New Products

Putting the total cost of ownership back in your hands

While savvy operators know that the total cost of equipment ownership is more important than just the purchase price, what most don?t know is that they could actively reduce their total cost of ownership across earthmoving equipment and trucks by using Loadrite?s monitoring and alert features to set benchmarks and measure productivity.

Total cost of ownership includes everything from the original purchase price to the daily running and maintenance costs, depreciation, finance and even ?hidden? costs like insurance and employee wages.

{{image2-a:r-w:250}}A machine that appears to be competitively priced may end up costing many thousands more than a higher priced machine because it may deliver lower productivity, increased fuel and maintenance costs and a lower resale value.

You can measure total cost of ownership based on the number of hours a machine works, or based on actual productivity in terms of the amount of material moved. By basing total cost of ownership calculations on the amount of material moved, operators can get a clearer picture of the machine?s actual cost of ownership, since a machine that moves more material in less time is likely to generate more income as well as using less fuel per tonne of material moved.

While it makes sense to choose a fuel efficient, highly productive machine, it is also possible for smart operators to proactively reduce the machine?s total cost of ownership by reducing the running costs, according to Loadrite?s product manager Elliot Chisholm.

There are a number of steps that can achieve this, such as improving efficiency to reduce fuel usage, optimising the loading process and improving the maintenance scheduling so that all machines and vehicles are up and running when you need them to be.


?The first step is to understand how productive your machines are, including how much fuel they use and how much material they move,? Elliot said. ?The next step is using that information to make changes where necessary to improve efficiency and reduce costs.?

By tracking the amount of material moved per hour to measure productivity and set benchmarks, operators can see underperformance and make appropriate adjustments to ensure all equipment is working to its optimum efficiency.

An on-board weighing system like those offered by Loadrite can be used to calculate the weight of material in an excavator or loader bucket, relay this information to the operator and record the weight for later use.

?Being able to track the amount of material moved per hour can then be used internally as part of an overall business analysis to measure productivity and set benchmarks,? Elliot said.

?Once you know your benchmark productivity rates, it?s also easy to identify equipment that is underperforming, which sets off a trigger for an investigation into the underlying causes. These causes can vary widely, from operator error to equipment failure.?

Once productivity benchmarks are set, fleet managers can customise the Loadrite system to capture a wide range of other data such as cycle times, which can then be used to identify process bottlenecks and inefficiencies. By resolving these issues, managers can improve productivity and reduce operating costs.


By tracking and monitoring various productivity indicators, managers can see variations and make changes that will result in a more efficient use of resources.

{{image3-a:r-w:250}}?Being able to track and monitor fuel use, for example, is a major consideration in assessing the cost of ownership, particularly given the high price of fuel. By understanding the amount of fuel used to move each tonne of material, you can see how productive each machine is and possibly find ways to reduce fuel usage,? Elliot said.

?The Loadrite system can also measure the cycle times between each loading event, which can show how efficiently the material is being moved. Shorter cycle times generally point to a more efficient and therefore more profitable operation.?

The system actively helps reduce fuel use, which is another major component of the costs of load and haul. By using an accurate on-board weighing system, operators can ensure trucks are filled correctly the first time, with no productivity lost due to under loading or overloading.

?By loading trucks correctly from the outset, unnecessary truck movement is reduced as there?s no need to turn around for either a refill or a removal of material once the trucks get to the weighbridge,? Elliot said.


Being able to measure the time between replacing consumable parts, operators can establish the most efficient and convenient maintenance and replacement schedule. This can be done by measuring the amount of work done in terms of material moved, rather than simply by working hours.

?The system can record how much material has been moved since the last time the bucket edge was replaced, for example. This data would allow different brands to be benchmarked on how long they last, another critical factor in calculating the total cost of ownership,? Elliot said.

?Tyre damage on trucks can also be reduced. Providing accurate and consistent weight measurement from the outset allows operators to set the correct target weight for the loader bucket to accurately load the truck. Because the truck?s tyres are inflated correctly to carry a certain weight, they can be damaged when carrying too much weight. So once the loader is set for optimal efficiency, you can potentially prolong the life of the tyres.?

Elliot said that Loadrite?s on-board weighing system can be configured to provide the data needed for any operation.

?Our expert distributors work with project managers to identify the configuration that will give them the information they need. We work with fleet managers individually to ensure the system meets the needs of their business. Our aim is to ensure the data collected provides real value to increase productivity and profitability over the life cycle of the machine.?

Source: Actronic Technologies/Hardman Communications

Leave a Reply

Send this to a friend