Table of Contents

ORGANIZATION

How do we organize our business so that we achieve maximum value from our equipment assets.

• 1. Equipment Management.
• 1-1 Equipment Management Functions
• 1-2 Functions, Roles and Responsibilities
• 2. Responsibility Centers and Organizational Structure.
• 2-1 The Pros and Cons of Centralization
• 2-2 Decentralize Decisions, Centralize Standards
• 2-3 How to Make Internal Rates Work
• 2-4 The Flow of Internal Costs and Charges
• 2-5 Making Responsibility Centers Work
• 3. Making Organizations Work.
• 3-1 Understand and Eliminate Accidents
• 3-2 Integrating Equipment Management in the Company
• 3-3 Three Goals for World Class
• 3-3 It truly is a Partnership
• 3-4 The Shop is more than a Workshop

ECONOMICS

How do we estimate owning and operating costs and manage the risks involved.

• 4. The Rate Calculation
• 4-1 Owning and Operating Costs
• 4-2 The Rate Calculation
• 4-3 Sensitivity Analysis on the Rate Calculation
• 4-4 Actual Costs and the Rate Calculation
• 4-5 Maintain a Focus on Cost Per Unit
• 5. Understanding and Estimating Owning Costs
• 5-1 Estimating Residual Market Value
• 5-2 The Residual Value Grid
• 5-3 Interest and the Cost of Capital
• 5-4 De-mystifying Depreciation
• 5-5 Alternatives to Straight Line Depreciation
• 6. Understanding and Estimating Operating Costs
• 6-1 Understanding and Classifying Operating Costs
• 6-2 The Cost of Repair Parts and Labor
• 6-3 Component Replacement Costs
• 6-4 Undercarriage Costs – Managing Large Expenditures

MANAGEMENT

How do we strike a balance and optimize the decisions we take in many complex areas.

• 7. Economic Life, Fleet Average Age and Capital Expenditure
• 7-1 Economic Life
• 7-2 Fleet Replacement Planning
• 7-3 Buy What You Burn
• 7-4 Maintain Capacity in Stock
• 7-5 Fleet Age Balance
• 7-6 The Replacement Decision
• 7-7 Dangers of Delaying Replacement
• 8. Strategic Maintenance Issues
• 8-1 Maintain, Repair, Rebuild
• 8-2 Inspection and Prevention
• 8-3 Condition Assessment and Mechanical Maintenance
• 8-4 Oil Analysis
• 8-5 Maintenance and Component Life
• 8-6 The Rebuild Decision
• 9. Performance Measures
• 9-1 The Challenge of Benchmarking
• 9-2 Deployment, Availability and Utilization
• 9-3 Data and Performance Metrics.
• 9-4 Measuring and Managing Utilization
• 9-5 Measuring Age Cost and Reliability
• 10. Cash, Cash Flow and Discounted Cash Flow Analysis
• 10-1 Cash is King
• 10-2 Discounted Cash Flow
• 10-3 Rate of Return
• 10-4 A Cash Flow Based Rate Calculation
• 11. Balance Sheets, Cash Flow, Financing and Leasing
• 11-1 Equipment Transactions and the Balance Sheet.
• 11-2 Balance Sheet Ratios.
• 11-3. Equipment Decisions and Taxable Income.
• 11-4. The Lease Decision.
• 11-5. Inflation, Working in a World of Growing Costs.
• 12. Budgets and Budgeting
• 12-1 The Budget Control Cycle
• 12-2 Producing Actionable Cost Information
• 12-3 The Equipment Cost Report
• 12-4 Fixed and Variable Costs in Fleet Management
• 12-5 Reallocating Budget Variances
• 12-6 Actions Speak Louder Than Budgets