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Bob Kinnucan, president of Kinnucan Co. in Lake Bluff, Illinois, has been in business more than 30 years. During that time, he has experienced his share of equipment loss. He has also learned from these experiences to find ways to extend the life of his equipment well beyond its scheduled depreciation. Here are seven ways Kinnucan Co. works to protect one of its most important assets.

• Good record keeping -- Protecting your equipment begins by keeping good records, says Kinnucan. For every piece of equipment, note purchase date, vendor, amount paid, serial number, and give a brief description.
• Mark equipment -- Paint your name on it or otherwise mark your equipment. Kinnucan Co. engraves its name on the engines of its power equipment. A punch set or engraving tool works the best, says Kinnucan, who also advises owners to take photos or a video of large, more expensive equipment. Store photos and equipment records in a safe place, preferably off-site.
• Accountability -- Assigning employees to specific pieces of equipment gives them both a sense of ownership and accountability. Kinnucan Co. takes accountability a step or two farther by requiring new employees to sign an "Accountability Agreement" and by maintaining possession and usage records. Says Kinncuan, "Extensive wear and tear is the most common way equipment gets 'lost.' Making employees accountable for how they operate and maintain your equipment is fundamental toward extending its life." His company also requires employees to "log out" common equipment. Doing so offers another level of accountability.
• Security systems -- Install both external and internal security systems for your operation. Keep equipment in the yard fenced in and locked. An internal alarm system should alert authorities to a break-in, power outage, or temperature extremes.
• Lightning protection -- If you are in an area where lightning is a concern, install a lightning rod protection system. Do not rely on surge protectors to keep your expensive computer equipment and, more important, its data safe from an electrical charge, emphasizes Kinnucan. "Several thousand dollars of equipment and priceless data can be lost with one lightning strike."
• Video surveillance -- Kinnucan advises big operators with lots of equipment and activity to install a video surveillance system. Such a system does two things: It acts as a theft deterrent and provides a video record of your facility if a theft occurs.
  
• Reduce wear and tear -- "I cannot overemphasize how important it is to keep wear and tear on equipment to a minimum," says Kinnucan. "The amount of equipment lost by abuse and poor maintenance far outweighs the amount of equipment that is lost to thieves, fires, or natural disasters." Wear and tear can be minimized, he adds, by establishing an effective preventive maintenance program and training drivers and operators on the proper use of equipment. Kinnucan reemphasizes how important it is to keep good records, to have an accountability program in place, and to have zero tolerance for equipment misuse. "There is no reason why, if you purchase quality equipment and train employees on how to maintain and operate it, that it will not outlive the scheduled depreciation," says Kinnucan. "Some of our equipment has been with us for 30 years." He continues, "We have more than $1 million worth of equipment in our yard. Keeping it functioning and on the job is fundamental to our success -- to keeping costs down and to making sure our crews are as productive as possible."

5/03

By Rod Dickens, ALCA Contributing Writer