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You are to follow the scenario and come up with your own project details for 1-7 and then with the information you come up with you'd fill out the estimating form with correlating info and cost

Scenario: As a result of winning a new project, construction equipment will be needed for the project. As an assistant construction manager, you have been asked to help investigate and select the right machine(s) for use for the project. Also, your manager, Sam Super, asks you to esti' 'e the production rate of the machine, the total time, and the total cost, for the selected machine to complete a given job. You are required to write a concise report about what Sam asks. The detailed re. .ments that you need to complete are listed below in the requirements section. Requirements: Write and submit your report that includes the following items (Items 1 to 7 ): 1. Project description: Create one nice paragraph that describes the project (i.e., makf up a project and job). The description should contain information about project location, project duration, project type, job type, machine type required, job intention, etc. Here is an example from a previous student, "A five-year-long, at minimum, a construction project in Ranger, Georgia is about to kick-off and our company was contracted to do a part of the construction. The project involves creating the future Salacoa Creek reservoir. Our contribution to the project is to clear vegetation and topsoil and then excavate a substantial amount of land with appropriate construction equipment. This reservoir will be used for flood control and water retention facility. To complete this job, our company has decided to use one bulldozer for the vegetation and topsoil removal and one large backhoe excavator for the land excavation. The capabilities of our machines will need to be able to handle the specific job requirements that are listed in the next section." 2. Specific job description: Describe what the job conditions are. The conditions that need to be listed are dependent on the machine and project type you select. For example, if you selected an excavator for highway construction, the following items would be needed: material type, fill factor, swelling factor or load factor, operator skill, amount of work, bucket capacity, etc. Here is an example from a previous student, "Based on the site visit and investigation, we found that the following job conditions exist on site. These conditions are vital to be aware of, to estimate the production rate of our machine and the total time and cost required for this project. The specific job conditions are as follows: - Material: Moist Loam with a fill factor of 1.05 - Operational Efficiency: 50min/hr - General Job Condition-Average - Job operator: Excellent Job Skill - Excavation Amount: approximately 4.740,000 (BCY) based on the dimension width: 237 yards, length: 2000 yards, and depth: 10 yards - Swelling: 24% - Bank Density: 2,600 lb/cu.yd. - Average Depth: 15f. - Maximum digging depth: 22ft. - Bucket Capacity: 6 LCY - Expect 300 workdays a year - 8-hour workdays" 3. Specific Machine Information: Among numerous models available f a certain machine type, you need to select one specific model for the job described above. Go w cat.com or other similar websites and select the right machine model. And, present the model's specification. As you know, the CAT website provides detailed spec information on each model. You don't have to list every single spec item provided on the website, but some critical information for you and your manager to know. For example, engine horsepower, travel speed, total weight, shoe size and ground pressure (if track machine), blade type, blade size, etc. are important for dozers. 4. Production rate estimation: Once you determine your specific machine type and model, you will need to estimate the production rate of the machine. Provide your formula or logic to clearly explain your productivity estimation. As we practiced, the productivity estimation varies depending on the type of machine. You can refer to the previous modules regarding this. 5. Ownership and Operation (O&O) cost estimation: The hourly O&O cost needs to be estimated. Recall we practiced this estimation in Module 3. Use an O&O cost form attached for your equipment. Notes for the O&O cost: - The delivered (purchase) price of your machine depends on your machine type, size, and model. You might want to find this information from the internet. It doesn't have to be accurate. As long as it's reasonable, it'll be okay. - For the residual value, 35% would be okay for a 5 -year usage. If you want to use it over 5 years, then the number will decrease. - The interest is variable. You can check it out easily online. Again, it doesn't have to be very accurate. How much is it these days? around 6% ? or 8% ? - Insurance, storage, and property taxes can be assumed to be about 1% respectively which is common. - For maintenance and repair costs, you may use the same number we used for HW: around $3.00 per hour. - Others can be reasonably assumed as well. 6. Total time and cost estimation: The total time to complete the given job needs to be estimated (note: ensure that the total time needs to be longer than 30 days. In other words, your project should be big enough to take at least 30 days). This can be done with the production rate that you obtain from the previous step. The total cost estimation should be based on the hourly 0&O cost and production rate of your equipment. Provide all the formulas or logic for your estimation. 7. Conclusion and recommendation: Write a memo containing the conclusion and recommendation to your manager, Sam Super, with brief justification in support of your decision. General Grading Criteria: - 10 points: Your report contains all the 7 requirements clearly addressing each item with correct technical information, appearing professional, and going beyond the peeignment expectation. - 9 - 9.5 points: Your report contains all the requirements clearly addressing each item with detailed and correct technical information with a little lack of professionalism - 8-8.5 points: Your report contains all the requirements addressing each item with technical information, but some incorrect/unclear information. - 7 - 7.5 points: Your report partially contains the requirements with incorrect/unclear information. - 66.5 points: Your report contains very limited information on the requirements with incorrect/unclear information. - 1 - 5 points: Your report is very poorly prepared and thus needs complete improvement. - 0 point: No submission Frequently Asked Questions: Q) Is there a limit on the number of machines to include for my project? A) You may use one piece of equipment for your project. But usually, I give more credit for a job that would need multiple pieces of equipment. It's up to you. Q) Are we allowed to save and upload the 0&O cost form separately from my report or should I incorporate it into my report? A) Either way is ok with me. Some students find it easy to incorporate the O&O form into the project document. Others prefer to submit it as a separate file. It doesn't affect your grade. Q) I was wondering how I should find the delivered price and less residual value at replacement for my chosen equipment. I can't seem to find it anywhere. A) The purchase price doesn't have to be very accurate as long as it's reasonable. You can find price information from the internet or by calling vendors. Also, you can determine the residual value after a certain usage of your machine. In general, you may use 35% after a 5 -year usage. If you use your machine longer than 5 years, the percentage will decrease or be prorated. Q) Would I get penalized for not showing the numbers in the O&Ocost form for lines 4,5 , and 6 (the section that has P(N+1)+S(N1)/2Nx interest rate / hours/years) I tried putting a textbox in there but it wouldn't let me. I was able to put the answer in the column text box. A) It's okay not to provide that portion of the O&O form. NOTE: An Excel 080 Estimating Form is available, in olectronic spreadsheet format, to calculate an Hourly Owning \& Operating Cost Estimate based on the procedure outlined in this section. The spreadsheet my be accessed via the website at httpsy/ldealer.cat.com - From the home page, select "Product Support," "Equipment Management Solutions," "Owning \& Operating Costs," Under the heading "Machine Technical Information," select "O\&O COST ESTIMATING Form." OWNING COSTS 1. a. Delivered Price (P), to the Customer (including attachments) b. Less Tire Replacement Cost if desired c. Delivered Price Less Tires. 2. Less Residual Value at Replacement (S) ... \%) (See subsection 2A on back) 3. a. Net Value to be recovered through work... (line 1c less line 2) b. Cost Per Hour: Net Value (1) 3a/D (2) 3a/D 5. Insurance Hours/Year2NP(N+1)+S(N1)Insurance%Rate= (Optional method when Insurance cost por year is known) Ins. $ PerYr. Hours/Yr. = N= No, Yrs. Hours/Year2N= (1) +H1%(2)1+1+%1Hours/Yr.1+1= (Optional method when Property Tax cost per year is known) PropertyTax $ PerYr. + Hours/Yr. = 7. TOTAL HOURLY OWNING COST OPERATING COSTS 8. Fuel: Unit Price Consumption (1) (2) 9. Planned Maintenance (PM)-Lube Oils, Filters, Grease, Labor: (contact your local Cat dealer)...................... 10. a. Tires: Replacement Cost Life in Hours LifeCost (1) (2) b. Undercarriage ( Impact + Abrasiveness + Z Factor) Basic Factor 11. Repair Cost (Per Hour) (contact your local Cat dealer)........................ 12. Special Wear Items: Cost + Life (See subsection 12A on back) Owning \& Operating Costs Supplemental Calculations to L mating Form SUBSECTION 2A: Residual Value at Replacement "When used equipment auction prices are used to estimate residual value, the effect of inflation during the ownership period should be removed to show in constant value what part of the asset must be recovered through work. SUBSECTION 12A: Special items (cutting edges, ground engaging tools, bucket teeth, etc.) (1) Cost Life Cost/Hour (2) (Enter total on line 12) Scenario: As a result of winning a new project, construction equipment will be needed for the project. As an assistant construction manager, you have been asked to help investigate and select the right machine(s) for use for the project. Also, your manager, Sam Super, asks you to esti' 'e the production rate of the machine, the total time, and the total cost, for the selected machine to complete a given job. You are required to write a concise report about what Sam asks. The detailed re. .ments that you need to complete are listed below in the requirements section. Requirements: Write and submit your report that includes the following items (Items 1 to 7 ): 1. Project description: Create one nice paragraph that describes the project (i.e., makf up a project and job). The description should contain information about project location, project duration, project type, job type, machine type required, job intention, etc. Here is an example from a previous student, "A five-year-long, at minimum, a construction project in Ranger, Georgia is about to kick-off and our company was contracted to do a part of the construction. The project involves creating the future Salacoa Creek reservoir. Our contribution to the project is to clear vegetation and topsoil and then excavate a substantial amount of land with appropriate construction equipment. This reservoir will be used for flood control and water retention facility. To complete this job, our company has decided to use one bulldozer for the vegetation and topsoil removal and one large backhoe excavator for the land excavation. The capabilities of our machines will need to be able to handle the specific job requirements that are listed in the next section." 2. Specific job description: Describe what the job conditions are. The conditions that need to be listed are dependent on the machine and project type you select. For example, if you selected an excavator for highway construction, the following items would be needed: material type, fill factor, swelling factor or load factor, operator skill, amount of work, bucket capacity, etc. Here is an example from a previous student, "Based on the site visit and investigation, we found that the following job conditions exist on site. These conditions are vital to be aware of, to estimate the production rate of our machine and the total time and cost required for this project. The specific job conditions are as follows: - Material: Moist Loam with a fill factor of 1.05 - Operational Efficiency: 50min/hr - General Job Condition-Average - Job operator: Excellent Job Skill - Excavation Amount: approximately 4.740,000 (BCY) based on the dimension width: 237 yards, length: 2000 yards, and depth: 10 yards - Swelling: 24% - Bank Density: 2,600 lb/cu.yd. - Average Depth: 15f. - Maximum digging depth: 22ft. - Bucket Capacity: 6 LCY - Expect 300 workdays a year - 8-hour workdays" 3. Specific Machine Information: Among numerous models available f a certain machine type, you need to select one specific model for the job described above. Go w cat.com or other similar websites and select the right machine model. And, present the model's specification. As you know, the CAT website provides detailed spec information on each model. You don't have to list every single spec item provided on the website, but some critical information for you and your manager to know. For example, engine horsepower, travel speed, total weight, shoe size and ground pressure (if track machine), blade type, blade size, etc. are important for dozers. 4. Production rate estimation: Once you determine your specific machine type and model, you will need to estimate the production rate of the machine. Provide your formula or logic to clearly explain your productivity estimation. As we practiced, the productivity estimation varies depending on the type of machine. You can refer to the previous modules regarding this. 5. Ownership and Operation (O&O) cost estimation: The hourly O&O cost needs to be estimated. Recall we practiced this estimation in Module 3. Use an O&O cost form attached for your equipment. Notes for the O&O cost: - The delivered (purchase) price of your machine depends on your machine type, size, and model. You might want to find this information from the internet. It doesn't have to be accurate. As long as it's reasonable, it'll be okay. - For the residual value, 35% would be okay for a 5 -year usage. If you want to use it over 5 years, then the number will decrease. - The interest is variable. You can check it out easily online. Again, it doesn't have to be very accurate. How much is it these days? around 6% ? or 8% ? - Insurance, storage, and property taxes can be assumed to be about 1% respectively which is common. - For maintenance and repair costs, you may use the same number we used for HW: around $3.00 per hour. - Others can be reasonably assumed as well. 6. Total time and cost estimation: The total time to complete the given job needs to be estimated (note: ensure that the total time needs to be longer than 30 days. In other words, your project should be big enough to take at least 30 days). This can be done with the production rate that you obtain from the previous step. The total cost estimation should be based on the hourly 0&O cost and production rate of your equipment. Provide all the formulas or logic for your estimation. 7. Conclusion and recommendation: Write a memo containing the conclusion and recommendation to your manager, Sam Super, with brief justification in support of your decision. General Grading Criteria: - 10 points: Your report contains all the 7 requirements clearly addressing each item with correct technical information, appearing professional, and going beyond the peeignment expectation. - 9 - 9.5 points: Your report contains all the requirements clearly addressing each item with detailed and correct technical information with a little lack of professionalism - 8-8.5 points: Your report contains all the requirements addressing each item with technical information, but some incorrect/unclear information. - 7 - 7.5 points: Your report partially contains the requirements with incorrect/unclear information. - 66.5 points: Your report contains very limited information on the requirements with incorrect/unclear information. - 1 - 5 points: Your report is very poorly prepared and thus needs complete improvement. - 0 point: No submission Frequently Asked Questions: Q) Is there a limit on the number of machines to include for my project? A) You may use one piece of equipment for your project. But usually, I give more credit for a job that would need multiple pieces of equipment. It's up to you. Q) Are we allowed to save and upload the 0&O cost form separately from my report or should I incorporate it into my report? A) Either way is ok with me. Some students find it easy to incorporate the O&O form into the project document. Others prefer to submit it as a separate file. It doesn't affect your grade. Q) I was wondering how I should find the delivered price and less residual value at replacement for my chosen equipment. I can't seem to find it anywhere. A) The purchase price doesn't have to be very accurate as long as it's reasonable. You can find price information from the internet or by calling vendors. Also, you can determine the residual value after a certain usage of your machine. In general, you may use 35% after a 5 -year usage. If you use your machine longer than 5 years, the percentage will decrease or be prorated. Q) Would I get penalized for not showing the numbers in the O&Ocost form for lines 4,5 , and 6 (the section that has P(N+1)+S(N1)/2Nx interest rate / hours/years) I tried putting a textbox in there but it wouldn't let me. I was able to put the answer in the column text box. A) It's okay not to provide that portion of the O&O form. NOTE: An Excel 080 Estimating Form is available, in olectronic spreadsheet format, to calculate an Hourly Owning \& Operating Cost Estimate based on the procedure outlined in this section. The spreadsheet my be accessed via the website at httpsy/ldealer.cat.com - From the home page, select "Product Support," "Equipment Management Solutions," "Owning \& Operating Costs," Under the heading "Machine Technical Information," select "O\&O COST ESTIMATING Form." OWNING COSTS 1. a. Delivered Price (P), to the Customer (including attachments) b. Less Tire Replacement Cost if desired c. Delivered Price Less Tires. 2. Less Residual Value at Replacement (S) ... \%) (See subsection 2A on back) 3. a. Net Value to be recovered through work... (line 1c less line 2) b. Cost Per Hour: Net Value (1) 3a/D (2) 3a/D 5. Insurance Hours/Year2NP(N+1)+S(N1)Insurance%Rate= (Optional method when Insurance cost por year is known) Ins. $ PerYr. Hours/Yr. = N= No, Yrs. Hours/Year2N= (1) +H1%(2)1+1+%1Hours/Yr.1+1= (Optional method when Property Tax cost per year is known) PropertyTax $ PerYr. + Hours/Yr. = 7. TOTAL HOURLY OWNING COST OPERATING COSTS 8. Fuel: Unit Price Consumption (1) (2) 9. Planned Maintenance (PM)-Lube Oils, Filters, Grease, Labor: (contact your local Cat dealer)...................... 10. a. Tires: Replacement Cost Life in Hours LifeCost (1) (2) b. Undercarriage ( Impact + Abrasiveness + Z Factor) Basic Factor 11. Repair Cost (Per Hour) (contact your local Cat dealer)........................ 12. Special Wear Items: Cost + Life (See subsection 12A on back) Owning \& Operating Costs Supplemental Calculations to L mating Form SUBSECTION 2A: Residual Value at Replacement "When used equipment auction prices are used to estimate residual value, the effect of inflation during the ownership period should be removed to show in constant value what part of the asset must be recovered through work. SUBSECTION 12A: Special items (cutting edges, ground engaging tools, bucket teeth, etc.) (1) Cost Life Cost/Hour (2) (Enter total on line 12)

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