Equipment Utilization Rate
Quick definition
Equipment utilization rate expresses measured use as a percentage of a clearly defined available or planned time period. State both the numerator and denominator.
How is utilization rate calculated?
A time-based utilization rate can be calculated as measured used hours divided by available hours, multiplied by 100. The choice of used hours matters: engine-on hours, productive hours and assigned hours are different measures.
An example with a defined basis
Suppose a machine has 30 productive hours during a 40-hour planned work week. Productive utilization is 75%. If it ran for 35 hours, runtime utilization against that same week is 87.5%. These illustrative results are both valid only when labeled accurately.
What to verify
Do not compare percentages that use different periods or denominators. State whether scheduled maintenance, weather delays, idle time and non-working shifts are included. There is no universal target appropriate for every machine and job.
Key facts
- Focus
- Time-based percentage
- Important distinction
- Define available hours
Related terms
Sources
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