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A short class with Sarah and her students. The other ways are under More.
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Today, we're going to delve into the differences between ownership costs and operating costs for construction equipment. Can anyone tell me what ownership cost includes?
Isn't that the cost associated with buying and maintaining the equipment regardless of its use?
Exactly! Ownership costs are fixed and incurred whether the equipment is in operation or not. Now, how about operating costs - what do they entail?
I think operating costs are those that occur only when using the equipment, like fuel and wages for operators.
Right again! Remember the acronym FUMR - Fuel, Wages, Maintenance, and Repair. These are the components of operating costs. Let's move forward!
Let's break down the operating costs further. What are some components you remember?
Consumables like fuel and lubricants are part of it, right?
Correct! 'Consumables' is a key component. Would anyone like to elaborate on how maintenance and repair fit into operating costs?
Major repairs may fall under ownership costs, but minor repairs would be included in operating costs.
Exactly! It's essential to distinguish between minor and major repairs. Let's have a brief recap: remember FUMR for operating costs!
Now that we've established the components of operating costs, how can we estimate these costs effectively? Any thoughts?
We could use past experience records or manufacturer recommendations to estimate repair costs.
Excellent point! Past records and manufacturer handbooks provide vital data for estimating these costs accurately.
What about different operating conditions? How does that factor in?
Great question! The conditions under which equipment is used directly influence the cost. Severe conditions lead to higher operating costs due to increased wear and tear.
Consider two excavators: One working in a quarry and another on a normal construction site. How might their operating costs differ?
The one in the quarry will have higher costs due to tougher conditions and more wear.
Exactly! Different job conditions can significantly impact operating costs. Using the acronym JOB – Job type, Operating conditions, and Behavior of equipment can help remember these factors!
What about the type of machinery?
Yes! Different types of machinery are designed for varying tasks and conditions, which also affects the operating costs.
Let’s discuss how we can calculate the consumables, especially fuel costs. What factors do you think influence fuel consumption?
The horsepower of the machine and the efficiency of the operation play a huge role.
Correct, and also remember the time and load factors! They also greatly impact how we measure fuel consumption.
Can we get this information from manufacturer handbooks?
Absolutely! Manufacturer handbooks are quite valuable for specifics on fuel consumption across different conditions.
The distinction between costs incurred from ownership regardless of usage and those that only occur during operation.
How the frequency and conditions under which equipment is used directly affect repair and operating costs.
The materials needed for operation that directly impact costs, such as fuel and lubricants.
Essential aspects of operational costs that include both minor regular repairs and major overhauls.
Variable factors based on where and how equipment is operated affecting wear and tear.
When using machines, keep costs in sight, Fuel and Wages are key to getting it right.
Once in a busy construction yard two excavators worked tirelessly. One worked in a muddy pit while the other rolled through smooth land, their costs became like night and day as one generated significantly more wear than the other.
Remember JOB for Job conditions—ensure the equipment acts how you expect, whether the load is heavy or average.
Use the acronym FUMR to remember Fuel, Wages, Maintenance, and Repair—core facets of operating costs!
Term
Components of Operating Costs
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Term
Factors Influencing Repair Costs
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Term
FUMR
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Costs that occur only when the equipment is in use, such as fuel, maintenance, and repair.
Fixed costs associated with owning equipment, incurred regardless of usage.
Materials consumed during operations, including fuel, lubricants, and small parts.
Costs associated with keeping equipment operational, including routine service and unexpected repairs.
The specific environmental and operational circumstances under which equipment is used.
A unit of measurement for power, indicating the capacity of equipment engines.
This section discusses the various factors that influence the operating costs of construction equipment, particularly focusing on repair costs.
Operating costs for construction equipment can vary significantly based on factors such as usage level, job conditions, and equipment type. This section elaborates on the components of operating costs, including maintenance, repair, and consumables, and explains methods for estimating these costs as they relate to specific machinery under varying conditions.
In construction, operating costs are distinct from ownership costs, with repair costs forming a significant part of the operating cost. The operating costs are directly tied to the usage of the equipment, and this section identifies the key elements influencing these costs. The main components include:
To estimate the repair costs accurately, operators are encouraged to keep records of past experiences and refer to manufacturer guidelines to determine consumable needs and repair factors based on operating conditions. There are various methods to compute these costs, including categorizing them by type of equipment and analyzing operational contexts.