Equipment Management Aims to
Benefit from the Machineries
to the Max level
Equipment Management occupies great importance for the construction business and especially the Sewer Contractor, because it is considered an essential working tool the company needs to buy or lease to use them in its projects.
Therefore, we notice that the sewer contractor in Saudi Arabia seeks to form a crew of equipment to perform different tasks because it is the main implementation tool for the sewer project. The general manager seeks to invest this tool in the best way to get an acceptable (ROI) return on investment result.
The successful sewer contractor is interested to manage his machinery in the right way, because of its high cost on the projects' budget. Therefore, without getting a reasonable benefit from these machineries, he will fail to achieve the required profitability.
Therefore, the company targets to put its machineries at the service of its projects. Since leaving this tool idle will be a costly decision, because they have to bear extra expenses (depreciation, maintenance, insurance, license renewal, periodic inspection fees, storage charges and guarding expenses) without any revenue in return.
An ideal equipment management can increase the competitiveness of your company in the market in compare with other construction companies. So consider the following points when you do the set up for managing your machineries.
1) Prepare a shortlist of the top global manufacturers' names.
2) Consider the purchasing policy in your company.
3) Buy developed machinery.
4) Develop the current machinery accessories.
Buying new or used machinery usually passes through several steps depending on a plan and budget set in advance.
Depending on the expected volume of work, the company puts a budget to purchase the machinery. The Procurement department role is to contact the manufacturers to negotiate them about the best prices, specifications, maintenance cost and availability of spare parts. The finance department role is to arrange the required fund for paying these dues.
If the excavation work in the project needs one group of machineries to perform it, then we must form a group consist of the following major equipments:
Excavator
Dump Truck
Boom Truck
Skid Loader
Wheel Loader
Backhoe Loader
Asphalt Cutter
Plate Compactor
Angle Grinder
Grove Cranes
Wellpoint
3) The policy of rehabilitation and renewal of machineries should be implemented to ensure the company benefits from its equipment's fleet for the expected lifetime.
4) Company's organizational structure should include a department to manage the needs for renting of machineries, to meet the projects needs for any emergency situations to avoid any delay.
The main contractor needs sometimes to rent some machinery from leasing companies or to deal with a
contractor equipment rental
to compensate the lack in his equipments. Renting, usually consist of a high cost for the project, so you must manage this process in an effective and intelligent way to avoid wasting your financial resources. Good equipment management would save the company a lot of money.
5) Company's machineries should be subject to periodic maintenance inspection.
6) Maintenance workshops (fixed and mobile) should perform efficiently.
7) A periodic maintenance check should be conducted for all the machineries, which extended their working life.
8) Check if the operators are using them in the correct way and keep a record for each one.
9) By performing the maintenance schemes with the help of the central workshops, the machineries should remain in a good status.
10) Employ skilled staff and technicians.
11) Keep constant training programs for renovations and repair of machineries.
12) Getting rid of scrap machineries. Most companies use their machineries to the fullest extent, but when its expenses such as (maintenance, insurance) become more than its benefits, more likely, selling the machineries would be the right decision.
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