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Recovery for In-house Vehicle Warranty Repairs

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Measurement: Cost and Time Savings from Performing Recall and Warranty Repairs In-house

This measurement reports on the revenues generated by the McHenry County Sheriff’s Office (MCSO) Fleet Services Staff performing the recall and warranty repair work in-house and billing the repair costs back to FCA (formerly Chrysler). The measurement indicates the degree in which this process change is providing a benefit to the Fleet Services operations and supplementing the revenues of the County. In 2018, generated $3,945.58 in revenue to McHenry County by performing recall and warranty repair work in-house.

Why Is This Important?

The MCSO Fleet Services Staff maintains all the vehicles in McHenry County’s fleet except those in service with McHenry County Division of Transportation. MCSO Fleet services employs a fleet operations manager and four full-time certified mechanics to maintain the County’s fleet who can perform most maintenance and repair work in-house. Given that the County has migrated to a largely FCA-based fleet, the McHenry County Sheriff supported steps for Fleet Services to become certified through FCA as an FCA Authorized Repair Facility. This enables the highly qualified staff to perform this recall and warranty work in-house. In 2018, MCSO Fleet Services received this certification which now enables Fleet Services to:

  1. Receive and prepare new vehicles thereby reducing the wait time to put vehicles into service;
  2. Seek reimbursement for the cost of labor and parts used in recall and warranty repairs;
  3. Use the latest dealership diagnostic technology at lower costs;
  4. Have faster access to all recall notices and service bulletins; and
  5. Allow the fleet staff to immediately perform recalls and warranty repairs in-house instead of scheduling appointments with a dealer and using staff time to transport the vehicles.

Prior to becoming a recognized FCA Authorized Repair Facility, staff would have to take the vehicles offsite for warranty repairs. This would require two fleet personnel to transport the vehicle for repairs and return it to the County facility. For two years prior to becoming an FCA warranty repairs and recall work, which was approximately 15 minutes from the MCSO garage, 30 minutes round trip. Therefore, assuming fleet staff made the trip to the dealership twice, each fleet staff member would be spending at least a half an hour of time driving (one hour for both) that could have been spent maintaining County vehicles. Now, the fleet staff can reclaim that lost driving time by performing the actual warranty work while the County is paid at a rate of $72.39 per hour for that work. In addition, by managing the recalls and warranty repairs in house, the out of service period for vehicles is significantly reduced as staff may immediately perform repairs on the vehicle.

This programming change was accomplished within the capacity of the fleet services operation and did not require additional staff. Further, this is a true example of a department-driven process change instituted by the McHenry County Sheriff that directly results in efficiencies. The task of having County vehicle recall and warranty work performed has not changed. However, because the McHenry County Sheriff elected to change the manner and process in which this work is performed, the County now benefits through the corresponding staff efficiencies and enjoys a revenue stream that previously did not exist. Relationship to Strategic Plan Long-Term Goal: Operate at the Lowest Possible Tax Levy Fleet service is not a mandatory of core function of the County although it is essential to the overall County operations. This process change and resulting efficiencies directly aligns with the McHenry County Strategic Plan Organizational Advancement and Services Goal 4 – Process and Technology Improvement which states as an objective to continue to search for service improvements and efficiencies via the use of technology. Further, this opportunity increases the efficiencies and cost effectiveness of the MCSO fleet services and generates and new source of revenue to offset costs that would otherwise be incurred. This contributes to helping the County operate at the lowest possible tax levy.

Methodology

The data for this indicator is based on actual accounts receivable from FCA in connection with recall and warranty work performed in-house. In Fiscal Year 2018, MCSO Fleet Services earned $3,945.58 for performing their own recall and warranty repair work on the County’s vehicles.

History

Recall.Warranty Repair Revenue

Additional Information

For additional information about the McHenry County Sheriff's Office Fleet Services, please visit the McHenry County Sheriff's website at http://mchenrysheriff.org/administration/vehicle-maintenance.aspx.