Farm Equipment and Fleet Management
The fleet register brings operating cost and equipment condition into the same review. Use cost per hour for the immediate own-versus-hire comparison, then consider breakdowns and maintenance history when assessing replacement. These decisions can lead to different conclusions for the same machine.
Before you begin
Confirm the period, standard hours, logged hours and a comparable hire rate for the operation. The fleet summary covers 500 machines; the example provides detailed period data for 20 tractors.
Navigation: Top-right screen dropdown → Equipment & Fleet Decision.
Procedure
- Identify the machines flagged for review in the fleet register.
- Compare standard hours, actual hours and absorbed capacity.
- Review hourly cost alongside the hire rate, breakdown count and lifetime maintenance.
- Open the machine row for the cost build-up and Where its hours went.
- Check that hours carry the correct logical land, crop and activity. Review any unabsorbed hours separately.
- Prepare the operating or replacement recommendation with the period, cost components and assumptions clearly stated.
Responsibilities and follow-up
Operations can correct utilisation or land-assignment issues before close. Asset management receives a replacement case supported by condition and maintenance history, rather than a decision based on hourly cost alone.
Example: TRC-05
| Measure | Example value |
|---|---|
| Standard / actual hours | 50 / 53 |
| Absorbed / unabsorbed | 100% / 0 hours |
| Cost per operating hour | SAR 3,100 ÷ 53 = SAR 58.49 |
| Hire comparison | SAR 260/hour; own comparison shows SAR 201.51/hour advantage |
| Breakdowns | 4 this year |
| Lifetime maintenance / replacement cost | SAR 196,000 / SAR 380,000 |
| Verdict | Replace |
| Hours by land | 32 hours on P025-26; 21 hours on P027-26 |
Important notes
TRC-05 shows Own in the hourly comparison and Replace in the fleet verdict. That is not necessarily a conflict. Its displayed period cost contains depreciation only; do not assume fuel, repairs or labour are included unless they appear in the build-up. A replacement flag is not purchasing authority.