Controlling operating cost holds the key for virtually every business trying to be successful in the today's competitive climate. Paul Robotham, Manager, Vehicle Maintenance Services,  for Northeast Utilities in Newington, Connecticut, found it was not only possible to maintain, but actually reduce tire costs while all other operating costs seem to be spiraling upward. With over 2,900 pieces of equipment under his jurisdiction, a 10 to 12 percent savings in tire costs represents a substantial gain, and Robotham calls those figures conservative. 

So, how do you reduce tire costs when everything else seems to be going up? Robotham used a multi-faceted approach which actually took several years to develop. His successful formula includes spec'ing, standardization, maintenance and strong vendor support.

According to Robotham, it all starts with the purchase of new equipment and new tires. He said, "While we used to settle for the least expensive bias ply tires, we now spec a premium brand of steel belted radial. We pay a little more up front, but the life-cycle costing of those premium tires generously repays us for our higher initial investment. 

"We can retread the premium casing an average of three or four times. Each time we retread the casings it costs us about 25 to 30 percent the price of a new tire. We have also found that we don't sacrifice a bit of tread life by using retreads. On the contrary, when the original tread is worn off, we have found a premium retread will give us up to three times the wear we were getting from the original tread in some applications. Our experience has been that we get as good or better wear from the retread in all applications." 

Standardization is the second part of Robotham's successful tire program. While a utility fleet includes everything from a passenger car to a heavy duty truck, by standardizing tire sizes, plies and brands as much as possible in the different vehicle sizes, he is able to substantially reduce his replacement tire inventory without risking vehicle downtime. The reduced inventory translates into major dollar savings. 

His vendor, *Malerba's Silver City Tire Company, Inc., is also a major factor in the success formula. Malerba's does all of the repairs, retreadings and rim mountings for the Connecticut based vehicles, which represent about 80 percent of his fleet. All Robotham's maintenance people have to do is physically put the tires on the vehicles. 

But the vendor's service role is even more important than that. Robert Malerba, President of Malerba's Silver City Tire Company, actually keeps records of the various sizes of tires available at each of the Northeast Utilities 26 garage locations. With regular route deliveries to those locations from Malerba's, Northeast Utilities is able to substantially reduce the amount of inventory they hold. According to Robotham, "That is a key factor in our tire savings." 

Tire maintenance is the final element in the success formula. The premium new tires will only give you quality retreadable casings if they are properly maintained. Robotham said, "Our drivers are responsible for checking their tires; when they start their duty day with a pre-trip inspection, and when they conclude it with a post-trip inspection. In addition to that our vehicles are parked in the yard. Depending on the vehicle's size, 30, 60 and 90 day preventative maintenance schedules help in that maintenance effort." 

ADDITIONAL BENEFITS 

In addition to the dollar savings in the tire program itself, Robotham said, "We have all but eliminated downtime. When you're talking about a truck and a crew of two individuals you can be talking about a substantial waste of money if that truck is stopped beside the road for a tire failure. Our fleet is pared down to a minimum number of vehicles for economic reasons. Operational readiness is critical to the best possible operational readiness." 

The recycling benefits of retreading serve to further make it attractive to Northeast Utilities. One needs only to enter a Northeast Utilities building to notice a substantial recycling effort with bins available for almost every type of material. With all of that environmental effort, the greatest environmental contribution could well be coming from Robotham's retread tire program. 

Tires are basically petrochemical products. In fact, it takes about 22 gallons of oil to produce one new truck tire. Most of that oil is found in the casing of the tire, which is reused when the tire is retreaded. Every time a truck tire is retreaded, 15 gallons of oil is saved. The combined efforts of all retreading in North America save hundreds of millions of gallons of oil annually. 

There are also other environmental benefits. Each time a tire is retreaded, a potential trip to a landfill can be avoided. Since a truck tire can be retreaded an average of 3 to 4 times, retreading can result in a 75 percent reduction in the disposal problem. 

While the dollar savings and the recycling benefits of his present tire program are indeed impressive, it is the operational readiness that pleases Robotham the most. He said, "I know our crews can take these vehicles and perform their duties with a minimum of downtime, and as the manager of vehicle maintenance service, that's my number one priority." 

* See  Retread Tire Buyers Guide for a reliable vendor in your area