Table of Contents

A Framework.

Part I. BUILD YOUR ORGANIZATION.

  • 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.
  • 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.

Part II. KNOW YOUR COSTS.

  • Chapter 3. Owning and Operating Costs.
    • Section 3-1 The Flow of Costs and Charges.
    • Section 3-2 Use the differences.
  • 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.

Part III. MANAGE FLEET AVERAGE AGE.

  • 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 Capex Creates a Commitment.
    • Section 11-5 Think Like an Investor.
    • Section 11-6 Profitability is Only Part of the Story.

Part IV. ENSURE UTILIZATION.

  • 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.

Part V. MAINTAIN RELIABILITY.

  • Chapter 14. Measuring Utilization.
    • 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.

Part VI. BE PROACTIVE.

  • Chapter 16. Measuring Utilization.
    • Section 16-1 Financial and Operational Metrics.
    • Section 16-2 Reactive Cost Analysis.
    • Section 16-3 Measuring Hours Worked and Utilization.
    • Section 16-4 Be Proactive - Attack the Causes of Cost.

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