Business Core · Business Assets · Module

Utilisation

How much each asset is actually used against what it could be. The measure that turns an inventory into a management tool.

The idea

How it works

An unused asset costs money continuously and appears on no report as a problem. Utilisation is the measure that makes that cost visible.

The number is only useful against a target. Full utilisation is rarely the right answer — an asset run at a hundred per cent has no capacity to absorb variation, which shows up as delay everywhere downstream.

Working with it

In practice

  1. 01

    Measure against realistic capacity

    Theoretical maximum is not a useful denominator. Practical capacity, after maintenance and changeovers, is.

  2. 02

    Set a target, not a maximum

    The right utilisation leaves headroom. Deciding how much is a real choice rather than an oversight.

  3. 03

    Find the persistent idlers

    Assets below target for several periods are candidates for sharing, redeployment or disposal.

  4. 04

    Check licences and subscriptions too

    Software seats are assets with the highest waste rate and the lowest visibility.

One level in

The components of utilisation

A component is something that exists afterwards which did not exist before — a deliverable or a mechanism, not an intention.

  1. The utilisation measure

    Actual use against practical capacity, per asset, over time.

    Learn
  2. The target set

    What utilisation each asset should run at, with headroom deliberately included.

    Learn
  3. The idle list

    Assets persistently below target, with a decision attached to each.

    Learn

Software licences have the highest waste rate of any asset class and the lowest visibility. Audit them first.