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Unit 5 Construction Equipment
Equipment economics
Dr. Bhupali Dutta
Assistant Professor
Department of Civil Engineering
Basic questions in equipment management
• Advantages of using equipment or machinery
• Disadvantages of using equipment or machinery
• Factors considered in the selection of equipment
Fundamental cost of equipment
economics
Economics of construction equipment includes the following:
• Cost accounting process pertaining to the working of the machinery
• Computation of plant use rates
• Computation of unit cost of production
Equipment cost = Ownership cost + Operating cost
• Ownership cost: Fixed cost incurred irrespective of the quantum of
use. Also known as Performa charges
• Operating cost: Directly related to the quantum of use and efficiency.
It is incurred at the site
Ownership cost
• Total cost related to the
construction equipment in order to
own it.
• Components of Ownership Cost
Initial Cost
Depreciation
Salvage Value
Taxes
Insurance Cost
Storage Cost
Interest Cost
Operating cost
• Comes into play only when the machine
starts to operate.
• Depends on the period of operation
(hours), location of the construction
site, the site conditions under which the
machine is operated, the type and
category of the equipment.
• Includes the following also:
Cost of filter, grease and lubricating oil
The wage of Equipment Operator
Cost of Replacement of high wear parts
of equipment
Mobilization, demobilization and
Assembling Cost
Factors influencing the performance
of equipment
• Performance depends on the maintenance of equipment
• Maintenance includes keeping the various components in original
condition to ensure safety and efficiency in its operation
• Objectives of maintenance
To keep the equipment in optimal working order
To ensure long life of machinery to avoid high rate of
depreciation of capital
To maximize availability of machinery
To minimize downtime due to breakdown of machinery
Requirement of maintenance activity
Resource loss and production loss
An unexpected breakdown can result in labour overtime
Insufficient knowledge of machine life cycle
Scheduling work and projects again
Types of maintenance
Reactive/breakdown/corrective maintenance (Failure-
based)
Predictive and reliability centered maintenance (Condition
based)
Predictive/scheduled maintenance (Time based)
Pro-active maintenance (Advanced maintenance technique)
Failure-based maintenance:
Advantages Disadvantages
Lower initial cost Increases cost due to unplanned downtime
Requires fewer staff Increases labour cost when there is
overtime for untimely repairs and
replacement
Cheap and easy to
implement
Increases cost associated with repair or
replacement
• Represents a reactive approach to maintenance.
• Use a piece of equipment until it breaks down.
• It is suitable for equipment with low repair costs and when equipment
breakdown won’t cause big operational issues .
• Still predominant in India
Condition based maintenance
• Detect the onset of equipment degradation
• Significant deterioration can be eliminated or controlled
• Inspects both current and future functional capabilities
• Condition monitoring sensors required. These sensors give you real-
time insight into the health of your assets.
Advantages Disadvantages
Increases operation life and availability Increases investment in diagnostic
equipment
Decrease in equipment and process
downtime
Increases investment in staff training
Provides better quality, lowers labour cost
and improves worker and environmental
safety
Time based maintenance
• Upgraded version of CBM
• Involves using predictive analytics and algorithms (based on data
coming from condition monitoring sensors) to predict exactly
when a piece of equipment is expected to fail so you can schedule
maintenance just before that happens.
• Involves the following activities:
Periodic inspection of equipment to prevent breakdown or
harmful depreciation
Upkeep of equipment to minimize downtime and breakdown
Technologies: lubricating, cleaning, replacement and inspection
Advantages Disadvantages
Provides flexibility for adjustment
of maintenance periodicity
Does not eliminate catastrophic
failures
Increases component life cycle It is more labour intensive
Increases cost and energy savings
Time based maintenance
Pro-active maintenance
• Uses information provided by predictive methods to identify
problems and isolate the source of failure
Do’s and don’ts of maintenance
Do’s Don’ts
Keep equipment clean No overloading of engine and
equipment
Operation and maintenance manuals
should be thorough as per
manufacture’s instruction
No mixing of different brands of
lubricants
Attention to lubrication, nuts and
bolts should be tight
Don’t observe economy only in cost
of maintenance
Periodic preventive maintenance
Use of only genuine spare parts
Safety management in construction
• A safety management system provides a systematic way to identify hazards
and control risks while maintaining assurance that these risk control are
effective
• Safety management during the construction phase covers:
Identification of workplace risk and implementation of appropriate controls
to avoid personal injury and property damage.
Monitoring of work to provide early detection and correction of unsafe
practices and conditions.
Protecting the adjacent public and private properties.
Providing safety education and incentive programs.
Complying with occupational, health, and safety rules and requirements.
Objectives of safety management
To help increase speed in construction
To increase the standard of living
To reduce the cost of construction
To conserve the available labour force by minimising idle time
To reduce human suffering
Safety measures should be especially taken in the following areas:
Excavation
Drilling and blasting
Hot bituminous work
Fabrication and erection
Demolition
Accident
Causes:
• Non-use of protective gear
• Lack of security and monitoring at work
sites
• Use of substandard material or
equipment and non-adherence to
specific guidelines
• Lack of training in safety matters
• Failure of construction equipment
• Storage of hazardous material without
permission and beyond the allowable
capacity
• Electrical shocks
• Fall of heights due to unsafe
scaffolding, ladders
Prevention measures:
• Education and training
Provisions of safe scaffolding systems
Protection and precautions in
excavation work
Safe operation of equipment
Precautions against electrical shock
Implementation of technology
• Enforcement of law
• Use of standard operation manuals
Classification of causes of accident in
construction industry
1. Physical causes: Related to equipment, materials, tools, uniform etc.
2. Physiological causes: Related to person: poor eye sight, poor health,
overwork, old age, intoxication etc.
3. Psychological causes: mental tension and worry, impulsiveness,
nervousness, overconfidence, carelessness etc.
Thank you!

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Equipment economics - 14th November.pdf

  • 1. Unit 5 Construction Equipment Equipment economics Dr. Bhupali Dutta Assistant Professor Department of Civil Engineering
  • 2. Basic questions in equipment management • Advantages of using equipment or machinery • Disadvantages of using equipment or machinery • Factors considered in the selection of equipment
  • 3. Fundamental cost of equipment economics Economics of construction equipment includes the following: • Cost accounting process pertaining to the working of the machinery • Computation of plant use rates • Computation of unit cost of production Equipment cost = Ownership cost + Operating cost • Ownership cost: Fixed cost incurred irrespective of the quantum of use. Also known as Performa charges • Operating cost: Directly related to the quantum of use and efficiency. It is incurred at the site
  • 4. Ownership cost • Total cost related to the construction equipment in order to own it. • Components of Ownership Cost Initial Cost Depreciation Salvage Value Taxes Insurance Cost Storage Cost Interest Cost
  • 5. Operating cost • Comes into play only when the machine starts to operate. • Depends on the period of operation (hours), location of the construction site, the site conditions under which the machine is operated, the type and category of the equipment. • Includes the following also: Cost of filter, grease and lubricating oil The wage of Equipment Operator Cost of Replacement of high wear parts of equipment Mobilization, demobilization and Assembling Cost
  • 6. Factors influencing the performance of equipment • Performance depends on the maintenance of equipment • Maintenance includes keeping the various components in original condition to ensure safety and efficiency in its operation • Objectives of maintenance To keep the equipment in optimal working order To ensure long life of machinery to avoid high rate of depreciation of capital To maximize availability of machinery To minimize downtime due to breakdown of machinery
  • 7. Requirement of maintenance activity Resource loss and production loss An unexpected breakdown can result in labour overtime Insufficient knowledge of machine life cycle Scheduling work and projects again
  • 8. Types of maintenance Reactive/breakdown/corrective maintenance (Failure- based) Predictive and reliability centered maintenance (Condition based) Predictive/scheduled maintenance (Time based) Pro-active maintenance (Advanced maintenance technique)
  • 9. Failure-based maintenance: Advantages Disadvantages Lower initial cost Increases cost due to unplanned downtime Requires fewer staff Increases labour cost when there is overtime for untimely repairs and replacement Cheap and easy to implement Increases cost associated with repair or replacement • Represents a reactive approach to maintenance. • Use a piece of equipment until it breaks down. • It is suitable for equipment with low repair costs and when equipment breakdown won’t cause big operational issues . • Still predominant in India
  • 10. Condition based maintenance • Detect the onset of equipment degradation • Significant deterioration can be eliminated or controlled • Inspects both current and future functional capabilities • Condition monitoring sensors required. These sensors give you real- time insight into the health of your assets. Advantages Disadvantages Increases operation life and availability Increases investment in diagnostic equipment Decrease in equipment and process downtime Increases investment in staff training Provides better quality, lowers labour cost and improves worker and environmental safety
  • 11. Time based maintenance • Upgraded version of CBM • Involves using predictive analytics and algorithms (based on data coming from condition monitoring sensors) to predict exactly when a piece of equipment is expected to fail so you can schedule maintenance just before that happens. • Involves the following activities: Periodic inspection of equipment to prevent breakdown or harmful depreciation Upkeep of equipment to minimize downtime and breakdown Technologies: lubricating, cleaning, replacement and inspection
  • 12. Advantages Disadvantages Provides flexibility for adjustment of maintenance periodicity Does not eliminate catastrophic failures Increases component life cycle It is more labour intensive Increases cost and energy savings Time based maintenance
  • 13. Pro-active maintenance • Uses information provided by predictive methods to identify problems and isolate the source of failure
  • 14. Do’s and don’ts of maintenance Do’s Don’ts Keep equipment clean No overloading of engine and equipment Operation and maintenance manuals should be thorough as per manufacture’s instruction No mixing of different brands of lubricants Attention to lubrication, nuts and bolts should be tight Don’t observe economy only in cost of maintenance Periodic preventive maintenance Use of only genuine spare parts
  • 15. Safety management in construction • A safety management system provides a systematic way to identify hazards and control risks while maintaining assurance that these risk control are effective • Safety management during the construction phase covers: Identification of workplace risk and implementation of appropriate controls to avoid personal injury and property damage. Monitoring of work to provide early detection and correction of unsafe practices and conditions. Protecting the adjacent public and private properties. Providing safety education and incentive programs. Complying with occupational, health, and safety rules and requirements.
  • 16. Objectives of safety management To help increase speed in construction To increase the standard of living To reduce the cost of construction To conserve the available labour force by minimising idle time To reduce human suffering Safety measures should be especially taken in the following areas: Excavation Drilling and blasting Hot bituminous work Fabrication and erection Demolition
  • 17. Accident Causes: • Non-use of protective gear • Lack of security and monitoring at work sites • Use of substandard material or equipment and non-adherence to specific guidelines • Lack of training in safety matters • Failure of construction equipment • Storage of hazardous material without permission and beyond the allowable capacity • Electrical shocks • Fall of heights due to unsafe scaffolding, ladders Prevention measures: • Education and training Provisions of safe scaffolding systems Protection and precautions in excavation work Safe operation of equipment Precautions against electrical shock Implementation of technology • Enforcement of law • Use of standard operation manuals
  • 18. Classification of causes of accident in construction industry 1. Physical causes: Related to equipment, materials, tools, uniform etc. 2. Physiological causes: Related to person: poor eye sight, poor health, overwork, old age, intoxication etc. 3. Psychological causes: mental tension and worry, impulsiveness, nervousness, overconfidence, carelessness etc.