids, cleaning filters, and ensuring safe operation. If repairs are needed, a work order is opened and assigned to a mechanic. Once the repairs are completed, a final inspection is done to ensure the machine is ready for rental. It is important to update the availability status in the computer system to avoid turning away business. The video also provides tips for streamlining the service department, including assigning non-skilled tasks to entry-level technicians and developing expertise in specific areas. Staggering start times and using telematics can also improve efficiency.
Keywords
routine service process
rent-to-rent fleet
lubricating machines
checking fluids
cleaning filters
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