The real Power of Power

Despite being a “must-have,” in most modern Mining, Construction and Rental equipment fleets, Diesel Generators remain a largely misunderstood beast. There are a plethora of manufacturers, peddling a variety of makes and models of Diesel Generators with names like “Rentpak,” or “Workhorse,” or some other such euphemism for indestructibility. The primary selling feature for enticing fleet owners being robustness, “mine spec,” or reliability. But when it comes to true whole of life asset management, how does an equipment fleet owner decide which diesel generator will deliver best bang for buck?

As with most equipment assets, maximum return on investment for your generator fleet is determined by:

1. What you buy.
2. How you utilise out what you have bought.
3. How you dispose of the asset at the end of it’s life.

SMART BUYING:

Obviously, if you get number one right, it can have a major impact on the outcomes for numbers 2 and 3. When it comes to what diesel generator to buy for your fleet, it helps to have some knowledge of the global generator market. There are really only 3 applications when it comes to using Diesel Generators:

1. Standby: Mains power exists and the generator is only a back-up.
2. Prime Stationary: The generator is providing the power but will stay in one place.
3. Prime Transportable: The generator is providing the power but will be moved from place to place, job to job.

Obviously, most Mining, Construction and Rental fleet owners fall into the Prime Transportable category. It is important to note that up to 70% of all generators however are sold into the standby category. Standby generators are generally built to meet a price point as they will not operate many hours. Logically, many, if not most manufacturers design their generator products to cater to the standby market. Often, they will offer modifications to their products such as heavier skid bases and market them under a different sub-brand designed to appeal to fleet owners in Rental, Mining and Construction.

There are in fact, only a small number of manufacturers who operate solely in the Prime Transportable niche. Taking into account whether or not the diesel generator you are considering was built specifically for the rigours of Mining, Construction or Rental can double the useable life of your machines.

After you have comfort that your chosen diesel generator is in fact built for purpose, it is also important to compare the fuel efficiency of the engine offered relative to alternatives. After all, when a generator is running, up to 90% of an end users costs will be fuel.

SMART USING:

So you’re comfortable that you have acquired a Prime Transportable specific generator fleet with market leading fuel efficiency. To extract maximum return on investment during it’s useful life, you have to ensure your asset management team is armed with the right information when it comes to ensuring the end user understands these benefits. After all, without the end user in your business understanding how to size and spec a machine to a specific application, you will have paid a premium for an advantage that you cannot recover in terms of efficiency and cost reduction.

The key here is training for your asset management team. If you have bought your generator fleet from a manufacturer that specialises in the Prime Transportable space, that training should be easily available and usually free. There are two key components in developing guidelines for the end user that will enable you to reap for the benefits you have acquired in the purchasing phase. Firstly, sizing. Generators, especially Mining, Construction and Rental generators are notorious for being oversized. Developing some sizing procedures with the help of your generator supplier is crucial in ensuring your end users get the right machine fro the job and don’t burn fuel they don’t need to. Also, oversizing generators can quickly lead to a maintenance issue known as glazing. Generators that are consistently operated at less than 50% of their prime rating generate insufficient heat to burn off the excess carbon that accumulates in the bore. The subsequent “light loading,” or “glazing,” of the engine can often result in a complete engine rebuild.

The second part of explaining the benefits of your efficient generator fleet to your end user is quantifying your fuel advantage. Once again, your supplier or manufacturer should be able to assist you in providing fuel comparison data that can be delivered as part of your training to the end user. Remember, up to 90% of your cost will be fuel. Even one litre saving per hour on a small diesel generator equites to 730 litres per month. With the right engine selection during the buying process, you can find your self in a position where you have reduced your overall fleet operating costs by 80%.

SMART DISPOSAL:

Most of your advantages in this area will have been derived in the buying process. Prime transportable specific diesel generators can last twice as long and return more than twice as much at the end of their ownership cycle. Manufacturers that operate specifically in the prime transportable space are aware of this and can often offer guaranteed buybacks at the time of purchase leaving you with the advantage of knowing your total cost of life ownership up front and reducing your disposal risk to zero. There are refurbishment businesses in Australia and in other South-East Asian countries such as Singapore that specialise in acquiring ex-Mining, Construction and Rental, Prime Transportable specific generators with a view to the lucrative second tier resale market.

Conclusion:

Diesel Generators are already usually one of the higher ROI assets in a Mining, Construction or Rental fleet. Taking the time to consider the true cost of life of the asset as well as the strategic opportunities that exist in renting those advantages to the end user can improve your ROI exponentially. There are independent experts in the Diesel Generator field that can offer unbiased and independent advice on selecting the correct product/s for your fleet. With many major end users going through cost reduction and efficiency improvement programs due to a slowing in some sectors of the economy, a strategic investment in the right diesel generator product can give you an edge in challenging times.