Qualifications for Managing Today’s Equipment Fleets

Guy Gordon, CEMDirector, Asset Management, Aegion Corporation

Chairman of the Board & CEO, AEMP

Who’s Managing The Equipment?

• Operators• Operations• Maintenance Foremen• Technicians• Shop Supervisors• Owners• Purchasing• Finance• Other

Why They Might Not Be Effective

• Each has a unique view of what equipment management entails

• Each has objectives that may conflict with effective asset management

• None have the total package: Experience, Knowledge and Objectivity to maximize asset returns

Operators Operations Maintenance Foremen Technicians Shop Supervisors Owners Purchasing Finance Other

So What Exactly IS a Professional Equipment Manager?

Today’s Professional Equipment Managers Must Be:– Analytical– Financially astute– Mechanically inclined– Efficiency driven– Risk assessors– Problem solvers– Results motivated– Frank

What Should I Expect From A High Level Asset Manager?

• Asset investment protection• Maximize return on asset investment• Efficiency• Cost control• Risk avoidance• Fleet organization• Proper accounting rules followed (GAAP)• Non-Emotional decisions• High level of equipment reliability• Frank-honest communication

Who Becomes Professional Equipment Managers

• Technicians who advance their education• Financial personnel with a high mechanical

aptitude (some CPA’s)• Engineers knowledgeable in accounting

principals• Others with high level of motivation to deeply

understand the requirements of the profession (many have degrees or advance degrees)

Certified Equipment Manager

• Offered by the Association of Equipment Management Professionals (AEMP)

• The Certified Equipment Manager (CEM) designation is the only recognized standard for judging the qualifications of a manager of heavy off-road equipment or manager of municipal/government fleets. It is an attainable goal for equipment managers who want to be identified as exceptional. To achieve this goal, it takes personal motivation and depends on dedication to professionalism.

• www.aemp.org/aemp-education/certifications/cem/

Standards of Knowledge Required

• Finance– Financial Management– Procurement and Acquisition– Risk Management– Warranty and Performance Guarantees

Standards of Knowledge Required

• Information– Benchmarking– Life Cycle Cost– Specifications– Technology

Standards of Knowledge Required

• Policies– Employee Training– Environmental– Human Resources– Safety

Standards of Knowledge Required

• Controls– Outsourcing– Parts Management– Preventative Maintenance– Shop and Facilities Management

Standards of Knowledge Required

• Customer Service– Communications– Continuous Improvement

Fulfilling the Requirement

• High Potential employee (current)– Educate to, at least, the level of Certified

Equipment Manager (CEM)– Encourage education where lacking– Support advanced degrees

• Employee not within– Seek CEM– Demand experience with proven results

Guy Gordon, CEMDirector, Asset Management, Aegion Corporation

Chairman & CEO, AEMP

The Association of Equipment Management Professionals

P.O. Box 1368Glenwood Springs, CO 81602

970.384.0510