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.

Presented By

 

Equipment managers must often identify future staffing and facility needs in response to changes in organizational structure, direction, and contract volume that alter the overall size, composition, and maintenance requirements of the fleet. By calculating the maintenance repair factor (MRF) and…
When an organization depends upon the utilization of construction equipment to perform the functions of the business, it often must grapple with understanding how much maintenance is required to maintain its operational requirements. Problems arise when additional equipment is acquired to increase…
keyboard_arrow_downview more articles belowkeyboard_arrow_down

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…

Depreciation is a word that has so many meanings that it is almost meaningless. We know that it has something to do with the fact that equipment does not last forever and that we need to write down its value as it ages and is consumed in the production of work. We know that depreciation charges…

We continue to read about telematics and about the great work being done by AEMP and many others to help the technology achieve its full…

Should the shop make money?

It is surprising how often this question is asked and how much emotion is attached to almost any answer. Perhaps another way of looking at it is to ask, “Should the shop lose money?”

By “shop,” I assume we are talking about the equipment account. By “…

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…

expand_less