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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Fluid contamination causes millions of dollars in unnecessary repair expense each year. It slowly attacks components as fluids flow through the various systems invisible to operators and maintenance personnel. It is one of the leading causes of unscheduled downtime and can result in a loss of…
The availability of equipment technicians continues to decline, rapidly intensifying the need to address recruitment, advancement, and retention of mechanically talented men and women to fill the void. Many journeyman technicians with decades of knowledge and experience are contemplating retirement…
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The proponents of lean manufacturing have taught us two things. First, be clear in your definition of contributory work, the activities that add value and contribute to the final result. Second, focus on waste: define it, measure it, and have clear strategies in place to eliminate it from the…

Questions arise over the benefit of including residual market value in a rate calculation and the analysis done to set the economic life of machines. My answer used to be: “It is not a big deal, leave it out, you do not have good residual value data, and there is nothing wrong with being…

The equipment rate—the estimated cost to own and operate a given machine for a given period of time—is not a simple number. It is a complex, high-risk estimate that plays a major role in many aspects of the business.

There are three things to understand about equipment rate: the risks…

Job costing can be described simply as charging each job or each phase code for the resources they used to produce work, and crediting the job or job-phase code with the budgeted value of the work done.

The labor portion of a given job phase code is accurately and quickly known through…

Every dollar received in a capital expenditures (capex) budget must be returned to the company treasury one way or another. In “The Depreciation Cycle,” we described that process.

Above: This table shows…

Equipment fleets represent a large and special kind of capital investment that does not last forever. Machines wear away in the production of work, so there is a constant need for replacement—of both the unit itself and of the capital investment it represents. Maintaining a well-capitalized…

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