ActiveCare Direct Monthly Reports: How to Reduce Machine Idle Times and Boost Profits
ActiveCare Direct monthly reports provide insights on idle percentages versus work percentages across the entire fleet, by individual machine and by machine type. This allows you to easily compare utilization by operator and machine, as well as set goals for increased utilization over time. Doing so can have an immense impact on your fleet’s profitability.
How does idling impact resale value?
To illustrate the financial impact of reduced idle times, imagine two of the exact same machines doing the same work on the same site — Machine A running at 50 percent idle time and Machine B at 25 percent. Machine A runs about 2,000 hours each year, whereas Machine B runs about 1,500. After five years, Machine A has accumulated 10,000 hours and Machine B has 7,500. The difference in resale value could be upwards of $20,000, depending on machine size and type.
How does idling impact maintenance costs?
In addition to slowing depreciation, an operator will also reduce maintenance costs by reducing idle times. In the same aforementioned scenario, Machine B would require five less service intervals (assuming 500-hour intervals) than Machine A.
This could equate to roughly $9,000 over the ownership period. It’s also important to note that any existing warranty on the machine would be spread out over a longer portion of the ownership of Machine B versus Machine A, potentially resulting in additional maintenance and repair cost savings.
Beyond idle times, of course, Volvo provides 24/7/365 machine monitoring as part of ActiveCare Direct, alerting you and/or your dealer only when an action is necessary, thereby improving predictive maintenance and catching problems before they occur.
What’s a realistic idle goal for my site?
Appropriate idle percentages can differ wildly by site. It’s important to first evaluate similar machines to determine if there’s a large variance in idle percentages. Then, it’s important to determine if the machines running at higher idle percentages are simply due to operator behavior (e.g., letting the machine idle during lunch breaks), or if it points to another issue such as having the incorrect number or size of machines for the job. After determining the root cause, you can work hand-in-hand with your Volvo dealer to determine realistic goals for improvement and how to achieve them.
No matter what your individual fleet goals are, one thing is for sure — reduced idle times can have a very positive impact to your bottom line, and ActiveCare Direct reports give you the insights needed to make decisions that will make your fleet more profitable.
Learn more about ActiveCare Direct at volvoce.com/activecaredirect or contact your local dealer.
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