Heavy equipment management practices and problems in Thai highway contractors

Abstract

PurposeThis study is intended to investigate the current practices and problems in heavy equipment management as well as to identify practices capable of alleviating equipment management problems for highway contractors in Thailand.Design/methodology/approachEquipment management practices were identified and analysed by SPSS using a questionnaire survey. ANOVA test was used to reveal significant differences in equipment management practices among different contractor sizes. Relationships between equipment management practices and problems were also revealed.FindingsThe equipment management practices vary, to some extent, among different contractor sizes. While practices of medium and small contractors tend to be similar, practices of large contractors are different from those of smaller contractors. Large contractors often put more emphasis on outsourcing strategy for equipment management. Moreover, large contractors frequently dispose of or replace equipment as soon as the equipment becomes inefficient before incurring high repair costs. Conversely, smaller contractors tend to mainly emphasise on the company finance and the budget availability as they often rely on purchasing strategy, especially buying used machines. Overall, equipment practices of large contractors were found to be more successful than smaller contractors in minimising equipment management problems, including long downtime duration and cost.Originality/valueThis research is of value for better understanding practices and problems relating to heavy equipment management among different contractor sizes. The study also highlights practices that are capable of reducing problems relating to heavy equipment management for highway contractors.

Structural equation model for construction equipment management affecting project and corporate performance

“…This is perhaps because the respondents perceive data record management as a routine activity that already supports the other equipment management activities (e.g., selection management, operations management, and maintenance and replacement management). Some researchers (Blundon, 1980;Tsimberdonis and Murphee, 1994;Lucko, 2003;Fan et al, 2006;Hendi, 2007;Prasertrungruang and Hadikusumo, 2007;Anbhule and Kumthekar, 2013) do not suggest data record management for construction equipment management. It is also interesting that only selection management directly affects "corporate performance".…”

“…In these processes, the owner may select a contractor based not only on the lowest bid price but also based on a combination of the bid price and the ability of the contractor to perform the project. As such, as in other countries, the contractors must demonstrate an • Selection (including acquisition) management conforms to that found by Blundon, 1980;Chovichien, 1981;Gunawardena, 1992;Al-Ghamdi, 2001;Tatari and Skibniewski, 2006;Prasertrungruang and Hadikusumo, 2007;Anbhule and Kumthekar, 2013. • Operations management conforms to that found by Lucko, 2003;Tatari and Skibniewski, 2006;Fan et al, 2007). • Maintenance and repair management conforms to that found by Tavakoli et al, 1990;Gunawardena, 1992;Al-Ghamdi, 2001;Fan et al, 2007;Tatari and Skibniewski, 2006;Hendi, 2007;Prasertrungruang and Hadikusumo, 2007;Anbhule and Kumthekar, 2013. • Retirement and replacement management conforms to that found by Tavakoli et al, 1990;Gunawardena, 1992;Tsimberdonis and Murphee, 1994;Al-Ghamdi, 2001;Fan et al, 2007;Hendi, 2007;Anbhule and Kumthekar, 2013.…”

“…In this system, proper planning, selection, procurement, installation, operation, maintenance, and equipment replacement policies were suggested for equipment management. Within the literature cited above, some researchers (Tatari and Skibniewski, 2006;Prasertrungruang and Hadikusumo, 2007;Anbhule and Kumthekar, 2013) describe construction equipment management based on the equipment life cycle, which can be categorized into four factors: selection/acquisition, operations/ utilization, maintenance/repair, and retirement/replacement. In addition, the most frequently suggested factors in Table 1 include maintenance, replacement, acquisition, operations, selection, and record-keeping.…”

“…Equipment management is one strategy that can support such improvement. The management of construction equipment aims to maximize the return on investment on fixed assets and fulfill the project needs (Fan et al, 2007), which increases the contractor performance (Prasertrungruang and Hadikusumo, 2007) and improves contractor competitiveness (Prasertrungruang and Hadikusumo, 2009). Tatari and Skibniewski (2006) noted that effective equipment management plays an important role in construction corporate success, suggesting that equipment management positively correlates with corporate performance.…”

“…The results of this survey (2001) investigated the equipment replacement methods and practices of contractors in the Eastern province of Saudi Arabia and reported that the equipment management policy there pertains to selection, acquisition, maintenance, cost, time, production records, and replacement. Prasertrungruang and Hadikusumo (2007) investigated the practices and problems in heavy-equipment management by gathering opinions from highway contractors in Thailand. In this investigation, four stages of heavy-equipment management were proposed on the basis of equipment life cycle: acquisition, operations, maintenance, and disposal.…”