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"OUT OF SERVICE" VEHICLE GUIDELINES, PREVENTATIVE MAINTENANCE issues, AND...

RECORDKEEPING: GETTING BACK TO THE BASICS




Wayne Schooling

Q: . Under what conditions, if any, may a vehicle that has been placed “out of service” under Sec 396.3 be moved?

A: A vehicle may only be moved by being placed entirely upon another vehicle, towed by a vehicle equipped with a crane or hoist, or driven, but only if the “out of service” condition no longer exists (Sec 396.9).

RECORDKEEPING FOR ROOKIES

As somebody involved in the trucking business, you are surely well aware of the mountains of records that even a single truck generates. Obviously, you need an efficient and easy way to track all of the information you accumulate. You also need a good way to get the summary information in a format that is easy and useful for you to use.

Following are some basic categories of financial and operational recordkeeping, and what kinds of things you should look for in a system that says it does the specific job for you. First, make yourself a list of the things you have to have and, next, another list of the things you would like to have. Your recordkeeping system needs to be geared toward your specific needs, and only you can decide what those are.

Financial Reporting: You need periodic income statements (profit and loss), some kind of balance sheet, and at the very least a basic cash-flow statement. This information is necessary for not only yourself but banks and creditors as well. The information on this report (revenue, expenses, assets, liabilities) can also be used for tax calculation and your own internal cost analysis.

Accounts Receivable: Even the simplest of accounting systems can help you by allowing you to periodically review your receivables and by providing a list of their status. You should also have the ability to view customer credit histories (any current balances, their average number of days to pay, etc.).

Maintenance: The files on your truck or trucks should include preventive maintenance schedules and any special routines you have established. You should also have each truck's warranty information and repair history on file. If you want to include life-cycle analysis, the records should also include mileage and fuel consumption information. Being able to access this information in a variety of ways (depending on your immediate needs) can be a real benefit to you and your business.

Safety Compliance: Good recordkeeping plays a significant role in any compliance audit you must face. Being able to clearly document your compliance in regards to your substance abuse program, inspection and maintenance, accident reporting and hours of service logs, just to name a few, is crucial during any audit. If you're a company driver, the motor carrier will handle some of this, but having your own records is not a bad idea either.

Driver Pay: Some way of tracking the data that impacts your company's “bottom line” is required. This may include mileage, base pay, bonuses or incentives, reimbursable expenses, advances, standard deductions and withholdings of any kind.

Cost & Revenue Analysis: Cost-per-mile and revenue-per-mile are the most common ways to measure costs if you're a truckload driver. If you run LTL (less than loaded) you may also need to deal with cost-per-hundred weight. These reports will help you understand the cost, volume and profit relationship of your business. Other analysis possibilities include by traffic lane, truck, customer, trip, etc.

Parts: This can sometimes be related to the maintenance tracking program, and should include some kind of inventory and cost tracking. Also, having a direct connection to standard vendors is a good thing to have.

Dispatch: Records to keep in this area might include all of loads handled, from the time they are accepted through their delivery and billing. An “extra” might be records of loads that were turned down initially or cancelled after they were entered into the system.

Fuel Tax Reporting: Records of mileage and fuel purchased in the various states that you run in provides the basis for your fuel tax calculations. There are now many computer programs available that either allow you to do your own data entry or provide the service to you for a small fee.

PREVENTATIVE MAINTENANCE

Over the years, the notion of preventive maintenance (PM) has taken on a major role in trucking. The wisdom of regular servicing and replacement of parts on a time schedule rather than on a “breakdown” basis, has become apparent. But a system like PM needs regular attention and planning to make it work successfully. Fortunately, the resources to get the job done have become much more widely available than even just a few years ago. For example, most major truck stops now offer a full line of PM services.

Be aware that PM is more than just a periodic oil change and lube job. A great deal of the credit for the evolution of the process goes to two organizations. In the United States, credit goes to the CVSA and its North American Uniform Out-of-Service Criteria Code. In the state of California, credit goes to the California Highway Patrol (CHP) for its enforcement of their comprehensive BIT Program.

The NTA has all the maintenance forms you will ever use and, if you happen to have a BIT inspection coming, you should get the BIT Kit Manual, which explains the whole process. Some of the subjects covered include the Terminal Manger Checklist, Pull Notice, Title 13 Hours-of-Service, MISTER Program and the CVSA out-of-service criteria.

Stop by the NTA offices today (located at 6825 E. Rosecrans Ave, Paramount, CA) for more information or call (562) 630-7637. Until next month, “Drive Safe – Drive Smart!”

 


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