Equipment Utilization for Project Managers
Course Description
Construction companies that properly utilize equipment will gain a strategic advantage over their competitors. This advantage will result in more efficient production and increased profits. To realize this advantage, project managers need to carefully consider the variables that they use to select equipment, to analyze equipment cost, and to track the effectiveness of their decisions.
Different types of construction companies have different equipment needs. The building contractor, the highway contractor, and the specialty contractor will select their equipment from overlapping but diverse pools. However, each of these contractors should consider the same variables and apply the same management processes when making equipment-related decisions. The successful company will understand the need to implement and refine a formal equipment utilization process.
Also, effective equipment utilization requires the cooperation of upper-level management, estimators, project managers, foremen, operators, and maintenance personnel. By understanding the "big picture" of equipment utilization, project managers can make more informed decisions about how to choose and use equipment.
Learning Objectives
By the end of this course the student should:
- List four procedures that are essential to small tool management
- Outline the differences in costing major equipment, minor equipment, and small tools
- Calculate equipment options
- Outline the advantages and disadvantages of purchasing, renting, or leasing equipment
- Calculate when a piece of equipment should be repaired, replaced, or rebuilt
- Understand the importance of insurance and record keeping
- List at least six factors that should be considered when conducting a needs analysis
- Calculate the cost per unit of production
- List at least three elements of equipment ownership cost
- List at least three elements of equipment operating cost
- Calculate equipment ownership and operating costs
- Calculate equipment rental costs


