Consequential Equipment Costs Associated with Lack of Availability and Downtime
Publication: Journal of Construction Engineering and Management
Volume 116, Issue 4
Abstract
This paper presents a model that has the capability to quantify the consequential costs of downtime and lack of availability in four categories. The first, associated resource impact costs, deals with the costs that arise when failure in one machine impacts on the productivity and cost‐effectiveness of other machines working in close association with it. The second category, lack‐of‐readiness costs, addresses the cost that may be incurred when a capital asset is rendered idle by the downtime resulting from a prior failure. The third cost category, service level impact costs, deals with the situation that arises when one machine in a pool of resources fails to the extent that other machines in the pool must work in an uneconomical manner to maintain a given service level. The fourth cost category, alternative method impact costs, deals with the consequential costs that arise when failure causes a change in the method of operations. The methodology developed represents a significant step toward the rational quantification of consequential costs. An understanding of the philosophy behind each category, as well as the methodology used for quantification, should make it possible to model most situations, given a little thought and creativity in applying the model.
Get full access to this article
View all available purchase options and get full access to this article.
References
1.
Cox, E. A. (1971). “Equipment economics.” Handbook of Heavy Construction, 2nd Ed., J. A. Havers and F. W. Stubbs, Jr., eds., McGraw‐Hill Book Co., New York, N.Y., 7–15.
2.
Nunnally, S. W. (1977). Managing construction equipment. Prentice‐Hall, Englewood Cliffs, N.J., 226.
3.
Terborgh, G. (1949). Dynamic equipment policy: A MAPI study. Machinery and Allied Products Institute and Council for Technological Advancement, Washington, D.C., 27.
4.
Vorster, M. C. (1980). “A systems approach to the management of civil engineering construction equipment.” Thesis presented to the University of Stellenbosch, at Stellenbosch, South Africa, in partial fulfillment of the requirements for the degree of Doctor of Philosophy, 238.
5.
Vorster, M. C., and Sears, G. A. (1987). “A model for retiring, replacing, or reassigning construction equipment.” J. Constr. Engrg. and Mgmt., ASCE, 113(1), 125–137.
Information & Authors
Information
Published In
Copyright
Copyright © 1990 ASCE.
History
Published online: Dec 1, 1990
Published in print: Dec 1990
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.