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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We have discussed the advantages of centralizing the fleet and placing all of the organization’s equipment assets under the direct control of a knowledgeable and experienced equipment manager. The concept works, and many companies have significantly improved equipment operations by creating what is…
It’s been a wild ride since June 1977 when the Apple II was released and VisiCalc launched the spreadsheet revolution. Business information, from accounting to job costing and estimating, is no longer produced by hand. Maintenance work orders are automatically generated right on schedule, and data…
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You cannot maintain the equipment of today with the tools, technologies and mindsets of yesterday.

The old rope shovel in the picture burned almost anything for fuel, oil was black and dirty, and water was all you needed for a coolant. Preventive maintenance was all but nonexistent, and…

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.

He is also your boss. You manage his fleet and are responsible for making sure that the jobs have the right iron in the right…

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…

Most construction companies have an equipment department or division within the overall organization. This responsibility center builds a specialized equipment team, gives it clearly defined and measurable objectives, and focuses management attention on a critical part of the business.

In my February 2011 column, I suggested that the number of equipment-manager positions was declining. That was due to the 2008 recession-related failure of some…

When a machine starts a production shift, it should work without interruption, not break down and not bring everything to a grinding halt.  Our goal should be to have zero on-shift failures - it is possible, desirable and it makes good business sense.

Successful equipment managers know…

We constantly work to balance the cost of owning and operating our fleet with the revenue earned by charging jobs for the equipment they use. It occupies a large portion of every day. We worry about the cost side and struggle to bring it in line with our revenue so that we can “break even.” Yet…

The AEM/AEMP telematics standard is a major step forward. Many people have worked long and hard to reach this point, and we should all be thankful for their efforts. The API that has been developed as part of this…

Equipment-using organizations often use their fleet to promote their brand. The name is on both sides of the equipment; their logo identifies the organization. Senior managers get quite involved and particular when it comes to how the company brand is portrayed.

There are pros and cons to…

Equipment is a capital-intensive business, yet capital is a scarce and expensive resource. That is why so much of what we do is focused on capital expenditure (capex) and the capital-expenditure budget.

Developing the budget and making the business case for the substantial capital…

Setting the internal charge-out rate is probably the most difficult, contentious and important task that an equipment manager needs to perform. Let’s look at each of those words to better understand the situation and then attempt to develop a process that helps.

Difficult

The difficulty…

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