Operation Management: Equipment Hiring Company - Analysis and Strategy

This report delves into the operations management of an equipment hiring company, examining critical aspects such as target clientele, optimal business locations, and the types of rentable equipment. It emphasizes the importance of efficient equipment management through software solutions to mitigate risks like theft and mismanagement, and to track profitability. The reflection highlights the economic advantages of utilizing equipment over manual labor, citing improvements in productivity, cost savings, and reduced capital expenditure. The report concludes that success in the equipment leasing industry hinges on strategic location in developed areas with construction activities, robust equipment management, and thorough maintenance practices, ultimately favoring equipment hiring over purchasing due to reduced maintenance costs and increased efficiency. Desklib offers a wealth of resources, including past papers and solved assignments, for students seeking further assistance in their studies.

Running Head: OPERATION MANAGEMENT 1
Operation Management
Names
Institution

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Operations Management
Equipment are tools or devices that help one in achieving certain activities which are
beyond human capability. The primary customers of the equipment hiring company are the
people who likes getting the best quality for less prices. According to Handanhal & Naushad
(2017), customers like attaining goods or services from firms which give the value for their
money through quality. The people who choose to hire from this company are also those who do
not own private equipment but require them for short-term purpose. For instance, a person
constructing a house may require an equipment such as an earth mover to clear the construction
field, for three months, but after accomplishing the task, the equipment may not be of importance
to him (Sukumar & Robert, 2017). This means that hiring may be the best option to this kind of
person than purchasing a new equipment.
The best position where one can open an equipment hiring company is mostly in
developed countries where many constructions take place. This is because with this developed
areas, it is possible for one to get huge returns than in less fortunate areas. For example,
equipment hiring company in china can give huge returns than one in Kuwait. With developed
countries, it is hard for organizations to fully depend on human labor because quality, time and
cost saving are essential in their operations
Equipment which can be easily rented are those that perform tasks which cannot be
accomplished manually, and also those that give quality results in shortest time. Such equipment
include bulldozers, caterpillars, escalators, earth mover among others. Companies should not
introduce machines like bicycles which are too slow because people will find it more sensible to
seek for alternative ways which promise better results.

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Having highly efficient equipment is fundamental because it makes consumers to see the
reason why they should hire them. Like in building and construction, employers find it easier to
use escalators to clear and compose soil than employing workers which may take a lot of time
with low-quality productivity. For a company to have a successful business, it should introduce
reliable and modern equipment in their operations.
For a company to manage its equipment successfully, it should have software which
controls the stores and other crucial areas. This software should have the details of all equipment
in the company. This will reduce the risks of theft and mismanagement of the equipment (Daniel,
2015). The company should also have full details of all equipment to avoid being replaced with
faulty ones after leasing out. This can be done by ensuring the equipment meet all the applicable
regulations and make thorough checkups. The software will also assist in keeping records of the
profits that come about after leasing. With proper software can realize minimal chances of
damages or theft of the equipment.
Warehouses and depots should have a software which records the details of every
equipment that has been leased. Safety checkups should be performed each day before leasing.
The software should also have record of the time and where it is moving (Koldo & Jesus, 2012).
In case of any damage, the management should ensure they are repaired or replaced before
renting to the next customer. With proper software, it can be possible for the company to realize
when the equipment is mishandling, and when it requires to replace or repair those that break
down.
On my reflection about the action plan is that employers are looking for a good deal but
they are not finding it in workers. The equipment leasing industry varies from one country to
another with some being more mature than others. The business has grown from small business

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to international companies with huge annual turnover close to billions of money. According to
Handanhal & Ram (2016), one of the strategies which employers can use to save costs is through
adopting the use of machines in their operation. In the recent years, the tactic of hiring machines
has enabled firms which cannot afford purchasing them to benefit. According to different
studies conducted on the benefits of equipment hiring, businesses dealing with employees have
grown to a percentage of 2% whereas those spending on machines have improved with 26%.This
shows that working with equipment is more economical than workers and can reduce capital.
Most of the companies would also prefer leasing than buying in order to reduce fleet of
equipment in the warehouses. This will also reduce maintenance costs, and fleet transportation
cost. Working with equipment is, therefore, more economical and saves time than working with
employees (Vinod & Ruth, 2010). For example, a contractor is paid large amount of money to
complete work but he acquires other workers whereby he takes long training, hence leading to
low productivity. This can be easily improved if employers introduce more equipment and
employ few people. For instance, in road construction employers can introduce excavators to
clear and compose soil than introducing workers. This can also reduce risks related to mankind
and improve health behaviors. Introduction of these equipment leads to high quality of work and
increased productivity.
In conclusion, for a leasing company to have huge turnovers, it should site its business
where activities like building and construction take place and also in more mature and developed
countries like china (Petra, 2010). This is because in less developed countries people may find it
more expensive in hiring those particular machines and do the work on their own. It should also
have proper management of equipment and good records. Employers should also do a thorough
checkup of the machines and repair them before leasing to the next client.

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For machines like bulldozers, escalators the management should ensure that before
leasing they meet the necessary regulations and competent people operate them. This can be
done through thorough investigations about the person going to handle the machine (Mahesh,
2010). From my research and opinion, most employers find it easy in hiring machines than
buying their own because of high maintenance cost, to reduce fleet of equipment in the company.
Hiring also is more economical, saves time and helps organizations to produce high-quality
products.

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References
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Belgium. Journal of Business and Entrepreneurship, 27(1), 58-68.
Handanhal, R & Naushad, K. (2017). Project Management in Operations Management
Textbooks: Closing the GaP. Journal of the Academy of Business Education, 18, 45-58.
Handanhal, R & Ram, M. (2016). Forecasting When Trend and Seasonality Are Present: What
Should Operations Management Textbooks Teach? Journal of the Academy of Business
Education, 17, 124-165.
Koldo, Z & Jesus, M. (2012). Changes in Operations Management of Privatized Spanish Firms.
Review of Business & Finance Studies, 3(1), 124-135.
Mahesh, G. (2010). The Enabling Role of E-Business Technologies in Strategic Operations
Management. Journal of International Technology and Information Management, 19(2),
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Petra, H (2010). The Use of Operations Management Procedures in Order to Increase
Organizations Competitiveness under the Conditions of Growing Pressures of
Globalization. Global Business and Management Research: An International Journal,
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Sukumar, R & Robert, S. (2017). Integrated Performance Management. The Journal of
Government Financial Management, 66(2), 124-135.

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Vinod, L & Ruth, L. (2010). Successful Design, Development and Delivery of Online Courses:
Lessons from Operations Management and Global Leadership. Indian Journal of
Economics and Business, 9(2), 54-68.