What’s in Construction Equipment Economics
Chapter 1. Functions and Structure.‍
Section 1-1 Equipment Management Functions.
Section 1-2 The Pros and Cons of Centralization.
Section 1-3 The Case for a Regionalized Fleet.
Section 1-4 The Case for a Capital Company.
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Chapter 2. Success is a Team Sport.‍
Section 2-1 Integrating Equipment.
Section 2-2 How to Make Internal Rates Work.
Section 2-3 Reducing Conflict - the Big 5.
Section 2-4 It Truly is a Partnership.
Section 2-5 It is more than equipment.
Chapter 3. Owning and Operating Costs.
Section 3-1 The Flow of Costs and Charges.
Section 3-2 Use the differences.
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Chapter 4. Understand and Estimate Owning Costs.
Section 4-1 The Costs.
Section 4-2 Demystifying Depreciation.
Section 4-3 Interest on Capital.
Section 4-4 Residual Market Value.
Section 4-5 The Capital Account.
Chapter 5. Understand and Estimate Operating Costs.
Section 5-1 The Relatively Constant Categories.
Section 5-2 Repair Parts and Labor.
Section 5-3 Working from First Principles.
Section 5-4 Capitalized Costs.
Section 5-5 Indirect Costs.
Chapter 6. The Rate Calculation.
Section 6-1 A Format for the Rate Calculation.
Section 6-2 Sensitivity Analysis.
Section 6-3 Calibrating the Rate Calculation.
Chapter 7. Budgeting and Cost Management.
Section 7-1 Terminology.
Section 7-2 Level of detail.
Section 7-3 Setting Budgets.
Section 7-4 The Equipment Cost Report.
Section 7-5 Fixed and variable costs.
Section 7-6 Reallocating budget variances.
Chapter 8. Strategic Maintenance Issues.
Section 8-1 The Classic Optimum Ownership Period Calculation.
Section 8-2 The Total Cost Model.
Section 8-3 Machine Age Zones.
Section 8-4 An Optimum Ownership Period Based Rate Calculation.
Chapter 9. Fleet Age Management.
Section 9-1 Fleet Age Balance.
Section 9-2 Age-Based Replacement Planning.
Section 9-3 Other Factors in Replacement Planning.
Section 9-4 Case Study #9.1. Developing a Replacement Plan.
Section 9-5 Case Study  #9.2. Managing the Optimum Ownership Period.
Chapter 10. The Repair, Rebuild, Replace Decision.
Section 10-1 Repairs and Repair Reserves.
Section 10-2 Challenger - Defender Analysis.
Section 10-3 The Rebuild Decision.
Section 10-4 Dangers of Delaying.
Chapter 11. CAPEX Budgets, Buy, Borrow, Lease or Rent.
Section 11-1 Structuring the List of Requirements.
Section 11-2 Financing Strategy: Buy, Borrow, Lease or Rent.
Section 11-3 Integrating Rental Equipment.
Section 11-4 CAPEXÂ Creates a Commitment.
Section 11-5 Think Like an Investor.
Section 11-6 Profitability is Only Part of the Story.
Chapter 12. Measuring Utilization.
Section 12-1 Using Sensor Data.
Section 12-2 Deployment and Availability.
Section 12-3 Measuring Hours Worked and Utilization.
Section 12-4 Other Operational Metrics.
Chapter 13. The Cost Impact of Utilization.
Section 13-1 Utilization and the Rate.
Section 13-2 Dual rates and job charges.
Chapter 14. Strategic Maintenance Issues.
Section 14-1 Maintenance, Repair and Rebuild.
Section 14-2 Inspection and Prevention.
Section 14-3 Work Order Codes in Maintenance Management.
Chapter 15. Reliability.
Section 15-1 Availability and Reliability.
Section 15-2 Reliability Data.
Section 15-3 Presenting Reliability Metrics.
Section 15-4 Age, Cost and Reliability.
Chapter 16. Implementation.
Section 16-1 Financial and Operational Metrics.
Section 16-2 Reactive Cost Analysis.
Section 16-3 Be Proactive - Attack the Causes of Cost.
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