Telargo WP Green Mobility

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The green Intelligent mobile assets management solutions help reduce environmental threats ON THE WAY TO GREEN MOBILITY

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Transcript of Telargo WP Green Mobility

Page 1: Telargo WP Green Mobility

The green

Intelligent mobile assets management solutions help reduce environmental threats

ON THE WAY TO GREEN MOBILITY

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2Copyright © 2007 TELARGO Inc. www.telargo.com, + 1 201 938 1000

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Table of contents

1.0 Exectutive summary

2.0 Introduction

3.0 How does mobile assets management help reduce pollution?

3.1 Route optimization & dynamic routing

3.2 Driving style & fuel effi ciency

3.3 Vehicle maintenance

3.4 Fleet size & composition management

3.5 Alternative fuel types

4.0 Conclusion

4.1 ROI case study: Reduced fuel consumption through reduced mileage,

reduced idling and improved driving technique

4.2 ROI case study: Reduced emissions through predictive maintenance

5.0 Benefi ts

6.0 References

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1.0 Executive summary

Natural resources and preservation of the environment are becoming more and more important. Is your company doing enough to help preserve them? Is your company leveraging those efforts in any way?

Boost the public image and workers morale of your company by adopting environment and health friendly principles.

The following whitepaper presents the positive effects of mobile assets management systems on the environment. Leveraging the MAM systems for reducing the Green House Gas emissions is a small step in the way of increasing the pro-environmental awareness of your company. Reduction of GHG emissions can be achieved through replacement of old vehicles with typically high GHG emissions and through reduc-tion of the overall fl eet GHG emissions.

While replacement of outdated vehicles with newer ones seems to be the most straightforward way in “going green”, many fl eet managers will fi nd it simply too challenging fi nancially, especially when fl eets of predominantly older vehicles are in question. This whitepaper will therefore focus on less costly methods of reduc-ing the GHG emissions and improving the company’s public image by introducing advanced Mobile Assets Management services.

In our experience, the reduction of GHG emissions can be achieved in several ways. From reducing overall fuel consumption, optimizing the service routes and fl eet-re-lated operational procedures, to monitoring driver behavior in order to avoid exces-sive accelerating and engine revving, detecting and preventing excessive idling, to ensuring proper vehicle maintenance. Reduced fuel consumption means not only reduced GHG emissions but also decreased operational expenditures and conse-quentially, increased revenues. Therefore, improving the company’s pro-environmen-tal awareness also brings long-term fi nancial benefi ts.

3Copyright © 2007 TELARGO Inc. www.telargo.com, + 1 201 938 1000

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2.0 Introduction

With the latest developments in knowledge on the GHG effects on global warming, the environmental concerns should be beating the bell of most organizations using large numbers of motor vehicles. According to the U.S. Environmental Protection Agency (EPA), driving a motorized vehicle is the single most polluting thing that most of us do.

Motor vehicles emit millions of tons of pollutants into the air each year. With rising income per household and the increase of transported goods, the use of motorized transport is expected to continue to increase in the coming years, potentially worsening air quality. Poor air quality in turn has been shown to have seriously adverse effects on public health. The World Health Organization estimated that 970,000 people died prematurely from urban air pollution in 2005. The need to tackle air pollution caused by transportation is widely acknowledged.

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What Pollutants Do Motor Vehicles Emit? A short list of “classic” air pollutants, and its effects on the organism ac-cording to the World Health organisation

EVAPORATIVE EMISSIONSFuel vapours

OTHER EMISSIONS Rubber particlesRoad dustBrake dust

EXHAUST (TAILPIPE) EMISSIONS

Fine particles

• Lead • Suspended particulate matter (SPM), • Ozone (O3) • Carbon monoxide (CO)• Sulphur dioxide (SO2)• Nitrogen dioxide (NO2) • Other air toxin emissions • Hydrocarbons

* See Appendix for more information on the health effects of the pollutants.

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Particles affecting The Global Climate Change and their distribution

3.0 How Mobile Assets Management Can Help Reduce Pollution?

There are two basic ways in which to search for environmentally friendly improve-ments of fl eet operations:

Minimizing the number of miles driven (drive less)

- Fleet size management & Fleet composition management- Route optimization & Dynamic routing

Minimizing the pollution per mile driven (drive smart)

- Driving style & fuel effi ciency- Vehicle maintenance- Alternative fuel types

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Carbon dioxide fromFossil fuels Other Carbon dioxide

Methane

Nitrious Oxide

CFC’s and others

82%

2%5%

9%

2%

Carbon dioxide accounts for approximately 85 percent of all greenhouse gases.

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3.1 Fleet size management & Fleet composition management

If you want to run your fl eet effectively and be environmentally conscious, then the process of replacing the old fl eet vehicles with new ones is the place to start. Opti-mizing the size and composition of the fl eet is a big step in the direction of environ-ment protection.

Size managementRight-sizing means adjusting the number of vehicles and equipment in the fl eet without jeopardizing the company’s ability to perform its services and maintain the quality of service.

Composition managementMobile assets management system’s vehicle information database contains vari-ous vehicle type specifi cs gathered: fuel consumption data, maintenance specifi cs, overall vehicle performance, tire husbandry, frequency of diagnostic trouble code appearance. Metrics are collected effortlessly as you perform your daily fl eet man-agement routines.

A comparison of different vehicle types can provide valuable information when deciding on the purchase of the new vehicles, not only in regards to average fuel consumption but also to maintenance and servicing costs, vehicle utilization and environmental issues.

As the On-Board Units gather all vehicle related data from engine telemetry and maintenance activities to fuel consumption and performance averages, Key Per-formance Indicators are calculated and can be displayed as reports or within vari-ous dashboards on the Fleet Center portal. With the help of Telargo Service, fl eet managers are able to quickly and simply determine the optimal fl eet size and mix in order to minimize the GHG emissions.

Furthermore, Telargo provides the Vehicle Lifecycle Management solution specifi -cally designed to extend the life of your vehicles and accurately determine the break-even point when vehicle replacement is recommended. Combining the Vehicle Lifecycle Management solution with reports on fuel consumption and maintenance costs, you will fi nd that replacing older vehicles not only decreases the GHG emis-sions but it also reduces the operational expenditures.

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Four-wheel drive and all-wheel drive off er superior traction and braking under slippery conditions, but the weight and friction of additional drive train parts can increase fuel consumption by 5 to 10 percent compared with two-wheel drive vehicles.

Operating a vehicle with just one tire under-infl ated by 8 psi (56 kPa) can reduce the life of the tire by 9,000 miles and increase the vehicle’s fuel consumption by 4 percent.

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3.2 Route optimization & dynamic routing

Minimal number of miles driven is the goal we are aiming at – from the perspective of time, money and environment. On top of route planning, immediate responding to real-time events, such as traffi c jams or accidents and road-works can help us achieve this goal. Route optimization and direct communication with the driver is the best way to improve your accuracy, reducing travel times and especially idling.

Telargo’s Resource Scheduler application provides the means to optimize routes in order to reduce GHG emissions. Calculating the most favorable route leads to faster and shorter rides with higher average speeds. Additionally, Telargo Fleet Center enables instant updating of drivers with traffi c information and dynamic, on-the-fl y updating of trip orders.

This is the best way to avoid the polluting moments and improve driver habits with constant idling reports and driver scoring methods.

3.3 Driving style & fuel effi ciency

Improve the driving style of your drivers. Even a perfectly maintained vehicle will pollute more than necessary if it is driven carelessly. A vehicle’s emissions will be lower if drivers apply common sense to their driving and follow the basic rules of the road.

Here are some tips on smart driving that reduces pollution;

Drivers should drive at moderate, steady speeds (ideally between 35 and 45 miles per hour) and try to reduce idling times. High speeds result in greater emissions. Telargo Service provides the tools required to quickly detect overspeeding and excessive idling events, automatically generating alerts on the Fleet Center portal according to pre-set criteria, as well as detailed activity reports.

Fuel can be saved by turning the engine off and restarting it again if idling time is expected to be longer than 30 seconds - idling for more than half a minute burns more gas than it takes to restart the engine. You should take extra care in ensur-ing that your drivers minimize idling times. Telargo Fleet Center portal can gener-ate idling alerts according to customer-defi ned criteria, quickly notifying the fl eet supervisor and helping to reduce GHG emissions.

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Recent studies show that 1.7 billion tons of carbon are produced annually to fuel vehicles in the United States.

Idling for more than half a minute consumes more fuel than it takes to restart the engine.

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Driving in peak traffi c can be avoided sometimes. Whenever possible, trips should be planned outside rush hour and peak traffi c periods. Drivers should try to “smooth” the driving by accelerating and decelerating gradually, anticipating stops and starts for traffi c lights, changing traffi c speeds, and so on. Telargo Service provides the means to analyze traffi c patterns and determine the peak traffi c periods while detailed driver and route reports (track & trace analysis) enable quick determination of driving styles.

Use of a vehicle air conditioner increases the load on the engine. This increases emissions and decreases fuel economy. You should make sure that drivers park the vehicles in the shade to prevent them from heating up in the sun. Besides keeping the interior temperature of the vehicle more comfortable, this will lessen the pol-lution and waste that occurs when fuel evaporates from the engine and fuel tank. Telargo Service supports connectivity with various sensors, enabling daily reporting and subsequent analysis on air conditioning device usage.

3.4 Vehicle maintenance

Maintain the health of your vehicles. Poorly maintained or malfunctioning vehicles can release as much as 10 times the emissions of a well-maintained one. Telargo Preventative Maintenance is based on reminders which alert fl eet managers to service the vehicle according to manufacturer’s recommendations. It will reduce vehicle’s emissions and enhance its performance. By taking proper care of fl eet ve-hicles, you will also extend their life, increase their resale value, and optimize their fuel economy.

Prognostic Maintenance goes a step beyond ordinary preventative maintenance by actually locating weaknesses in a vehicle through sophisticated diagnosis. Remote Diagnostics use diagnostic procedures to pinpoint incipient problems. The predic-tions are based on real-time data from sensors and On Board Diagnostics as well as the quality and historical information already resident in the system.

An example of utilizing predictive maintenance in keeping the environment clean, is keeping an eye on the exhaust emissions. Proper working of the three-way catalyst converter is crucial for exhaust emission control - this device converts the main pollutants in the exhaust gas to less harmful gases.It can only be achieved if the air-fuel ratio is kept within very tight limits (14.7 : 1, air : fuel by mass for gasoline to ensure complete combustion).

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Operating an air conditioner in hot weather can increase fuel consumption by more than 20 percent in city driving.

Poorly maintained or malfunctioning vehicles can release as much as 10 times the emissions of a well-maintained one.

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The Lambda sensor is responsible for keeping this ratio – if the lambda sensor (and eventually catalyst converter) does not work properly the emissions will increase dramatically. With Telargo Service, the fl eet supervisors are notifi ed in real-time if there is a problem with the lambda sensor, so they can issue a maintenance order and fi x the problem as soon as possible to minimize the pollution.

3.5 Alternative fuel types

There are many other fuel types beside gasoline that are more environmentally friendly. Using these types of fuels can dramatically lower the pollution of our environment.

Battery-electric vehicles Are powered by motors that draw electricity from on-board storage batteries, which act as an “engine” to propel it. Electric vehicles don’t produce pollution from the tailpipe or through fuel evaporation, which means they have great potential to re-duce greenhouse gas (GHG) emissions and smog-forming pollutants.

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CARBON MONOXIDE

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20% BIOODIESEL BLEND

100% BIODIESEL BLEND

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Bio diesel Is an alternative to diesel fuel that is made from vegetable oils, waste cooking oil, animal fats or tall oil (a waste product from pulp and paper processing). Compared with conventional diesel, bio diesel combusts better and produces fewer greenhouse gas emissions that contribute to climate change.Ethanol Is a liquid alcohol that is blended with gasoline to produce a fuel that is friendlier to the environment than gasoline and can be used in virtually any gasoline-powered vehicle manufactured after 1980. Most gasoline-powered vehicles can run on a blend consisting of gasoline and up to 10 percent ethanol.

Propane A clean-burning, gaseous fuel that is pressurized and stored as a liquid when used in vehicles. When used as a vehicle fuel, it is often called LPG (liquefi ed petroleum gas) or auto propane.

4.0 Conclusion

Implementing the Telargo service has a positive impact on the environment, improving the company’s image and employee morale. Perhaps the most compelling advantage is that the effects can be measured and monitored on an ongoing basis, which guarantees an ongoing improvement of your business practices and procedures. The results of Telargo Service can be clearly seen from the case study in which the relation between fuel consumption and the cost reduction is being explored.

4.1 ROI Case Study

Reduced fuel consumption through reduced mileage, reduced idling and improved driv-ing technique.

Customer is operating 851 vehicles operating nationwide. Fuel consumption has been lowered by 6% on a yearly basis. This is attributed to reduced mileage, reduced idling and improved driver behavior. Driver Score Report shows driving style. With it we can control driver’s behavior and eliminate speeding, harsh acceleration and strong brak-ing. This improved type of driving results in lower fuel consumption and lower emis-sions.

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Th e EPA estimates that reformulated gasoline reduces ozone-forming emissions and toxic air pollutants by 15 to 17 percent.

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11Copyright © 2007 TELARGO Inc. www.telargo.com, + 1 201 938 1000

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BEFORE per vehicle AFTER per vehicle TOTAL

851 vehicles

Average miles driven per year 8,640 8,406 199,134 less miles

CO2 emissions ( 146 g/mile ) 1.261.440 g 1.227.276 g 29,073 tones

Fuel cost per year ($2.93/gallon)

$ 1,265,760 $ 1,231,480 $ 34,280

Reduced idlingRunning a vehicle at idle speed dramatically reduces engine life; 60 minutes of idling is equivalent to between 80 and 120 minutes of driving time. The resulting loss of fuel economy from excessive idling can add up to 800 gallons of fuel annually for the average truck. On average an idling vehicle burns between 1.6 and 2.4 gallons of gas per hour.

With the help of driver education and Telargo’s Idling Report we have helped our cus-tomer learn that their vehicles average between 0.3 to 0.5 hours per vehicle PER DAY of unnecessary idling! That is 0.5 to 1.2 gallons of gas saved per vehicle per day! This is $1.45 to $3.48 saved per vehicle per day what accounts to average savings of $2.7 * 851 vehicles * 22 working days * 12 months = $553,796.76 annually.

Idling reduction also has great impact on emissions reduction – average CO2 idling emissions for small utility vehicle are approximately 4700 g/hour. This results in 422,368,320 g of CO2 unnecessary emissions per year. If you price the credit at $12 per ton of CO2 emissions then the savings come to 5,064.00 USD annually.

Reduced mileage through route optimizationWe used state-of-the art route optimization tool to improve route modeling based on historical data. Based on old client’s data and current improvements, reduced mileage of up to 2.7% was achieved.

Calculation of CO2 emissions reduction:

Reduced mileage through reduced unauthorized mileage

What is happening to the vehicles after-hours? Are employees taking company vehicles home, using them for personal business or on the weekend? Are workers performing side jobs within business hours and even using company equipment?Our postal client cut down 6% of total yearly mileage with help of the Telargo System and its functions for monitoring vehicles, driver’s login, geo-fencing and geo-corridoring. Those miles are referred to as unauthorized mileage.

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BEFORE 851 vehicles AFTER 851 vehicles

Savings due to lambda sensor monitoring

Fuel consumption per year( 20 miles/gallon )

720.000 712.000 7.200 gall. less

CO2 emissions ( 146 g/mile ) 2102 tones 2081 tones 21 tones less

Calculation of CO2 emissions reduction with unauthorized driving prevention:

CO2 emissions reduction with the implementation of predictive maintenance:

4.2 ROI case study: Reduced emissions through predictive maintenance

Lambda sensorWhile working with national postal company who operates a fl eet of more than 800 vehicles we have noticed a signifi cant disproportion regarding the frequency of DTC (diagnostic trouble codes) – oxygen sensor (lambda sensor) failures are much more common than with other fl eets. The nature of stop and go practice is blamed for that phenomenon.There are 20% of vehicles inside their fl eet that need maintenance of oxygen sensor inside one half-year period. The described failure is attributed to 10% increase in fuel consumption as well as in additional negative environmental impact. On average, the lambda sensor failure event occurs half-way between service intervals. With the use of predictive maintenance the lambda sensor failure is noticed immediate-ly and both time-to-service as well as service time are lowered. It is possible to achieve 1% of fuel consumption decrease by using predictive maintenance.

BEFORE 851 vehicles AFTER 851 vehicles Total unauthorized mileage reduction

Total miles driven per year 14.400,000 13.536.000 864.000 less miles

CO2 emissions ( 146 g/mile ) 2102 tones 1976 tones 126 tones less

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If you price the credit at 12$ per ton of CO2 emmisions then the savings come to 1.512.00$. Fuel cost savings: 864,000 miles /20 gallons per mile * $ 2.93 per gallon = $ 126.576,00

If you price the credit at 12$ per ton of CO2 emmisions then the savings come to 252.00$. Fuel cost savings: 7.200 gallons* $ 2.93 per gallon = $ 21.096,00

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6.0 References

World Health Organization – EuropeAuto Oil IINtziachristos & SamarasDieselNet Environmental Protection Agency US

Offi ce of Energy Effi ciency Canada

Telargo is a comprehensive mobile assets management service that uses advanced technologies to signifi -

cantly enhance the operation of the vehicle fl eet by improving the quality of service, raising the effi ciency

and drastically lowering the operating costs of the vehicle fl eet.

Our main purpose is to enhance the business of our partners by providing them with intelligent, comprehen-

sive and reliable solutions.

www.telargo.com

Disclaimer

Th e information presented herein is intended for illustration purposes only and is provided without any ex-press or implied warranties including warranties of merchantability and fi tness for a particular purpose.

Copyright 2007 Telargo. All rights reserved. Telargo and its logo are trademarks of Telargo Inc. All other

trademarks or service marks are the property of their respective owners.

Telargo Inc. 2500 Plaza 5Harborside Financial CenterJersey CityNew Jersey 07311-4035T: +1 201 633 4780F: +1 201 633 4784Toll-free (US only): 1-866-MYTELARGOE: [email protected]

Telargo GmbH. Regus Center im KastorPlatz der Einheit 1 / 20. stock 60327 Frankfurt a.M.Germany

T: +49 (0) 69 975 03 142 F: +49 (0) 69 975 03 143

E: [email protected]

5.0 Benefi ts

Introducing the Telargo Service with our environment-friendly operational practices into your business leads to many benefi ts:

Reduce the GHG emissions related with fl eet operations

Leverage the Telargo Green Mobility concept for improving your public image

Effortlessly introduce the environment-friendly service improvements for a low cost

Raise the employee morale

Reduce the fuel consumption

Lower the fl eet maintenance costs

Reduce wear on vehicle components and extend their life

Increase your revenues