5.4. Tire Cost Estimation

Try these first

1. 1.

   What are consumables in operating costs?

   Hint

   Think about items that are consumed while operating machinery.

2. 2.

   List one difference between operating costs and ownership costs.

   Hint

   Ownership costs are fixed, whereas operating costs are variable.

3. 3.

   What are the two main categories of equipment costs?

   • Operating and ownership
   • Rental and purchase
   • Maintenance and labor

   Hint

   Consider how costs are incurred.

4. 4.

   Is it true that maintenance costs are part of operating costs?

   • True
   • False

   Hint

   Think about when these costs are incurred.

5. 5.

   Given a set of machinery that has an initial cost of 50000 and an expected maintenance cost at 20% of the initial cost, how much should the operator budget for maintenance in a year?

   Hint

   Calculate a percentage of the initial cost.

6. 6.

   You own two similar excavators. One works in high load conditions, the other in light load conditions. Compare how maintenance costs might differ based on load and operation.

   Hint

   Consider the effects of load and job conditions on machinery.