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Construction Equipment Executive Institute

Learn the fundamentals of fleet management from our collection of articles and videos. The best in asset management for the construction equipment professional.

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Sponsored by Caterpillar

Equipment Executive Articles

Implement these four fundamentals as a first step toward successful asset management.



Recently, someone said to me, “Mike, enough policy and philosophy, what would you do if you were responsible for implementing the material we have spoken about during the past four days. No fancy ideas, just hard realities?”

You can try to prepare the best meal in the world, but it won’t happen unless you have the ingredients in your pantry. The same is true with information and information systems. The data you have available, its definition, and its collection invariably limit what you can do to provide the information you need to manage your fleet.

The management of construction equipment fleets involves these types of data, and next-generation asset management will find ways to integrate them.

We continue to read about telematics and about the great work being done by AEMP and many others to help the technology achieve its full potential.

Should the shop make money?

It is surprising how often this question is asked and how much emotion is attached to almost any answer. Perhaps another way of looking at it is to ask, “Should the shop lose money?”

You cannot maintain the equipment of today with the tools, technologies and mindsets of yesterday.

A small book titled “Fundamentals of Earthmoving” published by Caterpillar in 1968 has a special place in my bookshelf. This is what it says about repair parts and labor:

Ron is the CEO of a large and busy construction company. Life has been a blur, but the business is a success. It is growing and making money. Ron is a busy guy.

Using the sample data for Annual Costs contained in the table below, these cost models allow for evaluation of various life cycles.

The difference between annual cost and full life cycle or life to date (LTD) cost is one of the most difficult things to grasp when it comes to understanding equipment costs. This is due to the fact that we have been trained to focus on next year’s cost and next year’s budget, which causes us to take a short-term view of cost. The snag is, you buy a machine for the long term.


Session M/2 explains the principles and strategies of maintenance.

Session E/2 explains what is included in the hourly rate calculation, and how to do the actual calculation.

Session O/2 explains what role the hourly rate plays in an equipment-using company, and how the rate should handle transactions.

Learn how to understand and use activity metrics.

How to make your organizational structure work for you.

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