4.3. Maintenance and Repair Cost

Try these first

1. 1.

   What are some examples of consumables in operating costs?

   Hint

   Think of things that get used up while operating machines.

2. 2.

   Differentiate between major and minor repair costs.

   Hint

   Consider examples of each type.

3. 3.

   What are operating costs?

   • Costs incurred during ownership
   • Costs incurred during equipment use
   • Costs for purchasing equipment

   Hint

   Think of costs that accrue during active operation.

4. 4.

   True or False: Major repair costs are included in operating costs.

   • True
   • False

   Hint

   Recall the definitions of major vs. minor repairs.

5. 5.

   Calculate the hourly repair cost for a bulldozer with an initial cost of 100,000, a lifespan of 10 years, and expected usage of 2500 hours per year. Assume a lifetime repair factor of 80% of the initial cost.

   Hint

   Remember to sum the years from 1 to 10.

6. 6.

   Evaluate how changing from a quarry site to a standard construction site affects operating costs. Use qualitative reasoning to justify the expected differences.

   Hint

   Consider the nature of the job and its impact on machinery.