Profit ability versus construction equipment maintenance
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Authors
Clutts, Craig A.
Subjects
Advisors
Date of Issue
2010-05
Date
Publisher
Monterey California. Naval Postgraduate School
Language
en_US
Abstract
Construction equipment is a high cost of capital investment necessary for the successful existence of a private construction company and essential to the mission success of the Naval Construction Force (NCF). The highest impact cost factor other than the initial purchase investment is the expenses related to maintenance and repair. As the equipment ages, the ownership costs decrease and the operating expenses increase as the maintenance and repairs requirements grow. Both private and public entities desire to manage this high dollar investment for optimization of a perceived profit. This project recommends a decision support model that can be used by private and public entities alike to determine the best fit acquisition method between rent-lease-buy and guidance for profitability optimization. Methods of life cycle cost estimating and decision methods were researched and compared. Data was acquired from equipment rental companies, private construction companies and the NCF. This data was analyzed to select the appropriate decision factors and develop the Construction Equipment Profitability Optimization Model (CEPOM). This model can be implemented by small private construction companies with minimal overhead and a small charging base, and a public entity such as the NCF.
Type
Thesis
Description
CIVINS (Civilian Institutions) Thesis document
Series/Report No
Department
Engineering
Organization
Identifiers
NPS Report Number
Sponsors
Funder
CIVINS
Format
3 v. (various pagings) : ill.
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.