Aggregates Manager Digital Magazine
Issue link: http://read.dmtmag.com/i/468886
AGGREGATES MANAGER March 2015 24 T he economic recovery brings re- newed (and welcome) demand for building materials. Recently, this trend coincides with lower diesel prices. Rising demand plus lower costs; is a golden age just around the corner? Most likely, it will be something less. Regardless of prospects for a brighter future, producers are likely to keep a vigilant eye on the bottom line. Those who survived the last few lean years learned a lesson: fuel is a real cost in mobile fl eets. Further- more, fuel effi ciency is a key indicator of waste, or lack thereof, in one's operations. Fuel consumption can easily represent a quarter of the total hourly cost for a typical wheel loader running in a quarry or yard operation. Lower fuel prices shrink this slice. But 'lean thinking' teaches that cost control is a continuous process and, increasingly, a key driver for business sustainability. Over the last decade, equipment man- ufacturers invested a great deal to reduce emissions and improve fuel effi ciency. If your machine can do the same job as before while burning less fuel, the sav- ings go direct to the bottom line. Further high-tech solutions will bring real fuel effi ciency gains, some day. But tech- nology is not the solution to everything. Don't forget a 'low-tech' solution that is surprisingly effective and, more impor- tantly, relatively cheap: good operators. The key to cost reduction Operators are integral to the success of any job. A good operator can make a tired machine perform; a bad one will soon destroy the best machine. Operator competence directly contributes to the quality of work and ability to get a job done on time. In addition, the operator infl u- ences down- time and running costs. Training and implementation of best prac- tices offer real cost-reduction strategies for your mobile fleet. by David B. Nus Operator performance drives the bottom line Depreciation 23% Tires/Tracks 23% Interest, Tax, Insurance 14% Fuel 26% Operator 15% Repair & Maintenance 12% Figure 1 shows the typical owning and operating costs for a yard loader. Whether in re-handling or load-and-carry applications, operator skill has a big impact on an operator's bottom line.