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Article: Why the Sweet Spot Matters.
- Article from:
- Construction Equipment
- Article date:
- December 1, 2007
CopyrightCOPYRIGHT 2007 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By Mike Vorster, Contributing Editor
Economic life provides more than an accurate hourly rate. Managed well, it ensures an age-balanced fleet.
Most companies have a standard way of calculating the estimated owning-and-operating cost for a machine. Many develop their own style, others follow a format developed by one of the major manufacturers, or some use one of many described in published texts. Selecting and using an appropriate standard method is important, but the secret to success and the real challenge lies in estimating future costs and understanding the risks involved in each category.
Adding up the total costs expected throughout the ...