Equipment Type

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.


This year's even is taking place December 11-13 at the Hilton Rosemont/Chicago O'Hare.


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Equipment Executive Articles

Equipment managers have six options when replacing a machine

We constantly wrestle with the replacement decision. Sometimes it is relatively easy, and we know we have made the right call. Most days, however, we go home and wonder if it would not have been better to keep the old unit a little longer.

Working from right to left, ask “why” questions

We are very good at collecting data when the transaction in question has a dollar sign attached to it. Every transaction on your credit card is recorded in detail and processed almost instantaneously because it is a commercial transaction. Transactions that do not have dollar signs attached to them are different.

Each triangle of the hexagon represents a function of competent equipment management.

Equipment management is a complex and difficult task that affects almost every aspect of a company’s operations. The skills required vary from the master mechanic to the finance specialist, and organization structures depend more on the personalities involved than careful planning and forethought.

Each cost calculation is based on hours worked, yet each has a different factor lending uncertainty to estimating the cost.

Accurate equipment cost hinges on the answers to two different questions: What does it cost to bring the machine into your fleet and keep it there, and what does it cost to put it to work? To answer the first, you must know and understand owning costs. To answer the second, you must know and understand operating costs.

This diagram helps to understand how a coding system should be developed

A work order coding system exists not simply because the computerized maintenance management software (CMMS) has a field to be filled in. It exists to provide information required to run your business. Before you design and develop it, you absolutely must decide on your key performance indicators (KPI) and your data requirements.

Financial inputs vary construction equipment owning costs and rates

Managers often take owning costs for granted. Most costs are largely fixed upon closing the deal, and it seems relatively easy to estimate the monthly owning costs likely throughout the anticipated life of a machine.

Efficient machine performance requires managing the relationship between actual costs and estimated costs.

Last month, we introduced the total cost diagram as a simple, easy-to-use graphic to define age zones based on the time in the life of a machine when the average cost per hour, life to date, reaches a minimum.

In my interactions with fleet managers around minimum life-to-date costs and the sweet-spot curve (see “Sweet Spot Revisited”), two valid questions often arise: “How do I explain the concept, and how do I make a clear distinction between annual costs and life-to-date costs?”


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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