Browsing by Author "Gebeyehu Teka Mitiku"

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    Assessment of Construction Equipment Replacement Decisions (A Case Study: Addis Ababa City Road Authority)
    (Addis Ababa University, 2025-06-01) Gebeyehu Teka Mitiku; Solmon Sertse (PhD)
    Assets typically deteriorate with age, which raises operating and maintenance (O&M) expenses and lowers salvage values. Additionally, there may be more recent assets available for replacement that are more effective and better performance.Public and commercial organizations that own fleets and/or specialized equipment must therefore make decisions about when to replace them on a regular basis. Unfortunately, prior studies have highlighted the issue of agencies failing to replace their equipment on time. This problem is made worse in public contracts since, due to their service-oriented nature, there is no way to determine whether the equipment is profitable (economical).Therefore, the main purpose of this study is to investigate equipment replacement policies, procedures, and techniques of Addis Ababa City Road Authority. It also examines the obstacles of on time replacing of outdated equipment.To achieve this the study applied mainly the following information gathering tools i.e.; questionnaire, road construction equipment fleet record inventory (RCEFRI), document review and indepth interview.Accordingly The results indicated that the work objectives, safety, and management goals were found to be the most influential qualitative factors affecting the decision of equipment replacement, while Maintenance cost, downtime cost, and capital/purchasing cost are among the top quantitative factors that are considered while making a decision to replace equipment.Researcher conducted replacement analysis using minimum cost method. Sample of nine (9), thirteen (13), and eleven (11) to heavy machinery, machinery and light weight machine and vehicles respectively were taken from population of Road equipment The result indicated that 21, 63% equipment are beyond their economic life .the previous replacement history of AACRA indicated that increasing maintenance and repair cost is the leading factor of replacement. on the other hand among 784 AACRA equipment 56% are 15 years and above.In this sense it is necessary for the authority to take action to utilize approaches to optimize equipment replacement decision. The research also suggest that AACRA must evaluate equipment’s cost(Maintenance ,downtime cost…), performance (workout put….) and risk (accident,CO2 Emission…) factors and must replace equipment’s based on economical replacement analysis . Key word: Equipment replacement decision, replacement factors, economic life,replacement analysis and on time replacement.