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.

Registration is open for the next Institute, April 16-18, 2019, in Chicago.

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Last month we discussed the need to know how equipment-related transactions flow through the organization and detailed a process for operating costs. We introduced a diagram of how charges flow from the job accounts to the equipment account. This article details a process for owning costs and…
You have heard what people say: If you want to know how something works, just follow the money. Equipment management is no different, and it is useful to trace the flow of funds through an organization in order to understand and communicate how things work. This is the first of two articles that…
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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…

Every equipment organization I’ve ever known has a problem with theft and security of their small equipment. When I say small equipment, I’m talking about small generator sets, tamps and jumping jacks, cut-off saws, small pumps, and dozens of other such items. It’s the group of tools with…

 

 

What is best: buy, borrow, lease or rent? The question comes up often, and there are no right answers, only intelligent choices. Although cost is certainly important, it is not the overriding consideration. Many other factors and risks must be considered.

Let’s develop…

What do you buy when you buy a wheel loader? Do you buy one unit? Or do you buy a certain number of productive wheel loader hours that you put into inventory and keep there as an asset until it is used up in the production of work? The accountants certainly see the new wheel loader as an asset…

The term “Best Practices” has become an overused catch phrase in our construction industry. It’s like the weather; everyone talks about it, but practically no one does anything with it. Managers use the popular Best Practices phrase to sell an idea or a concept. A Best Practices program is…

Balancing an equipment account and taking the right action when things go wrong is extremely complex. It takes a deep understanding of costs and the costing process to pinpoint problems and take appropriate action.

Three things are absolutely essential for effective equipment cost…

We struggle with capital expenditures (capex) and capex budgets every year. It is invariably a long and complex process, and we often feel that things have not gone our way. We believe that we must spend a certain amount to maintain fleet average age and to grow. The president and the board of…

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