Few facets of running a construction business are more fiscally insightful than real-time observation of your valuable mobile assets. If you have not incorporated a fleet management tool based on a global positioning system into your operation, you might be surprised to know the growing impact this technology can have on your bottom line. GPS-based fleet management systems have proved to be successful in the railway and trucking industries. Now they are bringing operational and administrative efficiencies to excavators, wheel-loaders, articulated dump trucks (ADTs), and a number of other machines in the heavy equipment world.
Satellite-based platforms are being used to strategically manage maintenance, monitor critical system outputs and failures, and speed up theft recovery by tracking unauthorized movement-all important indicators of fleet stability-that can put a drain on company resources when under-analyzed. Today’s systems are sophisticated enough to help you improve operating efficiencies, calculate life cycle costs and lower your cost of ownership no matter what continent your equipment is located on.
Streamlining Resource Allocation
According to Bill Purdie, president of MobileNet Inc., the key to satellite-based fleet management tools is their ability to help owners determine resource allocation. “As owners, you can now know how much a machine has worked in a day, no matter where it’s located. Money can be saved just managing equipment that sometimes an owner can’t even see,” Purdie says, “and nationwide, these tools are balancing resources with needs.”
With the purchase of most new excavators, wheel-loaders, ADTs, and other heavy equipment, it isn’t necessary to research and shop for a fleet management system. Typically, the systems are pre-installed with a module embedded in the cab that transmits and receives information, communicating it to users via a dedicated website. Owners or fleet managers can access the information from the website interface on a computer, a cell phone, or any other web-enabled device.
With certain manufacturers’ machines, the fleet management service is free for the first year of ownership. Following the introductory period, typical GPS services are priced similarly to the monthly cost of a cell phone data plan, says Chad Ellis, Doosan heavy-product manager. Ellis points out that the cost of a GPS plan is a very small part of the cost of ownership of some machines yet it provides data that can increase productivity and operational streamlining.
“You can make the argument that one month’s service for all the benefits of a GPS system is less than your cost of ownership for a day’s operation on many types of machines,” Ellis says.
Despite the relatively low annual cost associated with detailed asset utilization and security capabilities, it can be easy for some users to dismiss the technology as too difficult or time consuming. “That’s a misperception. It takes a little bit of time to learn and set up the first time, but after that it’s a matter of monitoring on a daily basis. The thing that can be most time consuming is physically going out to see the equipment,” Ellis says.
Comparing the operation of fleet management tools with the usage of word processing tools, Ellis says, “It’s as simple as using Microsoft Word and Excel. We don’t even give it a second thought anymore. The more frequently people use it and the more information they can glean, it will become part of their routine.”
Enhanced Security
The National Equipment Register (NER) estimates the total value of equipment stolen from construction sites to be between $300 million and $1 billion annually and rising. These estimates do not include indirect costs from business interruption such as short-term rental costs, project delays, and lost production time. Knowing that equipment thieves frequently target open construction sites rather than secured dealer lots, one of the National Insurance Crime Bureau’s theft prevention tips involves the installation of a tracking transmitter system in each unit that is designed to track mobile heavy equipment.
Due to their satellite intelligence, leading GPS systems allow users to configure a “geo-fence” around equipment areas that can be measured to the nearest mile. With defined zones, users can program an alert that will notify them when their machine unexpectedly moves beyond that predefined space. This capability provides a precise location of a piece of equipment, speeding up the effort to recover the property. Additionally, some insurance companies recognize the installation of reputable security devices for heavy equipment and may provide discounted premiums on certain coverage plans.
Improved Productivity
Designed for advanced asset utilization, most fleet management systems typically capture and log productivity benchmarks for machines like wheel loaders, excavators, and ADTs:
- Engine hours
- Engine start counts
- Total work hours
- Fuel consumption
- Idle time
- Operator and job accounting data
When collected and evaluated, these data elements can be configured into reports and alerts can be set to allow owners or fleet managers to tailor their system to their specific needs to ensure high productivity for their job sites.
Preventive Maintenance
Another key metric that GPS applications can monitor is preventive maintenance schedules. Users can set program service intervals that will alert them to check high-use components and lubricants. For example, Ellis says, users can proactively avoid pump failure by heeding alerts, but operations with 10-plus machines can find it difficult to keep up with each of their machine intervals without a systematic approach.
“A machine could easily go 500 hours or more over the routine maintenance intervals unless you’ve got a mechanic that checks them regularly. Fleet management tools just take the guesswork out. You can have the system start alerting you 100 hours before a service interval,” Ellis says.
Precise Diagnostics
Due to its relevancy to all organizations with heavy equipment, diagnostics is the most common component of GPS systems. They can communicate fault codes on engines and errors on other critical machine systems, as well as all major outputs from the hydraulic groups. Also, inside the warranty period of some systems, users can receive designated alerts and determine what may be occurring with a machine before scheduling a service mechanic.
“These alerts may confirm that the correct parts are brought to a job site. By telling a mechanic the codes, a service plan can be developed and implemented without the mechanic having to travel to the machine,” Ellis says.
A common misperception of GPS solutions is that their only value is showing an excavator, loader, or articulated dump truck’s location displayed on a street map. While pinpointing a machine’s position is one key function, the technology provides additional visibility into several aspects that contribute to a fleet’s return on investment, or its capacity to generate profit through leasing and/or rental arrangements.
• When it is due for maintenance?
• How long did it operate today?
• How many hours are on the engine?
• Is the oil pressure low?
• Is it productive, or idling?
• What is its fuel efficiency?
