The overall cost of a machine is becoming increasingly important to construction company owners and equipment managers. It is a much more complex equation than you would expect; however, with the right resources, particularly telematics analysis, and software, the data is readily available. The total cost of ownership is calculated by dividing the cost of owning and running a machine in dollars per hour by the amount of production in tones per hour. Telematics and apps can assist with all three aspects of this equation, ownership costs, operational costs, and efficiency, in a variety of ways. The selling price, interest, insurance, taxes, accrued interest, and depletion are all included in the ownership costs.
Example:
Consider two identical machines performing the same amount of work on the same job site, but Equipment A has a 50% idle time and Equipment B has a 33% idle time. Equipment A, therefore, works for almost 2,000 hours per year, but equipment B works for about 1,500 hours. Although this difference can seem insignificant at first, it adds up fast. Equipment A has accrued 10,000 hours over the course of five years with a true working time of 5,000 hours due to longer idling periods. Equipment B has a total of just 7,500 hours from a true operating time of 5,000 hours.
The same work rate was accomplished during the same amount of time, but a difference of 2,500 runtime hours can shave thousands off the resale value of Equipment A just because of downtime depending on the equipment size and type.Fuel use, wear bits, predictive maintenance, and fixes are all part of the operating costs. Finding problems before they happen and identifying and resolving larger issues more effectively will help you save money on unforeseen maintenance and repairs. Notifications and warnings can also assist consumers in staying on top of routine maintenance.
Factors Such as Telematics, Fuel Efficiency, and Trained Operators:
One significant benefit of telematics reports is the reduction of operator error. Hot turbo blackouts and high-speed changes on wheel loaders, unnecessary service brake usage and overconsumption of differential lock engagement on haulers, and mishandling of excavator work modes are among the most popular errors. Recognizing and educating operators to prevent these and other mistakes will save you a lot of money on operating costs, thus lowering the TCO of a machine.
Each owner and operator aims to increase production in terms of tones per hour. Site simulations a valuable method in this area as they can assist management in properly sizing their fleet for the task. You can select the right equipment for a job site if you know the roads, lengths, gradients, fuel consumption, and hours involved. This could avoid the equipment from being misused, which would, in turn, reduce its worth.
When searching for any type of equipment, machinery, or even an automobile for sale for a Jobsite, all such things should be considered. Fuel efficiency should also be taken into account. Fuel efficiency represents effective production, not just dollar savings, and this has an effect on the overall cost of ownership over time.