PART IV

EQUIPMENT MANAGEMENT

EQUIPMENT PLANNING AND SELECTION

A- Equipment planning and selection

Contractors plant policies

A contractor can never afford to own all types or sizes of equipment that might be
used for the kind of work he does. But the alternatives of obtaining construction plant
may be classified as follows:-

1- Owing all plant including leasing.

2- Hiring all plant.
3- Combining owing and hiring plant.
Each method will make special demands on the use of the company’s capital and
resources.

 Owing all plant

owing equipment means that money invested in it cannot be used as such to help finance
other expenses of the construction work. A major disadvantages, however, of the plant
operator could be forced obtain any work to sustain the plant fleet, since equipment
cannot be sold in a declining market.

 Hiring all plant

The contractor who takes advantages of this policy avoids both the
responsibilities for maintenance and care of the plant and tying up his capital.
However, the most serious problem of hiring is that contractor’s rates depend on
market forces and are largely beyond his control.
 Combining owing hiring plant

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 A company may prefer a mixed policy of owning and hiring plant. This policy is
more realistic in the complex large projects, which need different kinds of equipment.
Some of these equipments are only used for few days.

Systematic plant selection

The systematic approach to decide if the plant will be purchased or not can be
developed through the following seven factors:-
1- Establish the overall objectives which are essential or desirable.
2- Classify the objectives according to importance.
3- Establish alternative choices.
4- Evaluate the outcome for each alternative.
5- Choose the best alternative as the preliminary decision.
6- Re-evaluate the decision and assess the adverse possibilities of that choice.
7- Set up contingency plans to control the effects of the final decision.
 Procedure for choosing proper equipment
The order of procedure is as follows:-
1- Estimate the total quantity of work to be done (such as m3 of ex cavation,…).
2- From the construction schedule find probable working time available (working hours,
or days to complete the quantity in step 1).
3- From step 1 & 2, final average rate of production per unit of time (m3/hr, or, m3/day)
required to complete the work by dividing the quantity found in (1) by time as
estimated in (2).
4- Select a suitable size machine and find its cycle time and from this cycle time, find
the number of cycles performed/hour. Then the ideal output of the machine/hour
= Machine capacity X no. of cycles/hour.
5- Reduce the ideal production as calculated in step (4) to probable value, which would
be actually realized by using suitable efficiency factors.
6- Find the average number of machines required to achieve the target production by
dividing quantity found in step (3) by the quantity in step (5).
7- Add 10-20% additional capacity for peak requirement.
8- Add stand by capacity of 10-30% to serve during breakdown & contingencies etc.,
The cost of production is calculated for the chosen machines
(no. & size).A second and third trials should be made using alternative size of
machines.

Matching plant
Often during the course of a project, various types are used in conjunction with one
another, as for example, lorries with an excavator, concrete mixer and wheel barrows or
dampers. Because of the high cost of plant it is mot necessary to keep it working at
maximum efficiency, to do this, careful matching of plant is essential.

Example of plant matching

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 Transport units must be such that output plant is not delayed by having to wait for
one empty one, i.e.:
Output per hour. +1 extra unit
Transport units carrying capacity/hour
To ensure full productivity. No waiting at output.
Carrying capacity of transport unit:
Effective load trip X no. of trips per hour
Time of trip made of:
a- Loading time
b- Traveling & maneuvering time
c- Unloading time

Example:
How many 0.50 m3 dampers are required to maintain a batching plant 10 m3/hr. at
maximum efficiency if concrete is to placed at a distance of 200 m. Batching cycle is 3 min.
(Loading, mixing and unloading).
Solution:
No. of mixers per hour = 60 / 3.0 = 20.0 mix
No. of loads per hour = 10 / 0.5 = 20.0 loads/hr.
Dumpter loading time = 60 min/20 loads = 3.0 min.
Traveling time for 400 m at an average speed
of 5 kmph = 4.80 min.
Take maneuvering time = 1.20 min.
Total cycle time for dumber = 9.00 min.
No. of dumber trips per hour = 60 / 9 = 6.66 min.
Carrying capacity per dumber = 0.50/6.66= 3.33 m3/hr.
No. of dumber required = 10/3.33+1= 4.0 dumber
It must of course, always be remembered that plant efficiency is not only dependent upon
the plant itself but also on the efficiency of the operator and the general conditions prevailing at
any given time.
Whether plant is the contractor’s own property or hired, three main points must be
considered:
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1- Ensure that plant arrives on time. This is important so that other operations are not held up.
2- When plant has finished, it should be taken off site.
In this way the site will not be charged for plant that is lying idle; it also ensures full utilization
of plant.
3- Plant progress should be recorded to ensure that planned output is being achieved. Records of
plant breakdown are also necessary, especially in the case of plant hire.

Plant requirements are usually controlled by the process of preparing a plant schedule from pre-
contract method statement co-ordinating this with the site progress as shown by the master plan.

FACTORS EFFECTING ON THE EQUIPMENT SELECTION

It is hoped that the analyses of problems related to earthwork will assist in demonstrating how
effective the application of engineering can be in determining the cost of earthwork.

ROLLING RESISTANCE

is a resistance, which is encountered by vehicle in moving over a road or surface. This resistance
varies considerably with the type and condition of the surface over which a vehicle moves.

Rolling resistance is expressed in pounds of tractive pull required to move each gross ton over a
level surface of the specified type or condition. For example, if a loaded truck having a gross
weight equal to 20 tons is moving over a level road whose rolling resistance is 100 lb ton, the
tractive effort required to keep the truck moving at a uniform speed will be
20 tons X 100 lb per ton = 2000 lb

This tension is the total rolling resistance of the gross weight of the truck. The rolling resistance
in pounds per gross ton will be
R=P/W
Where R = rolling resistance, lb per ton
P = total tension in tow cable, lb
W = gross weight of truck, tons
In order to apply a correction it is necessary to know the grade of the haul road over which the
test is being conducted.

THE EFFECT OF GRADE ON REQUIRED TRACTIVE EFFORT

When a vehicle moves up a sloping road, the total tractive effort required to keep the vehicle
moving is increased approximately in proportion to the slope of the road. If a vehicle moves
down a sloping road

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The effect of grade is to increase for a plus slope, or decrease, for a minus slope, the required
tractive effort by 20 lb per gross ton of weigh for each percent of grade. While this amount is
not strictly correct for all slopes, it is sufficiently accurate for most construction project.

Figure 4-1 The effect of grade on the performance of a tractor or truck.

Figure 4-1 illustrates the method. Of determining the effect of grade on tractive effort.
The line AB is horizontal. The slope of AC is 1 percent. DE is perpendicular to AB. DF is
perpendicular to AC is EF is parallel to AC. Triangle DEF is similar to triangle ABC For
practical purposes the length of AC is 100 ft. W is a 1-ton weight, represented by the vector DE.
P is the component of W parallel to AC.
From the similarity of triangles,
EF = P = BC or P = W BC = 2,000 lb X 1 = 20 lb
ED W AC AC 100
If BC is increased to 2 ft,
P=2,000 ib X% slope = 20 ib X %slope
100

B-EQIPMENT PRODUCTION RATE

1. Breakdown To Job Elements
Breakdown basic cycle with respect to:-
*Basic movements (e.g. for power shovel: dig, swing, dump, swing)
*Relaxation

2. Nett Element Times for Cycle

May be best established from observations, i.e. the measurement of the average nett time
for each element of operation by, stop watch .E.g. for power shovel digging and loading well-
blasted rock, the average element times may be found to be
Dig 8 sec.

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 Swing 10 sec.
Dump 4 sec.
Swing 10 sec. Total 32 sec.

3. Productivity Factors
Average cycle times, over a day’s production, will be greater than the net cycle time due
to:
*Operator rests
* Operator distractions
*Breakdowns
*No work periods
* Unnecessary work

4. Speed Factors
Due to acceleration and deceleration effects, the average speed of an item of traveling
plant will be less than its maximum speed. Speed factors have been established which allow the
average speed to be estimated from the maximum speed for a range of conditions.
5. Example—Shovel Loading
Estimate the effective cycle time for a 2m shovel digging well-blasted rock and loading trucks
with a 180 swing, working under average site conditions.
For well-blasted rock, ideal production 210 m /hr bank vol.
Allow bulking factor of 1.5
i.e.1.5 X 219 = 315 m/hr loose volume
for 180 swing production =0.71X315=224m/hr
i.e. cycles/hr =224/2 =112
i.e. cycle time = 3600/112 = 32 sec.

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For average site conditions, effective average cycle time
Will be 32/0.85 =38 sec. Or 0.63.

6. Example –Truck Haulage

Estimate the effective average cycle time for a 12 m truck, loaded by a 2m shovel from the
previous example, to travel 1,000m on a poorly maintained earth surface haul road up a 4%
grade, dump its load and return.
Elements of cycle: load, travel, dump, return, spot,
Loading time is controlled by shovel –consider last.

Travelling
Gross weight (from maker’s specifications) 36t
Rolling resistance for haul road 0.43 KN/t: grade of 4.3%
Add actual grade 4.0%
Temp. or alt. correction nil
Effective grade 8.3%
Max road speed (from maker’s performance chart) 17.6 km/hr
Speed factor 0.75
Average speed = 0.75 X 17.6 13.2 km/hr
i.e. nett travel time =(1X60)/13.2 4.55min

Turn and Dump

Nett time (from following table) 2.00 min

Return
Nett weight (from maker’s specification) 17t
Rolling resistance: grade 4.3%
Less actual grade 4.0%
Effective grade 0.3%
Max. road speed (from maker’s performance chart) 45km/hr
Speed factor 0.75
Average speed =0.75X45 40km/hr

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i.e. nett travel time =(1X60)/40.5 1.48 min

Spot
Nett time (from following table) 0.25 min
Total 8.28 min
Productivity factor=0.65
i.e. effective time =8.28/0.65 12.7 min
Add loading time (12X0.63)/2 3.8 min
Total estimated cycle time 16.5 min estimate total number of
trucks required 12.7/3.8+1=4.3 Use 5 trucks

7. Typical fixed Times for Plant

Determined from observations for typical operating conditions

Site conditions
Operation
Good Average Poor
Spot truck at loader 0.25 0.50 1.00
Turn scraper to load 0.40 0.75 1.00
Sorapor Loading only 1.00 1.50 2.00
Turn and dump, scraper 0.50 1.00 1.50
Turn and dump , trucks 1.00 1.50 2.00
Push loading scrapers , tractor
Back –track loading 1.75 2.50 3.00
Chain and shuttle loading 1.25 1.60 2.00
minutes

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 EQUIPMENT OWNERSHIP

THE COST OF OWINING AND OPRATING CONSTRUCTION EQUIPMENT

There are several methods of determining the probable cost of owning and operating
construction equipment.

 Owning Cost
1. Depreciation Cost
2. Investment Cost
3. Taxes & Insurance ( % from the average Value)
 Operating Cost
1. Fuel & Oil Cost
2. Maintenance & Spare Parts Cost
3. Operations Cost
 Variable Cost
1. Transportation Cost

Factors which affect the cost of owning and operating equipment include:

 the cost of the equipment delivered to the owner,

 the severity of the conditions under which it is used,
 the number of hours it is used per year ,
 the number of year it is used ,
 the care with which the owner maintains and repairs it ,
 the demand for used equipment when it is sold , which will affect the salvage value.

DEPRECIATION COSTS

Description is the loss in value of equipment resulting from use or age .

the following three are most commonly methods used of calculation the Depreciation:

1- Straight-line method.
2- Declining-balance method
3- Sum –of –the – years-digits method

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 1. Straight-line depreciation:

It is assumed that a unit of equipment will decrease in value from its original total cost at a
uniform rate.

Example, a given unit of equipment, whose original cost is $12, 000, may have a useful life of
2,000 hr per year for 5 years and a salvage of $2,000 .The cost of depreciation, is determined as
follows:

Total depreciation, $12,000-$2,000 =$10,000

Annual cost of depreciation, $10,000/5 =$2,000
Hourly cost of depreciation, $2,000/2.000 =$1.000

2. Declining –balance method

The estimated life of the equipment in years will give the average percent of depreciation per
year. This percent is doubled for the 200 percent declining –balance method.

When the cumulative sum of all depreciation is deducted from the original total cost, the
remaining value is designated as the book value .Thus, if a unit of equipment whose original cost
was $100,000 has been depreciated a total of a $6,000, the book value will be $4,000.

Example This example illustrates how the declining-balance method of determining the cost of
depreciation may be applied to a unit of equipment

Total cost, $10,000

Estimated salvage value, $1,000

Estimated value, 5 years

Average rate of depreciation, 20%per year

Double this rate of depreciation, 2X20=40%

Cost of depreciation, first year, 0.40X$10.000 =$4,000.00

Book value at the start of the second year =6,000.00

Cost of depreciation, second year, 0.40X$6.000 =2,400.00

The method outlined in the example may be used for any reasonable useful life.

The depreciation per year may be continued until the book value of the equipment is reduced to
reasonable salvage value.

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 3. Sum-of –the –years –digits method
Under this method of determining the cost of depreciation, all the digits representing each
year of the estimated life of the equipment are totaled .For an estimated life of 5 years,
the sum of the digits will be 1+2+3+4+5=15 .deduct the estimated salvage value from the
total cost of the equipment .During the first year, the cost of depreciation will be 5/15 of
the cost less the salvage value .During the second year , the cost of depreciation will be
4/15 of

Table 3-1 Annual cost of depreciation using the declining –balance method

End of year Percent depreciation Depreciation for the Book value

year
0 0 $0 $10,000.00
1 40 4,000.00 6,000.00
2 40 2,400.00 3,600.00
3 40 1,440.00 2,160.00
4 40 864.00 1,296.00
5 40 518.00 777.00
5* ….. 296.00 1,000.00
* The value of the equipment may not be depreciated below a reasonable minimum salvage
value .If this value is $ 1,000, the lower figures will apply; otherwise the upper figures will
apply.

Table 3-2 Annual cost of depreciation using the sum –of –the –years-digits methods

End of year Depreciation Total Depreciation for Book value

ratio depreciation the year
0 0 $9,000 $ 0 $ 10,000
1 5/15 9,000 3,000 7,000
2 4/15 9,000 2,400 4,600
3 3/15 9,000 1,800 2,800
4 2/15 9,000 1,200 1,600
5 1/15 9,000 600 1,000

Total cost =$10,000

Estimated salvage value =1,000

Total cost of depreciation =$9,000

Estimated useful life, 5 years

Sum of the years digits, 15

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The cost less the salvage value .continue this process of each year through the fifth year. The
table gives the schedule of depreciation costs for a unit equipment under the stated conditions.

An alternate method of determining the average value of equipment having no salvage value,
based on straight –line depreciation, is to develop an equation for this purpose.

The figure indicates the value of a unit of equipment whose initial cost represented by P at the
beginning of each year during its estimated life of n years.

𝑝̅ = p+ p/n =pn +p

=p (n+1)

2n

Where P=total initial cost

𝑝̅=average value

n=life in years

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Example Consider a unit of equipment costing $25,000, with a life of years and no salvage
value .We have

𝑝̅= 25,000 (5+1) =$15,000

2X5

Table3-3 gives the average value of equipment, with no salvage value, for various years of life,
expressed as a percent of the initial cost.

If the equipment will have a salvage value at the time it is disposed of, after n years of use, its
average value is determined by referring to figure .The average value is the sum of the values at
the beginning of the first year and the beginning of the last year divided by 2.

𝑝̅ = p+ (p-s)/n +s =Pn +P-S +Sn

2 2n

= P (n +1) +S (n-1)

2n

Table 3-3 Average value of equipment with no salvage value

Estimated life , yr. Average value as % of original cost

2 75.00
3 66.67
4 62.50
5 60.00
6 58.33
7 57.14
8 56.25
9 55.55
10 55.00
11 54.54
12 54.17
Example Consider a unit of equipment costing $25,000, with an estimated salvage value of
$5,000 after 5 years .We get

𝑝̅=25,000 (5+1) +5,000 (5-1)

2X5

=150,000+20,000 = $17,000

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 10

Because insurance and taxes are usually paid on the depreciated value of equipment, it is proper
to use the average value of equipment in determining the average annual cost of insurance and
taxes.

It is common practice to combine the cost of interest, insurance, taxes, and storage and to
estimate them as a fixed percent them as fixed percent of the average value of the equipment.

The present national average rate is about 15 percent, which includes interest at 10 percent and
insurance, taxes, and storage at 5 percent per year.

OPERATING COST

Construction equipment which is driven by internal-combustion engines requires fuel and

lubricating oil, which should be considered as an operating cost. While the amounts consummed
and the unit cost of each will vary with the time of the equipment , the conditions under which it
is used , and location , it is possible to estimated the cost reasonably accurately for a given
project.

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FUEL CONSUMED

When operating under conditions a gasoline engine will consume approximately 0.06 gal of fuel
per flywheel horsepower hour, while a diesel engine will consume approximately 0.04 gal per
flywheel horsepower hour .A horsepower hour is a measure of the work performed by an engine.

In order to determine the work performed by an engine it is necessary to know the average power
generated by the engine and the duration of this performance.

Consider a power shovel with a diesel engine rated at 160 fwhp. When used to load trucks the
engine may operate at maximum power filling the dipper, requiring 2 sec. During the other 15
sec. The engine may operate at not more than one half of its rated power. Also the shovel may be
idle for 10 to 15 min, or more, during an hour, with the engine proving only that power required
for internal operation.

Assume that this shovel operates 50 min per hr, to give an operating factor = (50/60) X 100=83.3
percent .The approximate amount of fuel consumed in an hour can be determined as follows:

Rated output at flywheel =160 hp

Engine factor:

Filling the dipper, 5/20 X1 =0.250

Rest of cycle, 15/20 X0.5X1 =0.375

Total factor =0.625

Time factor 50/60=0.833

Operating factor =0.625X0.833=0.520

Fuel consumed per hr =0.520 X160X0.04 =3.33 gal

For other operating factors the quantity of fuel consumed should be estimated in a similar
manner.

EXAMPLES ILLUSTRATING THE COST OF OWNING AND OPERATING

CONSTRUCTION EQUIPMENT

Example Determine the probable cost per hour for owning and operating a 3/4 – cu-yd
diesel –engine-powered crawler-type power shovel. The following information will apply:

Engine, 160 hp

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Crankcase capacity, 6 gal

Hours between oil changes, 100

Operating factor, 0.60

Fuel consumed per hr, 160 X0.6 X0.04=3.9 gal

Lubricating oil consumed per hr,

160X0.6X0.006 +___6__ =0.138 gal

7.4 100

Useful life, 5 yr, with no salvage value

Hours operated per yr, 2,000

Cost to owner:

List price, f.o.b. factory, including bucket =$119,350

Freight cost, 56,000 Ib @ $ 2.40 per cwt. = 1,344

Taxes, $119,350 @ 5% = 5,967

Unloading and assembling at destination = 359

Total cost to owner =$127,010

Average investment, 0.60 X $ 127,010

Annual cost:

Depreciation, $ 127,010 /5 hr = $ 25,402

Maintenance and repairs, 100% of depreciation = 25,402

Investment, 0.15 X X $ 76,207 = 11,431

Total annual fixed cost = $ 62,235

Hourly cost:

Fixed cost, $ 62,235/2,000 hr = $ 31.12

Fuel, 3.9 gal @ $0.50 = 1.95

Lubricating oil, 0.13 gal @ $ 1.60 = 0.22

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 Grease, 0, 5 Ib @ $ 0.30 = 0.15

Total cost per hr, excluding labor = $ 33.44

Example Determined the probable cost per hours for owning and operating a 25-cu-yd heaped
capacity bottom-dump wagon with six rubber tires. Because the tires will have a different life
than the wagon, they should be treated separately .The following information will apply:

Engine, 250 hp diesel

Crankcase capacity, 14 gal

Time between oil changes, 80 hr

Operating factor, 0.60

Fuel consumed per hr, 250X0.6X0.04= 6.0 gal

Lubricating oil consumed per hr,

250 X0.6X0.006 + 14 = 0.30 gal

7.4 80

Other lubricants used per hr , 0.50 Ib

Useful life, 5 yr , with no salvage value

Life of tires, 5,000 hr

Repairs to tires, 15% of cost of deprecation of tiers

Cot to owner:

Cost delivered, including freight and taxes =$92,623

Less cost of tires =12,113

Net cost less tires =$80,510

Average investment, 0.6X92, 623 =$55,744

Annual cost:

Depreciation, $ 80,510 /pyr =$16,102

Maintenance and repairs, 50% of depreciation = 8,501

Investment, 0.15X$55,744 = 8,362

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 Total annual fixed costs =$32,515

Hourly cost:

Fixed cost, $ 32,515/2,000 =$16.26

Tire depreciation, $ 12,113 /5,000 hr = 2.24

Tire repairs, 0.15X 42.42 = 0.36

Fuel, 6,0 gal @ $0.50 = 3.00

Lubricating oil, 0.30 gal @ $ 1.60 = 0.48

Grease, 0.50 Ib @ $0.30 = 0.15
Total cost per hr , excluding labor =$22.67
As noted, the costs determined in the previous examples do not include any allowances for the
salvage value of equipment, if any , at end of its useful life. If it is anticipated that there will be
realizable salvage value at the end of the indicated useful life, the cost of depreciation and the
value for the average investment should be modified, using the methods illustrated on pages 70
and 71 respectively.

The hourly cost of owning and operating construction equipment, as illustrated in the previous
examples, will vary with the conditions under which the equipment is operated, and the job
planner should analyze each job to determine the probable conditions.

If a power shovel is used to excavate a soft material, the life of the dipper teeth, wire rope, and
other parts which are affected by the wear and strain will be relatively long. Repair costs will be
relatively low .However, if the shovel is used to excavate rock or other materials, the dipper
teeth, wire rope, clutch linings, and certain gear parts will be subjected to greater strains and the
life of each will be reduced. Repair costs will be correspondingly increased. Likewise, the
consumption of fuel will be affected by digging conditions.

If trucks are operated over straight, reasonably level, smooth roads, the cost of repairs will be
lower than when the same trucks are operated over poorly maintained roads, with steep hills,
ruts, or deep sand .A study of statistical information showing the cost per mile for operating
automotive equipment over roads having different types of surface will revel surprisingly large
variations in the costs. These variations will apply to trucks used for hauling materials.

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