Fleet Management


Properly equipment management is vital to protect your equipment's return on investment. As a rule of thumb, you should replace equipment once the cost of maintenance exceeds 30% of the machine’s resale value. Read on to learn how to keep your fleet productive over a longer period of time.


Maintenance Costs


80% of maintenance costs are incurred from 20% of machine problems. Identify common problems and take preventive action to resolve those issues. Stopping problems early helps reduce your repair budget.


Perform routine fluid analysis


Fluids are the lifeblood of your machine. Analyzing them and comparing contaminant levels to normal wear rates helps identify potential problems with components before they fail. Routine fluid analysis should be part of your proactive maintenance program and helps avoid unnecessary downtime and costly repairs.


Monitor your machine with electronic tools


Tools have been developed that more accurately monitor equipment, collect data, and convert raw data into actionable information. Software is available to help fleet managers determine a machine’s resale value, calculate ownership and operating costs, and estimate repairs, parts and labor expenses.


Keep parts and service records


Taking record of operational costs, such as working hours, fuel consumption, and maintenance expenses helps track any decline in machine productivity. Good records can be an important factor when choosing to replace or repair equipment, and also help resale value. Maintain a vehicle history file for every machine, documenting all maintenance and repair work.


Age is important


Total cost to run equipment decreases during the early years of machine ownership as capital costs are spread over a longer period of time. However, operating costs increase during the same timeframe, eventually leading to an increase in average total cost. The point at which the sum of ownership costs and operating costs reaches its minimum is the ideal age for operating equipment efficiently. It is crucial to stabilize fleet average age around this point in order to keep total cost of ownership down.


Rebuild vs Replace


This simple formula can help determine if it's time for a new piece of equipment:

Cost to rebuild (new equipment price x .5)/equipment life (estimated hours x .75) = cost per hour 

For example, a new piece of equipment that is $160,000 with an estimated life of 10,000 hours would cost $16 per hour to operate. To compare, calculate the cost to rebuild. 

($160,000)(.5)/(10.000)(.75) = $10.66 per hour 

If the cost to rebuild is $70,000 for an estimated equipment life of 7,500 hours, at $10.66 per hour, it is more cost effective to rebuild than to replace.







Service Tips

Here are some tips to keep your equipment running effective and efficiently