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Customer Focus

Fleet Management: Do You Know the Real Cost of Your Forklift Fleet?

February 10, 2012

The acquisition cost of a forklift is only one factor in the overall cost of ownership. The majority of costs involve operating and maintenance expenses. While fleet management is widely known in the trucking industry, it is also a big advantage to companies using it for their forklifts and other material handling assets. Oftentimes, implementing a fleet management program results in a significant cost savings and longer equipment life cycle.

Fleet management is not a small project. Without a dedicated resource to manage the project, knowing the real cost of your forklift fleet is nearly impossible. While a vendor specializing in fleet management can be secured, understanding the program and justifying the costs can be daunting.

Below are questions a fleet management program can answer:

Do you operate the right equipment?
Equipment must be suited for the weight and size of the transported product as well as the available warehouse space and racking.

Is every forklift in use?
Based on the hour meter and the number of warehouse shifts, it is important to determine if every forklift is optimized. Every forklift will be located in the warehouse and analyzed for how often it is operated. A forklift used in a lower usage area may be periodically swapped with a forklift used in a high production area.

Do you have too many or too few units?
After determining the usage of each forklift, it will be decided if the size of your fleet is appropriate for your production.

Are forklift operators driving safely?
Unsafe operation results in damage and needed repairs of the equipment. Incidents found to be abuse are not covered under warranty, generating unexpected maintenance costs. Regular forklift training classes and consistent safety messages can be implemented to decrease the amount of incidents.

Are repair and maintenance invoices consistent and accurate?
Determining the budget for repair and maintenance can be difficult. Many administrative hours can be spent processing purchases orders and invoices for the equipment. A thorough review of each invoice for consistency and accuracy will answer if your company spends additional dollars for a lift having the same repair as another lift at a different cost. Analysis of the planned maintenance (PM) frequency can also point to inefficiencies and additional cost. Planned maintenance done too frequently or not often enough can both have negative cost implications.

Do you know why downtime occurs?
Research of downtime may show how the issue originated. Reviewing trends by department, operator and type of equipment can point to areas of opportunity.

When is it time to replace equipment?
Understanding the true cost of ownership is the key to determining whether it is in the best financial interests of the organization to keep or replace existing equipment. A fleet management program will help track the cost per hour of existing equipment while simultaneously running a comparison of the costs associated with acquiring a new unit with comparable specifications. The guess work is eliminated and replaced with concrete data to aid in the decision making process.

Learn more details about ProLift’s fleet management program. Contact us today to speak to a consultant.

Electric Forklifts versus IC Forklifts

January 20, 2012

The great debate … electric forklifts versus IC (internal combustion) forklifts. This decision is not only for new companies. Established companies may also weigh the advantages and disadvantages of each fuel, especially if there is a shift of priorities to “go green.”

Electric Forklifts
The forklift industry has experienced a shift in sales, with electric forklifts now counting for 60% of the market’s purchases.

Electric forklift advantages might include:

  •  Better for the environment – Electric forklifts have zero emissions, which eliminate an employee’s exposure to contaminated air and the need for warehouse ventilation. They use no disposal waste (i.e. engine and transmission fluid) and a high percentage of battery lead is recycled.
  • Operator ergonomics – Less noise and vibration is generated by the electric forklift, reducing operator fatigue.
  • Decreased repair costs – Electric forklifts have less moving parts to maintain and repair. AC motor technology further eliminates brushes to create no spark hazard and better speed control.
  • Lower fuel costs – Batteries for the electric forklift can be recharged.

With these advantages come other factors to consider. Although electric forklifts have lower lifetime fuel costs, the initial cost is higher. In addition to the cost of the battery, an area for charging, watering and cleaning must be arranged. Electric forklifts are at a disadvantage when using the forklift in an outdoor application, especially if the environment is wet. Downtime can also be experienced if the battery is not charged or equalized properly.

IC Forklifts
The market is still strong for IC forklifts. They account for about 40% of the market and are dominant in outdoor, around-the-clock or high throughput applications.

IC forklift advantages might include:

  • Flexible application – IC forklifts are good indoors and outdoors. They operate well in rain and other inclement weather.
  • When throughput requirements are high – The fuel savings associated with electric trucks is greatly diminished or negated when multiple batteries are required to keep an operation running. Furthermore, electric trucks have slower travel speeds and acceleration which may necessitate additional equipment and personnel to move the same amount of product.
  • Lower initial cost – Only the investment of propane tanks and their storage area is needed to operate the forklift.
  • Easy to refuel – IC forklifts running out of fuel do not require a lengthy charging period. An operator can easily replace the propane tank in 5 minutes and then continue production. This is especially important with a multi-shift operation.

Other factors to consider when purchasing an IC forklift include providing ventilation in the warehouse due to emissions, operator fatigue due to noise and vibration and the physical requirements of changing propane tanks. Finally, if the operation does not require an IC forklift you should consider the lifetime costs of maintenance, repairs and fuel cost when compared to an electric forklift.

To compare electric forklifts versus IC forklifts for your company, email ProLift at info@proliftequipment.com to request a Costs Summary spreadsheet.

Forklift Safety: Can You Remove the Forklift’s Load Backrest?

January 12, 2012

The load backrest can be the highest point of the forklift. Trailer tops, rack systems, lights, HVAC, sprinkler systems and other overhead obstructions come in contact with load backrests.

If an object above the forklift gets hit, do you blame the load backrest … or the operator?
To put another spin on this question, if a co-worker said “I keep backing into things with the bumper on my pick-up truck”, would you suggest removing the bumper? Or would you mention to your co-worker that he or she needs to be more alert to hazards near the pick-up truck?

Many times the answer to a customer’s question about removing the load backrest is “Yes, remove it and remind your forklift operators to be careful.” But, this is not an accurate answer representing OSHA’s code of federal regulations? (*See below)

The answer is a conditional “yes”. All loads handled by the forklift and the facility it operates within must meet one of the requirements below:

1)      All loads do not go higher than the top of the forks.

2)      All loads are one piece, shrink wrapped, banded or crated.

3)      No loads in the facility are stacked or racked higher than the operator’s head that does not meet the load requirements above. Lift trucks with the load backrest removed must be restricted to handling only loads meeting the requirements above or is restricted to a specific area of the facility that does not contain any loads presenting a hazard.

Provide safe operations while meeting OSHA requirements
Forklift manufacturers offer various heights for the load backrest. When selecting a lift truck, research the warehouse application and the heights of loads to purchase load backrests that meet rather than exceed the requirements. The proper load backrest will provide protection for the forklift operator while reducing the possibility of product and facility damage.

Other solutions include shrink wrapping or banding the loads and restricting a forklift with a removed load backrest to specific areas (i.e. the dock for loading and unloading trailers).

Do you have employees in need of lift truck safety training or pedestrian awareness? Contact ProLift to discuss available training and dates.


* Federal Regulations
OSHA CFR1910.178(e)(2)
Safety Guards: If the type of load presents a hazard, the user shall equip fork trucks with a vertical load backrest extension.

OSHA CFR1910.178(m)(10)
Truck Operations: A load backrest extension shall be used whenever necessary to minimize the possibility of the load or part of it from falling rearward.

OSHA CFR1910.178(q)(6)
Maintenance of Industrial Trucks: Industrial trucks shall not be altered … either by the addition of extra parts … or by the elimination of any parts.

 

 

Forklift Safety: Who Has the Right of Way?

With a weak economy and consumer confidence low, companies are closely watching revenue and profit margins. The few companies that are experiencing growth are holding off on non-essential costs such as building expansions or moving to larger facilities.

More work is being accomplished in tighter areas … that means forklifts and pedestrians are in closer proximity.

This is an increasing problem with dire consequences. Statistically, a forklift operator is more likely to kill a co-worker than themselves in an accident (NIOSH Statistics). This statement makes sense when you consider the scenario: A forklift operator is sitting on an average-sized machine (9,000 lbs) inside a sturdy metal cage and carries a heavy load at top speeds of 6-12 mph. The pedestrian is unprotected and vulnerable.

OSHA states the pedestrian has the right of way; therefore, operators must be on constant alert. The forklift operator is required to slow down and sound their horn at doorways, intersections, blind spots and when entering or exiting a building. Approaching a pedestrian requires the operator to slow down and sound the horn. If the attention of the pedestrian is not achieved, the operator should stop the forklift.

Technology has increased the safety risk. The use of blue tooth phone devices and MP3 players with ear buds drown out the sound of an approaching forklift. The popularity of cell phone texting also reduces the awareness of both operators and pedestrians.

A warehouse has various “Red Zones” that involve pedestrians and forklifts. These include an elevated load, which allows a pedestrian to walk underneath. A pedestrian may also walk onto the dock or into a trailer while the forklift operator is loading or unloading product. The use of a forklift with a racking system offers a plethora of hazards such as blinds spots and falling loads.

Overhead and rear view mirrors, alarms and flashing beacons are safety accessories that help reduce pedestrian injury. Marked walkways and restricted access areas, designated forklift traffic lanes, hand rails to limit access to risk areas and use of man doors instead of overhead doors are excellent efforts toward a safe working environment for pedestrians. 

Be proactive!
Nothing takes the place of educating both the forklift operator and the pedestrian about the risks of working in a warehouse. For example, pedestrians rarely understand a typical warehouse forklift weighs as much as three empty automobiles – and this does not include the weight of the load.

Completing a walk-around of the company warehouse allows the opportunity to find hazards and create solutions to reduce the chance of a forklift and pedestrian accident. It is also an outward sign to employees that the company is committed to the greater good – a safer work environment.

 

Do you have employees in need of lift truck safety training or pedestrian awareness? Contact ProLift to discuss available training and dates.

Forklift Safety: Trash on the Floor – Big Deal!

Lift trucks are used in various environments. They are exposed to shrink wrap, banding materials and other debris from the manufacturing and warehouse process.

Is housekeeping important to the safe and proper operation of a powered industrial truck? … Yes!

OSHA CFR1910.143(a)(3) Housekeeping.
All places of employment shall be kept clean to the extent that the nature of the work allows.

If plastic banding material can hold a 3,000 lb load together, imagine what it can do to brake lines, park brake systems, steering systems and axle seals and bearings when tightly wrapped around the wheels and axles of an operating lift truck!

Ground clearance of lift trucks is generally kept to a minimum for stability concerns. This makes it easy for materials on the floor to get caught in rotating assemblies. The cooling systems are designed to pull air off the floor underneath the truck, push the air through the radiator and out the back of the truck. This creates a “vacuum effect” that sucks debris (i.e. shrink wrap and dust) into the mechanisms and radiator of the lift truck. This can cause damage and overheating.

OSHA CR1910.178(q)(9) basically states it is illegal to operate an overheating lift truck. Why? When overheating, the lift truck does not meet UL classification. It can become a source of ignition for other materials or a fire hazard itself.

Serious or fatal accidents can also be the result of a lift truck damaged by floor debris. It takes only one piece of banding to compromise the brake or steering systems. Operators can lose control of heavy equipment, possibly costing someone their life.

It is important to promote housekeeping within your warehouse. The removal of floor debris hazards matters to everyone’s safety.

 

Do you have operators in need of lift truck safety training? Contact ProLift to discuss available training and dates.

Is It Time To Upgrade Your Forklift?

As service invoices stack up for your used forklift, it may be time to consider the replacement of the forklift. To determine if the service costs are reasonable and easily explained, follow these best practices.


Cost per hour
Many companies struggle to justify the purchase of a new forklift because the current one is paid in full. However, when a repair is needed, it can often drive the cost per hour well above industry averages. Your best indicator of forklift replacement is the utilization and cost per hour according to the unit’s maintenance history. It’s best to have at least 12 months of maintenance history; however, using several years of data is beneficial to ensure accuracy (i.e. production may peak during a specific season or your company had a short-term project affecting forklift usage).

Number of hours
Typically, an internal combustion (IC) forklift with over 10,000 hours or an electric forklift with over 12,000 hours is due for replacement. Forklifts with high hours will experience failures with major components such as mast chains, carriage and mast rollers, shimming and transmission or drive train work. Electric forklifts will also need battery replacement.

Hidden costs
There are hidden costs of keeping dated equipment as related to safety, ergonomics, emissions and efficiency. An aging truck lags in efficiency, making it harder for you to keep the same production pace. Newer equipment will have technology improvements. For example, forklifts built prior to 2006 protect your warehouse from harmful emissions.

If your company experiences a significant change in product or application, using the wrong forklift can result in additional costs. Examples of poorly applied equipment would be: operating electric forklifts outside, utilizing reach trucks for unloading trailers, using non-freezer package forklifts in a freezer or lifting loads heavier than the capacity of the forklift.

Getting Started
To stay aware of your forklift’s maintenance history, create a separate expense category for forklift maintenance. The most effective forklift maintenance tracking systems also include categories for expenses. Examples might include: tires, planned maintenance, damage and breakdown. This can be accomplished in-house or by contracting with a company for Fleet Management services. Create a check and balance system for hitting expenses against the right asset. On the completed invoice, capture whether the repair was due to abuse. Hour meter readings are also critical input.

 

If you would like more information on ProLift and its Fleet Management services, contact us today to speak to your consultant.

Forklift Maintenance Programs: Guaranteed Maintenance vs Planned Maintenance

December 22, 2011

After investing in a new or pre-owned forklift, consideration should be made to enhancing the asset’s life through regular maintenance. The two most common options are guaranteed maintenance and planned maintenance.

With both programs, experienced technicians will catch potential problems early. Customers will avoid safety issues, costly breakdowns and hours of lost productivity. The servicing dealer will also provide the customer with critical documentation including tracking dates of the forklift’s maintenance schedule as well as detailed records of inspections and repairs.

Below is a comparison of the programs:

Guaranteed Maintenance Program (GM)

Guaranteed Maintenance (also known as Full Maintenance) programs are designed to free the customer from the challenges associated with the ongoing upkeep of the equipment.  A typical GM program includes all of the manufacturer’s recommended periodic services and repairs for breakdowns of major components.

The main advantage to a GM program is the predictable monthly costs. The customer pays a fixed rate and in some cases is offered a complimentary forklift loaner when a service repair experiences an extended downtime.  This allows the customer to easily budget for the costs associated with owning a fleet of forklifts. 

The forklift service provider is responsible for maintaining the unit’s records (i.e. dates of service, hours of usage, repairs) and is motivated to reduce costs for the customer by identifying abuse damage or needed rotation of the equipment fleet.

Before a company arranges a GM program, it should consider the service history of the forklift fleet. If the forklift fleets utilization is low and the costs have been reasonable, predictable and almost always in budget, a GM rate may be too high. GM rates are based on an expected cost per hour over a given time frame. The higher the utilization, the higher the expected costs.

Planned Maintenance Program (PM)

Planned Maintenance Programs are designed to ensure that the basic services (engine oil changing, filter replacement, detailed mechanical inspection, etc.) are completed on a regular basis.   However, they do not include major periodic services such as transmission flushes or breakdowns. 

A PM program offers flexibility to customers, having no long-term agreements. Billing is only for parts and labor utilized and the service work is recorded by the job. Companies with a lower amount of working hours on their forklift can set the schedule less frequently to keep costs in line.

Unlike a GM program, the customer is involved in managing the repairs and costs of the forklift. The costs are not locked in and can be unpredictable.

Interested in comparing our maintenance program with your current service? If you are using a competitor program or servicing your equipment in-house, contact ProLift to request your certificate for a complimentary PM service or information on a GM program.

Dock Safety – Hazards of Loading and Unloading Trailers

December 20, 2011

In forklift operator safety classes, ProLift’s Safety Trainer asks “who loads and unloads trailers?” To those with raised hands, he says “Okay, your chance of getting hurt is doubled!” The response is amazing – hands go down fast and confusion is displayed on the operators’ faces. However, this statement is reality. The risks and hazards double when a forklift operator interacts with another piece of equipment (tractor trailer) and another human (truck driver).

Forklift operators must be on guard when using other equipment. Trucks and trailers can creep away from docks while loading and unloading due to the weight and force of the forklift. Trailer floors can be weak or damaged. Dock levelers or bridge plates can malfunction or break. Trailers can be tipped by the weight of the forklift if they are not connected to a tractor.

It is also important the forklift operator be aware of the truck driver. The fast pace and pressure to deliver loads can result in drivers prematurely pulling away from docks with a forklift inside. Other times, an operator may drive off the dock if he or she expects the trailer to be in place.  

In addition to setting the brakes on the truck, forklift operators must not drive fast or get aggressive with the forklift brakes inside a trailer. If an operator quickly enters a truck and slams on the brakes, the weight of the forklift and its load will move a trailer even if the truck brakes are set and the wheel chocks are in place. Dock locking systems cannot be trusted blindly since rear impact guards (ICC bars) on trailers can be damaged or missing.

Moveable rear trailer axles must be in the most rearward position. If the operator loads or unloads a dropped trailer, he or she must use a jack stand to support the front of the trailer.

Elevated dock areas pose potential for forklift tip-over, the leading cause of operator fatality. Forklift operators must look backwards to guide them out of the trailer and not rely on peripheral vision. If he or she waits to look back after hearing the forklift’s steer tires hit the dock plate, the operator may not be aware the truck has left the dock and will fall off the truck. Or, a pedestrian walking behind the trailer may be struck.

Companies can take control of dock safety by having the proper safety equipment. A squeegee can remove the hazard of a wet dock area. A push broom used where wheel chocks are expected to block wheels can decrease trailer creep. Policies to control truck drivers such as assigned waiting areas, required possession of the truck keys while loading and unloading and glad hand locks can reduce premature pull-away.

To ask your question about dock safety or safety equipment, contact ProLift. ProLift also provides dock equipment maintenance programs.

Forklift Tip-Over: Buckle Up!

December 9, 2011

The sole purpose of seatbelt use on a forklift is not for front-end collisions. The number one cause of counterbalanced forklift operators going to the morgue instead of home to supper with their families is tip-over accidents. On average 100 people lose their lives each year working on, or around forklifts, and almost half of those casualties are tip-over accidents. Engineering, accident statistics, eye-witness, and first-hand accounts tell us that if an operator stays inside the overhead guard area in the seat of the truck, his or her chances of survival (or at least reducing the severity of injury) increase.

The seat belt is first and foremost designed to keep you in the seat in case of tip-over. Normal human behavior says “jump” when the forklift starts to tip. In that split second needed to make a decision, two things motivate you in the wrong direction. First, momentum is throwing you to the low side of the machine (direction of tip). Secondly, in your mind, ground means safety, and the ground is closest on the low side (direction of tip). The problem is you can’t get away from the machine fast enough, and the overhead guard crushes you at the head, neck, shoulders, or chest.

Furthermore, you need to keep your hands and feet inside the confines of the forklift and overhead guard. Humans have another peculiar habit; as the machine tips, we stick our arms and legs out toward the direction of the tip as if to magically stop the 9,000 lb forklift from tipping over – doesn’t work unless you are Superman with a capital “S” on your chest.

To survive a tip-over accident, do the following:

1) Put on the seat belt every time you operate a truck. Adjust the seatbelt as needed.

2) Push hard against the steering wheel and brace your feet firmly into the floorboard on the machine, which will firmly plant you in the seat.

3) Place both hands on the steering wheel, lean forward, and use the steering wheel as upper body support.

4) Always lean away from the point of impact. For example, if the forklift is tipping left, lean right.

Be a Superman or Superwoman to your family! Remember these tips and make it home safely from work every single day.

Interested in forklift operator safety training? Our trainer will review forklift tip-over and other safety factors during a 4-hours classroom and hands-on training course. Contact ProLift to schedule your operators.

Dayton Freight Partners with ProLift Industrial Equipment to Donate a Toyota Lift Truck to Archbishop Alter High School

December 7, 2011

On Friday December 2, 2011, Dayton Freight Lines, Inc., with the help of local material handling company, ProLift Industrial Equipment, donated a Toyota lift truck to Archbishop Alter High School in Kettering, Ohio.   

Because of the age and condition of their only lift truck, the high school had recently scrapped the unit. Mike Cronin, co-owner of Dayton Freight, sits on the Board of Directors of Alter, and also had children who attended the school. Having an established relationship with ProLift, Mike approached the dealership about providing the school with a lift truck.   ProLift supplied the Toyota lift truck at a reduced rate to Dayton Freight, customizing the paint job of the truck to match the school’s colors.

Dayton Freight is a growing local private freight carrier with over 40 service centers in the Midwest and actively supports the local community.  Archbishop Alter High School is a four-year co-educational Catholic high school with an enrollment of approximately 670 students.

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