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Owning & Operating Costs

Owning and Operating Costs

March 01, 2010 |

Owning & Operating Costs

Articulated Trucks

Being penny-wise on acquisition costs may create pound-foolish results.

By Tom Jackson

Paying attention to serviceability, fuel consumption and payload yields big dividends on high volume earthmovers.

The articulated hauler has gained in popularity in the last two decades as a highly productive earthmoving tool, proving its worth against other high volume earthmoving methods and machines, such as rigid axle dump trucks, dozers, and self-propelled and towed scrapers.

Choosing the right machines and methods for this kind of mass excavation comes down to carefully detailing owning and operating costs and then applying those figures to the amount of material (tons or cubic yards) you can move in an hour. In this article we’ll focus on just the machine O&O costs, since a discussion of productivity requires an analysis of soil types, site conditions and support machines – more variables than we could detail in these four pages.

Keep in mind that the numbers we present here are ballpark estimates for discussion purposes only. To get a more accurate and detailed estimate of your costs consult with an equipment dealer. Once you’ve calculated your costs on the articulated truck, you’ll need to do the same for the support machines and compare different combinations.

For our study machine we chose a 43-metric-ton Volvo A40E articulated hauler. Blaine Pressley, senior segment manager for Volvo Construction Equipment North America, says a very general estimate for the lifecycle on this machine would be 12,000 to 15,000 hours, but in lighter applications some customers have gone as far as 30,000 hours. “It is up to the owner as to how much money they are willing to spend to keep the vehicle running,” he says. “The point at which the operating costs exceed the owning costs is viewed by many as the economic life of the machine and thus the effective life cycle.”

One key O&O variable that owners have control over is the quality of their preventive maintenance, Pressley says. Using cheaper consumables may save money short term but can result in more repairs and shorter component lifespan over the long term. Operator training and skill also plays a part in component life. Appropriate use of traction control systems and longitudinal and differential lock functions can make a tremendous difference in component life, fuel use, tire wear and cycle times.

Before we get into the numbers in the charts on page 20, here is a broader discussion of the variables behind the numbers. Keep in mind these are general estimates. Volvo and many other equipment manufacturers have proprietary owning and operating cost software programs available through their dealers that can help move you closer to an accurate number for your specific needs. These O&O software programs are always a good idea for any machine, but for high-volume earthmovers like artics, they are a must. Detailed software programs can ask the questions many contractors tend to overlook and get you closer to a true total cost of ownership value that fully accounts for things like financing, service and maintenance, and resale value.

Also ask about site simulation software that can help you select the best match of equipment and maximize productivity. Using site simulation software and dealer can come to your site and help you plot grades, curves and truck routes, Pressley says. You want to have the right number of haulers for the site and the right number of passes to fill the truck to insure the best possible productivity. And as with the O&O costs, small differences add up to big dollars here.

OWNING COSTS