Identiying Current Problems Associated With The Construction Equipment

DIRE DAWA UNIVERSITY
DIRE DAWA UNIVERSITY INSTITUTE OF TECHNOLOGY
SCHOOL OF CIVIL ENGINEERING AND ARCHITECTURE

CONSTRUCTION TECHNOLOGY AND MANAGEMENT CHAIR
INTERNSHIP PROJECT
TITLE: IDENTIFYING CURRENT PROBLEMS ASSOCIATED WITH THE

CONSTRUCTION EQUIPMENT MANGEMENT PRACTICE IN COUNTRY CLUB
DEVELOPERS
DURATION: 75 DAYS
PREPARED BY: MILLENIUM TIGABU
ID.NO: DDU1001530
ADVISOR: NAHOM BEYECHA
SUBMISSION DATE: FEB27, 2022
DIRE DAWA,
ETHIOPIA
IDENTIFYING CURRENT PROBLEMS ASSOCIATED WITH THE CONSTRUCTION
EQUIPMENT MANGEMENT PRACTICE IN COUNTRY CLUB DEVELOPERS
ACKNOWLEDGEMENTS
My first and foremost gratitude is forwarded to my advisor Ins. NAHOM BEYECHA for his critical
comments, assistance and encouragement in the preparation of this study paper. I admire his
constructive comments and constant follow up right from the beginning of the study to its
completion. I would also like to offer my sincere gratitude to all sites & office engineers those who
helped me during the internship practice.
Last but not least, I would like to acknowledge everyone who was involved directly in all & every
progress of my internship hoping their kindness pays them back in what so ever might bring.
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Contents
ACKNOWLEDGEMENTS ...................................................................................................................... i
List of tables ............................................................................................................................................ iv
List of Figures ......................................................................................................................................... iv
ABSTRACT............................................................................................................................................. v
CHAPTER ONE ...................................................................................................................................... 1
Introduction .............................................................................................................................................. 1
1.1. Background of the study ........................................................................................................... 1
1.2. Problem statement & Justification ............................................................................................ 2
1.3. Objectives of the project ........................................................................................................... 4
1.3.1. General Objective .............................................................................................................. 4
1.3.2. Specific Objectives ............................................................................................................ 4
1.4. Scope and Limitation of the study............................................................................................. 4
1.5. Significance of the study ........................................................................................................... 5
CHAPTER TWO ..................................................................................................................................... 6
2. Literature Review............................................................................................................................. 6
2.1. Introduction ............................................................................................................................... 6
2.2. Construction Equipment ........................................................................................................ 6
2.2.1. Construction Equipment Management .............................................................................. 6
2.2.2. Construction Equipment Management Practices in Construction Companies ................ 10
2.3. Use of computers in construction equipment management .................................................... 15
2.4. Economics of Construction Equipment................................................................................... 15
2.4.1. Ownership costs ............................................................................................................... 16
2.4.2. Operating costs................................................................................................................. 16
CHAPTER THREE ............................................................................................................................... 17
3. Methodology .................................................................................................................................. 17
3.1. Study Design ........................................................................................................................... 17
3.2. Study population ..................................................................................................................... 17
3.3. Data collection methods .......................................................................................................... 17
3.4. Data analysis ........................................................................................................................... 17
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CHAPTER FOUR .................................................................................................................................. 18

4. Result & Discussion (Solution) ..................................................................................................... 18
4.1. Introduction ............................................................................................................................. 18
4.2. Current practices and Causes of Poor Equipment Management ............................................. 18
4.2.1. Construction equipment selection .................................................................................... 18
4.2.2. Huge capital investment in the acquisition phase ............................................................ 19
4.2.3. Effects of lack of equipment management in CCD ......................................................... 21
4.2.4. Strategies and best practices for construction equipment management (Solution) for
CCD 22
CHAPTER FIVE ................................................................................................................................... 26
5. Conclusion and Recommendations ................................................................................................ 26
5.1. Conclusions ............................................................................................................................. 26
5.2. Recommendations ................................................................................................................... 27
References .............................................................................................................................................. 28
List of tables
Table 2.1 1 Operational and Strategic Dimensions of Equipment Management ................................... 10
List of Figures
Figure 1.1 1 Poor handling and storage of Equipments on the site of CCD ........................................... 3
Figure 2.1 1 Equipment Management Process ........................................................................................ 8
Figure 2.2 1 Functional Classifications of Construction Equipment ....................................................... 9
Figure 4.1 1 Equipment life definitions (Source; Gransberg et al., 2006) ............................................. 20
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ABSTRACT
Construction equipment is one of the major resources in the construction process for construction
companies. This study aims to assess the practice of construction equipment management in Country
Club Developers. The study focuses on identifying the current problems of the hosting company,
cause of these problems and their effects on the overall company’s economical and functionalities.
The study employed descriptive research approach and used secondary data and also primary sources.
The results show that construction equipment management practice from various perspectives of
equipment management aspects in CCD is assumed to be poor. Based on findings, recommendations
like crating awareness to all employee, implement clear CEM policy and procedures to enterprise
management bodies, to project managers of enterprise and suggestions for other researchers are
forwarded. The challenge encountered in this research was lack of important data sources and shortage
of time in preparation of the study.
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CHAPTER ONE
Introduction
1.1. Background of the study

Currently in Ethiopia, the construction sector plays an important role in short term trends, with more
frequent development, not only for the sector itself but also for other economic activities as well. In
this well being orchestrated construction sector, the need to construct huge and complex construction
projects require equipment.
Construction is the ultimate objective of a design and transformation of a design by construction of

useful structure which is accomplished by the human, machineries, materials and equipment and
proper management of these resources.
Construction is a business sector that relies primarily on high utilization of construction equipment.
Equipment is thus one of the key factors for improving contractor’s capability in performing their
work more effectively and efficiently. By enhancing the effectiveness of utilizing equipment extensive
volume of work can be completed within a shorter period of time and, more importantly, within the
project schedule. They also suggested that one of the main reasons for project delays on construction
projects in Thailand were equipment management problems, deficiencies in organization, shortages of
construction materials, and inefficiencies in site workers (Hinze, 1995).
According to Sharma (2002, p.65) the cost of equipment in a project varies from 10% to 30% of the
total cost of the project, depending upon the extent of mechanization. In modern fully mechanized
projects the cost of equipment goes up to 30%. Proper planning, selection, procurement, installation,
operation, maintenance and equipment replacement policy plays an important role in equipment
management for the successful completion of the project. With the growing use of machinery it has
become necessary for construction engineers to be thoroughly familiar with the construction
application and upkeep of the wide range of the modern equipment.
This complicated environment in the area of construction management calls for proper
management practice of these assets to increase production time and equipment availability. Effective
equipment management practices not only increase production time and equipment availability, but
also maximize the company profit by reducing several costs such as those from costly downtime. [16]
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Construction equipment management is thus concerned with the purchase, retirement,

replacement, operations, logistics, and maintenance of equipment. The objective is to minimize
operation, maintenance, and repair costs, while achieving high utilization. [5]
The findings of this paper will hugely beneficial to contractors to have an improved insight on
the general equipment management practice especially those who are involved in building
construction sector and point out the significant causes of management problems of equipment
which contractors are facing and forward recommendation on the bases of the result obtained
from the paper work.
The basic aspects of construction equipment management like equipment selection, acquisition,
operation, maintenance, replacement and disposal, standardization of equipment, Inventory, record
keeping, Safety and security are covered in this project work.
1.2. Problem statement & Justification

Management of construction equipment found to have multiple constraints in its implementation
throughout the world. This problem is in its significant amount when it comes to developing countries
like Ethiopia. Ethiopia despite having an economy which is weak in almost all aspects together with
high cost procuring these construction equipments which is estimated around 36 percent of the total
construction project cost makes the construction equipment management hugely important aspect of
the construction sector.
It is obvious that most of the problems related to construction equipment management arise during
operational phase as stated by different researchers and that is exactly what has been witnessed during
this internship session with CCD (i.e., the host company). One of the major problems highlighted
during this intern session which led to the birth of this paper are problems related to high rate
equipment breakdown and accident resulting from labors failing to have skills necessary to run these
equipments. This is mainly emanates from poor training of equipment operators.
Another major problematic issue which can be raised parallel to the above problems on the site was
poor handling and storage of equipments. Equipments on the site are highly vulnerable to changing
weather conditions which shows the value given by the supervisor and other site workers to these
equipments. Equipment handling on this site is highly poor as if these equipments are unnecessary
projects ahead and livelihood of the company considering the cost of procuring these equipments.
2
Figure 1.1 1 Poor handling and storage of Equipments on the site of CCD
One of the strategic ways for any business firm whether a construction or any other sector to stay in
the business and maintain profits for long term is maintenance of materials and equipments which
have high procuring and replacement costs. From what has been witnessed on this site maintenance
management of construction equipment has never been considered. The site is loaded with a lot of
expensive equipments having mal-functionality for unknown amount of time. Even though the
company owns significant number of equipments, the company still rent equipments in a cost which is
almost equal or greater to maintain the equipments which are stored on the site fields as if they are
some kind of garbage.
The final problem needs pointing out on this site was that these equipments are considered
unnecessary, or couldn’t be maintained then final option could have been disposal of these
equipments, but still the company is in no position to do either of the equipment management
approaches in consideration.
The problems listed above altogether with other problems are hugely hindering the performance the
project. During this intern session malfunction of equipments encountered in the middle of operation
caused by improper handling of equipment (i.e., mixer). This brings delay in the project which
indirectly lead to injection extra cost to the project.
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These problems fall in every single equipment management category beginning from planning to
disposal. If this is the case, the equipment will be under-utilized, depreciate parked and company will
lose its capital and may be forced out of market.
Construction equipment planning and management plays crucial role for the success of
construction firms. Inadequate manual processes of equipment planning and selection and the
subjective decisions of equipment managers usually result in major losses to construction firms.
On the other hand, minimizing construction equipment planning and management problems
have a significant impact on successful accomplishment of projects. The aim of this project is
therefore, to study the problems and the way in which construction equipment planning and
management is used in building construction projects, assess the suitability, to see some
construction equipment planning and management practices used in the construction industry and to
compare them with host company practices and to forward solutions to the problems pointed out here.
1.3. Objectives of the project
1.3.1. General Objective

The general objective of this project paper is to identify problems the construction equipment
management practices that are currently being followed by the Country Club Developers (CCD)
PLC.
1.3.2. Specific Objectives

✓ To assess the current practices of construction equipment management in the hosting company
✓ To identify the main causes of equipment planning and management problems,
✓ To identify the effects due to poor equipment planning and management problems,
✓ To recommend best possible equipment planning and management practices.
1.4. Scope and Limitation of the study

The study mainly focuses on identifying the current practices if equipment management and planning
in the hosting company. The study area was the project site of hosting company CCD. In doing so,
the paper covers the current practice of the company, causes and effects and finally recommendations
regarding equipment management were made.
The assessment made on the hosting company includes their practice from early beginning of the
project to its current status. The study somehow included concepts found from on-site discussion with
site supervisor. This study has been some major challenges and they are listed below as follows;
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✓ Most of company’s employees have no clear insight of best practices to keep the equipments
in safest way possible and this makes it difficult to have more detailed data from them which
can be used as a source for this study.
✓ Time was one of the problems that hinder the preparation of this paper. This year’s internship
period was short compared to the previous years.
1.5. Significance of the study

This study could have many advantages for all stakeholders associated with this sector. The following
are some of the significance advantages that this paper can deliver;
✓ It would also be useful for the hosting company, CCD by providing information about the
disadvantages and challenges of failing to apply construction equipment management.
✓ It would be useful for the hosting company to follow best practices of equipment management
so as to execute projects in the most economical way by utilizing effective equipment
management practices.
✓ Enable the governing body, specifically the higher regulatory bodies, and the managements of
CCD to be aware of the perceived and actual practices of construction equipment management
and give insight on how to adopt the different aspects of construction equipment management
most effectively and efficiently.
✓ It can be used as source of reference for whoever is interested to conduct further studies on the
area under study.
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CHAPTER TWO
2. Literature Review
2.1. Introduction
The literature review comprises the fundamental concepts and principles that this project paper is
based up on and the problems and challenges to the concept construction equipment management are
screened with their respective principled solutions.
2.2. Construction Equipment

Construction equipment is one of the three major inputs of construction process, together with labor
and materials. One of the reasons for the development and use of equipment with in construction is, to
enable construction activities to be performed which are beyond the limit of human strength, and to
achieve high standards, which is required by current construction technologies and designs. The
second one is to make the construction process more economic. Studying construction equipment is
crucial and vital because the share of equipment cost is very significant in construction project. It is
also one of the resource areas in construction that can generate profit if it is utilized efficiently and
effectively. The cost of equipment in a project varies from 10 to 30% of the total cost of the project,
depending upon the extent of mechanization (Shama S.c., 2007). This statistics indicates that focusing
on the investigation of the planning and managerial aspect of such a huge investment needs closer
follow up. In addition to this, there are arguments in the contemporary engineering development to
have a closer look at construction equipment because the extent of mechanization in the new
technology appears to be mandatory. According to (Shama S.c., 2007), the extent of mechanization
determines the cost of a project in terms of cost of construction equipment.
2.2.1. Construction Equipment Management

Every construction companies should have policies and processes on equipment control & asset
management. Equipment control and asset management involves the management of construction
equipment within a company. Equipment control begins with the receipt of a newly acquired
equipment item and continues through the item's entire life-cycle. Newly acquired equipment should
be inspected by in-house or contracted construction equipment Technicians (CETs), who will receive
an established equipment control/asset number from the Equipment/Property Manager. The control
method can be used to track and record maintenance activities in the database. Once an equipment
control number is established, the device is safely inspected and ready for delivery to project areas in
the company.
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Wireman (1989) emphasis that CEM is a process, which includes that planning, selection acquisition,
productivity, maintenance, standardization and quality control cycles. In many cases, however, most
of the aspects of this process are either neglected or skipped over. According to researcher’s
observation, despite the fact that CE is owned and managed by professionals’, in frequent occasions
managerial process seems to follow traditional CEM practices then scientific conventional
approaches.
According to Sharma (1999; p.22) points out that, the “equipment managers main task is to reduce
downtime of CE and achieve optimum CE utilization and increase productivity at minimum cost”. He
also reiterate that “proper planning, selection, procurement, installation operation, maintenance, and
replacement “process need to be policy driven an, “have important role in CEM”.
Generally, an equipment manager is responsible of acquiring the equipment, where as it is the

responsibility of the construction planning group to select equipment. Nevertheless, both the inventory
of equipment in hand and the standard equipment policy play an important role in equipment
selection. Therefore, final decision on the equipment required for the projects is generally given by
equipment managers, project managers, and construction planning group together. Often, the decision
making process can create tensions in the enterprise. Once the selection of equipment is made, a
choice has to be made whether to buy, rent, or lease it. These decisions are given based on the
economic standing and strategy of the firm, and the nature and frequency of equipment use.
In operations and maintenance of construction equipment stage, the equipment in use should be
maintained properly, by scheduling preventive maintenance periods. Scheduled maintenance reduces
the incidents of failure, and thus minimizes costly breakdowns and stoppages on the project site. In
construction industry, preventive maintenance has increased the efficiency level of the industry around
10-20%, by reducing the break-down time of the equipment (Moore. W, 1998). For high utilization
rates, the equipment should be kept in a good condition. Also, proper selection and training of
operators and maintenance personnel is part of the responsibility of the equipment manager. In
addition, safety of both the operators and the equipment should be considered and properly managed.
Furthermore, proper registration and inventory records are part of the inventory process. Besides the
equipment life cycle, equipment managers are also responsible or operating the equipment
maintenance and storage facilities.
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Figure 2.1 1 Equipment Management Process

In the retire stage the equipment that no longer attains certain productivity levels should be disposed.
In order to decide whether to undertake a major maintenance of the equipment, or to salvage it,
productivity and diagnosis records should be analyzed rigorously. Even the salvage of the equipment
should bring income to the construction firm. Often times, miscalculations of salvage value may bring
losses to the firm.
Introduction of proper construction equipment planning and management helps in minimizing the
confusion created due to logistics management, horizontal/vertical transportation, material handling,
execution methods, interruptions, delays, prolonged duration of projects, finishing trades, and
infrastructure requirements (Mohideen, Ramachandran and Narasimmalu.,2011).[23] It is difficult to
identify the limit to machine usage in construction site. It is clear however, that as time goes by more
machines will be invented or adapted for use in construction sites. Therefore management continually
has to make decision about methods of operation and the right mix of human and machines with in
working environment. Machines therefore selected, arrive on site, are used and when the project is
completed, removed and returned to company plant depot or the hire company. Within this cycle
various decisions and assessments are required to be made (Cater, 1993).[23] Therefore if this
assessments and decisions are not made in proper manner, it will be difficult to face challenges
previously stated. That means proper management of equipment is essential for the successive
completion
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Further, construction equipment planning and management can be done in several ways. Various
types of construction equipment can be grouped in several ways (Day & Benjamin, 1991). [15]
Mainly they could be classified as functional and operational as depicted in figure 2 below.
Figure 2.2 1 Functional Classifications of Construction Equipment

Operational classification is better in use when functional classification is done according to the
functional activity of equipment as above. (Day & Benjamin, 1991)
To construct perfect structure, it is essential that there is adequate equipment for the construction work
(Leuva., 2012). Further, effective construction equipment planning and management means being able
to draw a definitive line between a losing company and one that is profitable and successful
(Campbell, 2011). Construction companies that are finding continued success even in the current
economy who finds new ways to lower operating and maintenance costs optimize their utilization and
reduce down time and increase profits. Maintenance of construction equipment is crucial as this
preserve them for future construction jobs, accident and save contractors from unnecessary expenses
(Marvelous, 2012). Maintenance is not only a thing to be aware of in equipment management.
Selecting and planning proper equipment on specific construction tasks also one of important portions
of the management criteria (Casals, Forcada, and Roca, 2003). Therefore management of construction
equipment is directly effects on project cost and duration. All construction activities comprised with
equipment management part are included in critical path of project mostly. Therefore, planning and
management of construction equipment directly affects the project duration. Thus, to minimize
construction cost and time, it is very important to manage construction equipment in proper manner.
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2.2.2. Construction Equipment Management Practices in Construction Companies

The cost of equipment in a project varies from 10 to 30% of the total cost of the project, depending
upon the extent of mechanization. In modern fully mechanized projects the cost of equipment goes up
to 30%. Proper planning, selection, procurement, installation, operation, maintenance and equipment
replacement policy plays an important role in equipment management for the successful completion of
the project. With the growing use of machinery it has become necessary for construction engineers to
be thoroughly familiar with the construction application and upkeep of the wide range of the modern
equipment.
Equipment manager’s main task is to reduce downtime, achieve optimum equipment utilization and
increase production at minimum cost. The cost analysis and the will of adopting proper techniques
suited to the situation are the basic factors for the success and therefore, there is a need for a rational
planning, proper selection, and judicious deployment of equipment in relation to the conditions so as
to achieve optimum utilization. Equipment engineer should coordinate with various wings of the
organization in discharging his job of equipment planning, balancing, selection of equipment and its
utilization, personnel selection and training, financial planning, preventive maintenance and general
supervision. Thus equipment management integrates and continuously interacts with human,
technical, financial and production system in order to achieve top efficiency and cost effectiveness.
Strategic Operational
Planning Maintenance
Equipment Selection Repair

Finance/purchase Operation
Replacement Record Keeping
Disposal
Table 2.1 1 Operational and Strategic Dimensions of Equipment Management

In most of the construction firms, equipment managers are the sole under takers of the overall
responsibility of equipment management. Based on their experience, equipment managers decide on
the day-to-day management of equipment operations, and also on strategic operations such as new
equipment procurement. Thus, responsibilities of the equipment managers, ensuring that the
equipment is properly used, maintained, utilized and managed, are rather challenging. Effective
operation of construction equipment should be maintained to avoid underutilization of such large
capital investment. Also, preventive maintenance and repair should be carefully planned, and high
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productivity rates should be realized during operations. As the equipment fleet gets larger,
maintaining such goals become a big challenge.
Most construction firms have centralized equipment management function, but actual operations are
geographically dispersed. Even though the equipment manager of the firm is the main accountable,
responsibilities are shared with project managers that utilize the equipment during project.
2.2.1.1. Planning construction equipment

Equipment planning on major construction projects includes besides its selection, the decision about
working shifts, number and size of machines, the matching of units working in a team, procurement
schedule and the arrangement of necessary technical staff to operate, service and repair for the
equipment. Planning of workshop and store facilities is also an important aspect of equipment
planning.
Planning is an important step, had many points worth according (Moor, 1998) [22] equipment the
worth of ordering of the extent of mechanization, equipment planning and execution planning and
making decisions accordingly.
With regard to the extent of mechanization Sharma (1999), Mead (1986) [19] identified four
important factors. The first one is the availability of manpower. Especially Sharma state that the
availability of cheap labor for adduction of a project may not force the equipment manager to involve
in equipment investment; where as expensive managers could lead to investing heavily on equipment.
In other words, as Sharma (1999) [19] clearly points it, “the extent of mechanization could be limited
on the availability of relatively cheap man power”. Mead (1986) [Error! Reference source not
found.] also says, “the cheaper the labor cost, the lesser the need for mechanization and, hence, the
lesser the cost of inland investment on construction machineries “.
The second factors that determine the map of planning for CE is completion period, some would like
to put it, project life. According to Mead (1986), completion period plays a desire role about the extent
of mechanization because less completion period entails less mechanization”. This means the longer
the life of the project, the better the chance of the project managers to depend on human labor, and the
shorter the life of the project, the higher the chance of the manager to depend on CE.
2.2.1.2. Selection of construction equipment

Selection of Construction equipment for a construction project is one of the major functions and
decision-making processes which are carried out by the construction company at the planning stage of
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the project. This is due to the key role in the success of the project is played by the selection of the
appropriate equipment. For Simple, “regular” projects, especially similar projects the company has
previously built, may not pose a challenge in terms of equipment selection; however, when the project
is no longer “regular and definitely in the case of complex and large-scale projects, equipment
selection also becomes very complex and challenging.
2.2.1.3. Construction equipment purchase

Once the selection of equipment is done the purchase action for the selected model and type is started
considering lead time for the supply of equipment, time required for its installation and
commissioning, and the time when equipment should be available for use. The process of selection of
equipment is generally a part of procurement, followed by equipment planning and helps in purchase
of equipment. The complete procurement action is divided in various activities like calling enquiries,
its technical and financial evaluation, ordering, contract-making transporting, assembling, installation
and commissioning, and should be followed vigorously, as any delay in any of these activities will
result in delay in completion of the project. Therefore these activities are monitored at top most
priority.
Generally fast moving or maintenance spares are purchased along with the equipment especially for a
period of one or two years. Equipment should be purchased in phases, so that the money is not
blocked and equipment required later do not remain idle (Sharma, 1999, p.634)
Leasing is a rental agreement which provides all the benefits of the use equipment to the user.
However, the leasing company actually owns the equipment and quails for the writing down
allowances for tax purposes. The user pays argental that any reflect the above allowances to a certain
degree.
A credit sale is a sale in which the purchaser the ownership or the title of the equipment item, but the
purchase price is paid in installments (Harries and McCaughey, 1982). [Error! Reference source not
found.] These installments usually include the purchase price plus the interest or financial charges on
the capital. The owner gets the same tax benefits as in the case of outright purchase
Once the selection of the equipment is done the purchase order for the selected model and type is
issued considering lead time for the supply of equipment, time required for its installation and
commissioning and the time when equipment should be available for use. The process of selection of
equipment is generally a part of procurement, followed by equipment planning and purchasing.
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2.2.1.4. Operation and utilization of construction equipment management

Since this is the task directly responsible for utilization, maximum managerial care should be given to
the ‘operation.’ Following are an important responsibility for asset managers is to ensure that
maximum benefit is derived from their assets. Accordingly, asset managers need to be mindful where,
for example, equipment is no longer effective in performing the activities required of it, it is in less
than optimum condition, or demand for the services it delivers or supports has reduced.
Underutilized equipment should be identified and the reasons for this examined and, as far as
Possible, rectified. The utilization of major equipment items is not monitored on a regular basis. In
general, information on equipment utilization is only communicated to hospital management annually
when considering equipment replacements and is only confined to those items that were deemed to
need replacement. As a result, any potential problems arising from underutilized equipment may not
be known by company management.
2.2.1.5. Equipment maintenance practice

Every machine is thoroughly tested and inspected by the manufacturers before selling. When it is
used, it is subjected to wear and tear and hence appropriate and undue attention should be given to
protect the machine and its components from undue wear and thus protect them from failures. A
proper attention means lubrication, cleaning, timely inspection and systematic maintenance.
Maintenance means efforts directed towards the up keep and the repair of that machine. Repair must
be done at a time when it may have least disruptions i.e. machine may be repaired when it is not being
used or its use may be postponed without affecting the production much. Thus, maintenance is
responsible for the smooth and efficient working of an industry and helps in improving the
productivity. It also helps in keeping the machine in a state of maximum efficiency and economy
(Sharma 2002, p.456).[20]
According to Wireman T. (2001) [21] Maintenance, being an important support function in businesses
with significant investments in plants and machinery, plays an important role in meeting this tall
order. Consequently, the equipment management has passed through significant changes in the recent
times. In the present manufacturing scenario, the maintenance function has become an integral part of
the overall profitability of an organization. Every machine is thoroughly tested and inspected by the
manufacturers before selling. When used it is subjected to wear and tear, hence proper attention
should be given to protect the machine and its components from undue wear and thus protect them
from failures. A proper attention means lubrication, cleaning, timely inspection and systematic
maintenance. Maintenance means efforts directed towards the up keep and the repair of that machine.
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The main purpose of maintenance is to keep the equipment in good, serviceable condition. Therefore,
equipment maintenance is a vital function in any contracting or plant hire company. This function
includes all the activities such as daily and periodic inspection, lubrication, servicing, repairs and
periodic overhauls.
The basic form of maintenance as pointed out by (Harries and McCaughey, 1982): [Error! Reference
source not found.]
1. Planned preventive maintenance (PPM),

2. Planned corrective maintenance (PCM),
3. Unscheduled or unplanned maintenance inducing repairs or break down maintenances
2.2.1.6. Construction equipment replacement

Equipment replacement decision plays an important role in the economic running of any concern for
years. The reasons for replacement of equipment are: deterioration, obsolescence and inadequacy. The
equipment is replaced in order to reduce production cost, to reduce fatigue, to raise quality, to increase
output, to secure greater convenience, safety and reliability. The capital needed for the replacement of
the equipment is recovered during its life cycle through depreciation realized every year.
2.2.1.7. Equipment disposal

According to Sharma (1999) [19] when equipment becomes obsolete, is not suitable for use for a
variety of reasons (damaged, can be used but parts need to be replaced, making it cheaper to buy new
equipment, etc.) or is surplus to requirements, there should be a way to dispose of it. Where possible,
recycle equipment by giving it to other organizations or individuals in the community who can make
use of it as long as it is safe to do so; otherwise it must be destroyed. The recipient must be informed
of what needs to be carried with the equipment (e.g. replace a part) before it can be used again, if such
action is required before use. Equipment marked for disposal can also be used as a source of spare
parts.
For equipment that cannot be repaired and reused, such as slings and slide sheets, a disposal system is
needed. Such equipment should be disposed of as recommended by the manufacturers
2.2.1.8. Construction equipment registration

One of the management tools often used in an equipment maintenance system is an equipment
registration and documentation. This registration and documentation can be in the form of a logbook,
spreadsheet or customized asset management software. Whatever form it takes, it should allow regular
monitoring of essential information regarding equipment location, use and maintenance. Decisions
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about who makes purchasing or procurement decisions, when equipment should be replaced, and how
obsolete equipment will be disposed of, is management planning roles. A construction equipment
inventory provides a technical assessment of the technology on hand, giving details of the type and
quantity of equipment and the current operating status (Popescu and Ryan 2009). [Error! Reference
source not found.]
To establish an equipment registration and documentation it is necessary to develop a list of all

moving and handling equipment held by the organization or facility.
2.2.1.9. Construction equipment record keeping

Equipment record keeping is not necessarily limited to maintenance records though maintenance
records play an important role in making management decisions. In general, records include operating
hours, downtime, costs such as ownership costs, overheads, maintenance and repair operator wages,
fuel cost and revenue from equipment.
Douglas (1975) [2] describes the uses the of equipment records as: Analysis of equipment
performance, determination of equipment economic life and replacement timing and obtaining true
cost of a piece of equipment over its useful life. As mentioned earlier, equipment records are also very
useful in making maintenance management decisions particularly in the areas of preventive
maintenance and maintenance resource management (labor requirements and spare parts inventory
control).
2.3. Use of computers in construction equipment management

The computer has become popular among equipment companies in other countries as a mean of
keeping and analysis equipment records. Computers are used effectively for various aspects related to
the equipment management like, availability of equipment, optimization of equipment, for matching
the size of the equipment for matching the size of the equipment with that of other equipment used
together for one or related activities, resource level ling, maintenance of history cards and then using
them for planning the overhauling of assemblies/ equipment as a whole.
Various problems related to operation research techniques like, queuing models, transportation models
etc. as explained earlier can be solved very easily by using computers. CPM/PERT network
techniques can be applied for equipment planning, monitoring, controlling, scheduling, and resource
allocation purposes through computer. (Sharma, 1999)
15
2.4. Economics of Construction Equipment

Principles and techniques of engineering economics are utilized while making equipment selection
and planning of finances for the purchase of construction equipment. Economics of construction
equipment deals with the study of working of the equipment and to compute the unit costs of
production. This economic evaluation helps in taking a decision to select equipment or to retire it.
Unit cost of production is calculated after estimating the best of production by calculating hourly
ownership and operating cost of the Equipment selecting is a decision making from various
alternatives which gives least cost of unit production considering various factors of economics being
described in this portion. It should consider the rate of interest on the equipment, time required
completing the project and effect of time on the project, as we know that time is money.
2.4.1. Ownership costs

The ownership costs are in the nature of fixed costs, as they have to be incurred irrespective of the
quantum of use. These are real costs as far as an organization is concerned but they are notional for a
site. Ownership costs are fixed costs and almost all of these costs are annual in nature and include:
a) Investment cost,
b) Depreciation cost and
c) Major repair cost
2.4.2. Operating costs

The operation costs are directly related to the quantum of use and efficiency of the equipment. These
costs are normally incurred by the sites and are too apparent and real. Operating costs of the
construction equipment, which represent a significant cost category and should not be overlooked, are
the costs associated with the operation of a piece of equipment. They are incurred only when the
equipment is actually used. The operating costs of the equipment are also called “variable” costs
because they depend on several factors, such as the number of operating hours, the types of equipment
used, and the location and working condition of the operation. The operating costs vary with the
amount of equipment used and job-operating conditions. The best basis for estimating the cost of
operating construction equipment is the use of historical data from the experience of similar
equipment under similar conditions. It includes the following costs Cost of fuel (or power), Cost of
lubricants, Servicing and maintenance cost, Labor cost, Cost of field repairs (Wireman t., 2001). [21]
16
CHAPTER THREE
3. Methodology
3.1. Study Design

The purpose of the study is to assess the current practices of equipment management of the hosting
company, CCD. In doing so the study used literature review as the main source of data to identify the
problems relative to the standards of equipment management. The study adopted descriptive type of
study as the observations made on the site and the overall assessment requires brief description.
3.2. Study population

Saunders (2007) defines study population as the full set of cases from which a sample is taken. In line
with this, Cohen et al. (2000) state that, population is a group of people who are subject to a piece of
study. The subject for this study as it has been stated above is the project of the hosting company,
CCD.
3.3. Data collection methods

The primary data essential for this study gathered from direct observation on the site throughout the
intern session. The data needed for this study also collected from secondary sources through
reviewing the office records and previous related studies.
3.4. Data analysis

The method for this project paper comprises an initial comprehensive literature survey which has been
carried out by reviewing journals, articles, and previous related studies to obtain existing knowledge
on various aspects equipment management. Direct observation was primarily used in order to find a
more tangible data and information about the area under study.
Based on the findings of the reviewed literature survey, contact has been made with the site officials
has been made to discuss the problems associated with the current practice of equipment management.
Then qualitative analysis made to point out the problems in practice of equipment management system
of the hosting company, it causes and affects, to introduce best practices.
17
CHAPTER FOUR
4. Result & Discussion (Solution)
4.1. Introduction
This content of the paper discuss the causes of these problems on the site, effects of these problems on
the project site of CCD and finally strategies and best practices to be utilized by CCD for efficient
equipment management put forward as a solution.
4.2. Current practices and Causes of Poor Equipment Management
4.2.1. Construction equipment selection

It is obvious that selection for the project is one of the key and challenging decisions to be made
construction companies in Ethiopia as the data should be accurate. Because these decisions are
essential as the decisions are directly related to
✓ How the work will be done

✓ The time required to complete the project
✓ The cost that the project should take
In this sense many projects in our country are highly susceptible to such problems as specific accuracy
in landing the planned project on the ground has been continually a major drawback. During this
intern session in CCD the student trainee was able to identify that CCD (the host company) is facing
the challenges to satisfy different constraints imposed by job and contractual obligations. These
challenges includes:-
a) Scope of work to be carried out

There are still amendments on the works to be carried out throughout the project in response to several
changing circumstances. This hugely affects the company’s early plans in selection of equipments for
the project as the equipments delivered to the site suffer from not being used and mismanagement.
b) Suitability for job conditions

The project location in which CCD operating is completely unsuited to carry out construction works
and even to set the equipments in proper manner.
18
4.2.2. Huge capital investment in the acquisition phase

Acquisition phase is highly associated with the amount of risk that the contractor wishes to assume. It
is risky because they are huge capital investment and there is a need to associate these risks with
financial considerations.
According to student trainee’s point of view consulting with an accountant before making any
purchases of equipment to evaluate cash flow and tax implications. But this scenario failed to serve
the cause in the case of CCD. Contractors and project managers in CCD never experienced consulting
accountants in purchasing equipments and this is the main problem for many construction companies
as they purchase on equipments. Many construction companies in Ethiopia including CCD are
renowned for their improper purchasing of equipments only focusing on image building of which
equipments the company owes directly related to capacity building just to upgrade standards by the
government authorities which paves the opportunity to win big projects without consideration of the
following major points;
✓ The amount of equipment to be utilized in terms of return on investment

✓ Volumes of future work, client requirements, long-term company goals, acquisition time
and availability of equipment
4.2.2.1. Poor training of equipment operators

Misuse of equipment, induced by the negligence of the operator and lack of proper training and know-
how on the part of equipment supervisor, may result in increased frequency and cost of n down time
(Pathmanathan, 1980). An operator’s skill is one of the most important factors and it affects that
operator’s performance and the direct cost of DT through job efficiency (Arditi et al., 1997; Elazouni
& Basha, 1996; Edwards et al., 2000). [Error! Reference source not found.]
Equipment operator is the one responsible for how productive the equipment could get. During this
intern session in CCD, the student trainee able to witness operator’s interaction with the equipments
was not satisfactory and most of accidents and equipment mal function was caused by the operators.
Operators on this site were not responsive to errors/defects encountered by the equipments during
operations.
4.2.2.2. Poor equipment maintenance practices

Of all causes discussed here, poor equipment maintenance practices well describe CCD. There are
significant numbers of equipments on the site in need of maintenance and their production is almost
dropped to zero and consequently the company is losing money due to these equipments rather than
19
making money. When the machine breaks down, the production drops to zero and the equipment starts
costing money to its owner rather than making money.
4.2.2.3. Improper determination of economic life and timing for replacement

Construction equipment life can be defined in three ways: physical life, profit life, and economic life.
Figure 2.2 below shows graphically how these different definitions relate to the life cycle of a typical
piece of equipment. (Gransberg et al., 2006).
Figure 4.1 1 Equipment life definitions (Source; Gransberg et al., 2006)

As it can be seen from the above figure over the physical life of the machine, it takes some time for
the new machine to earn enough to cover the capital cost of its procurement. It then moves into a
phase where the equipment earns more than it costs to own, operate, and maintain, and finishes its life
at a stage when the costs of its maintenance are greater than what it earns during the periods
when it is in operation.
Physical life is the age at which the machine is worn out and can no longer reliably produce. At this
point, it will usually be abandoned or scrapped. As construction equipment ages, maintenance and
operating costs increase.
Profit life is the life over which the equipment can earn a profit. The retention beyond that point will
create an operating loss. (Guralinik, 1979) as quoted on Gransberg et al., 2006.
Economic life equates to the time period that maximizes profits over the equipment’s life.
20
Equipment owners constantly strive to maximize production while minimizing the cost of
Profit (Birr) production. Thus, selecting economic life span as the metric to make the equipment
replacement decision is in fact optimizing production with respect to profit.
What has been observed in CCD is in complete contradiction to what has been discussed here above.
Equipments or machineries are worn out and can no longer reliably produce at their profit life. This
exactly shows how bad the company’s equipment management practices are.
Even though the causes problems related to equipment management practices are bit wider than what
has been discussed here. It has been tried to put generalized view of the causes problems encountered
during the intern session from general principles perspective.
4.2.3. Effects of lack of equipment management in CCD

The impacts/effects of the problems encountered on the project are listed below;
4.2.3.1. Delay (Time overrun)

Delay is generally acknowledged, as the most common, costly, complex and risky problem
encountered in construction projects (Alaghbari, Kadir, Salim and Ernawati 2007).
Poor equipment management practice being the cause it has been witnessed many activities being
delayed and this delay of activities may harm overall project completion period. Consequently,
because of overriding importance of time for both the owner (in terms of performance) and the
contractor (in terms of money) it is a source of frequent dispute and claims leading to
lawsuits.
4.2.3.2. Cost overrun

Cost in project comprises money and resources (people, equipment and materials). The client
usually wants the project to be finished with the possible lowest cost and timely.
Different problems and challenges encountered on the site during the working procedure with the
equipment such as life cycle and performance of the machines.
4.2.3.3. Loss in productivity of equipment

Productivity is the ratio of useful work out put to the time spent to complete that work (Jose, 2001).
Nowadays it is beloved that productivity of construction equipments has increased with increase in
modernizations. This trend may be objected in the context of CCD’s equipments destiny. It is fair to
say that equipments in this company are rather losses than being productive due to improper handling
of the company.
21
There are three internationally recognized factors and it is possible to put these factors relative to
student trainee’s experience in the company.
a) Human factor
✓ Incompetent supervisor
✓ Rework.
✓ Operators ineffectiveness
b) Management factor
✓ Poor coordination
✓ Infrequent inspection time/inspection delays
✓ Poor communication.
✓ Improper utilization of equipments
c) Work factors
✓ Poor site coordination
4.2.4. Strategies and best practices for construction equipment management (Solution)
for CCD
It is obvious that construction equipment management is much wider concept to be limited in these
strategies and practices. But the main objective this project is to come up with the strategic solutions
and introducing best known practices from reviewed literature to help the company improve
ineffective practices of material management practices.
 Selection
There is different factors needs consideration from all parties involved in undertaking construction
projects. It is expected from the projects officials of CCD to select equipment or combinations of
equipments which best fits to the project being undertaken.
1) Use models based on traditional mass haul diagrams, artificial intelligence and genetic
algorithm and geographic information system to crew optimization
2) Mathematics of rough sets and fuzzy sets
3) Analytical hierarchy process to take account of qualitative factors
 Acquisition
Contractors have two options in acquiring plant. They may either own their machinery and
equipment or hire it. Many contractors prefer to hire only those items of plant, which are required to
22
meet peak demand or specialized activities. The alternative decision to purchase will have important
financial consequences for the contractor, since considerable capital sums will be blocked up in the
plant, which must be operated at an economic utilization level to produce a profitable rate of return
of investment (Construction information services, 2012).
1) Purchase equipment outright by cash, financing.
✓ Purchase equipment in used condition, new condition, based on personal judgment,

based on current and future work load, based on life cycle cost (LLC) of equipment,
based on company financial status or based on internal rate of return (IRR) of
investment. (prasertrungruang and Hadikusumo, 2007)
✓ Make decision on acquiring or disposing equipment by president/CEO, by board
directors, by equipment managers or by project managers. (Hinze and Ashton, 1979)
✓ Purchase equipment based on brand popularity and spare parts availability,
functions and its usage.
✓ Purchase the same brand that is being used regularly.
✓ Purchase equipment from familiar dealers
✓ Buy used machines because of cheaper price but still in good condition or need in
functions and advanced technology.
✓ Buy used machines only the ones that do not have complicated systems, ones that do not
have high repair costs once failure, ones that are not frequently utilized or ones that are
frequently utilized for long time.
2) Acquiring rental or leased equipment.
✓ Use rental or leasing strategy for infrequent utilized equipment, to avoid
equipment obsolescence, to avoid uncertainty of spare part cost, to avoid initial financial
burden to the company, to test newly launched machines, to save spare parts cost, to
benefit from mechanics learning curve, to lower operator/labour costs of machine or
to enhance safety as operator uses similar machines. (Hinze and Ashton, 1979.
Prasertrungruang and Hadikusumo, 2007. Tavakoli et al., 1989)
✓ Use standardized policy for better relationship with dealers or for easier equipment
administration. ( Tavakoli et al., 1989)
23
4.2.4.3. Operation
Stewart (as cited in Prasertrungruang and Hadikusumo, 2007) [Error! Reference source not found.]
says an equipment operator is the person in the construction organization who has the control on
equipment costs. Quality output can be partly achieved through skilful operators working with
machines that are in good operational condition, thus educating equipment operators is one of the most
important policies and thus holds great cost-saving potential.
✓ Allow an equipment operator to work with more than one machine
✓ Provide training by in-house equipment department, equipment dealers or external agencies
✓ Consider poor operating procedures as a main cause of equipment accident
✓ Consider poor maintenance as a main cause of equipment accident
4.2.4.4. Maintenance
Equipments are exposed to a huge amount of abuse, dirt and various other elements which can cause
damage of equipment if they are not cared for in the proper way. Maintenance of construction
equipment is crucial as this preserve them for future construction jobs, accident and save contractors
from unnecessary expenses and time (Mavelous, 2012). [Error! Reference source not found.]
✓ Provide maintenance by equipment operators
✓ Provide maintenance by in-house equipment department
✓ Provide maintenance by equipment dealers
✓ Provide maintenance by other external mechanics
✓ Provide preventive maintenance programs to equipment
✓ Seek for substitute equipment once machine suddenly breakdowns
✓ Wait until the failed machine is completely repaired and ready for use
✓ Transfer crews to other works once machine suddenly breakdowns
✓ Accelerate speed of works once machine suddenly breakdowns
✓ Modify project activity and schedule once machine suddenly breakdowns
✓ Consider poor operating procedures as a main cause of machine failure
✓ Consider poor maintenance and use of non-original parts as a main cause of machine failure
during use
4.2.4.5. Disposal
Douglas (as cited in Prasertrungruang and Hadikusumo, 2007) [2] reports the last stage of machine
lifecycle is disposal stage, in which two major decisions concerning equipment have to be made as
timing of replacement and equipment economic life expectancy. Further Hinze and Ashton (1979)
24
state that there are various factors affecting the timing of replacement as follows, machine efficiency,
capital availability, investment costs, commencement of new projects, profits accrued from use, tax
expense, depreciation, economic analysis, obsolescence costs, and downtime cost.
✓ Dispose or replace equipment based on intuition and rules of thumb.
✓ Dispose or replace equipment based on equipment economic analysis.
✓ Dispose or replace equipment when it becomes technologically obsolete.
✓ Dispose or replace equipment when it becomes inefficient.
✓ Dispose or replace equipment before major overhaul with high repair cost.
✓ Determine equipment economic life based on investment cost, downtime cost,
obsolescence cost, tax advantage, depreciation cost, maintenance and repair cost and
profit accrued from use.
25
CHAPTER FIVE
5. Conclusion and Recommendations
5.1. Conclusions
This study reviewed the construction equipment management practices and the problems in utilizing
the practices in CCD. This paper aimed at identifying the main causes of equipment planning and
management problems, determining the effects of due to poor equipment planning and management
problems, recommending best equipment planning and management practices.
According to the findings of this paper it is fair to say that CCD (the hosting company) has bad
practices of equipment management.
Based on the results obtained the following conclusions are drawn;
✓ The current trend of construction equipment management practice in the company is far
from being satisfactory. Ineffective management of equipment has contributed negatively to
on time completion of the project and overall performance of the project.
✓ The study depicted that the company is more focused purchasing on equipments in building its
capacity in terms of acquiring equipments and to be considered strong in view of its
competitors by endangering company’s long term financial position.
✓ Higher officials of the company have no experience of consulting accountants in making
decisions of purchasing on equipments.
✓ It was revealed in the study that CCD did not have well organized and integrated equipment
maintenance system. Corrective maintenance of the company is unscheduled. Delay in
corrective maintenance indirectly holds completion rate back.
✓ The study result asserts that the company holds much old construction equipment
somewhere unsafe for the equipments and most of them are highly susceptible to corrosion and
damage. This endures the company to lose money rather using the equipments for operations
by maintaining or disposing them to get money.
✓ The study revealed that there was no appropriate ways such as company’s own database
and formally organized use of other company experience upon which construction
equipment rent is determined in the enterprise.
26
✓ The skill of operators in the company one of the worrying issues in the company as the
operators are unfriendly to the equipments both during operations and maintenance phase after
encountering malfunctions.
✓ Another major weakness depicted by the study is construction equipment record keeping.
Because of lack of continuous monitoring, controlling and timely action to adjustments
by the enterprise, equipment utilization, daily report by operator, timely equipment
utilization report, equipment costs and maintenance data and costs records are not
properly undertaken in appropriate manner. Moreover, the implementation of weak manual
based method of equipment record keeping makes equipment management activity
inconvenient.
5.2. Recommendations
After detail investigation on construction equipment management problems its causes and
effects, plausible recommendations can be forwarded to CCD. The recommendation meant to
overcome construction equipment management problems in CCD. The following recommendations
are put forward for the company to build on;
✓ Develop construction equipment planning and management policy to be used as a guide line to
use equipment efficiently.
✓ Should give awareness training for site engineers about equipment planning and
management policy and how to manage equipment at project level.
✓ Collection data about the current status of construction equipment and efficiency of
equipment at project level.
✓ Develop planned preventive maintenance method to eliminate long down time of
equipment.
✓ Develop optimization methods to use available equipment resource effectively and
efficiently;
✓ The enterprise need to facilitate training to all construction equipment support process
on economically efficient use of construction equipment in the enterprise and projects.
✓ CCD has to facilitate training programs, to train unskilled and semi-skilled operators.
✓ CCD has to implement the currently available technologies regarding equipment.
✓ CCD must update equipment crew composition and its production rate.
27
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1. Harris, F. 1988. Construction Plant: Excavation and materials handling, Equipment &
Methods. Granade publishing limited, Pp 1-8
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4. Ethiopian economic association, 2008. Report on the Ethiopian economy, the current status
of the construction industry. Addis Ababa, Ethiopia.
5. Y.R. Anbhule. et.al. (2007).‖ 3D Equipment Management System for Highway Construction
Projects: Conceptual Design‖ Journal of Mechanical and Civil Engineering. No. 2278-1684,
PP: 01-03
6. Ministry of urban development and construction (2013). Directives for the registration of
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29

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DIRE DAWA UNIVERSITY

DIRE DAWA UNIVERSITY INSTITUTE OF TECHNOLOGY

SCHOOL OF CIVIL ENGINEERING AND ARCHITECTURE

TITLE: IDENTIFYING CURRENT PROBLEMS ASSOCIATED WITH THE

PREPARED BY: MILLENIUM TIGABU

ADVISOR: NAHOM BEYECHA

SUBMISSION DATE: FEB27, 2022

CHAPTER FOUR .................................................................................................................................. 18

1.1. Background of the study

Construction is the ultimate objective of a design and transformation of a design by construction of

Construction equipment management is thus concerned with the purchase, retirement,

1.2. Problem statement & Justification

1.3. Objectives of the project

1.3.1. General Objective

1.3.2. Specific Objectives

1.4. Scope and Limitation of the study

1.5. Significance of the study

2.2. Construction Equipment

2.2.1. Construction Equipment Management

Generally, an equipment manager is responsible of acquiring the equipment, where as it is the

Figure 2.1 1 Equipment Management Process

Figure 2.2 1 Functional Classifications of Construction Equipment

2.2.2. Construction Equipment Management Practices in Construction Companies

Equipment Selection Repair

Replacement Record Keeping

Table 2.1 1 Operational and Strategic Dimensions of Equipment Management

2.2.1.1. Planning construction equipment

2.2.1.2. Selection of construction equipment

2.2.1.3. Construction equipment purchase

2.2.1.4. Operation and utilization of construction equipment management

2.2.1.5. Equipment maintenance practice

1. Planned preventive maintenance (PPM),

2.2.1.6. Construction equipment replacement

2.2.1.7. Equipment disposal

2.2.1.8. Construction equipment registration

To establish an equipment registration and documentation it is necessary to develop a list of all

2.2.1.9. Construction equipment record keeping

2.3. Use of computers in construction equipment management

2.4. Economics of Construction Equipment

2.4.1. Ownership costs

2.4.2. Operating costs

3.1. Study Design

3.2. Study population

3.3. Data collection methods

3.4. Data analysis

4. Result & Discussion (Solution)

4.2. Current practices and Causes of Poor Equipment Management

4.2.1. Construction equipment selection

✓ How the work will be done

a) Scope of work to be carried out

b) Suitability for job conditions

4.2.2. Huge capital investment in the acquisition phase

✓ The amount of equipment to be utilized in terms of return on investment

4.2.2.1. Poor training of equipment operators

4.2.2.2. Poor equipment maintenance practices

4.2.2.3. Improper determination of economic life and timing for replacement

Figure 4.1 1 Equipment life definitions (Source; Gransberg et al., 2006)