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  • The importance of calculating equipment and machine utilisation

Understanding the utilisation ratios of equipment and machinery is a critical part of an organisations financial management and helps with:

  • Making better Capex decisions
  • Keeping management and shareholders informed about the efficiencies of the company
  • Building informed business cases with supporting evidence

Calculating the utilisation of equipment

Good equipment management software supported by a relational database will allow the accurate interrogation of company data for reporting utilization rates.  It will need to:

  1. Identify the accuracy for your utilisation: minutes, hours, days…
  2. Know the available time you have for utilising the equipment, i.e. what would 100% utilisation look like?
  3. Track and record the ‘what’, ‘where’ and ‘when’ of equipment.
  4. Allow for drilling down and across equipment categories for rich reporting.

For example, if an item equipment is available for 365 days and has been on a Job for 280 days then:

(280/365) *100 = 77% Utilisation.

equi-track equipment management software

Published on 22 Aug 2022 by Gail Henderson

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