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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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…
Construction equipment maintenance should have a business plan independent from the overall fleet’s plan in order to attain total productive maintenance. It should accomplish four goals: Identify the mission and vision, document responsibilities and performance, initiate objectives, and communicate…
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Many folk accuse me of spending too much time on trick plays and forgetting the basics of the business. Trick plays are fun, but they only work if your blocking and tackling are excellent; you have to know the basics. 

Let’s look at three things you have to have to attack the causes of…

The companies that seriously manage their spare parts are likely to be the ones that survive in the long run. Parts costs for most construction equipment, especially dirt fleets, run about two-thirds (yes, 67 percent) of all repair costs. That’s way too important to mismanage or manage casually…

I frequently hear talk about comparative shop labor rates and outsourcing. A lot of it makes sense, and it certainly is important to constantly check that the services you deliver are competitive with those you can buy from dealers and other outside sources. Deciding on how much to do in-house…

The companies that seriously manage their spare parts are likely to be the ones that survive in the long run. Parts costs for most construction equipment, especially dirt fleets, run about two-thirds (yes, 67 percent) of all repair costs. That’s way too important to mismanage or manage casually…

The November 19 edition of The Wall Street Journal ran a front-page story about how insurance companies use online purchasing data to identify individuals to whom they can sell life insurance and make a better than average return. The next time you buy a $2,000 elliptical training machine, your…

It seems to me that there are fewer equipment managers today than there were 10 years ago. I’m pretty sure of it, and if you’re an equipment manager, that should concern you. So why is that? Is your job at risk?

Since most construction-company presidents and owners come out of the…

Everybody has been downsizing and holding on to their old iron. Business conditions have been brutal and it certainly has not been fun bidding work, winning work and building work in an industry that seems to have lost sight of the balance between risk and reward.

More and more folk are…

As a general rule for most construction equipment, one-third of your total owning and operating (O&O) costs is your depreciation, one-third of your O&O costs is repair and maintenance related, and one-third is fuel related. I suspect you intuitively agree with this. I am amazed, then,…

Since you are reading this article, my guess is that you are an equipment-owning manager who is open to new ideas.

You probably have a dealer product-support rep who regularly measures your crawler undercarriage. You probably have some kind of oil analysis program that looks at your…

We've all heard various "Rules of Thumb." These are little one liners that intuitively sum up whole textbooks of knowledge. Below are several equipment-related rules of thumb worth passing on along with some comments:

When the total of the equipment repair costs equal the purchase price,…

If you manage equipment, no matter what your company title, you have metrics that you consider the most important. My top three are utilization, downtime and cost per hour. For the most part, I don't care how you define them or measure them; as long as you stay with whatever method you choose.…

Every now and then, you must be controversial and address a subject where your beliefs run counter to common practice. Overhead and overhead-cost recovery is one of these subjects.

The controversy has its roots in the difference between a dealer's shop and a contractor's shop. These are…

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