Transcript
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
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Identifying the gap Benchmarking to drive better
utilization and performance
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
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Summary
Benchmarking has been an approach used within
businesses for a long time to compare operations
and performance, and identify strengths and
weaknesses. In this class you’ll get a firsthand look
at United Rentals’ industry-first benchmarking
service, what the scores mean to your business and
how to quickly put them into action.
1. How are the benchmarks developed
2. What do the scores say and metrics indicate
3. Steps to developing an action plan
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Remember when?
The report card The bell curve
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United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
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United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
How about today?
Real-time results Progression report card
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United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Benchmarking defined
• Comparing one’s business processes and
performance metrics to industry bests and
best practices from other companies.
• Dimensions typically measured are quality,
time and cost.
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United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Starting from the top
GPA: Measure of overall performance
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United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
In the trenches
Scores: how well did we perform on individual components
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United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
What impact does performance have on our business?
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Performance to
Peers
Potential Savings
Impact
Spend at Peer
Benchmark
Spend per Category
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Benchmark development
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Evolution of TC benchmarking
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PHASE 1 2000–2013
Benchmark by customer
Analyze own transactions
Deliver analysis in KPI meetings
Manual pull of data for customer
PHASE 2 2013–2016
20 benchmarks
Analyze equipment category
Incorporate in KPI meetings with live stats
Deliver inside Total Control Reporting
Manual pull and automated display of data for customer
PHASE 3 2016
140 benchmarks
Analyze equipment category and customer segment
Incorporate in KPI meetings with live stats
Deliver inside Total Control Reporting
Automated analysis delivered to customer in KPIs
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Gaps in current benchmark process
• Type of work being performed.
• Electric versus fuel powered
machines in same category.
• Short-term versus long-term
rental performance.
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Feedback
Different jobsites, different utilization
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Type of work the
customer is
doing:
8 verticals
assigned based
on the United
Rentals Jobsite
Vertical Allocation
Model
Contract duration impact
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Duration of the
rental:
Short term rentals
typically are used
to tackle specific
work on site.
Holding
equipment long
term makes
financial and
logistical sense in
most applications.
Same category, different performance
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Type of
equipment being
used:
Size of the
machine has an
impact on how
much use it sees
due to several
factors including:
cost, scope of
work, task
dependency
Evolution of TC benchmarking
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PHASE 1 2000–2013
Benchmark by customer
Analyze own transactions
Deliver analysis in KPI meetings
Manual pull of data for customer
PHASE 2 2013–2016
20 benchmarks
Analyze equipment category
Incorporate in KPI meetings with live stats
Deliver inside Total Control Reporting
Manual pull and automated display of data for customer
PHASE 3 2016
140 benchmarks
Analyze equipment category and customer segment
Incorporate in KPI meetings with live stats
Deliver inside Total Control Reporting
Automated analysis delivered to customer in KPIs
PHASE 4 2017+
Thousands of benchmarks
Analyze equipment cat class, duration and type of jobsite
Incorporate in KPI meetings with customized goals
Delivery inside TC App, Dashboards, Reporting and Smart Alerts
Leverage Enterprise Data Warehouse to automate delivery of KPI
Data data everywhere
UR
GPS Data UR Transactions Customer Data
Owned
Fleet
Rented
Fleet
Leased
Fleet
How it works
Benchmark
Service
Single
Score
Smart
Alerts Dash-
board
Total Control
Benchmarking
Engine
UR GPS Data UR
Transactions Customer Data
Easy
Levers
Desktop
Mobile
Pilot
Projects
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Developing an action plan
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2
5 criteria that define a project management goal
SPECIFIC
Objectives have
to be specific and
positively described.
MEASURABLE
A goal
achievement
should
be measurable.
ATTAINABLE
It should be
attractive for the
project team to
reach the goal.
REALISTIC
The objective needs
to be achievable in
a realistic way.
TIME-BOUND
The goal has to
have a time frame.
S M A R T
Plan for success in advance and drive accountability
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1.What objectives are we influencing
2.How does our strategy impact those
outcomes?
3.Who is responsible?
4.When can they take immediate
action? Metr
ics
KP
I
Strategy
Measurable
Objective
Outcome
Task
Action
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Example action plan
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Metr
ics
KP
I
Rental Consumption
Equipment
Budget
Bring Project in
on Budget
Utilization
Low Utilization Alert
Duration
Order On Time Past Due Alerts
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Are we effectively managing the return tail?
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United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Pop quiz: How many scissor lifts did we really need?
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Extra Credit Question: How well do you think this customer performs overall?
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Great performance, with opportunity to improve
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Boom Lifts Welders Scissors
In Use
In Use
Savings? Savings Opportunity? Savings?
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
How to get started
• Setup a Benchmarking Review with your Account Manager
• Identify an upcoming project and willing leaders
• Start communicating ahead of time: • Project goals
• Objectives
• Equipment plan
• Identify the consumption management strategy
• Establish cadence for team KPI meetings
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Plan to succeed
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“You must have a game plan. If
you aim at nothing, you will hit it
every time”
– Dave Ramsey & Zig Ziglar
Planning
Proactively
share equipment
plan, forecast
and changes
Agree to KPIs
up front
Setup TC in
advance with:
users, alerts,
reports
Communicate
Agree to
cadence around
delivery
of KPIs
Identify areas for
improvement
and socialize
wins
and learning
“I have a plan of action, but the
game is a game of adjustments.”
– Mike Krzyzewski
Before we jump into case studies,
Questions?
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United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Case study: Executing an action plan
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United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Ethylene plant development project
Phase I • Each subcontractor was responsible for equipment
• Overcrowded site
• Multiple sales, delivery and service vehicles
• Price constancy issues
• Middle markup
• Duplicate and underutilized equipment
Phase II • CM manages equipment
• Reduce traffic
• Consistent and accurate billing
• Middle markup avoided
• Share equipment across subcontractors
• Proactive consumption management
• Quantifiable cost savings in first two months
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United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Spend and performance
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Eq. Category Rental
Spend
2016
Utilization
Project
Utilization
% to
Benchmark
Spend at ’16
Benchmark
Utilization
Savings
Lifts – Boom $200,545 15% 23% 153% $307,502 $106,957
Welders $15,480 75% 57% 76% $11,765 ($3,715)
Lifts – Scissor $12,736 1% 24% 2,400% $25,472 $12,736
Utility Vehicles $3,158 13% 17% 131% $4,130 $972
Lighting
Equipment $3,091 44% 37% 84% $2,599 ($492)
Air Compressors $2,020 13% 14% 108% $2,175 $155
Generators $822 149% 22% 15% $121 ($701)
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Solar Farm Sees The Light
Performance to Benchmark
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-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
• 4 x 75 Megawatt Solar Farms
• Aggressive Time Frame
• On site tool rooms
• Weekly Utilization Review
• Monthly KPI Meetings • Forecast
• Early Return Reccomendations
• Lead Time and Delivery
• Service
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Spend and Performance
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Category Rental
Spend
Industry
Benchmark
Project
Utilization
% to
Benchmark
Spend at
Benchmark
Utilization
Savings
Skid Steers $249,528 27% 59% 217% $499,056 $249,528
Reach Forklifts $224,854 27% 58% 214% $449,708 $224,854
Utility Vehicles $194,334 14% 23% 165% $321,008 $126,674
Excavators $141,968 44% 53% 119% $169,461 $27,493
Dozers $82,380 29% 41% 140% $114,928 $32,548
Wheel Loaders $68,490 32% 29% 89% $60,812 ($7,678)
Mini-Excavators $73,098 31% 26% 87% $63,378 ($9,720)
Ride-On Rollers $71,603 12% 26% 224% $143,207 $71,603
Rough Terrain Forklifts $15,967 18% 34% 187% $29,862 $13,895
Total $1,122,222 $1,851,420 $729,198
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Plan to succeed, succeed with a plan
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United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
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Key takeaways
• Understand your score
• Identify areas of focus
• Start small, fail fast, learn, adjust, grow
• Implement a S.M.A.R.T. Action Plan
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Questions?
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
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Identifying the gap Benchmarking to drive better
utilization and performance
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