Downtime Cost of Equipment Used in A Construction Industry
Downtime Cost of Equipment Used in A Construction Industry
Downtime Cost of Equipment Used in A Construction Industry
Abstract: The purpose of this paper is to present a sample of how Construction companies deal with equipment downtime cost, and further how
they analyze its reduction. The study was performed by conducting a web-based survey within construction firms that have at least 200
employees. The main results obtained from the investigation show that the estimated downtime cost constitutes about 23.9 % from the total
manufacturing cost ratio, and 13.3 % from planned production time. Additionally, the hourly cost of downtime, whether planned or unplanned,
is relatively high.
Finally, the lack of fully integrated models for assessing the downtime costs and frameworks for distinguishing the difference between planned
and unplanned stoppages are the main reasons behind the continuation of cost in ascending form. Due to that, the improvements will emphasize
on areas with less cost saving opportunities. As a result, this will affect the production efficiency and effectiveness which in return has its
influence on costs and thereby profits margin.
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International Journal on Future Revolution in Computer Science & Communication Engineering ISSN: 2454-4248
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Sometime tower crane is idle as the operator of tower and the machine is idle for that time period. If your machine
crane is on a shore break or lunch break. A short break takes is idle for an hour your project cost affect as follows:
30 min to resume his work where Lunch break takes 1.5 1operator + 2helpers + 2fitter + 2 helper = 600 + 350*2 +
hours to resume the work. If an operator is on a short break 2*500 + 2*350 = 3,000 Rs. (Labour Charges)
tower crane remains idle for half hour which will affect the As the reinforcement work is delayed the shuttering can’t
cost of the project. be done due to which carpenter and there helper also have to
4.1.2. Considering above points I have made some changes sit idle, i.e. 2*500 + 2*350 = 1700Rs.
in our system: As these activity gets delayed all further activity gets
a. Social Changes: delayed and finally your project gets delayed which leads
In this we have arranged the alternate operator for tower you the increase the construction cost.
crane, also the shift wise working system was implemented. 4.2.2. Considering above situation I have done some
In this system before any one operator goes for a break, he changes in our existing working system:
gives charge to the another one so as to not keep tower crane
idle. By implementing this system we achieved our desired a. Preventive Maintenance:
goal with full efficiency and utilization of machine. Due to Here we use preventive maintenance so that sudden
this implementation our cost of idleness reduced by 20 to breakdown of the machine does not occurs and the work
25%. goes on fluently. AMC is given to third party for monthly
b. M basis maintenance as well as daily inspection of machine is
ainte done by our MEP incharge so as to prevent any sudden
nanc breakdown.
e This helps us to reduce downtime of machine till 20-
Strat 30%.
egy: b. Social Changes:
W The operator was given one helper who was trained with
e the job (Bar Bending Operation) he have to do in absence of
made operator. In this case when the operator goes on a short
some break or Lunch break, the helper continues the job so as to
changes in our maintenance strategy, now the maintenance not keep the machine idle at that time. Due to this the
is done forth nightly as well as AMC is given to third party capacity of machine was fully achieved and the production
for monthly maintenance. Also the daily inspection is done was increased to 4.5 tonne per day.
by our MEP team so as to avoid any sudden break down.
4.3 Name of Equipment: Bar & Steel Cutting Machine
Due to this system the sudden breakdown of tower crane
comes to 0%.
4.2 Name of Equipment: Bar Bending Machine
Reduced Speed Speed losses Operators inefficiency under Reduced speed refers to the difference between design
design capacity speed & actual operating speed
Startup loss Quality loss Equipment warm up Some equipment requires warm up time & certain
adjustment to obtain optimum output
4.9.3. Considering above points we have done some The electric supply of needle is checked on day to day
changes which are as follows: basis so as to prevent breakdown of vibrator needle.
As the cost of vibrator needle machine is not so Training was given to the labor those who are operating
expensive, we purchased two spare needle machines which the needle at the time of concreting so as to prevent sudden
are useful when the other needle is breakdown. breakdown due to short circuit due to high pressure on it.
4.10 Summary
Table 4: Represents difference in cost before breakdown of equipment and after breakdown of equipment
Sr. No Name of equipment Cost without failure Cost with failure Difference in cost
1 Bar bending machine 3000 4700 1700
2 Bar cutting machine 3000 4700 1700
3 Tower crane 25,200 49,200 24000
4 Transit mixer 2,000 26,500 24,500
5 Diesel generator 1,500 20,800 19,300
6 Total station 5000 10700 5700
7 Ply cutting machine 1800 10200 8400
8 Vibrator needle 25,050 50100 25050
9 Concrete Pump 2400 3300 900
TOTAL 68,950 1,80,200 1,11,250
4.11 Result: 4.12 Suggestion:
By using Activity based costing method we have reduced 1. By using Activity based costing method we have
cost due to downtime of equipment by about 62%. reduced cost due to downtime of equipment by about
Before using ABC method we were using Traditional 62%. This method is useful for all the construction
method in which we used to cost 1,80,200 as downtime cost projects those whose overhead cost is getting more in
whereas after using ABC method the downtime cost were account of company.
reduced to 68,950. 2. Before using ABC method we were using Traditional
As the downtime is decreased the overall delay in work method in which we used to cost 1,80,200 as downtime
due to downtime is decreased which results in the Timely cost whereas after using ABC method the downtime
completion of the project. cost were reduced to 68,950. This help us in reducing
the total amount up to 1,11,250.
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International Journal on Future Revolution in Computer Science & Communication Engineering ISSN: 2454-4248
Volume: 3 Issue: 12 271 – 277
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3. As the downtime is decreased the overall delay in work (Print): 2319 – 6726 Www.Ijesi.Org Volume 3issue 4 ǁ
due to downtime is decreased which results in the April 2014 ǁ Pp.34-41
Timely completion of the project. [9] D. B. Phadatare “Impact Of Construction Equipment’s
4. Delay reduced due to downtime also helped us in On Building Site Productivity” International Journal Of
Civil Engineering And Technology (Ijciet) Volume 7,
fulfilling the RERA norms, budgetary completion of Issue 4, July-August 2016
project. [10] Mr. NileshAyane “Review Study On Improvement Of
From the above result I will suggest you that construction Overall Equipment Effectiveness In Construction
industry should use Activity Based Costing method for Equipment’s” 2015 Ijedr | Volume 3, Issue 2 | Issn:
break less and smooth construction. 2321-9939
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62%. This method is useful for all the construction Construction Equipments”International Research Journal
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