CORE COMPETENCY LEARNING OBJECTIVES … fileCORE COMPETENCY LEARNING OBJECTIVES DOCUMENTS Table of...

CORE COMPETENCY LEARNING OBJECTIVES DOCUMENTS

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CORE COMPETENCY LEARNING OBJECTIVES DOCUMENTS

Table of Contents

Employee Training … 3 Environmental … 5 Human Resources … 8 Safety … 11 Outsourcing … 14 Parts Management … 16 Preventa�ve Maintenance … 19Shop & Facility Management … 21 Benchmarking … 23 Specifica�ons … 25 Technology …

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Customer Service … 30 Financial Management … 33 Procurement & Acquisi�on … 36 Risk Management … 38 Warranty & Performance … 41 Life Cycle Cost Analysis … 43

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EMPLOYEE TRAINING

1. Statement of Need: What needs to be known?

EMS Statement of Need: Employee Training, particularly the knowledge of training and educationapplicable to their organization’s work and employees, is essential to the successful performance of anequipment management professional.

CEM/CESP Statement of Need: Employee Training, particularly identifying and meeting and/or facilitatingthe continuous training and education applicable to their organization’s work and employees, is essentialto the successful performance of an equipment management professional.

2. Context by which need exists: Why this was chosen as a core competency needed by an equipmentmanagement professional and why this matters:

Training is an ongoing process necessary for the survival of any organization. It is the responsibility of theequipment management professional to identify and facilitate the position-specific training requirementsthat align industry best practices with the internal processes and procedures of their organization in areassuch as technology, governmental regulations, and safety.

Resolving the training deficiencies in specific areas and providing a continuous training program can be akey tool in employee recruitment and retention and will result in better utilization of employees’ time,higher productivity, fewer safety incidents, improved customer satisfaction and, of course, increasedrevenue.

3. What does the successful equipment management professional need to know or be able to do in thereal world? How is this core competency performed and applied in the real world?

An equipment management professional must be able to accurately identify training needs of employees,develop a plan to effectively meet those needs, and implement an ongoing appropriate plan that is inaccordance with an assessment of employee’s knowledge, skills and abilities; applicable governmentregulations; and aligned with the organization policies and procedures.

The successful equipment management professional can effectively and efficiently manage theiremployees’ skills and task assignments by keeping detailed records, monitoring changes and adapting theemployee training plan according to work-loads, employees' aptitudes, and completed training.

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4. Real-World Performance Statement:

At the completion of this lesson the successful equipment management professional will be able to usehistorical data of organization's workload, current backlogs, and any new workload (for new business) toidentify training needs for new and current employees; evaluate current employees’ aptitudes for theseskills and then identify any gaps between employees' current skills and the skills needed to establishtraining needs; prioritize a training schedule according to the organizational needs, budget, and timeconstraints; seek out and use appropriate training opportunities such as junior colleges, OEM trainingprograms, professional organizations, internal mentoring or apprenticeships and online/technologicalresources; document and track training needs and records of completed training for all technicians, officestaff, and supervisors, especially ongoing safety training; and monitor changes in training needs and adjustthe training program accordingly.

5. Learning Objective:The student will be able to understand the key elements involved in developing an employee trainingprogram that includes identifying and meeting the continuous training needs of employees.

The successful EMS student will:• Know and understand how to identify new and current employee training needs.• Know and understand the training needs surrounding new and current equipment.• Understand the importance of assessment or evaluation of employee abilities and job requirements.• Identify opportunities & strategies for employee training that are aligned with internal policy and

procedures.

In addition to the above, the successful CEM/CESP student will:

CEM/CESP (in addition to EMS): • Identify and give examples of position specific training.• Describe how to develop, maintain and/or facilitate an effective employee training program,

Measure of Performance: EMS: 70% or better on the final lesson exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills Needed Business enterprise management systems to track organization work-load records, Database systems to organize and record training program (needs and completed training), Internet-based resources such as online schools or training Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated videos, Exam

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ENVIRONMENTAL 1. Statement of Need: What needs to be known?

EMS Statement of Need: Environmental issues, particularly the knowledge and understanding of variousenvironmental regulations and policies applicable to an organization’s location, work and employees andthe understanding of the key elements involved in compliance and best practices, is essential to thesuccessful performance of an equipment management professional.

CEM/CESP Statement of Need: Environmental issues, particularly the ability to articulate and applyvarious environmental regulations and policies applicable to their organization’s location, work andemployees and the understanding of the key elements involved in compliance and best practices, isessential to the successful performance of an equipment management professional.

2. Context by which need exists: Why this was chosen as a core competency needed by an equipmentprofessional and why this matters:

An equipment management professional is responsible for managing heavy equipment fleets that aresubject to often evolving international, national, regional or state, and local environmental laws thatimpact operations at every level.

Maintaining compliance with environmental regulations and best practices should result in cleaner,healthier work areas for employees, better control of hazardous materials, fewer safety hazards orincidents related to materials storage and handling, cleaner and more efficient equipment and work sites,and reduced negative impact upon the general environment and public health.


An equipment management professional must be able to understand how to access and apply allenvironmental regulations that affect their fleet and operations in the location they operate.

The successful equipment management professional will remain aware of changes in regulations and takeappropriate action to maintain their organization’s compliance, develop appropriate documentation ofmaterials handling (materials safety data sheets, etc.), maintain accurate records of fuel and hazardousmaterials storage, usage, and disposal, incident reports and actions taken, and develop appropriateevacuation and other contingency plans in case of emergencies.

While equipment managers need to ensure that all supervisors are also familiar with all the regulationsassociated with environmental compliance, it is their ultimate responsibility to remain aware of changes inregulations and take appropriate action to maintain their organization’s compliance.

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At the completion of this lesson the successful equipment management professional will understand howto access and apply all environmental regulations and best industry practices appropriate to theirorganization’s work load and location, develop accurate records for fuel and materials handling includingwarning labels and materials data sheets, provide appropriate training for personnel, and take appropriateaction in case of any incident such as an hazardous materials spill.

US regulations present a modern standard of safety in materials handling and are used as the basis forAEMP’s general education regarding environmentally responsible management. However, equipmentmanagers outside the United States must understand how to access and apply all regulations pertinent totheir location. AEMP encourages fleet management that goes “above and beyond” required standards toprotect the environment through the application of best industry practices worldwide whenever possible.

5. Learning Objective:

The student will be able to identify, articulate, and apply environmental regulations appropriate to theirorganization’s location and ensure compliance.

The successful EMS student will:• Recall and describe appropriate, safe and best practices in fuel facility management.• Demonstrate ability to access, interpret and apply Federal, State, and local environmental policies.• Recall and describe the Clean Air Act of 1990, Alternative Fuel.• Recall and describe Energy Policy Act of 1992 and 2005, Alternative Fuel.• Demonstrate the ability to find Federal, State, and local regulations regarding waste management.• Define and determine “Generator Classification” based upon waste generated as required by EPA.• Classify wastes into hazardous or non-hazardous categories for purposes of containment, disposal, or

recycling.• Recall regulations and best practices governing discharging wash water (washing vehicles and shop

floors) to a Public Owned Treatment Works (POTW).• Recall the regulations and best practices covering hazardous waste management including the

Resource Conservation and Recovery Act (RCRA).• Recall the regulations and best practices under the National Pollutant Discharge Elimination System

(NPDES) and the Clean Water Act (CWA).• Recall the requirements and best practices of the OSHA hazard communication program.• Describe the efficient maintenance and best practices of waste management protocols.• Recall best practices in environmental controls.

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In addition to the above, the successful CEM student will:

CEM (in addition to EMS):

• Demonstrate the ability to find, interpret, and apply Federal, State, and local regulations regardingwaste management.

• Apply regulations governing above- and below-ground storage tanks.• Recall and apply the regulations covering hazardous waste management including the Resource

Conservation and Recovery Act (RCRA).• Recall and apply the regulations under the National Pollutant Discharge Elimination System (NPDES)

and the Clean Water Act (CWA).• Recall and apply the requirements of the OSHA hazard communication program.• Apply regulations relating to the reduction of emissions.

Measure of Performance: EMS: 70% or better on the final lesson exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills needed Access to current regulations: US regulations are available online at http://www.access.gpo.gov/nara/cfr/waisidx_01/40cfr280_01.html Contact information and ability to communicate with local first-response teams such as fire departments, contact information for local regulations offices and qualified hazardous materials clean-up contractors. Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated videos, Exam

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http://www.access.gpo.gov/nara/cfr/waisidx_01/40cfr280_01.html

HUMAN RESOURCE MANAGEMENT


EMS Statement of Need: Human resource (HR) management, particularly being acquainted with thevarious human resources regulations and policies applicable to an organization’s location, work andemployees is essential to the successful performance of an equipment management professional.

CEM/CESP Statement of Need: Human resource (HR) management, particularly the ability to articulateand apply various human resources regulations and policies applicable to their organization’s location,work and employees and the understanding of the key elements involved in compliance and bestpractices, is essential to the successful performance of an equipment management professional.


An equipment management professional oversees a variety of personnel/employees, includingtechnicians, equipment operators, dispatchers, administrative and support staff that are subject toemployment laws that continue to evolve into a diverse and complex set of statutes and precedentstouching all facets of employment.

Equipment management professionals are in a position of leadership and need to be acquainted withappropriate HR management policies and practices, and coordinate with their organization’s HR experts.Maintaining high standards of human resources management of policies and practices can help create andensure a more stable workplace culture and environment that encourages higher trust among employees,supervisors, and employers, reduce legal claims or complaints from workers, and increase overallproductivity. While many large organizations have HR departments, equipment managers may still havedirect or indirect oversight of hiring new employees or other HR tasks or concerns.

3. What does the successful equipment management professional need to know or be able to do in thereal world? How is this core competency performed and applied in the real world?An equipment management professional must identify and comply with all labor laws and regulationspertinent to their work and location. While equipment managers need to ensure that all supervisors arealso familiar with all the laws, policies and procedures associated with personnel, it is their ultimateresponsibility to maintain open lines of communication with the HR Dept. to ensure compliance withchanging laws, policies, and procedures in order to take appropriate action and maintain theirorganization’s compliance.

The successful equipment management professional will develop appropriate documentation of employeerecords or complaints, and ensure every reported incident be investigated and documented correctly andappropriate action taken.

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At the completion of this lesson the successful equipment management professional will be able to understand their organization’s policies and procedures for posting job openings, creating job descriptions, and identifying potential candidates based on their ability to complete the tasks required for the posted job.

For each employee, the successful equipment management professional will maintain accurate and confidential employee records; provide job-performance feedback based upon job descriptions and standard company policies; and provide secure reporting avenues for employee concerns or complaints, and follow up with appropriate investigation and action.

US regulations present standard protocols in human resource management issues and are used as the basis for AEMP’s general education. However, equipment managers outside the United States must understand how to access and apply all regulations and standards pertinent to their location. AEMP encourages equipment management that goes “above and beyond” required legal standards to meet fair labor practices through the application of best industry practices worldwide.

5. Learning Objective: The student will be able to identify, articulate, and apply HR regulations and policies appropriate to their organization’s location and ensure compliance with these protocols in accordance with fair labor practices. The successful EMS student will: • Describe the importance of the application of Human Resource management principles. • Recall specific federal statutes related to personnel issues: specifically Title 7 of the Civil Rights Act of

1964, Civil Rights Act of 1991, the Age Discrimination and Employment Act & the Uniformed Services Employment and Reemployment Act of 1994.

• Describe employer responsibilities to protect employees against sexual harassment. • Recall the Americans with Disabilities Act. • Describe the requirements of the Fair Labor and Standards Act (FLSA). • Describe the key points of the hiring process. • Outline the considerations for effective employee counseling and discipline. • Describe the steps in best practices of an employee termination process. • Describe the appropriate steps to implement best practices in a reduction in force. • Describe best practices in maintaining documentation of all HR related standards and practices.

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• Apply specific federal statutes related to personnel issues: specifically Title 7 of the Civil Rights Act of 1964, Civil Rights Act of 1991, the Age Discrimination and Employment Act & the Uniformed Services Employment and Reemployment Act of 1994.

• Apply the Americans with Disabilities Act. • Apply the requirements of the Fair Labor and Standards Act (FLSA).

Measure of Performance: EMS: 70% or better on the final lesson exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills needed Access to current regulations: US Regulations available via the Equal Employment Opportunity Commission (EEOC) website: https://www.eeoc.gov/ additional HR glossary of terms: CEFM 2015 (pdf), pg. 257 Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated videos, Exam

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https://www.eeoc.gov/

SAFETY 1. Statement of Need: What needs to be known?

EMS Statement of Need: Safety management, particularly the knowledge and understanding of varioussafety standards and regulations applicable to their organization’s location, work and employees, isessential to successful performance as an equipment management professional.

CEM/CESP Statement of Need: Safety management, particularly the ability to articulate and apply varioussafety standards and regulations applicable to their organization’s location, work and employees ability todevelop and monitor appropriate safety programs, is essential to successful performance as an equipmentmanagement professional.

2. Context by which need exists: Why this was chosen as a core competency needed by an equipmentprofessional and why this matters:An equipment management professional is responsible for accessing and applying safety regulations,continuously assess their organization’s needs and safety risks, and to build a workplace culture thatencourages safe performance of all tasks in order to protect workers, the general public, property, andtheir organization’s productivity. In addition, it is also imperative the equipment management professionalunderstand the moral and personal responsibility along with any legal obligations that ensures employeeand public safety.

3. What does the successful equipment management professional need to know or be able to do in thereal world? How is this core competency performed and applied in the real world?An equipment management professional must be able to actively identify safety incidents by identifyinghazards and mitigating those hazards in accordance with governing standards. By combining supervisorawareness and continuous employee training and education, successful equipment managers canimplement strategies to build a culture of safety among employees, supervisors, and sub-contractors.

The successful equipment management professional will also encourage reporting of all incidentsregardless of the actual results through secure channels so employees are empowered to participatewithout threat of repercussions. The successful equipment manager will insure his subordinates areprovided and wear the appropriate personal protective equipment (PPE) in accordance with the hazardsthey face. (Fall protection gear, safety glasses, shoes, earplugs, etc.) The successful equipment managerwill lead by example in developing a safety culture where employees and management work together tomaintain a safe work zone.

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Successful equipment management professionals are able to identify safety hazards pertinent to their organization’s work, access and apply the relevant safety regulations, facilitate appropriate safety training to employees and supervisors, and develop a workplace culture that focuses on completing work safely in order to maximize their organization’s productivity and profitability.

Maintaining safer workplaces and work practices should result in fewer safety incidents, reduced productivity losses due to accidents, better control of hazards, healthier employees over the long term, and more efficient completion of work projects, all of which pay off in higher profitability and greater competitive advantage.

US 29 CFR 1910 & 1926 (OSHA or applicate regulations) regulations present a minimum standard for safety practices and are used as the basis for AEMP’s general education regarding responsible management of safety concerns. However, fleet managers outside the United States or those subject to other regulations such as MSHA must understand how to access and apply all regulations pertinent to their location and organization’s work. AEMP encourages fleet management that goes “above and beyond” basic/minimum safety standards to protect their organization’s property and the safety of their employees and the general public through the application of “best industry practices” worldwide.

5. Learning Objective: The student will be able to understand, access and apply safety standards and regulations applicable to their organization’s work and employees and be able to develop, deploy and monitor appropriate safety programs. The successful EMS student will: • Understand Part 1910 and overlapping sections of 1926 of 29 CFR (Code of Federal Regulations) (OSHA

or applicate regulations) relating to shop and workplace safety, handling toxic and hazardous substances, employee safety and training, lifts and other equipment, Federal Motor Carrier Safety Regulations and Dept. of Transportation rules relating to motor vehicles and off-road equipment.

• Know and describe specific steps in the design and execution of a safety program for an equipment maintenance department and its employees.

• Demonstrate the ability to recognize unsafe conditions on a vehicle or equipment or work environment.

• List and describe safety equipment required on motor vehicles/off-road equipment. • Describe what inspections are required for motor vehicles/off-road equipment and how to find them

for a specific location. • List and describe the required qualifications for personnel operating equipment. • Recall, research and apply the minimum requirements (of Part 382 of the FMCSR or applicate

regulations) regarding controlled substance and alcohol use and testing for employees. 12

• Understand training requirements for employees who supervise drivers and/or the organizational training required for employing drivers.

• Describe the resources to consult for safety requirements and regulations. • Understand the necessity of a personal ethical commitment that values safety for oneself and others

above productivity or other organizational goals.

In addition to the above, the successful CEM student will: CEM (in addition to EMS):

• Apply Part 1910 and overlapping sections of 1926 of 29 CFR (Code of Federal Regulations) (OSHA or applicate regulations) relating to shop and workplace safety, handling toxic and hazardous substances, employee safety and training, lifts and other equipment, Federal Motor Carrier Safety Regulations and Dept. of Transportation rules relating to motor vehicles and off-road equipment.

• Describe the specific steps in the design and execution of a safety program for an equipment organization and its employees.

Measure of Performance: EMS: 70% or better on the final lesson exam; CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills needed What skills are needed to upskill someone into equipment management? (As in a job description) Ability to search and find local safety requirements and regulations. Ability to use business enterprise management systems to track organization work-load records. Database systems to organize and record training program (needs and completed training). Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated videos, Exam

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OUTSOURCING 1. Statement of Need: What needs to be known?

EMS Statement of Need: Outsourcing, particularly the knowledge of how to determine whether a givenbusiness function or activity should or should not be outsourced and why, is essential to the successfulperformance of an equipment management professional.

CEM/CESP Statement of Need: Outsourcing, particularly the knowledge and ability to determine whethera given business function or activity should or should not be outsourced and why, is essential to thesuccessful performance of an equipment management professional.


An equipment management professional is responsible for identifying the core activities of theirorganization and to be able to provide the resources in the most cost- and time-efficient way possible inorder to complete these activities. Equipment managers can determine when it is appropriate tooutsource an activity by monitoring employee workload, equipment demand and industry best practice.By successfully outsourcing selected business activities, equipment managers may reduce costs, reducerisk and liability exposure, improve time-management and ultimately improve efficiency within theirorganization.


The equipment management professional must be able to identify activities that lie outside theirorganization’s core competencies or that otherwise have high costs and low returns for the organizationwhich may be more efficiently performed by external suppliers.

A successful equipment management professional will then identify qualified suppliers for those activities,and negotiate successfully with those suppliers to provide services that ultimately reduce the cost ofperforming those activities.


At the completion of this lesson the successful equipment management professional will be able toidentify their organization’s core competencies and essential business activities and identify cost-reductionopportunities by performing cost-benefit analysis, contract negotiations, and continual monitoring of bestpractices.

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5. Learning Objective: The student will be able to understand the purpose and application of outsourcing to effectively manage fleet assets to reduced cost, increased up-time/availability/quality of equipment and equipment health, reduced labor, reduced capital investment, and reduced liability/risk associated with the outsourced activity. The successful EMS student will: • Describe the purpose and application of outsourcing. • Describe situations in which outsourcing can be the best practice. • Identify types of labor outsourcing. • List and apply the criteria to measure the effectiveness or ineffectiveness of outsourcing. • Describe how outsourcing can be beneficial for balancing work load to maintain satisfactory

turnaround times. • Explain the decision-making considerations for in-source/out-source process. • Describe and justify critical in-house activities. • List and describe considerations for planning and negotiating contracts with suppliers regarding scope

and volume of work, plus any supplier warranties or other performance measures, and financial bonuses or penalties.



• Perform activity cost-benefit analysis and apply productivity considerations pertinent to consideration of outsourcing.

• List and describe considerations for planning and negotiating contracts with suppliers regarding scope and volume of work, implementing best practices plus any supplier warranties or other performance measures, and financial bonuses or penalties.

Measure of Performance: EMS: 70% or better on the final EMS Certificate exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills needed Ability to compute in-house costs with accurate man-hour rates and productivity levels and compare them to outsourcing costs. Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated videos, Exam

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PARTS MANAGEMENT 1. Statement of Need: What needs to be known?

EMS Statement of Need: Parts Management, availability and logistics, and the knowledge of the full costsof inventory in comparison to the costs of equipment downtime, is essential to the successful performanceof an equipment management professional.

CEM/CESP Statement of Need: Parts Management, availability and logistics, particularly the knowledge ofthe full costs of inventory in comparison to the costs of equipment downtime and the ability to apply thisknowledge and best practices to determine appropriate parts acquisition, storage, and disposal is essentialto the successful performance of an equipment management professional.


An equipment management professional is responsible for successfully managing and applying inventoryresources such as capital, storage space, labor and parts availability in order to reduce equipmentdowntime and eliminate inventory waste by reducing stock of infrequently used or obsolete parts. Theymust be able to meet the demand of the fleet requirements within economic limits that maximizeproductivity without tying up excessive resources. Equipment managers need to remain flexible andresponsive to changing marketplace demand to maintain efficient parts inventories and make efficient useof the organization’s capital.


Fleet managers must be able to identify the parts inventories needed to maintain a proactive preventivemaintenance schedule for their fleet, know when to order parts to keep an efficient level ready for use,identify parts that are becoming/have become obsolete and eliminate them from inventory with bestpractices and plan the ordering/storage/tracking of new parts required for newly acquired equipment.

Each organization must consider the needs of their fleet and what parts levels to maintain in order tominimize equipment downtime due to unavailable parts. Successful equipment managers consider the fullcosts of inventory in comparison to the costs of equipment downtime and find an appropriate balance ininventory levels that most efficiently meet their organization’s needs.

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4. Real-World Performance Statement: The successful equipment management professional will apply best practices to identify parts required for your fleets maximum uptime of equipment without tying up more resources, labor, and storage space than needed; track availability and usage of parts with accurate records using maintenance software to guide timely re-ordering and decide when to eliminate parts that have become or are becoming obsolete; plan and order appropriate levels of safety stock to compensate for any seasonal variations in demand; consider vendor-managed inventory options to minimize administrative costs and improve ordering efficiencies; develop efficient ordering strategies and productive relationships with suppliers that help improve more efficient parts inventory management.

5. Learning Objective: The student will be able to develop parts’ inventory management skills and best practices to meet their organizations needs and supply from vendors, provide the parts required for proactive preventive maintenance, and eliminate waste by reducing storage of obsolete parts and promotes the efficient use of the organization’s resources. The successful EMS student will:

• Define the purpose of inventory management. • Describe how to apply the principles and/or best practices of parts inventory and control. • Describe strategies for inventory management. • Explain how to monitor the frequency of all parts movement. • Explain the importance of keeping track of all parts requests to determine demand and cost

centers. • Describe safety stock and why it is important. • Describe the difference between repair and maintenance parts. • Explain the real cost of not having needed parts in stock.



• Give examples of the economies of inventory control. • Describe and apply cost of inventory principles. • Describe and apply effective parts purchasing practices.

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Measure of Performance: EMS: 70% or better on the final EMS Certificate exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills needed Ability to use or direct the use of automated inventory systems with bar coding to track parts by specific part numbers and can be used to interact with suppliers to automate re-ordering as well as to identify parts that have not been used recently and may have become obsolete.

Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated videos, Exam

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PREVENTATIVE MAINTENANCE 1. Statement of Need: What needs to be known?

EMS Statement of Need: Preventative Maintenance, particularly the knowledge of planned maintenanceactions before failure is essential to the successful performance of an equipment managementprofessional.

CEM/CESP Statement of Need: Preventative Maintenance, particularly the ability to implement and applyplanned maintenance actions before failure is essential to the successful performance of an equipmentmanagement professional.


Successful preventive maintenance management significantly increases safety, reliability and productionwhile reducing costs by maximizing maintenance resources. An equipment management professional isresponsible for taking proactive action before breakdowns occur including implementing solutions forimprovement.

3. What does the successful equipment management professional need to know or be able to do in thereal world? How is this core competency performed and applied in the real world?An equipment management professional must be able to implement a preventive maintenance programthat includes the following:

• Manufacturer (OEM) guidelines & improving upon them• Performing requirements• Monitoring performance/compliance• Adjust program based on results

Equipment managers must use OSHA and MSHA safety and environmental standards (or international equivalents) essential to quality preventive maintenance programs. Operators and technicians must be trained to appropriately support proactive maintenance through regular equipment inspections. Upper-level management buy-in to a proactive equipment maintenance program is essential to success.

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4. Real-World Performance Statement: The successful equipment management professional will use a proactive approach for planned/scheduled maintenance based upon OEM recommendations, usage, operator feedback, historical performance, inspection reports, telematics data, oil & fluids analysis, cost/benefit analysis and other relevant inputs, and will communicate the impact successful or unsuccessful preventive maintenance (PM) has on safety, cost and productivity to all levels within the organization to involve all equipment users/stakeholders in the PM process.

5. Learning Objective: The student will be able to identify the maintenance needs of their fleet and design a pro-active maintenance program that ensures safe operation that complies with regulations, extends the usable life of equipment, and improves equipment reliability. The successful EMS student will:

• Define and describe effective preventive maintenance. • Possess knowledge of a proactive approach in scheduling preventive maintenance. • Describe the P-F curve. • Apply safety standards to preventive maintenance. • Describe maintenance actions and the contents of a planned preventive maintenance program. • Interpret and apply preventive maintenance analysis data. • Understand failure analysis.



• Design a preventive maintenance program. • Prove the benefits of preventive maintenance to all organizational levels/equipment users. • Identify trends in failure analysis such as Root Cause Analysis and take appropriate corrective action. • Design and implement a training program for a high-level preventive maintenance program. • Knowledge of current and emerging technologies and processes and their impact upon a preventive

maintenance process.

Measure of Performance: EMS: 70% or better on the final lesson exam (percentages included in exam report, regardless of pass/fail) CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Skills needed: The ability to implement and manage an efficient preventive maintenance program applicable to their fleet’s needs. Learning Activities and Evaluation Method: Required Readings, Recorded Presentation, Curated videos, Exam

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SHOP & FACILITIES MANAGEMENT 1. Statement of Need: What needs to be known?

EMS Statement of Need: Shop & Facilities Management, particularly the knowledge of how to manageresources, work sites, information technology, and facilities cost and quality control, is essential to thesuccessful performance of an equipment management professional.

CEM/CESP Statement of Need: Shop & Facilities Management, particularly the ability to manageresources, work sites, information technology, and facilities cost and quality control, is essential to thesuccessful performance of an equipment management professional.

2. Context by which need exists: Why this was chosen as a core competency needed by an equipmentmanagement professional and why this matters:

An equipment management professional is responsible for planning the efficient use of shop time,resources, information technology, space and personnel to address preventative maintenance and repairprograms and proper outsourcing appropriate to the organization’s equipment needs. By proactivelyplanning the use of shop and facilities along with work sites, equipment managers minimize cost andmaximize both productivity, uptime and the overall health of fleet.


An equipment management professional must be able to evaluate the organization’s equipment needs interms of maintenance, parts inventory, and tool management along with information technology thatencourages safe and efficient use of shop time, resources and personnel.

The successful equipment management professional will recognize how shop and facilities managementtasks, along with information technology and implementation of that data to sustain maintenanceprograms in turn support the safe, reliable and efficient operation of equipment, and equipment life cycle.


The successful equipment management professional will understand how to efficiently schedule shopactivities and information technology along with tasks in order to maximize equipment availability(uptime), minimize unscheduled repairs or breakdowns, and train and retain productive maintenance shopemployees in order to support a quality maintenance program. Historical benchmarking of time requiredfor specific tasks can aid in scheduling shop repairs and maintenance tasks. Careful attention to staffingand space in the shop, monitoring maintenance and managing parts inventories can boost productivity andreduce costs. Reviewing repair or work orders provides most of the data an equipment manager needs toaccomplish these tasks.

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The student will learn to identify resources needed to implement daily equipment inspections, plan maintenance intervals, accomplish scheduled and unscheduled maintenance and repairs, and meet shop work backlogs to plan an efficient use of shop time, labor and outsourcing. The successful EMS student will:

• Describe the importance of shop productivity. • Describe work standards for scheduling resources, work sites, IT, facilities cost and work. • Explain the role the preventive maintenance inspection plays in shop productivity. • Identify the primary objectives of preventive maintenance inspections. • Access and apply appropriate safety regulations such as the DOT Bureau of Motor Carrier Safety

(BCMS) regulations as they apply to equipment, inspection, and use. • Describe the elements of shop productivity including the best practices/work standards for

scheduling resources, work sites, information technology, facilities cost and work. In addition to the above, the successful CEM student will:


• Give examples of how a preventive maintenance inspection program can be applied to a specific situation.

• Describe the principles to increase shop productivity and reduce costs. • Identify and implement the steps to develop an effective and affordable preventive maintenance

inspection program. • Demonstrate an understanding of shop and maintenance control strategies. • Describe an effective process for PMI program evaluation. • Understand how to analyze equipment breakdowns and failures. Calculate a vehicle cost analysis

and prepare an assessment report.

Measure of Performance: EMS: 70% or better on the final lesson exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills needed Shop management software that tracks shop’s activity and each vehicle by serial number or company number and records all maintenance performed including time required for specific tasks, parts inventory, tool inventory, personnel assigned, field service calls, and availability goals. Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated videos, Exam

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BENCHMARKING


EMS Statement of Need: Benchmarking, particularly the knowledge of appropriate metrics to determinebest industry practices and standards for improvement, is essential to the successful performance of anequipment management professional.

CEM/CESP Statement of Need: Benchmarking, particularly the knowledge of appropriate metrics todetermine best industry practices and standards for improvement, while also implementing changes, anddocumenting results is essential to the successful performance of an equipment managementprofessional.


An equipment management professional is responsible for incorporating productivity enhancements andnew technologies as part of a continuous quality improvement plan for the organization’s equipment,services and products. By finding best practices that effectively enhance equipment services and measurebusiness performance relative to an appropriate metric or benchmark, equipment managementprofessionals can identify areas to improve to ensure their organizations’ continued success in an evermore competitive market.

3. What does the successful equipment management professional need to know or be able to do in thereal world? How is this core competency performed and applied in the real world?An equipment management professional must be able to document and analyze its existing businessprocesses and then determine appropriate areas of focus for improvement. By developing reliablemethods of measurement for those areas such as labor costs, PM maintenance, life cycle and cost perhour for equipment, equipment managers can compare results to similar practices in the industry todetermine standards for improvement, implement changes, and then document results.


The successful equipment management professional will identify current business practices, availableresources, and constraints or limitations, while also analyzing business flow to predict how changes inprocesses, resources, or constraints may cause disruption; identify areas of the business cycle that couldbe improved and develop appropriate metrics to assess the area you want to change; find similar businesspractices and metrics and compare them to yours to determine a best practice standard; implementchanges and track the determined metrics to assess performance and repeat as the business cyclecontinues.

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5. Learning Objective: The student will be able to evaluate internal business processes and the metrics used to measure them in comparison with similar processes and metrics from other organizations, other internal divisions and published industry averages in order to establish best practices of those business processes. The successful EMS student will:

• Explain the relationship between benchmarking and performance. • Describe how to determine benchmarking process for best practices. • Describe how equipment user/service personnel feedback can improve business process goals. • Identify and summarize the goals of benchmarking. • Identify data that would be necessary to benchmark maintenance and repair costs. • Understand how to identify sources for benchmarking metrics.



• Identify sources for benchmarking metrics. • Explain how benchmarking can improve fleet management in terms of costs, turn-around time,

labor hours and costs, accuracy of repairs, rework, and active mechanic hours (billable) to payroll hours.

• Compare and contrast a private sector shop and public sector shop.

Measure of Performance: EMS: 70% or better on the final lesson exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills needed Research skills to find industry averages or standards in specified business practices, spreadsheet skills to document and track results. Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated videos, Exam

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SPECIFICATIONS


EMS Statement of Need: Specifications, particularly the knowledge of how to identify equipment and toolfunctionality and appropriate elements of a specification statement, is essential to the successfulperformance of an equipment management professional.

CEM/CESP Statement of Need: Specifications, particularly the understanding of and ability to apply andcommunicate equipment and tool functionality and prepare the appropriate elements of a specificationstatement before making a purchase, is essential to the successful performance of an equipmentmanagement professional.


An equipment management professional is responsible for successfully writing specifications that willresult in equipment and tool functionality that meet the application requirements of the organization orproject while aligning with capital budgeting strategies. Properly managing equipment and toolspecification provides a more efficient use of capital and improves utilization rates, ultimately improvingthe organization’s return on investment.


The successful equipment management professional will create and use well-written specificationstatements as a resource to determine the appropriate solutions to meet the various jobsite and projectrequirement. This allows for the selection of equipment, tools, parts suppliers and service providers thatproduce the best value for their organization and to develop relationships with multiple suppliers tocontinue meeting their organization’s needs in the future.


At the completion of this lesson the successful equipment management professional will createspecification statements that align equipment and tool performance to meet organization and projectobjectives. Specification can be leveraged to improve the return on investment for your organization’sequipment acquisitions, optimize part and service management, and improve utilization over the lifetimeof the machine. The specification statement can support an organization’s bid strategies and best practicesto determine the cost benefit over the life cycle of an asset.

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5. Learning Objective: The student will be able to understand and be able to prepare appropriate specification statements specific to their organizations’ needs in order to maximize asset utilization and the appropriate use of capital. The successful EMS student will: • Describe the reasons and purpose for writing equipment specifications and the benefits to be

expected. • Describe the types of specifications (functional/technical, practical). • Describe the components of a vehicle specification. • Describe specific work elements a machine must perform. • Describe specific operating conditions in which a machine must work. • Develop an equipment specification or tool selection appropriate for your organization. • Know where to get the information and understand what they reading.


CEM (in addition to EMS): • Analyze and compare the components of a vehicle specification. • Understand and apply the types of specifications, techniques to employ, your company's fleet

management philosophy, and current business considerations at your company. • Describe how to obtain qualified bids, evaluate the bids, award a contract or purchase order, and

administer the contract. • Summarize how to recognize improvement opportunities, as well as potential conflicts, with fit and

function of added equipment on specialized equipment or vehicles. • Describe how the terms and conditions appropriate for the company's current business situation may

impact an equipment specification. • Compare differences in design and performance between similar or equal machines and the potential

impact of these differences in the expected application. • Know how to determine true minimum acceptable design and performance levels and include them in

the specifications so as to consider only machines that meet or exceed these levels. • Provide examples of the risks involved in specification writing.

Measure of Performance: EMS: 70% or better on the final lesson exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills Needed Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated Videos, Exam

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TECHNOLOGY


EMS Statement of Need: Technology, particularly the understanding of available solutions to meetorganizational requirements relating to business records, data collection/management/security ofequipment operational technology, is essential to the successful performance of an equipmentmanagement professional.

CEM/CESP Statement of Need: Technology, particularly the understanding of available solutions to meetorganizational requirements relating to business records, data collection/management/security ofequipment operational technology and how to find and learn new technologies and evaluate theirappropriate use, application and/or adoption, and how to implement new technologies appropriate totheir organization is essential to the successful performance of an equipment management professional.


Technological advances in hardware and software, data collection and diagnostics as well as the increasedconnectivity of equipment, people and business systems offer opportunities to manage fleet operationsand maintenance with greater efficiency. Equipment management professionals must be able tocontinuously evaluate new technologies’ applicability to their fleets and develop appropriateimplementation plans for adoption of technology as it applies to equipment management, which includeswireless connectivity, telematics, hardware and software applications, data security and data managementfor their organizations to remain competitive.


An equipment management professional must be able to use sound business management practices andjudgement to continuously evaluate their organization’s needs and select appropriate technology-basedsolutions to minimize unnecessary expenses and improve their organization’s efficiency and profit.

The successful equipment management professional will make valuable and sustained contributions totheir organization’s success through tracking its technology needs and scanning the industry environmentfor developing technologies that may advance their organization’s ability to meet the organization’sbusiness goals. It is essential for the equipment manager to be involved in this process and understandhow to assess their organization’s needs and implement appropriate technology to successfully meetthose goals.

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At the completion of this lesson the successful equipment management professional will be able toidentify the technology needs of their organization; compare available alternatives that will meet theirneeds without spending more than necessary for features that may not apply to their work applications;evaluate and select options based upon their suitability for their company and vendor’s qualities (long-term viability, stability, R&D, customer service, etc.); and design an effective implementation &sustainability plan and train their team to maximize the use of newly acquired technology options in atimely manner.

5. Learning Objective:The student will be able to systematically identify the technology needs of his/her organization anddetermine which new technologies can be appropriately implemented.

The successful EMS student will: • Understand how technology can impact an organization’s operational needs.• Describe key criteria/information to consider when determining an organization’s technology needs.• Identify and give examples of available technologies that primarily service equipment and maintenance

operations.• Explain how the availability of information technologies impact the equipment manager’s

responsibilities.• Explain critical issues related to the application of technology to equipment management.


CEM (in addition to EMS): • Understand how technology can impact an organization’s strategic needs.• Analyze and explain how to choose the most suitable new technology options/applications for a given

equipment intensive organization.• Identify and compare criteria to consider when choosing to adopt a new technology.• Explain how to determine the specific technology needs of an efficient equipment fleet.• Perform analysis to determine/evaluate the suitability of new technologies and communicate this

analysis effectively with organizational management.• Describe how to design training programs to “upskill” employees to use new technologies.• Describe how to develop the infrastructure to support/maintain a technology implementation

initiative.

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Measure of Performance: EMS: 70% or better on the final lesson exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills Needed Basic Excel spreadsheet skills for financial statement and budget development. What skills are needed to upskill someone into equipment management? (As in a job description) Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated videos, Exam Quote: “Changing Technology has a major impact on all of us. What we need to realize is that is technology is not a replacement for fleet managers. It is meant to help fleet managers. Someone still has to look at the data, make the right calls, and get resources in place to take care of projects.” Bob Merritt, CEM 2013-2014 AEMP Chairman of the Board

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CUSTOMER SERVICE


EMS Statement of Need: Customer Service, particularly the understanding of how to meet yourcustomer’s needs effectively and in a way that builds productive relationships, is essential to the successfulperformance of an equipment management professional.

CEM/CESP Statement of Need: Customer Service, particularly the ability to meet your customer’s needseffectively and in a way that builds productive relationships, is essential to the successful performance ofan equipment management professional.


An equipment management professional is responsible for providing customers, both internal andexternal, with goods or services over the duration of the relationship. By understanding the customer’sneeds and expectations, an equipment management professional will build positive relationships that willenhance business opportunities and/or streamline communications between departments to ultimatelyimprove efficiencies and enhance profitability.


An equipment management professional must be able to identify the core business activity of theirorganization, the customers they serve, and what those customers need. In developing strategies to meettheir needs consistently, equipment managers must gather customer feedback and develop continuoustraining for employees that both work directly or indirectly to serve the organization’s customers.

The successful equipment management professional understands that high-quality internal relations withemployees and employee engagement are essential to achieving good customer relations. The internalservice triangle can align goals and resources with the general customer service department to form anorganization aligned and supported not only in objectives, focus, resources, but also in training andcustomer satisfaction improvement programs.

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At the completion of this lesson the successful equipment management professional will be able to defineyour market share by identifying your organization’s core competencies and your customers (intra-organizational departments, external customers); gather information about your customers’ needs andexpectations, as well as feedback from customers regarding past service performance; identify gaps inservice quality and develop strategies to close these gaps; provide training to employees to improvecommunications with customers; define service goals and develop appropriate metrics to measureprogress.


The student will understand who the external and/or internal customers to their organization are,establish training to provide quality service to these customers, and establish tools or metrics to measurecustomer satisfaction in order to provide continuous improvement, professionalism, and efficientperformance.

The successful EMS student will:• Define and explain quality and complexity of service.• Differentiate services of products and service of services.• Describe ways to improve service of services and service of products.• Describe service marketing from both and end user and supplier perspective.• Define the factors that influence customer expectations.• Describe how to receive feedback and understand customer problems.• Describe the goal and application of good communication from an end user and supplier

perspective.• Explain ways to address communications barriers.• Describe the “seven sins” of service of services.• Explain what is meant by “inverting the pyramid.”• Identify and explain the components of the internal services triangle.


• Describe and develop a service improvement plan from both an end user and supplier perspective.

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Measure of Performance: EMS: 70% or better on the final lesson exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills needed What skills are needed to upskill someone into equipment management? (As in a job description) Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated videos, Exam

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FINANCIAL MANAGEMENT


EMS Statement of Need: Financial Management, particularly the knowledge of standard financialaccounting and reporting tools, is essential to the successful performance of an equipment managementprofessional.

CEM/CESP Statement of Need: Financial Management, particularly the knowledge and application ofstandard financial accounting and reporting tools, is essential to the successful performance of anequipment management professional.


An equipment management professional is responsible for assets that often account for one of the largest,if not the largest, capital investments of their organization. Equipment managers regularly make decisionsabout retaining or replacing these investments and have a tremendous influence on the financialperformance of their organizations over a significant period of time. They must be able to reliably trackand communicate the economic value and performance of their organization’s equipment assets.


An equipment management professional must be able to use sound financial management practices andjudgement to minimize unnecessary expenses and contribute to maximizing the organization’s ability toearn a profit.

The successful equipment management professional will make valuable and sustained contributions to anorganization’s financial success through tracking its economic events and adjusting its activities tocontinuously meet financial goals. It is essential for the equipment manager to be involved in this processand understand how to assess their organization’s needs and develop appropriate financial plans tosuccessfully meet those goals.

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4. Real-World Performance Statement: At the completion of this lesson the successful equipment management professional will use standard accounting statements to: track economic events and performance; to develop capital and operating budgets to determine the value of equipment; to calculate ownership and operating costs, as well as total acquisition costs of equipment; to establish and calculate internal cost recovery rates; to determine appropriate depreciation and salvage values of long term assets; and to determine appropriate economic criteria for equipment disposal.

5. Learning Objective: The student will be able to understand and use standard accounting methods to effectively manage fleet assets to the financial benefit of his/her organization and to communicate the economic performance of these fleet assets. The successful EMS student will: • Define and develop an operating budget and a capital budget. • Describe the differences between the elements of both types of budgets. • Give examples of the proper purpose, development, and application of operating and capital budgets. • Calculate total acquisition costs of equipment. • Classify various equipment cost centers as “ownership” or “operating” expenses. • Describe depreciation as a “non-cash” expense and how it affects book-valuation of long-term assets. • Establish and calculate appropriate internal cost recovery rates. • Contender formula, total life cycle costs, identify when to replace – may be part of Life Cycle Cost

Analysis competency


CEM (in addition to EMS): • Analyze and explain how to choose the most suitable method to acquire equipment in a given

situation. • Design appropriate action plans for equipment acquisition suitable to a given situation. • Explain how to determine the value of an identified piece of equipment. • Describe how to establish and calculate depreciation. • Identify and explain the keys to achieving maximum, optimum economic life. • Identify and compare criteria to consider when deciding to dispose of a piece of equipment. • Perform cost-benefit analysis. • Describe and apply the tax implications involved with equipment disposal.

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Measure of Performance: EMS: 70% or better on the final lesson exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills Needed Basic Excel spreadsheet skills for financial statement and budget development. What skills are needed to upskill someone into equipment management? (As in a job description) Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Currated videos, Exam

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PROCUREMENT AND ACQUISITION


EMS Statement of Need: The Procurement and Acquisition of fleet assets, particularly the knowledge ofminimizing owning and operating costs, increasing the quality of services delivered and thus maximizingthe use of capital, is essential to the successful performance of an equipment management professional.

CEM/CESP Statement of Need: The Procurement and Acquisition of fleet assets, particularly theknowledge and application of minimizing owning and operating costs, increasing the quality of servicesdelivered and thus maximizing the use of capital, is essential to the successful performance of anequipment management professional.


Most equipment management professionals are on the cost side of the organization, therefore costreduction is a major skill set that favorably impacts the bottom line. The equipment manager mustunderstand the procurement process and be adept at negotiation skills in order to maximize theirorganization’s use of capital when meeting its equipment needs.


An equipment management professional must be able to use strategic negotiating techniques to reduceequipment costs and risks in order to increase the quality of equipment and shop support servicesdelivered to users in order to increase productivity and help the company aggressively price core businessproducts and services and win more business.

The successful equipment management professional will recognize the value of negotiations that moveaway from adversarial relationships with suppliers to mutually beneficial relationships through appropriateunderstanding of supplier’s needs and perspectives as well as the needs of their own organization asmodeled in AEMP’s Equipment Triangle Concept. It is essential for the equipment manager to developdocumentation on each piece of equipment in order to maximize their negotiating power.

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4. Real-World Performance Statement: At the completion of this course the successful equipment management professional will be able to accomplish the following tasks:

At the completion of this lesson the successful equipment management professional will keep fleet costs and risks as low as possible when acquiring equipment while simultaneously cultivating productive relationships with at least 3-5 suppliers in order to maximize their organization’s competitive advantage with the right fleet assets in place for the work to be performed.

5. Learning Objective: The student will be able to understand and apply negotiating strategies to effectively reduce fleet costs and risks.

The successful EMS student will: • Describe the Equipment Triangle concept and how it promotes positive industry relationships. • Know and describe the goals and guidelines of an effective negotiation strategy. • Identify characteristics of an effective negotiator. • Understand the stages of negotiation. • Identify the contract options and compensation option commonly used. • Know and describe a non-confrontational negotiation approach for buyers. • Develop needs assessments and bid summaries. • Set and keep deadlines for procurement procedures. • Negotiate equipment disposal and determine appropriate replacement criteria. • Understand the value of service provided and parts/service availability. • Understand the perceived risk advantage.


CEM/CESP (in addition to EMS): • Describe the advantages of a planned negotiation strategy and the use of pre-planned objectives. • Define and summarize the best strategy to achieve the greatest benefit from volume purchasing. • Utilize needs assessments and bid summaries. • Apply the perceived risk advantage.

Measure of Performance: EMS: 70% or better on the final lesson exam. CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills Needed: Computer skills and familiarity with business/fleet management software which can assist in tracking purchasing volume, budgets, commodity line items, supplier invoices, fleet maintenance records, and core business work awarded and in progress greatly assist fleet managers. These skills will not be covered in AEMP University’s courses and no brand-name software will be required to complete the lessons offered. Learning Activities and Evaluation Method: Exam, Exercises

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RISK MANAGEMENT


EMS Statement of Need: Risk Management, particularly the knowledge of a structured approach tomanaging risk or uncertainty, is essential to the successful performance of an equipment managementprofessional.

CEM/CESP Statement of Need: Risk Management, particularly the knowledge and application of astructured approach to managing risk or uncertainty, is essential to the successful performance of anequipment management professional.


Activities that involve the use, maintenance, or transport of heavy equipment carry inherent risks both tointernal stakeholders of the organization and the public, including property damage, physical injuries, orloss of life. The equipment management professional’s ability to effectively manage risk and increase bothan organization’s and an individual’s overall productivity is essential to maintaining an organization’sprofitability.


A structured risk management approach assesses the activities and capacities of an organization anddetermines which activities offer high enough returns to be worth handling the hazards involved in thoseactivities.

An equipment management professional must be able to identify and evaluate potential risks associatedwith their business activities, perform a cost-benefit analysis to determine what activities are appropriatefor their equipment and employees, and implement appropriate risk-mitigation or risk-control options forthose activities. A successful equipment management professional will also understand the properapplication of insurance as a post-event compensatory device for a wide variety of possible situations.

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At the completion of this lesson the successful equipment management professional will be able toidentify and prioritize risks according to greatest loss and greatest probability of occurring; eliminateunnecessary risks; consider the potential costs of a failure and how to minimize them before engaging innew business activities or projects; identify and implement appropriate risk control measures for allactivities; and use a working knowledge of insurance policy types, coverages, and costs to managepotential financial losses within the limits of their organization’s budget.

5. Learning Objective:The student will be able to identify and assess risks related to their organization’s business activities anddetermine appropriate control measures and insurance coverages to manage these risks responsibly topreserve the financial performance of their organization and the general health and safety of theiremployees and the public.

The successful EMS student will:• Define Risk Management and explain its objectives.• Identify and summarize the four risk management principles.• Employ a structured Activity Hazard Analysis (AHA) process or list ways to identify risks related to

business activities.• Explain why “All-Risk” policies are preferred over “Named Peril” insurance policies.• Give examples of when to consider increasing insurance coverages.• Describe recommended indemnity coverage in a given situation.• Understand when to use contractor’s Pollution Legal Liability forms.• Explain how employees and employers can be insured when an injury occurs on the job.


CEM (in addition to EMS): • Perform cost-benefit analysis of business activities and risks related or inherent to those activities.• Understand and properly apply risk control measures in a given situation.• Understand and describe appropriate insurance policy structures and how they apply to business

activities (what types of policies provide which coverages).• Explain how a formal risk management process can improve an organization’s posture.

Measure of Performance: EMS: 70% or better on the final lesson exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills Needed

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Activity Hazard Analysis worksheet (example in the CEFM manual), Insurance policy descriptions, exclusions, endorsements, etc. Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated videos, Exam

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WARRANTIES & PERFORMANCE GUARANTEES


EMS Statement of Need: The understanding of manufacturers’ Warranty and Performance Guaranteeprograms is essential to the successful performance of an equipment management professional.

CEM/CESP Statement of Need: The ability to discern the benefits and requirements of Warranty andPerformance Guarantee programs for their organization and maintain compliance with terms andconditions of those programs is essential to the successful performance of an equipment managementprofessional.


The successful application of warranty and performance guarantee agreements is critical to equipmentcost management. These agreements can extend the useful life of equipment but need to be managedproactively in conjunction with documented equipment maintenance to maintain compliance withspecified requirements. Proper application of warranty and performance guarantees will assist in themanagement of internal life cycle costs and enhance availability of equipment.


An equipment management professional must be able to maintain compliance with warranty andperformance guarantee agreements in order to realize the potential financial benefit of the agreement fortheir organization. With knowledge of available programs equipment managers will be able to makedecisions based on their organization’s requirements. By employing appropriate best practices in the use,maintenance, and repair of equipment, not only is the productive life of equipment extended, internal lifecycle costs are minimized. Leveraging Warranty and performance guarantee programs when applicable toorganizational needs can result in a mutually beneficial relationship with suppliers.


At the completion of this lesson the successful equipment management professional will understandfactors of warranty sourcing, pricing, terms, and legal obligations, be able to negotiate favorable warrantyterms for their organization, select appropriate warranty coverage for their work application, know theimportant questions to ask before finalizing a warranty contract, understand the differences betweenwarranties and performance guarantees and the value of each as well as the obligations andresponsibilities for compliance with both types of agreements to maintain their validity.

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5. Learning Objectives:The student will understand warranties, performance guarantees, and other product support offerings andhow they impact their organization.

The successful EMS student will:• Describe the differences between standard and extended warranty options.• Describe what is typically included and excluded under warranty coverage.• Describe other types of warranty such as policy beyond extended warranty, performance warranties,

and manufacturer recalls, etc.• Describe conditions of warranty exceptions and extensions.• Explain the factors that comprise a warranty pricing model.• Explain what critical questions to ask prior to contract finalization.• Describe typical warranty compliance statements.• Explain how a warranty policy allowance may be obtained.• Describe what performance guarantees are and what they are not.• Describe the various types of performance guarantees and coverages.• Describe how reimbursement is typically calculated when an asset fails to meet expectations in a

performance guarantee.• Describe the types of standard and negotiated customer responsibilities.


CEM (in addition to EMS): • List and discuss ways that proactive conversations with a warranty provider can benefit a company.• List and discuss ways warranty and performance guarantees can enhance an organization’s income

statement from the end-user’s perspective.

Measure of Performance: EMS: 70% or better on the final lesson exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills Needed Fleet maintenance software to record specific information about each piece of equipment, including purchase information, warranty and performance guarantee agreement details, maintenance records, maintenance scheduling, workload and/or work history, oil/fluids analysis, etc. Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated Videos, Exam

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LIFE CYCLE COST ANALYSIS


EMS Statement of Need: Life Cycle Cost Analysis, particularly the knowledge of how to estimate the totalcost of ownership, maintenance and operating costs of equipment over its useable life, is essential to thesuccessful performance of an equipment management professional.

CEM/CESP Statement of Need: Life Cycle Cost Analysis, particularly the knowledge of and ability toestimate and analyze the total cost of ownership, maintenance and operating costs of equipment of itsusable life, is essential to the successful performance of an equipment management professional.


An equipment management professional is responsible for one of the largest capital investments of theirorganization and they must be able to accurately determine the total cost of equipment over its usablelife. With reliable and accurate life cycle costing abilities/skills, the equipment manager plays a key role inoptimizing the equipment investment strategies of their organization.


An equipment management professional must be able to produce reliable and accurate information onequipment cost over its life allowing them to make equipment acquisition, retention, disposal and costrecovery rate decisions.

The successful equipment management professional accurately analyzes the components associated withfixed costs while also taking into account a wide range of variables such as such as maintenance, repair,fuel, application, machine use and operating practices.


At the completion of this lesson the successful equipment management professional will comparealternative acquisition and financing methods for capital expenditures; develop retention guidelines thatfollow actual ownership and operation costs; determine internal cost recovery rates or rental rates thatcover actual total costs of equipment, and base equipment replacement decisions upon financial datarather than opinion to help their organization’s bottom line.

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5. Learning Objective:The student will be able to identify ownership and operating costs and combine them to develop areasonable estimate of the total life cycle cost of a piece of equipment, and will use this information toguide equipment acquisition and disposal decisions as well as appropriate cost-recovery rates throughoutthe expected life of the equipment.

The successful EMS student will:• Identify equipment specifications and expected utilization.• Apply risk management (insurance policy types and costs applicable to equipment).• Understand and report capital expensing for equipment.• Understand and identify ownership and operating costs.• Understand how utilization influence life cycle costs.• Describe equipment repair and anticipated useful life.• Understand how downtime influences cost.• Understanding depreciation schedules.


CEM (in addition to EMS): • Design appropriate action plans for equipment acquisition aligned with life cycle cost analysis.• Explain how to determine the value of an identified piece of equipment.• Understand how to determine and calculate the appropriate depreciation schedule.• Identify and explain the keys to achieving maximum, optimum economic life.• Understand how life cycle costs impact disposal strategies.• Perform cost-benefit analysis.• Describe and understand tax implications involved with equipment disposal.

Measure of Performance: EMS: 70% or better on the final lesson exam CEM/CESP: Passing score on certification exams as determined by the AEMP Certification Commission Technology Needs/Skills Needed What skills are needed to upskill someone into equipment management? (As in a job description) Computer skills (Microsoft Office Suite or similar) to track equipment cost history. Learning Activities and Evaluation Method Required Readings, Recorded Presentation, Curated videos, Exam

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