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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

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?”

Complicated software problems often occur where workflows require one system to “talk” to another so that they can exchange data or perform different parts of the same workflow.

Sometimes we are so tied up with complicated, difficult problems that we overlook the solid fundamentals that make things work. The fleet numbering system is one of those fundamentals. Individual units in your fleet vary tremendously in terms of form, function, size, weight, productive capacity, and cost.

Many long and complex discussions have taught me that setting up an effective work-order coding system is more complex than it appears. Two problems occur frequently. First, the list of applicable codes is so long and complex that the final result is full of errors, misinterpretations, and mistakes. Second, it is unclear why codes are being entered and how they will be used.

Reading, writing, and arithmetic—if you get them right, you will be on your way to great things. The same is true for the repair/rebuild/replace decision. Get it right, and many of the requirements for success fall into place. 

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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