Table of Contents:
In industries that require a lot of equipment, ownership is not sufficient. The hidden factory of inefficiency is the actual challenge. Unplanned downtimes and ineffective scheduling tend to keep assets in idle form, draining capital and increasing operation costs without the leadership knowing just how much wastage was caused by the situation.
The top organizations are also moving away from the accumulation of assets to strict optimization. It has no longer been how much do we have? to How well are we using it?- combining a data-driven approach to making the most out of existing capacity before sourcing new capital.
Cryotos CMMS helps in closing this divide by computerizing your maintenance activities. It converts the resting assets into smart insights and offers the real-time visibility and automated processes required to eradicate guesswork. When you work with Cryotos, it is not only repairing machines, but also finding the untapped potential and making each asset a source of income.
Asset Utilization is a critical key performance indicator (KPI) that measures the efficiency and productivity of an organization's assets. In simple terms, it tells you what percentage of an asset's total potential capacity is actually being used to generate value.
When a resource is lying idle in unplanned downtime, or because of low demand, or inefficient scheduling, your utilization ratio declines, and that declines your potential revenue, as well. Intense use of assets means that your machinery is operating effectively with little wastage, and this goes straight to a healthier bottom line.
Calculating asset utilization is straightforward. It is the ratio of the Actual Output produced by the asset to its Maximum Possible Output over a specific period.
Consider a bottling plant that has a machine that can produce 500 units per hour (Maximum Possible Output). It, however, will only make 400 units in a given hour due to the setup times and the few stopovers (Actual Output).
Asset Utilization = (400/500)x 100% = 80%
This implies that the asset will be operating at 80 percent capacity. The remaining 20 percent is a room to improve- be it through maintenance, training of operators, or scheduling.
To truly understand why your utilization rate is where it is, you need to look at the supporting metrics. These indicators act as the "vital signs" for your asset health.
OEE: The yellow standard of manufacturing productivity. It combines three factors:
This measures reliability. A higher MTBF means your asset runs longer without breaking down. Reliable assets naturally have higher utilization rates because they spend less time in repair.
This is the enemy of utilization. It refers to unexpected stops caused by equipment failure. Reducing this through proactive maintenance is the fastest way to boost your utilization numbers.
The measurement of this measure is not only about making a pretty report, but it also leads to real business action:
In the event of low levels of utilization in comparison with those of other industries, you would want to consider the following strategies:
Asset utilization is intricate and prone to errors in managing the process manually. Cryotos CMMS simplifies this process, enabling you with resources to maintain your assets operating at optimal levels.
Cryotos is a web dashboard that allows you to check the status and health of all of your assets, as well as their location in real time. It is impossible to do better than you measure, and Cryotos will always keep you on track.
Disregard the missed maintenance windows. Cryotos gives you the ability to automate work orders, but with a time or usage requirement (such as meter readings). This has the advantage of maintaining high availability of assets by servicing them even before their failure.
Cryotos is powerful, enabling you to find trends with powerful reporting and analytics. Does a given machine malfunction on a certain day of the week (Tuesday)? Is there a production line that is not performing well? Our analytics show the underlying reasons to enable you to make data-driven decisions.
Cryotos uses a system that is able to track the entire path of your asset, starting with the acquisition process and ending with the disposal process. Such historical information is essential to determine the correct depreciation and determine the most appropriate time to change the asset.
Asset utilization is not merely a number; it is an indicator of the health of your organization in terms of its operations. You can discover the major growth prospects by estimating them correctly and using such metrics as OEE and MTBF.
Nevertheless, half the battle is knowledge. To be able to maximize your assets, you must have the right tools. The deployment of a powerful tool such as Cryotos CMMS enables your team to minimise downtimes, automate the maintenance process, and make sure that every asset is contributing optimum value to your company.
Ready to boost your asset utilization? Try Cryotos CMMS Today or Contact Us for a Free Demo to see how we can transform your maintenance operations.
