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Fuel Efficiency Analysis for Transportes Mexicanos

This document presents a project to analyze fuel expenses in the new units acquired by the transportation company Transportes Mexicanos. The purpose is to improve the performance of the units and prevent salary deductions for drivers due to fuel excesses. The scope includes studying the routes, training, and performance to optimize diesel usage. The theoretical framework describes the logistics and strategic position of the company.

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0% found this document useful (0 votes)
5 views10 pages

Fuel Efficiency Analysis for Transportes Mexicanos

This document presents a project to analyze fuel expenses in the new units acquired by the transportation company Transportes Mexicanos. The purpose is to improve the performance of the units and prevent salary deductions for drivers due to fuel excesses. The scope includes studying the routes, training, and performance to optimize diesel usage. The theoretical framework describes the logistics and strategic position of the company.

Translated by

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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Nombre del Alumno: Enrollment:

Olga Martínez Silva 2872646


Juan Eduardo Flores Garza 2887883
Sara Eugenia Rodríguez Calderón 2887837

Nombre del curso:Fundamentos de la Nombre del profesor: Dr. Abiu


Administration González Ixba
Module: 4 Activity 2
Fecha: 21 de Enero del 2018
Bibliography:

[Link]
[Link]
Guillén, M. (2008). Ética en las organizaciones. Construyendo confianza. España. Editorial
Pearson.
Robbins, S. (2013). Fundamentals of management: Essential concepts and applications (8th)
Mexico: Pearson.
CONTENT

Purpose………………………………………………………………………………3

Scope..............................................................3

Introduction................................................................. 4

Statement of the Problem ............................................................................ 5

General Objective .............................................................................................. 7

Specific objectives..................................................................................... 7

Theoretical Framework .................................................................................................. 8

2
PURPOSE

The purpose of this project is to carry out an analysis of the expenses of


fuel in the new units acquired by the company Transportes
Mexicans, a company that is characterized by caring for the well-being of its
employees, in order not to affect the salary and the benefits they acquire
operators with charges for incorrectly established fuel losses.

The company has certain tolerance criteria regarding shortages and


diesel leftovers that can be respected at the time of a trip, by being
Once these standards are exceeded, the operator is sanctioned, and amounts are deducted from their
salary the amount related to the loss caused.

SCOPE

This project aims to achieve better performance from the new ones.
units acquired through a management performance study, routes
chosen and variants, as well as seeking the proper training of personnel. Everything
this, in order to retain operators, since nowadays the company has
with a great demand for personnel. Likewise, they seek to retain the
employees who have been selected and trained according to the
company needs.

3
INTRODUCTION

Every year Transportes Mexicanos purchases between 30 and 60 units.


new ones to meet the great demand for goods that their customers need
transport

The issue unfolds when acquiring a new unit it


it presents a 'default' configuration in its system, which results in a
unstable behavior, generating a higher diesel expenditure than expected
when carrying the desired load. Therefore, it is necessary to assess the expenses of
fuel of the new units to achieve the best yields
(liters vs kilometers traveled).

The primary idea of this study is to reduce expenses and achieve maximum efficiency.
in terms of diesel performance, looking for the best routes for the best
performance of the unit.

All of this with the aim of increasing productivity by reducing costs.


in fuel and above all avoiding the discontent of our operators due to
the company's operational policies regarding diesel management.

4
STATEMENT OF THE PROBLEM

At the company Transportes Mexicanos, the main problem lies in


diesel shortages in the newly acquired units, what happens when to
to leave the agency to start working on them, they present for
regular a shortage of diesel due to inadequate parameter calibration
in the engine.

This leads to the fact that at the moment of a readjustment and calibration, these units are
they have to be tested in real scenarios, regarding routes and loads,
that at certain times they can weigh up to 20 tons, carrying them
a speed limit of 95 km/h.

These units are provided to operators who have more


seniority in the company, for which they are fully trusted operators and
highly skilled in terms of routes, driving performance and with the least
accident index.

The consumption of diesel is affected by various factors such as


geographical situation of the country, the mountain systems, the diversity of climates
It was done at both ends. The use of air conditioning, heating, the change of
Heights on the roads and the effort involved in the slopes cause an expenditure.
diesel variant.

On the other hand, the real issue is that the shortages of diesel are charged to
the operators, in accordance with the company's policies regarding bonuses
of diesel, an operator has tolerance dependent on performance
diesel, as shown in the following image.

MINIMUM ALLOWED YIELD 2.85/LTq


YIELD TOLERANCE FOR SHORTAGE/SURPLUS
2.85 to 2.99 3%
3 IN FRONT 5%

Any amount below these parameters, either 2.84 liters per


a kilometer traveled or less is considered poor performance, which generates
shortages of diesel or an inefficiency of the unit, or on the contrary, at times
you can expect excellent yields of, for example, 3.5 liters in each
kilometer traveled, and with diesel shortages exceeding 5%.

Any shortfall exceeding 5% of diesel consumed will incur a charge.


directly to the operator's payroll.

5
As a result, the unit operator is affected and often dissatisfied.
with these charges, on the other hand, if this charge is not made, they are not obligated
to carry out the correct configuration of the unit.

Business ethics, according to Guillén (2008), constitutes an applied ethics to


organizational scope, and refers to human quality, to excellence of
the people, as well as their actions within the framework of their work in the company,
just like the development of the potential of all members of the
organization for its contribution to the common good.

6
OBJECTIVES

Mejorar el funcionamiento de las unidades desde el primer día que se pongan a


disposal of one of our operators.

SPECIFIC OBJECTIVES.

Reduction of low yields and diesel shortages.


Operators satisfied with their salary
Better productivity
Greater profits for the company.

STRATEGY

When acquiring new units for the company, we must take the
time it takes for the processing of plates and permits (times in which the unit
is inactive), which is why it does not generate profits for the company.

The following are included in the strategies:

At the time of acquiring the new units, request from the dealer
that these units come pre-configured with the
desired standards, in this way the calibration will be minimal.
Request the dealer for any introductory course and/or training.
for the operator instructors.
Subject the units to real tests through the instructors,
since they have a broad general knowledge,
specifically regarding routes and defensive driving of the units.
Intensive courses for mechanics on software handling,
updates and use of tools.
Contemplate the use of new technologies in the field of logistics,
how it can be satellite tracking services, route monitoring and
combustible.

7
THEORETICAL FRAMEWORK

In this project, we seek to carry out an analysis of the company Transportes.


Mexicans, which is a company committed to international transportation
of goods. It is located in the city of Nuevo Laredo, Tamaulipas, capital
customs that accounts for 36% of the total trade operations
exterior in Mexico, as it has excellent infrastructure and services
agile and efficient customs.

In the same way, Nuevo Laredo has a strategic geographical position,


since it is the border point that connects the centers via the shortest route
distribution industries of Canada, United States of America and the
Mexican Republic.

In the world of commerce, logistics is linked to the placement of goods.


in the precise place, at the right moment, and under the appropriate conditions.
Therefore, the transport of goods is included within it. The objective of
a company is to ensure the correct distribution and marketing of the
products at the lowest possible cost. "Julián Pérez Porto and Ana Gardey. Published:
2010. Updated: 2012.

Logistics is an operational function that encompasses all activities and


necessary processes for the strategic management of the flow and
storage of raw materials and components, work in progress inventory and
finished products; in such a way that they are in the adequate quantity,
in the right place and at the right time." (Ivan Thompson, 2007).

As described by Carlos Alberto Canseco Talavera in the magazine Logisticamx the


10 tips for profitability in the road transport logistics sector:

1. Cost structure. Every transportation company must have its costs broken down.
cost structure and verify that its compliance is carried out trip by trip, this
It is the fundamental point to know whether they are making or losing money.

2. Verificar el rendimiento de las unidadesy ser exigentes en el cumplimiento.


Regularly, rate studies handle minimum yields of 2.2.
kilometers per liter, but in reality and according to the trucks acquired,
It is mandatory for them to comply and raise that 2.7 to at least 3.1 kilometers per.
liter; let's remember that diesel increases month by month and after the operator,
the player is the most important in the cost structure (with 20% to 30% of
participation.

3. Know and physically travel the routes. Be aware of the route to search.
areas of optimization and taking into account the path to customers, deviations,

8
shortcuts, booths, type of road will provide us with the experience so that the
operators know that, although we work from a desk, we have
knowledge of the transportation market in Mexico.

A major problem in Mexican logistics is that the 'desk experts' do not


They know the field operation, which is essential for the lines.
transporters unify the operation of the transport fleet.

4. Create a career plan for operators. It should be considered that this player
it represents between 20% and 30% in the transportation cost structure.
studies conducted by transportation professionals, the operator handles two
big problems, which generate high turnover and scarcity in the market,
These problems are the salary and the treatment. In this way, it is mandatory.
to instill in them a sense of permanence in the company, creating a development for them
a professional that will be reflected in productivity bonuses and so we all win!

5. Joint training for operators and administrative staff. In view of


establishing a single company language is significant to present to
operators, according to the owner's criteria and the finance department,
the financial direction of the company and how they play in the achievement of
results and achievement of objectives.

6. Preventive, required, and corrective maintenance. On a line of


transportation, the units are the money generators along with the operators
In light of this, they must always be in perfect condition, a unit of
Stopped transport does not generate income for the company. It is necessary to review the item.
of tires since, new or refurbished, make up between 6% and 12% of the
cost structures.

7. Make it clear to the clients. Accessory issues such as stays, delays,


complete cycles of charges and signing responsibilities both from the provider
of transportation as well as that of the customer. Internally, the transport line must have
with a robust commercial strategy to sell backfreights avoiding the
maximum the issue of emptying on the sold routes; likewise, it is advisable
have a loaded-dedicated approach for your sold routes
reflect profits.

High performance teams with productivity and management challenges


of work teams. Staff both administrative and operational that can
to play an important role in the company's financial results;
part of their salary could be linked to the team's results.

9. Robust information technology systems. Let's remember that the


autotransport in Mexico is completely shattered and the tools
high-cost technologies would not be an option. Currently, besides Excel, there are

9
very cheap transportation solutions and tailored suits for companies of
transportation of all sizes.

10. Five-year plan. Aspect directly related to planning


strategic of the company where all areas, preferably to all
levels work on the objectives and challenges for five years; consider one year at a time
it is very risky and the market can catch up with us, which is why it is essential
to have the same vision with the goal of productivity and leadership.

We conclude that strategic management is essential in the operation of a


company, as long as it operates in an ethical environment, so that
in turn transmit that same philosophy to their employees, hence the importance of the
project given that the purpose is to acquire the maximum utility with the resources that
they have, but above all maintaining an appropriate work environment, since
A happy employee is a more productive employee.

10

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