2. Module 1 - Planning Process of the Equipment

Try these first

1. 1.

   What are the two main categories of equipment costs?

   Hint

   Think about the costs associated with maintaining equipment as opposed to the purchase costs.

2. 2.

   What is the economic life of equipment?

   Hint

   Consider when costs are minimized.

3. 3.

   What are the two main categories of costs related to construction equipment?

   • Owning and operating
   • Fixed and variable
   • Direct and indirect

   Hint

   Remember to consider both the purchase and usage of equipment.

4. 4.

   True or False: The economic life of equipment is the time frame when it starts to incur higher costs.

   • True
   • False

   Hint

   Reflect on why we focus on this concept in equipment management.

5. 5.

   You are tasked with estimating the total costs associated with a new excavator over its lifetime. What factors will you include in your calculation, and why?

   Hint

   Think about what costs arise regularly versus one-time costs.

6. 6.

   Analyze a case where a company continues using outdated machinery due to perceived savings. What could be the long-term financial impacts?

   Hint

   Consider the financial repercussions of downtime against maintaining old equipment.