{"id":13871,"date":"2023-08-10T08:13:56","date_gmt":"2023-08-10T14:13:56","guid":{"rendered":"https:\/\/limblecmms.com\/?page_id=13871"},"modified":"2025-05-29T20:50:08","modified_gmt":"2025-05-30T02:50:08","slug":"asset-utilization","status":"publish","type":"page","link":"https:\/\/limblecmms.com\/learn\/metrics\/asset-utilization\/","title":{"rendered":"Asset Utilization"},"content":{"rendered":"

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Asset Utilization<\/h1>

<\/span>Everything you ever needed to know about asset utilization.<\/span><\/h2><\/header>Free Guide to Maintenance Metrics<\/span><\/a>\n
\n \n <\/span>Last updated on May 29, 2025<\/span>\n <\/span>\n bBrinton<\/span>\n <\/span>\n <\/div>\n\n [\/vc_column][vc_column width=”1\/2″][vc_video link=”https:\/\/www.youtube.com\/watch?v=snzplGOOzUM” align=”right” css=”” el_class=”video-shadow”][\/vc_column][\/vc_row][vc_row kd_background_image_position=”vc_row-bg-position-top” css=”.vc_custom_1687442797424{margin-top: 40px !important;}” el_class=”limble-page-blog-width”][vc_column][vc_column_text]<\/p>\n

<\/span>What is asset utilization?<\/span><\/h2>\n

In business, <\/span>asset utilization<\/span> is a ratio that measures how efficient an organization is in using the assets at its disposal to turn a <\/span>profit<\/span>. In manufacturing facilities, it measures how well organizations use their installed production capacity.\u00a0<\/span><\/p>\n

To calculate <\/span>asset utilization<\/span> for any <\/span>piece of equipment<\/span>, you have to take into account two different factors \u2013 its potential utilization and its actual utilization. Remember, there is a hard limit to the number of hours you can work even the most powerful machine in a given year: 8760 hours. Calculating <\/span>Total Effective Equipment Performance (TEEP)<\/span><\/a> is a way of assessing the productivity of equipment and systems with respect to the full calendar year.\u00a0<\/span><\/p>\n

Even when potential utilization is 100%, numerous factors can come into play and keep organizations from using assets to their full capacity.\u00a0<\/span><\/p>\n

These include:\u00a0<\/span><\/p>\n