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"Exactly "when" was the last time you have laid employees off due to having your equipment into a repair shop and waiting for it to be fixed?"
24 years ago, once. Our equipment was Komatsu.
Of late, never. It's Caterpillar equipment.
"Yes, we are all concerned about getting in and out of a repair shop but did it truly have negative impact to production."
Yes it did. We had a 5 million dollar performance bond riding on
completion and we relied on that machine to get the job done. It took 12 days to get another machine to that jobsite, so we were 12 days behind the eight ball. Six weeks passed since the Komatsu broke, the parts came, the machine was fixed and we shipped it from North Carolina back to Oswego Illinois to work a local sewer gig. You don't even want to know how many billable hours it cost us there.
"You kept him busy so the impact of down machinery was only minor in a "yearly" outlook of your business.
We were forced to pay his full day for the time the machine went down, the following days we laid him off until we found a machine that could complete the work.
In our operation, machines and employees and yearly outlook are hand in hand. We worked up to 14 employees, then after we outfitted each team with the equipment they need to cut labor, we cut labor by 50%. If machines go down, labor stands still unless we have a day of hand work, which is rare.
That is why we place as much emphysis on billable hours as we do. Cheap machinery will end up costing you more on your yearly outlook because it will break more and you will get second and third rate service techs whenever they see fit to get to you rather than when you need them.
Southern California is a hand job in the form of homes. Very little and tight access, very steep hills, lots of rock. Machine time is billed into every job we do, along with the apprpriate amount of recovery per constant wear items that are projected to be replaced at set amounts of hours.
Downed machines are not even an issue with the Caterpillar equipment we chose to get the work done so we don't worry about keeping people on payroll who can't produce because of machine failures..
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Bill Schwab
In the year 1491, if the Naturescape Landscape Company did the site work in Pisa, Italy, they would not be calling it the "leaning" tower.
Encinitas, Ca. 92024
www.naturescapelandscape.com
Last edited by Bill Schwab : 02-26-2006 at 10:45 AM.
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