Business Assets · Utilisation · Component
The target set
What utilisation each asset should run at, with headroom included as a decision rather than left as slack.
The deliverable
What it is
Full utilisation is rarely the right target. An asset with no spare capacity cannot absorb variation, and the variation reappears as queuing everywhere downstream.
The relationship is not linear: as utilisation approaches capacity, waiting time rises sharply. The last few percentage points are the most expensive ones to use.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The headroom
The deliberate spare capacity, and what it is there to absorb.
3 attributes: Headroom · Absorbs · Demand variability
LearnThe variance
Actual utilisation against target, and how long it has been diverging.
3 attributes: Variance · Persisting for · Direction
Learn
Name what the headroom absorbs. Unnamed headroom reads as waste and is removed in the next cost exercise.
The other components in utilisation
The utilisation measure
Actual use against practical capacity, per asset, measured consistently enough to compare over time.
LearnThe idle list
Assets persistently below target, each with a decision attached — because an idle asset costs money continuously and appears on no report as a problem.
Learn