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Equipment Utilization

What is equipment utilization?

Equipment utilization provides valuable insight into your equipment. By tracking and analyzing the utilization of a piece of equipment, organizations can make informed decisions, optimize resource allocation, improve productivity, and ensure full potential utilization. This helps in maximizing operational efficiency and achieving better outcomes for the business

The utilization metric measures the amount of time a piece of equipment or an asset is in use compared to the total available operational time. Using our software, you can generate utilization reports that present key utilization metrics, such as the percentage of time equipment was in use, idle, or under maintenance. Users can identify peak utilization periods, track changes in demand, and optimize resource allocation accordingly.

Our Equipment Management Software enables real-time data collection on equipment usage. By tracking check-ins, check-outs, and maintenance activities within the system, organizations can obtain accurate and up-to-date information on how their equipment is being utilized.

How To Calculate Equipment Utilization Rate?

To calculate the utilization rate of each piece of equipment, businesses must determine the actual time it's in use and compare it to the amount of total available time.

The equipment utilization formula is:

Utilization of Equipment (%) = (Actual Operating Time / Available Operating Time) x 100

By analyzing utilization data, organizations can draw data insights and make more informed decisions:

  • Optimized Scheduling: If the equipment has a high utilization rate, the organization may consider scheduling more tasks or events that require the equipment during peak times. This ensures the equipment is fully utilized and maximizes its productivity.

  • Resource Allocation: If the equipment's utilization rate is low, the organization can assess whether the current equipment meets their needs or if additional equipment is necessary to meet higher demand. This helps in efficiently allocating resources and avoiding underutilization of assets.

  • Preventive Maintenance Planning: Analyzing utilization patterns allows organizations to plan preventive maintenance tasks strategically. By scheduling maintenance during periods of low equipment usage, disruptions are minimized, and equipment downtime is reduced.

  • Cost Efficiency: Understanding the utilization of equipment helps organizations avoid unnecessary equipment purchases when existing ones are not utilized to their full potential. This promotes cost efficiency and ensures resources are fully used.

  • Investment Decisions: If equipment utilization consistently exceeds capacity, the organization may consider upgrading to more advanced models or increasing the quantity of equipment to accommodate higher demand. This informed decision-making leads to better investment choices.
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What is an example of equipment utilization?

We'll use an IT server used in a data center as our equipment example. The server runs for nine hours a day, four days a week, and experiences an average of one hour of unplanned downtime per week.

Available Time

The available operating time for the server can be calculated as follows:

Available Time = (Operating Hours per Day x Operating Days per Week) - Unplanned Downtime

Available Time = (9 hours x 4 days) - 1 hour = 35 hours per week

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Actual Operating Time

The actual operating time for the server, which represents the time it's actively processing data and serving requests, is:

Actual Operating Time = Operating Hours per Day x Operating Days per Week

Actual Operating Time = 8 hours x 4 days = 32 hours per week

Equipment Utilization Rate (EUR)

Now, we can calculate the EUR for the server:

EUR = (Actual Operating Time / Available Time) x 100

EUR = (32 hours / 35 hours) x 100 ≈ 91.43%

In this example, the server's EUR is approximately 91.43%. This means that the server is being used slightly less than its available operating time, indicating that its capacity utilization is effectively and efficiently handling the workload.

Our Equipment Management Software provides powerful tools to effectively track and analyze equipment utilization. By utilizing Cheqroom's equipment tracking features, organizations can:

  • Monitor the actual operating time of each piece of equipment accurately.
  • Compare equipment usage data with available operating time to calculate capacity utilization rates.
  • Generate comprehensive reports and analytics to gain insights into utilization trends.
  • Identify underutilized equipment and take corrective actions, such as reallocating resources.
  • Make informed decisions about equipment investments and maintenance planning based on utilization data.
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No more blind spots

Take full control of your inventory and get the right tools in the right hands. Quickly check all gear in a kit, in a booking, project, or in the equipment room on the spot. Scan labels with the phone app to see their info, or check them out on the go.

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Get equipment usage insights

See how equipment is used, when, where, and by whom. Plan ahead by keeping track of the busiest times and pending repairs. Boost accountability and incentivize on-time equipment returns.

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Full control

Take it one (or two) steps further with advanced reports on warranty, depreciation, real-time equipment value, etc. Optimize performance and empower your team to generate more value.


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