Decision Analysis Approach to Portfolio Fleet Management (and Risk Analysis)
Fleet Management is the management of vehicles, aircraft, boats, and auxiliary equipment aimed at the optimization of costs, risks, and efficiency in fleet operations. A range of functions could be taken into account for managing your fleet as a portfolio.
For example, human factors such as driver management, platform factors such as cost and maintenance, and platform telematics (including tracking and diagnostics), and overall health and safety management should be taken into account. A structured decision analysis process is an important planning aspect to effectively conduct portfolio fleet management.
Decision analytics or predictive analytics can be the right hand of fleet managers to help them proactively manage company fleets. Using predictive analytics in fleet management can improve the decision-making process and can benefit every area- from capability to productivity and save money on maintenance or increase up time.
The Importance of Decision Analysis
It is essential to use decision analysis when managing a fleet. Determining the value ahead of time will assist in creating a fleet strategy. A great fleet strategy will cover fleet wellness, fleet goals and priorities, fleet administration, and fleet KPIs.
There are many moving parts when thinking about decision analysis
- Fleet acquisition including selection of new or used vehicles, fleet incentives, etc.
- Fleet services such as fleet analysis, and fleet rebalancing
- Maintenance management including fleet maintenance programs, preventative maintenance, reporting, and repair management
- Energy management such as fuel management, energy planning, and infrastructure
- Risk management, which deals with fleet driver training, driver education, and testing
- Tools and technology management—including telematics systems, routing, speeding, location tracking in real time, driver training, and geofencing
Many organizations have fleet managers that control costs, maximize profitability, and mitigate risks of their fleet vehicles using various tools to get correct information and to make informed decisions.
Decision Analysis Techniques and Tools
The following techniques are used in the analysis of historical facts to make predictions about the future:
- Predictive Analytics
- Multi Objective Decision Analysis
- Machine learning
- Data mining
Influence diagrams, fault trees, failure mode and effect analysis, and decision trees are all good ways to analyze decisions problems.
The Result of Decision Analysis
Decision analysis in fleet management based on collected data helps fleet managers solve a wide variety of problems before they even materialize. By mining and analyzing data, fleet managers can predict problems, trends, and behavior patterns. Telematics and other data sources provide information to identify problems and save fleet owners money.
Decision analysis is all about taking a business problem and addressing it. If decision analysis works, you don’t even know it is there- it exists in the background.
Analyzing fleet data is essential for current and future decision making.
For more information and longer documentation on decision analysis, please see Wolfram|Alpha