Track existing costs:

• Track all aspects of existing equipment usage:

• Purchase price,
• Fuel and oil use and costs,
• Exhaust contaminants,
• Engine health,
• Total costs of maintenance and repair,
• Utilization, and
• Operator costs;
• For rolling stock, begin to scrutinize component replacement needs at 18,000 hours;

• Rolling equipment should have an average productive component lifecycle of 20,000 hours; and
• If you’re spending as much in repairs as you would in buying a machine, it’s time to replace it.

When looking at new equipment:

• Use tracked data from existing equipment;
• Look at availability and utilization;
• Compare your data with manufacturer cost-of-ownership and operation formulas;
• Look at safety and ergonomics;
• Review aftermarket support capabilities – service and parts;
• Consider price; and
• Leverage buying power of national or regional accounts if possible.