2. Front End Loader Costs ©Dr. B. C. Paul 2000

3. Start Detailed Economic Comparison of 3 machines l Strategy Go Through Each Machine and Figure the Cost Compare cost and technical issues l To get cost you must know machine life and running hours. Cost of Running a machine is mainly a function of engine hours Calculate hours for loader to load material or Calculate hours for trucks They should be the same when all things are considered We will work it both ways Use Run Time to Get Machine Life

4. Adjust Bunching Factor for Actual Load Time l FEL unit takes about 0.65 to 0.75 min per cycle l If 0.7 min is used with 4 pass load - get 2.8 minutes (reducing truck cycle time by 0.2 min) l If we assume a drive-by load with no spot time Match Factor = 3*2.8/(11.28) = 0.7528 Bunching is 0.91 instead of 0.9

5. Getting Productive Capacity of Loader l Just Scaling for the binomial probability of equipment available 0.9262 * 0.91/0.9 = 0.9365 l Check the Loader Capacity 13.5 yd 3 / bucket 0.83 Fill Factor FEL will have about 0.85 availability

6. Continued Loader Production l Annual Capacity of Loader 0.83 for 50 minutes/hour work 0.95 for 95% utilization of available enough trucks for 0.745 utilization Total Time 151,200 minutes/year Loader 13.5* 0.83 * 0.85 * 0.83 * 0.95 * 0.9365 *0.745* 151,200/ 0.7min/cycle = 1,131,749 yd 3 l 1,471,274 tons

7. Weakness of Above Analysis l Assume 0.745 truck availability which is true only if three trucks are available when loader runs l From Probability 0.608 * 3 + 0.325 * 2 + 0.057 * 1 + 0.01 * 0 l 2.531 trucks available on average

8. Adjusting the Loader Production l 2.8*2.531/11.08 = 0.6396 truck efficiency l Adjusted tonnage 1,263,129 tons

9. Truck Production l 151,200 minutes/year l 44.6 yd3/trip l Time per cycle is 11.08 l Truck Available 0.85 l Loader Available 0.85 l Operator Working 0.83 l Utilized of Available 0.95 44.6*0.85*0.85*0.83*0.95*0.9365*15 1,200/11.08*2600/2000*3= 1,266,365 tons

10. Getting Machine Life l 151,200 minutes/year l 85% operational l 95% utilized l We will assume most operator breaks the engine runs so no 0.83 factor l Idle time the engine still runs l 122,094 min/ 60 = 2,035 hours

11. Go to Cat Tables for Machine Life l Cat Rates Machine Life 15,000 hours for light stockpile loading - that’s not us 12,000 hours for heavy stockpile loading 10,000 hours for shot rock loading (that’s us) l 10,000 / 2,035 = 5 years

12. Economics with the FEL l Calculate Ownership Costs l Need the Price of the Unit l Base Price is about $800,000 l Add about 5% for Extras $40,000 l Shipping at $4/100lbs 193,000 lbs gives $7,720 l Delivered Price $848,000

13. Economics Continued l Deduct Tires about $46,000 l Machine Cost $802,000 l Principle and Interest Cost at 15% for 5 years 0.29832 * 802,000 = $239,252 /year l Taxes and Insurance Average Annual Investment (5+1)/(2*5) = 0.6 * 802,000 = $481,200 At 2% each 481,200 *.04 = $19,248

14. Totaling Ownership Cost l Get Tax Advantages 802,000 straight Lined for 5 years $160,400 * 40% tax = $64,160 l P+I = 239,000 l T+I = 19,000 l Tax Savings 64,000 l $194,000 /year

15. Getting Operating Cost l Catapillar Has a Detailed Table - Terex has a simple formula l Diesel Fuel Cost 0.026 gal/hp-hr 690 hp * 0.026 * $1/gal = $17.94/hr l Lubricants about 1/5th of Fuel $17.94/5 = $3.60/hr

16. Hourly Cost l Repair with Tires 0.45* Hourly Depreciation $80 * 0.45 = $36/hour l Operator $24.86/hour l Total = $82.40/hour l Ownership Cost $194,000 Over 2000 hours/year $97/hour l Total $179.40/operating hour

17. On a Cost/Ton Basis l 2,000 hours * $179 = $358,000/year l Over 1 million tons 35.8 cents/ton to load