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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I got into a lot of trouble as a young field engineer by telling my boss that cost overruns were not a problem. I told him that the real problem lay in the way we built our work and that cost overruns were a symptom of the fact that something was not going well. My job was to find and fix the cause…
How do you reconcile actual costs with what is actually charged to the construction project? Relationships between construction operations and the equipment-management team are often strained. Operations see the equipment they use as a means to an end—as a way to build the job safely, on budget,…
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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…

When buying a piece of construction equipment, most managers consider whether they want to purchase extended warranty. Key questions need to be asked—and answered—before making your decision, but unfortunately, it’s not simple.

Let’s review the basics of standard warranty. The standard…

I have, for a number of years, been proposing an economic life or sweet spot calculator based on knowing the equation of the cumulative cost curve. Many managers have successfully used it; others are confused by the concept of cumulative cost and have stayed with their current methodologies.…

The hexagon describing the six basic functions of equipment management has gained quite a following in the industry since it was introduced several years ago. It’s been used to show how management has evolved in recent years, but it can also be used to produce a world-class procedures manual…

Last October, Construction Equipment surveyed its subscribers and published the “Top 3 Challenges Facing Equipment Managers.”  No. 1 was “Not able to replace equipment as needed,” and No.…

Conflict and tension all too often interfere with good relations between operations—those who use equipment to complete construction on time and on budget—and equipment—those who look after equipment and make sure it achieves its minimum lifecycle cost. It is a precarious relationship because…

 

 

I have the opportunity to work with some great companies and learn from the best. So it is natural that I have a little storehouse of knowledge about what the best companies do when it comes to managing their fleets. I share the following in the hope that you can look at your…

Most of us have suffered through three or four years of misery: low backlogs, marginal company profits, layoffs, shop reductions. As the marketplace rebounds, now is the time to re-think your need for mechanics. I use the term “mechanics” and “technicians” interchangeably. To me, a technician is…

Equipment managers must take a long-term view of the repair/rebuild/replace decision in order to optimize the value of equipment assets over their full life cycle. They should not worry too much about short-term fluctuations; wise investments and wise decisions pay off. Not everyone sees it that…

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