Financial implications of poorly utilised construction plant and equipment

The effective management of construction projects (and the realisation of commensurate levels of productivity) is increasingly a function of maximum plant utilisation. To test whether this theory is applied in practice, this research analysed machine utilisation data on five 16.6 tonne, 360 degree tracked hydraulic excavators belonging to a major plant hire company. The aim being to raise awareness of the financial implications of machine standing time and also highlight the impact of the plant operator upon productivity rates. Results of summary statistical analysis revealed that over a two year hire period, the machines were standing idle or broken down (on average) for a staggering 30 per cent of their hire duration; in cost terms this equates to a loss of £23,040 per annum. It is hypothesised that the reasons underlying this wastage emanate from a combination of poor management and inexperienced/or poorly motivated plant operatives. The research also identifies that during plant operation, a further 50 per cent variance in machine productivity rates can be attributed to operator skill and competence. Under adverse conditions therefore, actual 'efficient' machine operating time may be reduced to a mere 35 per cent of the hire period. A lost production cost estimate for machine standing time is then calculated using regression analysis and the results are transformed into a simplified graphical representation. The paper concludes with direction for future research which aims to: identify attributes that influence operator skill level and personal motivation; determine reasons for the observed 30 percent standing time; and develop the graphical lost charts into a more comprehensive software package.