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Today, we are diving into what special equipment signifies in our field. Special equipment is typically custom-made for specific projects and may involve high costs. Can anyone give me an example of special equipment?
How about a tunnel boring machine?
Exactly! Such specialized machines are tailored for specific tasks, making their availability and management crucial. Their unique design can lead to benefits but also presents challenges. Why do you think planning is important for special equipment?
Because if they're custom-made, it might take longer to get them, right?
Correct! This leads us to our next point: the importance of planning and analysis before procuring special equipment.
Before acquiring special equipment, it is vital to conduct an economic analysis. Why do we need to consider future projects?
To determine if we can recover the high costs associated with the equipment?
Correct! We essentially need to justify the investment based on anticipated project needs over time. What happens if the equipment fails to serve future projects?
We could end up losing money because we cannot resell special equipment easily.
Exactly! These machines often do not have a broad resale market, which can be a major risk. Hence, evaluating multiple job scenarios is crucial.
One of the limitations of special equipment is its availability. Can someone explain why this is a problem?
Because they are custom-made? So it takes time to manufacture them?
Exactly! Long manufacturing times can delay projects significantly. Now, what can we do to mitigate this challenge?
Maybe order well in advance or have a backup plan for standard equipment?
Great suggestions! Planning is key in reducing downtime due to equipment delays.
Let’s discuss resale value. Why might a contractor struggle to resell special equipment?
Because it’s highly specialized and might not be applicable to many other projects?
Precisely! This low marketability poses challenges when trying to recover costs after using the equipment. How does this impact our purchasing decisions?
We should ensure we have enough job opportunities lined up before buying special equipment.
Exactly right! The evaluation of potential future jobs is so critical.
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The section covers the demerits of special equipment, particularly in terms of availability, costs, and usage scope. It emphasizes the need for thorough economic analysis before making decisions regarding special equipment procurement, considering factors like job types and project requirements.
This section highlights the challenges associated with procuring special equipment in the construction industry. It emphasizes that while standard equipment is commonly used and readily available, special equipment often presents several limitations such as higher costs, production delays, and uncertain resale value.
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Now, let us look into the merits and demerits going for either standard equipment or special equipment. Let us compare the merits and demerits of both these options. So, when you go for the choice of standard equipments they are basically commonly available because there will be lot of manufacturers available for the standard equipments. Because it is used commonly in so many construction project sites and its delivery will also be very quicker. And if your equipment breaks down due to some reason the spare parts availability will also be very quicker. And another advantage is it can be used on more than one project that is also one of the advantages. So, your project will not get delayed due to the non availability of this machine or non availability of the spare parts because these are commonly easily available. And another important thing is at the end of the useful life of the machine. It is easily possible to dispose it or sell it at a reasonable price that is also possible with the standard equipments. But the issues with the special equipment which are custom made only for a particular project is it may not be easily readily available. So, we have some waiting time for the machine. So, it is delivery may not be quicker because it is being custom made for a particular project. Even if the equipment is going to break down the spare parts availability may not be easier. It may get delayed and that delay may even affect the project completion. And at the end of the useful life of the machine, we cannot assure that there will be buyers for this special equipment, it is not being commonly used in all the projects. So, these are some limitations of the special equipment that is why before you plan for the purchase of this special equipment we have to work out the economics of the costs associated with the machine. And the profit which are likely to generate by purchasing this machine whether there is likelihood of future projects which can make use of this special equipment. All these things we have to plan rigorously and then plan for the purchase of the special equipment.
In construction, there are two main types of equipment: standard equipment and special equipment. Standard equipment, like bulldozers and excavators, are widely available, can be quickly delivered, and are used across many projects. When they break down, spare parts can be easily obtained, ensuring that projects run smoothly and don’t face delays. Additionally, they can usually be sold off at a reasonable price when they are no longer needed. On the other hand, special equipment is designed specifically for certain projects. This equipment can often take longer to manufacture, and if it breaks down, finding spare parts may be difficult, delaying project timelines. Also, once such special equipment reaches the end of its useful life, it may not find buyers easily since it's not commonly used across different projects. Thus, careful economic planning is required before investing in special equipment to ensure that it will be beneficial for future projects.
Imagine you’re running a restaurant. If you buy a standard oven, it's like having a staple kitchen appliance that can cook various meals. If it breaks down, you can have it fixed in no time and continue serving pizza, roasted chicken, or baked goods. But if you invest in a specialized sous-vide cooker, it’s perfect for gourmet dishes but may not be useful for everyday meals or easily sold when you're done. If it breaks down, you might wait weeks for repairs and have to plan around that, potentially losing customers.
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So, what are the other general points which are to be kept in mind while planning of the equipment? As I told you, the task of the project planner is to choose the right machine for the right job. It is really a challenging task now a days as there are so many options available even for the same job in the construction equipment market. So many construction models are available even for a same particular function. So, many construction operations can be performed by more than one type of equipment. So, now, how to make the decision? As I told you in the beginning of this lecture, we should go for the economical method of attack. If 2 equipment can give you same end result, choose economical method of attack for the given project conditions. So, the project conditions also should be taken into consideration while selecting the equipment not only based on economics.
In the construction industry, planners face numerous choices when selecting machinery. With many available models capable of performing similar tasks, decision-making can become daunting. Planners must prioritize economic efficiency, meaning they should choose equipment that provides the best productivity for the lowest cost. Furthermore, the specific conditions of the project, such as site accessibility or environmental factors, should also influence the decision rather than relying solely on financial considerations.
Consider a student selecting a laptop for school. With many models available that can all run similar software, the student must think about the budget. A budget laptop might fit well financially and serve the purpose, but if it struggles with speed or battery life, the student might struggle in class. Conversely, a more powerful laptop might cost more but could ultimately save time and enhance learning. Hence, it's important not just to look for the cheapest option but to weigh performance against costs.
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Key Concepts
Special Equipment: Custom-made machines tailored to specific tasks, carrying higher costs and lower resale markets.
Economic Analysis: The process of evaluating the expected costs against the gains before making an equipment purchase.
Availability Issues: Challenges relating to the timely procurement of specialized equipment for project needs.
Resale Value: Considerations regarding the marketability of special equipment after it has been used.
See how the concepts apply in real-world scenarios to understand their practical implications.
A node-boring machine used exclusively for tunnel construction is an example of special equipment that may not have a broader application.
High-capacity cranes tailored for specific projects may carry high initial costs, making multiple projects necessary to recover expenses.
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Special machines are great but rare, costs to buy, be sure to care.
Imagine a contractor who bought a custom crane for a one-time job. He learned the hard way that without future jobs lined up, he faced steep losses because he couldn't sell that crane later.
For Special Equipment, remember: Costly, Custom, Capacity issues. (C3).
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Review the Definitions for terms.
Term: Special Equipment
Definition:
Custom-made machines specifically designed for certain construction tasks.
Term: Economic Analysis
Definition:
A financial evaluation to determine if an investment in special equipment can be justified based on potential future work.
Term: Availability Issues
Definition:
Challenges encountered regarding the procurement and delivery of specialized equipment.
Term: Resale Value
Definition:
The potential market price for special equipment once it has been used.