1. Rev
5/20/13
1
/
4
Tiro
Technologies
Payback
Report
TiroGage ™ Payback
Report
Based
on
Primary
Source
Literature
for
TPMS
Benefits
Published
by
NHTSA,
FMCSA,
USDOT,
and
Other
Public
and
Private
Agencies.
The
following
payback
analysis
is
based
in
part
on
averages
from
the
Technology
and
Maintenance
Council
of
the
ATA
and
the
findings
of
various
research
reports.
These
reports
include
the
NHTSA’s
Commercial
Vehicle
Tire
Condition
Sensor
Study
(CV
Sensor
Study,
2003),
the
FMCSA’s
Tire
Pressure
Monitoring
and
Maintenance
System
Performance
Report
(TPMSSP
Report,
2007),
the
NHTSA’s
Evaluation
of
the
Effectiveness
of
TPMS
in
Proper
Tire
Pressure
(Sivinski,
R.,
2012,
November),
and
many
other
federal,
public,
and
private
date
resources.
Tire
and
other
specific
costs
for
different
fleets
will
vary
in
many
regards,
including
current
tire
pressure
maintenance
(TPM)
procedures,
in-­‐house
or
outsourced
TPM,
retread
policies,
wages,
current
fuel
costs,
etc.
Different
costs
for
tires
at
different
wheel
positions
(in
the
calculation
portion)
are
also
based
on
various
industry
reports
and
private
surveys.
Primary
public
data
references
are
available
on
our
web
site
at
www.tirogage.com.
A
general
statement
on
tire
inflation
issues
by
Ms.
Peggy
Fisher
from
2001:
"The
cost
of
poor
tire
maintenance
is
huge.
Tire
related
costs
are
the
single
largest
maintenance
cost
item
for
commercial
vehicle
fleet
operators.
Nationwide,
average
tire
related
costs
per
tractor-­‐trailer
are
about
1.9
cents
per
mile
–
or
about
$2,375
for
a
125,000
annual
mileage
operation.
For
the
average
fleet
in
the
U.S.
improper
tire
inflation
increases
the
annual
procurement
costs
for
both
new
and
retread
tires
by
about
10-­‐13%
and
fuel
economy
loss
due
to
poor
tire
inflation
is
about
0.6%
for
typical
truckload
(TL)
and
less-­‐than-­‐truckload
(LTL)
operations.
Improper
tire
inflation
is
also
responsible
for
about
1
road
call
per
year
per
tractor-­‐trailer
combination.
A
road
call
averages
about
2.55
hours
of
lost
travel
time
and
costs
the
typical
fleet
operator
about
$750.
This
does
not
include
the
cost
of
a
new
tire,
driver
delay
wages,
lost
customer
goodwill,
or
penalty
charges
for
late
freight
delivery."
-­‐-­‐
Peggy
Fisher,
President,
Fleet
Tire
Consulting
Technology
and
Maintenance
Council
of
the
American
Trucking
Association
Chairman,
Tire
Debris
Prevention
Task
Force,
ATA
Chairman,
Tire
&
Wheel
Recommended
Practices
Update
Task
Force,
ATA
Since
2001,
the
per
mile
tire
costs
have
increase
to
approximately
2.4
cents
per
mile,
or
about
$3,000/vehicle/year
for
a
125,000
annual
mileage
operation.

2. Rev
5/20/13
2
/
4
Tiro
Technologies
The
financial
implications
of
poor
TPM
practice
do
not
stop
with
the
above.
Countless
studies
show
that
underinflation
leads
to
wasted
fuel,
prematurely
worn-­‐out
tire
tread,
needless
costs
of
tire
blowout
and
both
penalties
and
lost
customers
as
a
result
of
missed
delivery
schedules.
The
end
result
is
that
at
least
20%
of
trucking
companies’
maintenance
budgets
now
go
to
tires
and
tire
problems,
vying
for
second
place
with
fuel
and
labor
in
overall
operating
costs.
Tire
problems
account
for
over
half
of
all
on-­‐road
problems,
with
electrical
problems
coming
in
a
distant
second
at
about
16%
cumulatively.
Large
commercial
carriers
in
the
United
States
have
generally
been
slow
to
invest
in
electronic
tire
pressure
monitoring
systems
(eTPMS)
before
they
find
out
what
is
in
store
for
them
when
the
NHTSA
extends
the
TREAD
Act,
(SAE-­‐J2848)
to
the
commercial
realm.
They
find
current
electronic
TPMS
costly
and
the
ROI
ambiguous,
and
have
been
slow
to
adopt
the
new
technology
until
their
competitors
are
equally
compelled
by
government
action.
Major
criticisms
of
many
available
commercial
TMPS
include
system
complexity,
high
upfront
capital
costs,
and
ambiguous
total
costs
of
ownership
(TCO),
which
all
contribute
to
the
ambiguous
ROI.
TiroGage™
addresses
these
criticisms
directly
by
providing
a
simple
solution
at
a
reasonable
upfront
cost
and
predictable
TCO.
Herewith,
a
more
detailed
analysis
on
potential
costs
that
can
be
mitigated
with
better
TPM.

3. Rev
5/20/13
3
/
4
Tiro
Technologies
Payback
Analysis
Fuel
Fuel
Consumption,
Large
Fleet
1)
In
the
U.S.
overall,
0.6%
fuel
economy
is
lost
due
to
under
inflation
a) Average
rig
travels
125,000
miles
per
year
b) b.
125,000
/
6
miles
per
gallon
x
$4.01/
gallon
diesel
x
.006
=
$501
Labor
Preventive
Maintenance
Labor,
Large
Fleet
2) Pre-­‐trip
PSI
checks
every
3000
miles
=
41.67
checks
yearly
@
20
min
apiece,
or
13.89
hours
annual.
At
$15.6/hr
driver
wages
comes
to
$217
Blowout
Blowout
Roadside
Assistance
Fee,
Large
Fleet
(average
cost
is
higher)
3) One
road
call
per
rig
per
year
due
to
blowout,
due
to
under
inflation.
$388
Blowout
Driver
Labor,
Large
Fleet
4) 4.
2.5
hours
lost
on
average
x
$34/hr.
$85
Blowout
Tire-­‐Replacement,
Large
Fleet
5) Steer
tires
only
rarely
blow
because
of
consistent
loads
&
frequent
checks.
6) An
average
of
one
blowout
per
rig
per
year
is
due
to
underinflation.
a) 5%
of
the
time,
this
blowout
occurs
with
a
drive
original
tire.
b) 7%
of
the
time,
this
blowout
occurs
with
a
trailer
original
tire.
c) 45%
of
the
time,
this
blowout
occurs
with
a
drive
retread.
d) 43%
of
the
time,
this
blowout
occurs
with
a
trailer
retread.
7) Steering
tires
cost
for
large
fleets.
$315
Drive
tires
cost
for
large
fleets.
$305
Trailer
tires
cost
for
large
fleets.
$272
Retreads
relined
onto
original
sidewalls
cost
for
large
fleets.
$125
8) Blowouts
occur
on
average
about
halfway
through
a
tire’s
expected
tread
life.
9) Each
blowout
requires
an
original-­‐tire
or
new-­‐retread
purchase
a) 5%
x
avg.
$305
for
drive
original
tire
x
one-­‐half
expected
life
=
$6.1
b) 7%
x
avg.
$272
for
trailer
tire
x
one-­‐half
expected
life
=
$7.8
c) Drive
retread
45%
of
the
time,
generally
relined
45%
x
avg.
$125
for
relined
original
tire
x
one-­‐half
expected
life
=
$27.7
d) Trailer
retread
43%
of
the
time
43%
x
avg.
$125
for
relined
original
tire
x
one-­‐half
expected
life
=
$26.3
Other
Blowout
Costs,
Large
Fleet
10) Vehicle
overhead
costs
computed
at
$1.25
per
mile.
a) 60
miles
per
hour
used
as
overall
speed.
b) 2.55
hours
lost
time
x
60
miles/hour
x
$1.25
per
mile
=
$191
11) Penalties,
lost
revenue
for
late
delivery,
and
lost
revenue
for
interruption
of
trucking
and
supply
schedules.5
=
$240

4. Rev
5/20/13
4
/
4
Tiro
Technologies
Payback
Analysis
(cont’d)
Tread
Tread
Life,
Large
Fleet
12) Average
rig
travels
125,000
miles
per
year.
13) Steering
tires
last
200,000
miles,
then
must
be
replaced.
2
steering
tires
x
$315
x
125,000
/
200,000
(per
rig
per
year)
=
$
393.75
14) Fleets
retread
drive
and
trailer
tires
2
times.
a) 66%
of
drive
and
trailer
tires
on
road
would
be
retreaded
from
current
sidewalls.
b) 34%
of
drive
and
trailer
tires
on
road
would
be
original
tires.
15) 8
Drive
tires
x
34%
are
original
tires
=
2.7
drive
tires
are
original
tires
16) 2.7
tires
x
$305
x
125,000
/
175,000
(per
rig
per
year)
=
$
588.21
17) Trailer
original
tires
last
162,500
miles
on
average.
a) 8
Trailer
tires
x
34%
are
originals
=
2.7
trailer
tires
are
originals
b) 2.7
tires
x
$272
x
125,000
/
162,500
(per
rig
per
year)
=
$
564.92
18) Retread
tires
last
125,000
miles.
a) (8
drive
tires
+
8
trailer
tires)
x
66%
are
retreads
=
10.6
tires
are
retreads
b) 10.6
retreads
x
$125
x
125,000
/
125,000
(per
rig
per
year)
=
$1,325
19) Total
tire
replacement
costs
per
rig
per
year
$381
+
$588.21
+
$564.92
+
$1325
=
$2,859.13
20) Under
inflation
increases
tread
wear
an
average
11.5%,
x
$2,859.13
=
$328.8
21) Under
inflation
has
already
caused
1
out
of
the
16
non-­‐steer
tires
to
blow.
15
/
16
x
$328.8
=
$308
Total
loss
per
rig
per
year
due
to
underinflation
(1.+2.+3.+4.+9.+10.+11.+21.)
=
$1,998
Average
%
of
loss
mitigated
by
TPMS
per
Commercial
Vehicle
Tire
Condition
Sensor
Study
(2003)
80%
Total
Cost
Mitigation=(80%)
x
$1,998
=
$1,598
Payback
Payback
Calculation
for
Large
Commercial
Carrier
22) TiroGage™
costs
$49.95
x
18
+
(8
inside
duals
x
$9/
valve
fitting)
+
(1.5h
installation
x
$30/h)
=
$1,016
per
18
wheels
$1,016
/
$1,598
x
12
months
=
Payback
in.
7.6
months