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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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Equipment Executive Articles

Waste within each equipment metric builds, cutting into overall fleet usefulness.

 

 

Measuring and managing utilization is difficult. It is easy to know exactly where the heavy iron is located and to record hours worked. It is a much more complex problem when it comes to the 4-inch pumps, trench rollers, and variable message boards that are moved informally and work intermittently.

A work order system must be more than a way to charge time and cost against a machine. It must be an effective way to plan work and improve efficiency.

If yours is not, you need to think again.

Historical data coupled with solid estimates of upcoming work provide the best opportunity to set accurate hourly rates.

It is rate-setting season again. We know about last year, this year is well under way, and we are thinking about the rates we need to change to be successful next year.

We are too focused on cost when it comes to thinking about equipment replacement. It certainly is important to know what it will cost to own and operate a unit in the year ahead and to make wise replacement decisions when the old unit—the defender—is likely to cost more than the minimum lifecycle cost you can expect from a new unit—the challenger.

Most conversations about overhead turn out to be complicated and emotional. People are confused about how it is defined, how it is calculated, and above all, how it is recovered. Everyone does it differently, and no one is happy.

Gone are the days when renting equipment was a small part of our business. Gone are the days when we did it as an exception and only when absolutely necessary.

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.

C.E.M.P LEARNING MODULES

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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