The machine rate is usually, but not always, divided into fixed costs, operating costs, and labor costs. For certain cash flow analyses only items which represent a cash flow are included. Certain fixed costs, including depreciation and sometimes interest charges, are omitted if they do not represent a cash payment. In this manual, all fixed costs discussed below are included. For some analyses, labor costs are not included in the machine rate. Instead, fixed and operating costs are calculated. Labor costs are then added separately. This is sometimes done in situations where the labor associated with the equipment works a different number of hours from the equipment. In this paper, labor is included in the calculation of the machine rate.

Fixed Costs are those which can be predetermined as accumulating with the passage of time, rather than with the rate of work. They do not stop when the work stops and must be spread over the hours of work during the year. Commonly included in fixed costs are equipment depreciation, interest on investment, taxes, and storage, and insurance.

Operating Costs vary directly with the rate of work. These costs include the costs of fuel, lubricants, tires, equipment maintenance and repairs.

The unit cost of logging or road construction is essentially derived by dividing cost by production. In its simplest case, if you rented a tractor with operator for $60 per hour – including all fuel and other costs – and you excavated 100 cubic meters per hour, your unit cost for excavation would be $0.60 per cubic meter. The hourly cost of the tractor with operator is called the machine rate. In cases where the machine and the elements of production are not rented, a calculation of the owning and operating costs is necessary to derive the machine rate. The objective in developing a machine rate should be to arrive at a figure that, as nearly as possible, represents the cost of the work done under the operating conditions encountered and the accounting system in use. Most manufacturers of machinery supply data for the cost of owning and operating their equipment that will serve as the basis of machine rates. However, such data usually need modification to meet specific conditions of operation, and many owners of equipment will prefer to prepare their own rates.

4. Keep large machinery clean, and maintain a clean environmentThere are many seals and filters in place on heavy machinery to keep working parts clean and free of contamination. Seals should be inspected regularly to make sure they’re in good condition. Filters should be inspected and changed regularly. Breathers should be kept clean to avoid creating a vacuum in the cab which will suck contaminants into the cab. The electronics in the cab are susceptible to breakdown if contaminated. This impacts the clutch, for example.Large machinery should be stored in a shed or other building if at all possible. Exposure to wind and weather can lead to rust and rot. The machinery should be run periodically if it is not in use.

Source: 5 Tips on Machinery Maintenance | MT Blog

5. Have a maintenance and repair schedule, and keep good recordsFluids, tires, tracks and electrical systems are among the components that have to be checked regularly for preventive maintenance. Know what needs to be inspected and when. Here are some examples.Power transmissions have many moving parts that need to be maintained in top condition. Gearboxes need to be checked for lubrication, vibration and damage to parts.Friction materials, seals, gaskets and bearings all need to be inspected for wear and replaced. Gears and shafts usually last a long time and don’t need to be replaced often, if at all.Drive train components need constant monitoring. Check pulleys and v-belts on CVT transmissions for alignment and wear. Check sprockets for correct meshing with chains and for breaks.Test the oil to diagnose problems. Change filters frequently.Bearings keep great amounts of force running smoothly and are vital to large machinery performance. Check bearing lubrication often. Maintaining bearings well extends their life.Lubricate gears frequently.Do a seal check to prevent bearing raceway contamination.Run torque checks on the bolts. Bolts can elongate and creep over time.To conclude, following the above 5 steps can significantly extend the useful life of heavy machinery, improving the Return on Investment from these important purchases. In today’s global manufacturing world, even greater value can be extracted if you have a global knowledge capture and distribution system such that this knowledge of machinery maintenance can be effectively shared across your organization – letting you reap even greater benefits on a much wider scale.

Source: 5 Tips on Machinery Maintenance | MT Blog

1. Keep It RoutineJust like the annual check-up with your physician, a regular check-up on the overall functionality and condition of your heavy machinery helps keep the continuity of what is expected and the standard performance of your equipment. Any non-scheduled emergency maintenance and repair jobs done on heavy machinery are typically fraught with human error and performed in a time crunch.The Occupational Safety and Health Administration (OSHA) reports that up to 20 percent of industrial accidents are related to maintenance operations, with 15 percent involving worker fatalities. By taking all the necessary preventative measures, not only are you ensuring the stated lifetime of your heavy machinery, but you’re also keeping operators safe.My grandfather always said, “If everything works on your truck, that’s just an excuse for something to break.” It’s this philosophy of constantly checking and maintaining equipment, catching any minor problems before they evolve into bigger and more costly ones, that further drives the point to have regularly scheduled maintenance checks on your earthmoving machinery.

Source: 5 Maintenance Tips for Heavy Machinery

2. Use the Right Tools for the JobMatching your equipment with the exact task that it’s intended to perform requires consideration of a number of variables, including terrain, material composition and elemental effects such as climate, etc. Likewise, it’s important to make certain that all attachments and performance accessories such as buckets and ploughs are made specific to your machine. With the safety of the crew operating this heavy and potentially dangerous equipment in mind, you simply cannot afford any guesswork here.Check and double-check all machinery and attachments before using them in the field. Your workers and your wallet will thank you. When replacing parts, don’t assume the first ones you come across are the right ones for your machinery. Bearings, roller chains, gaskets, seals, etc., must all be the right quality and size and have the correct load-bearing qualities for your machine.

Source: 5 Maintenance Tips for Heavy Machinery

3. Don’t Overwork Your MachinesNever exceed your equipment’s stated performance specifications and limitations as found in your owner/operator manual. As with any industry where heavy equipment is a staple of operation, effectiveness and efficiency are key to optimal performance and yielding the best results for your efforts. Knowing and abiding by weight limits for loads and inclines for transit are an easy way to keep your heavy machinery working.Most modern heavy machines come programmed with multiple power modes. It’s essential for operators to make sure their equipment is set to the correct power mode for the task at hand. Also, minimizing your machinery’s travel and idle time can add longevity to the life of your assets.

Source: 5 Maintenance Tips for Heavy Machinery

4. Put Your Toys Away While performing regular maintenance checks is an active way of preventing damage to your equipment, properly storing your heavy machinery is another necessary, yet more passive method of ensuring optimal and safe performance. All large machinery should be kept in covered, moisture-free storage with environment control if necessary. This will help save your equipment safe from the dangers of water, which can lead to rust and corrosion, as well as from the harshness of direct sunlight.

Source: 5 Maintenance Tips for Heavy Machinery

5. Knowledge is PowerYour machinery is only as useful as the men and women working with it. For upholding the highest standards of operations while minimizing risk, everyone in contact with the equipment should be trained and familiar with the proper use of each piece of machinery on the job. For some machines, simple hands-on instruction is sufficient, while others may require special certifications before operating the machinery. Follow your owner/ operator manual and any other official guidelines pertaining to your specific industry, job type and equipment model before letting just anyone take your backhoe for a spin.

Source: 5 Maintenance Tips for Heavy Machinery

The used earthmoving construction equipment market in Africa has become a multi-million dollar business that has attracted not only many secondhand dealers but also online auction houses eager to tap into this fast growing market. Buyers in Africa are not new to the concept of used goods given their already insatiable appetite for used cars from Japan, Europe and Dubai. In the case of used cars several years ago it resulted in the collapse of several new car franchises in Africa which is a testament to how significant this market force is.Used machinery is here to stay and machinery franchise holders have even caught on the game by introducing what they call factory refurbished equipment in order to remain relevant to market expectations. And what are those expectations? Reasonable prices for reasonably good equipment.When buying used equipment five key pointers emerged when we interviewed various global second hand dealers. We highlight them in this article as well who to go to and have peace of mind.InspectionFirstly, just as with new equipment when buying used, a buyer needs to carefully inspect the equipment and enquire on any warranty availability. Inspection is key so check out for any oil leaks and welds on the structure of the machinery both of which can signal a poorly maintained machine or one which was used very roughly to the point of breaking, hence the welds. Heavy smoke when the engine is turned on is also a bad indication as is any seized parts and don’t be fooled by a smooth talking salesperson either who may tend to downplay these flaws. Dustin Graves of Hoss Machinery International says that you should ask for service history, oil samples and photos of the machine and if you can know who owned the machine originally that would even be better.If you are going to have to buy over the internet Bob Chafla of RLC Equipment based in California, USA advises that you can opt to appoint a local dealer or franchise holder in the region to inspect the machine on your behalf. This is far cheaper than paying for an air ticket and accommodation costs if you were to do the inspection yourself. Lieven Pauwels of Machinery Resale of Belgium adds that you can even ask for a video clip of the machine to see it in action though hidden problems will not be easily noticed.The way of the herdSecondly, going for equipment that is from the more popular brand names will ensure that parts will be available. You don’t want to get stuck with a brand name no one knows and hope to find spares for it round the corner when it breaks down. The scrap yard is filled with such machines that were purchased unwisely because of the unbeatable price offered and got grounded for lack of parts.PriceAnd that brings us to price. This should not be your only guide when buying a piece of equipment. Low price may result in upfront savings but misery later on with escalating costs due to downtime and repairs. Better to pay a little extra for a reasonable machine than rock bottom price for a doubtful machine. German Flores of Worldwide Group who sell and rent machinery puts it well when he says that you only get what you pay for.SimplicitySeveral dealers of second hand equipment tout the advantages of less electronics and this is with good reason because in Africa technical support may not be sophisticated enough to sort out an electrical fault with a computerized system . Your technical team will love you for choosing the old tried and tested models that are simply to operate and maintain not needing high-end computerized diagnosis when it fails to start up.With time however the old will give way to newer machines and as German of Worldwide Group says tier 4 machines will be in the secondhand market soon and with their more sophisticated electronics and special fuels to meet emissions restrictions in Europe and USA the machines will be pricier.Track recordLastly, nothing beats good referrals. A dealer with many satisfied customers is one to look up. Getting your hands on a second hand grader or earth mover is not hard these days. There are many second hand equipment suppliers and many dealers of the popular machinery brands also offer refurbished machinery. In addition to this the internet has introduced online auctions where one can bid for machinery in real time on websites for auctioneers who pride themselves on selling only quality equipment with referrals and testimonials to boot. Look for reputable firms and you’ll be off to a good start. Paul Hindle of Clements Plant warns however that there are many fake companies out there ready to swindle any would be customer with very nice websites but with no equipment at all, so buyer beware!

Source: 5 useful tips when importing used construction equipment | Forestry South Africa