Capital Equipment News October 2021

EXCAVATORS

Caterpillar excavators from Barloworld Equipment feature electro-hydraulic functioning to reduce hydraulic oil capacities.

Understanding the total cost of ownership for excavators

Factors that determine total cost of ownership (TCO) of excavators are wide-ranging and can include the method of purchase as well as operating costs, insurance coverage, operator training and machine wear and fuel usage, among others. Capital Equipment News spoke to two local excavator suppliers on this subject. By Mark Botha .

S any Southern Africa GM Samuel Zhang points to two key factors in terms of the TCO of excavators: acquisition and life-cycle costs. He says acquisition or purchase cost includes the purchase price of the machine, as well as transport, insurance and financial cost. In the case of imported equipment, the initial capital outlay also includes the costs incurred for clearance, as well as for differences in exchange rate. “Examples of life cycle costs,” he says, “include management, loading and unloading, warranty, maintenance and repair costs, fuel and the cost of consumables, downtime and the cost of disposing of used equipment, to name a few.” Anda Ncemane, GCI product manager at Caterpillar dealer Barloworld Equipment,

capacity of the excavator. Also contributing to the TCO of excavators are regular services and the frequency of oil changes. “Blocked filters will restrict air flow to the engine, causing the machine to burn more fuel,” says Ncemane. “Old oil will lose viscosity and allow metal-to-metal contact.” He describes operator efficiency as the measure of how effective the operator is at using the technology at their disposal to work productively while minimising unplanned downtime. “Unskilled operators are a huge liability to any company. Many operators have no understanding of owning and operating costs, which is why their contributions to restricting TCO is so much less.”

highlights five additional factors that affect TCO. Ground-engaging tools or GETs must be selected correctly to shorten the time needed to fill the bucket while the excavator burns fuel. “Improper operating techniques, too, will wear the attachment prematurely and increase fuel burn. Incorrect machine configuration will also affect the work cycle and increase cost.” He says machine tramping over long distances and the use of the wrong tracks for the application will impact heavily on the undercarriage while, in terms of fuel efficiency, he recommends matching the equipment to the job at hand to minimise operating cycles. The operator’s skill further influences TCO, as does the

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