Why Track Fuel Consumption and Cost?
Our studies of companies and organizations that use heavy machines show us that
even in other wise well run companies, many have no good method of tracking what
is most likely their largest single cost of operating machinery.
First let us try to answer a question we were recently asked by a good client. “Why
should I track fuel use and cost? Tracking fuel does not change the cost and I have
to have it.”
We found a number of answers to this important question
- A machine’s Fuel Consumption rate is a major driver of total machine cost. If you
don’t track it how do you know what it is on any given machine?
- Many companies use fuel consumption rates supplied by the manufacture of the machine.
Our studies have shown these numbers to range from good to flat out wrong or misleading.
In other cases we have machine dealers without access to this data. We suggest manufacture
data be a starting place until you can gather and compile information from years
of actual data. This is no easy job unless you have specialized tools to make it
simple.
- A machine fuel consumption rate is more correctly a range from low to high (measured
in gallons or liters per hour). This rate is largely dependant on the horsepower
of the engine, the load put on the engine by the work being done and finally the
operator temperament. How do you correctly estimate the fuel necessary for different
types of projects and work items if you do not have organized and easily accessible
records of what you have experienced on different types of jobs?
- The collection of fuel consumption data is only the stating point. Our easy to produce
and read reports turn this raw data into actionable management information. Questions
are answered like; Did you include enough dollars in the project cost estimate for
fuel? It is one thing to be wrong on one estimate, it is another thing to be wrong
(that is too high or too low), on 12 months of estimates.
- What you do not count or measure, you cannot manage!
- At $120.00 or more per fill, how can you assure the diesel is going into your machines?
- The machine hour meter reading on fueling provides a logical and place and time
to gather meter readings that are used in many other management reports and calculations.
- Quick detection of broken hour meters. The sooner you detect a broken meter the
better. Other wise how do your people know when to change oils and fluids?
- The fuel module provides additional data for:
- Machine utilization reports
- Machine idle time reports
- Fuel and Lube truck performance
- Cost of fuel vs. Cost of fuel delivered.
- Accurate Job Costing for fuel
- Projected engine overhaul points based on fuel consumption not hours means more
accurate lifecycle times
- Preventative maintenance oil and fluid changes on time.
- Tracking of oil and fluid changes that took place
- Tracking of Machine condition and potential problems
If you want to better manage your fuel and heavy machine fleet, call us today! Click
here for free no obligation tour of these easy to use tools.
Related Links
Improving Utilization of Heavy
Machinery
|