Construction Equipment Management

Prof B. L. Rajput Sr. Lecturer NICMAR, Pune

Planning and Selection of Equipment

Introduction Advantages and Disadvantages of Equipments Factors affecting extent of mechanization Equipment planning Equipment selection

Advantages of construction equipments

Capable of handling tough work. Machine is dependable source. Effectively used where large quantity of material is to be hauled over a long distance or greater height. Performance can be assessed correctly. Increases the technical know how and skilled workmen which may become asset to the country in technical development. Use if indigenous machine will improve industrialization.

Disadvantages of construction equipments

Sometimes they are required to import from other countries. Dependence on foreign manufacturers is required for spare parts and specialized services. Delay caused in procurement, mobilization, operation may cause delay in execution. Disposal of machine or its spare parts after its life period may become a problem. It may create problem of unemployment in case work can be done by labours.

Extent of mechanization
Manpower Completion period Nature of work Availability of money Availability of indigenous equipment Social object of the project Labour relations Overseas projects Quality and performance Development of industries

Equipment planning
Equipment selection Working shifts Number and size of equipment Matching unit Equipment operational planning Manpower planning

Factors affecting equipment selection

Suitability for job condition Size of the equipment Standardization Availability in the market Availability of spare parts Versatility Availability of know how Service support Economical aspect Operating requirement Past performance Reputation of manufacturer Warranty or Guarantee offered by the manufacturer Prime mover used and its power

Buy
Points in Favour of Buying
When the equipment used for most of the construction period and likely to complete almost its full life, while working on project. It is remain available for use whenever it is needed. It is basically owned equipment and hence it is kept in better mechanical condition and is more reliable.

Procurement process
1. 2. 3. 4. 5. 6. 7. Calling Enquiries Technical and Financial Evaluation Ordering Contract making/Purchasing Transporting Assembling and Installation Operation/Commissioning

Points which are against Buying

When the equipment can not be used for its full life, then owning may be more expensive than hiring. The purchaser is required to do huge investment initially, which otherwise he may need for other purpose. Contractor may have to face the danger of obsolescence.

Renting
It is basically a short term alternative to the direct ownership. Company can pick a machine which is exactly suitable for job. Used when the job is of short duration and there is no continuous need of the equipment. Only limited machines are available on rent. No assurance of availability of equipment at required time. Renter is responsible for Fuel and lubrication of machine Renter is responsible for repair of machine. Rent rates are based on per day (8 hr), per week (40 hr), or per month basis (176 hr). Quipo Infrastructure Equipment BankFormed in 2002 By SREI Infrastructure Finance Ltd and CIDC. IFC Washington, FMO Netherlands, Sweadfund International AB, Sweden and an international equipment manufacturer, Ingersoll Rand, together hold more than 54 % of Quipo stake. At present, Quipo has branches one each in Gurgaon, Neemrana, Ahmedabad, Mumbai, Bangalore, Hyderabad, Kolkata, Chennai, Guwahati, Ranchi, Raipur, Cochin, Lucknow, Chandigarh Patna, Bhopal, and Bhubaneswar. Gives equipment on rent. Offers value added services like supplying of skilled manpower, repair and maintenance etc. It provides information about equipment and allows for depositing the idle equipments form contractors. It helps equipment manufacturers for finding out new customers and and conduct equipment demos and application tests.

Lease
Lease is basically long term agreement to use the equipment. In this contract Lessor will always hold the ownership rights. Lessee will give the payments to Lessor in return for providing machine. Lease contracts are binding legal documents and non cancelable by either party. In most of the lease agreements user is responsible for fuel, lubricants, repair and maintenance. 1. 2. Advantages of this method Working capital is not tied up in equipment. Lessee gains a tax deduction because lease payments are treated as an expense.

Disadvantages of this method 1. Only limited machines are available on lease. 2. No assurance of availability of equipment at required time.

Working Shifts
Working Shifts Depends upon nature of work, Area in which work is spread etc. It is always good practice that working shifts should be decided in such a way that equipment must be utilize of its whole life on one particular project. Yearly utilization of equipment under average working conditions Single shift operation- 1500 hrs Double shift operation- 2500 hrs Triple shift operation- 3200 hrs Experience has shown that the standby provision should be as below (i) For equipment used in single shifts 10 % standby (ii) For equipment used in double shifts 20 % standby (iii) For equipment used in triple shifts 30 % standby

Number and Size of Equipment

Factors affecting number and size of equipment are Quantum of work Working Days available Number of shifts planned Size of the equipment should be such that it should not be too big or too small Number of matching units must be calculated considering the output of both the equipments.

1. 2. 3.

Equipment Operation Planning

Equipments must work in coordination, especially when they are required to work in a team. Proper maintenance of service road. Planning required for repair and maintenance.

Manpower Planning
Identification of type of manpower Calculating manpower requirement Availability of manpower Manpower training