FINAL REPORT TECHNICAL and FEASIBILITY STUDIES of PUBLIC SECTOR VEHICLE MAINTENANCE in EGYPT
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FINAL REPORT TECHNICAL AND FEASIBILITY STUDIES of PUBLIC SECTOR VEHICLE MAINTENANCE IN EGYPT November 29, 1979 PRC-HARRIS, INC. 6 Ibrahim Naguib Street Garden City, Cairo Egypt TABLE OF CONTENTS LIST OF TABLES LIST OF APPENDIXES FINAL REPORT TECHNICAL AND FEASIBILITY STUDIES of PUBLIC SECTOR VEHICLE MAINTENANCE IN EGYPT TABLE OF CONTENTS 1.0 SUMMARY S1 2.0 INTRODUCTION 1 2.1 Purposs of the Project 1 2.2 Project Participants 2 2.3 Methodology 2 2.4 Report Outline 3 3.0 OVERVIEW 4 3.1 Recent History of Dovelopment 4 3.2 Areas of Responsibility 8 3.3 Location of Facilities 9 4.0 RESULTS OF THE GENERAL SURVEY 10 4.1 Maintenance Systems and Vehicle Systems 10 4.1.1 Cairo Transport Authority 18 Expansion or Improvement 20 4.1.2 Greater Cairo Bus Company 20 4.1.3 Alexandria Transport Authority 21 4.1.4. West Delta Company 22 Expansion or Improvemelit 22 4.1.5 East Delta Company 23 Expansion or Improvement 25 4.1.6 Upper Egypt Company 27 Expansion or Improvement 29 4.1.7 Public Sector Truck Companies 29 Expansion or Improvement. 30 4.2 Financial and Economic Information 31 4.2.1 Accounting Systems 31 4.2.2 The Maintenance Budget 32 4.2.3 General Financial Situation 33 4.2.4 Costs 34 4.2.5 Vehicle Acquisition 36 4.2.6 Spare Parts 40 4.2.7 Budgetary Projections 42 4.3 Organization and Management 47 5.0 THE DETAILEL SURVEY AND COMPANY SUMMIARIES 60 5.1 Implications derived from the Detailed Survey 60 5.1.1 Analysis of CTA Facility Operations 61 5.1.2 Implications derived from GNC Detailed Survey 64 5.2 Company Oriented Summaries 66 5.2.1 The General Nile Company for East Delta 66 5.2.2 The General Nile Bus Company for Upper Egypt 74 5.2.3 General Nile Company, Middle Delta 76 5.3 Recommendations for Specific Companies 77 6.0 GENERAL CONCLUSIONS AND RECOMMENDATIONS 80 6.1 A Punch List of Problems 80 6.1.1 General Management Problems 80 6.1.2 Physical Facilities 81 6.1.3 Equipment 81 6.1.4 Maintenance System Concept 82 6.1.5 Logistic Support System 82 6.1.6 Financial and Economic 82 .6.1.7 Training 83 6.2 Basic Transport Policy 83 6.2.1 Urban Passenger Service 83 6.2.2 Intercity Passenger Service 84 6.2.3 Truck Companies 85 6.3 Management Policy, Procedures and Organization 86 6.3.1 Development of an Organization Plan 86 6.3.2 Training of Company Management in Basic Managerial Techniques 87 6.3.3 Management Science 90 6.4 Financial and Economic Policy and Procedures 91 6.4.1 Cost System 92 6.4.2 Diversity of Vehicle Type 94 6.4.3 The Flow of Spare Parts 94 6.4.4 Coordination within the Transport Sector 95 6.4.5 The Character of Transportation Organizations96 6.5 Physical Facilities 99 6.5.1 Clean-up of Garages and Workshops 99 6.5.2 Improve Lighting and Ventilation 101 6.5.3 Pave Yard Areas and Improve Access Roads 102 6.5.4 Correct Drainage Problems 102 6.5.5 Build New Facilities in a More Compact and Efficient Desiqn 103 6.6 Mainten&nce Systems Concepts and Logistic Support 109 6.6.1 Centralization of Ftrictions and Unit Replacement 109 6.6.2 Maintenance Teams 110 6.6.3 Vehicle Standardizatkon and Design Specifi cations 110 6.6'.4 Management and Operating Efficiency and Audit Teams 111 6.6.5 Training 112 7.0 SOME SUGGESTED ACTION PROGRAMS FOR A.I.D. 113 LIST OF TABLES Table 4-1 LIST OF VEHICLE MAINTENANCE FACILITIES VISITED BY TECHNICAL TEAM MEMBERS 11-12 Table 4-2 13a-13j Table 4-3 VEHICLE ACQUISITION, SPARES AND OPERATIONS Buses 16-17 LIST OF FIGURES Figure 4.1 TYPICAL ENGINEERING SECTOR ORGANIZATION 48 Figure 4.2 CENTRAL WORKSHOP ORGANIZATION 50 Figure 4.3 BRANCH ORGANIZATION 51 Figure 4.4 LEVELS OF MANAGEMENT 53 Figure 6.1 GREATER CAIRO BUS COMPANY TYPICAL COMPANY ORGANIZATION 89 Figure 6.2 GARAGE AND WORKSHOP WITHOUT ENGINE REBUILD 104 Figure 6.3 GARAGE SITE PLAN 106 Figure 6.4 CENTRAL WORKSHOP includes engine rebuild + body shop 107 LIST OF APPENDIXES APPENDIX I GENERAL SURVEY QUESTIONAIRE APPENDIX II SAMPLE DETAILED QUESTIONAIRES APPENDIX III SUMMARY RESULTS OF QUESTIONAIRE SURVEYS APPENDIX IV BUS MAINTENANCE AND LOGIST SUPPORT PRACTICES APPENDIX V FINANCIAL AND ECONOMIC INFORMATION APPENDIX VI JOB DESCRIPTIONS IN THE ENGINEERING SECTOR APPENDIX VII MANAGEMENT INFORMATION ANALYSIS APPENDIX VIII A BUS DESIGNED WITH EGYPT IN MIND SUMHARY th- of this reyrt is - ELIT.rize Th, %.pose riaintenance of -. xtensive study of the vehic>- esults bu- i:. t'uck compar.t !. )rograming ,L L)yptian public sector The organizations surveyed were: Bus Companies (1) The four (4) General Nile - Upper Egypt - West Delta - Middle Delta - East Delta Organizations (2) The two (2) Urban Transport - The Cairo Transport Authority - The Alexandria Transport Authority Truck Companies (3) The five (5) General Nile - Goods Transport - Transport Works - Heavy Transport - Direct Transport - Rural Transport for Automotive Works. (4) The General Nile Company site and office visits The survey was conducted by questionairies. and was supplemented by extensive aspects of The survey examined several functional including: the vehicle maintenance programs systems o Maintenance and logistic support o Physical facilities and equipment o Management and organization o Finance and economics o Training 50 garages, workshops and administrative More than were followed visited during the survey. These offices were on the basis of their by visits to 9 facilities selected up degree to which they represented relative performance and the typical operations of the sector. a large number of fundamental The survey revealed public sector. the maintenance programs of the problems with great detail in the most of these are described in Although most important ones are body of this report, a few of the highlighted in this summary. (Sl) Wit! -espect to Ma.ntenance '.- an aild logistics, the most pressing problems tr*: oExessive duplicat~.on of the rebuild anC overhaul function in the garages and regional workshopF. This results in excessive dilution of - the trained labcr force - the inventory of critical spare parts - the inventory of specialized test equipment o Extraordinarily complex procurement procedures resulting in a 9-12 month procurement.cycle o Irrational criteria for determining spares quantities e.g., decreasing spares ordered as a function of vehicle age; lack of statistical basis for selecting reorder points and for determining reorder quantity o A total lack of quality control of the maintenance function o The concept of preventive maintenance does not appear to be properly understood as demonstrated by the fact, for example, that the team was unable to find any example of unit replacement in anticipatidn of failure. With respect to physical facilities and equipment it was found that: o The general lack of cleanliness, state of disrepair and disorganization contribute significantly to high failure rates and poor maintenance. o The basic facility design is grossly over designed from a structural viewpoint and poorly ]aid out from an operations and management viewpoint. o The facilities are very poorly equipped from the viewpoint of diagnostic equipment, test equipment, and mechanical aids (lifts, compressed air torque wrenches, etc.) (s2) With respect t., !anagement and Organizatfi. it appears that: o Most of the maintenance facilities are inadequately staffed with trained middle management personnel. o Upper echelon managers lack the ability to delegate or plan and demonstrate little training in management techniques. o Very little use is made of management information even though reams of data are collected daily. o 7 re is no evidence of performance s-.,ndards with which to measure unit performance--only a very gross measure is used which does not differentiate between operating centers. In the area of Financial and Economic Information it was observed that: o There is no cost control system because there are very few cost centers and little or not cost accounting. o Budgeting and budget planning are primitive because planning factors if used at all, are inaccurate and operating objectives are unspecified or unclear. o Vehicle procurement practices aggravate the maintenance problem by considering first cost instead of life-cycle cost in making procurement decisions. The resulting diversity of vehicle makes and models greatly complicates the maintenance ar t parts supply problem. Finally, in the area of training, there appears to be a lack of interest in providing adequate management on-the-job training. There is also an uncoordinated approach to vocational training that results in disproportionately large capital investments for the results attained. A contributing factor to the poor results is the lack of managers who are trained to properly motivate or employ these human assets. 0 (S3) In order to improve the quality anC qu:.t_.ty of maintenance activ'ity devoted to the public sector is truch companies, there are a number of acticons th&t shC.:Id be taken. Some shiould be of a general nature; wanv others can be specific to a particular facility, activity or company. A reasonable approach to remedying some of the most pressing problems can be achieved through a three step program. First, a concerted effort should be made to define as an attainable goal for all facilities, the standards of performance for the best existing public sector facilities. Second, programs should be defined for attaining these goals in three time frames. Programs that achieve desired results in the short term (up to 6 months) • Mid-term nrograms; i.e., those that should yield results within 2 years.