In the modern business world, tracking fixed asset utilization metrics has become increasingly crucial for staying competitive. But to truly make the most of these data insights, companies need an effective way to track their assets in real time.
Internet of Things (IoT) asset tracking solutions offers the ability to do just this– in addition to unlocking unprecedented opportunities for optimizing processes and gaining valuable intelligence.
In this blog post, we’ll explore why tracking asset utilization metrics with an IoT solution is essential and how it can help your business produce better results from operations faster than ever before.
What are Asset Utilization Metrics? Why are Asset Utilization Metrics Important to Track?
Asset utilization metrics provide essential insights into asset performance and operational efficiency.
Rather than looking at a single asset, asset utilization metrics examine asset usage from a holistic perspective, assessing the throughput or output of the asset in relation to the total capacity and capability of the asset pool. This enables companies to identify bottlenecks that lead to lost operations time and other areas for improvement in their asset operations and measure overall asset performance.
Asset utilization metrics are also essential for budgeting, cost-effectiveness planning, maintenance strategies, and forecasting future needs in purchasing or leasing new assets.
Companies that track asset utilization metrics can better manage their resources, deploy them where they will have the maximal impact or highest return on assets, and ensure their investments best benefit the organization.
The Challenges of Tracking Asset Utilization Metrics without an IoT Solution
Without an IoT asset tracking solution in place, a business can find it very difficult to calculate asset utilization metrics. Doing so requires manually collecting asset data across multiple locations, usually from disparate systems.
Furthermore, the asset data collected may be of limited accuracy and reliability due to inaccuracies in manual entry or difficulties obtaining real-time asset data when needed. This makes it hard for businesses to gain actionable insights into their asset utilization metrics and affect helpful changes.
Without an automated solution, asset utilization metrics remain unmeasured and cannot be used as an effective source of business intelligence.
How to Calculate and Track Asset Utilization Metrics with an IoT Asset Tracking Solution
With the proliferation of smart asset tracking solutions, asset utilization metrics can now be calculated and tracked with unparalleled ease.
IoT asset tracking solutions allow users to quickly and accurately measure asset performance in real-time through advanced technologies such as sensors, beacons, tags, and networks.
By combining data acquisition, analytics capabilities, and asset intelligence with IoT technologies, organizations can optimize operations dependent on asset utilization metrics, such as asset inspection management, inventory optimization, asset health management, and more.
Asset utilization measures like availability rate, unplanned downtime counts, and others help organizations maximize return on investment with their assets while minimizing associated costs.
Thanks to IoT asset tracking solutions, calculating and tracking these metrics have never been easier.
What Asset Utilization Metrics Can Be Tracked With An IoT Solution?
With an asset management solution, businesses can access robust asset utilization metrics, including production rate losses, quality losses, defective units, and more, to help them understand asset effectiveness and pinpoint unnecessary investments.
IoT asset tracking solutions provide a range of valuable asset data that can help to calculate and track utilization metrics, including:
- Asset Utilization Ratio
- Asset Availability & Frequency of Use
- Insights into Inventory Turnover
- Downtime Analysis, including Production Hours Lost
- Cycle Count Times
- Overall Equipment Effectiveness (OEE)
- First Pass Yield (FPY)
- Percent Idle Time (PIT)
- Mean Time Between Failures (MTBF)
- Maintenance Cost per Unit of Production (MCUP)
- Total Cost of Ownership (TCO)
- Environmental Condition Monitoring
This data is then presented in clear dashboards, providing the necessary visibility to ensure assets are being used efficiently and effectively within an organization.
By monitoring these asset utilization metrics, businesses can better understand how their assets are performing and take action to improve asset usage or replace existing resources.
The Benefits of Tracking Asset Utilization Metrics with an IoT Asset Tracking Solution
Businesses can unlock real-time asset utilization metrics by implementing an IoT asset tracking solution. These metrics provide total asset visibility into asset use and performance, aiding their decision-making process and providing insight that would otherwise be unavailable.
Companies leveraging an IoT asset tracking solution to monitor asset utilization for a piece of equipment can expect to see benefits such as:
1) Increased Efficiency: By understanding how your assets are used, you can adjust your operations to increase operational efficiency and reduce waste. Additionally, the number of hours lost due to the manual tracking of assets can be significant if you need to automate these processes with an IoT solution.
2) Improved Maintenance Scheduling: By understanding how often your assets are being used, you can schedule annual planned downtime or asset maintenance at times that are most convenient for your business.
3) Reduced Costs: By understanding how your assets are being used, you can change your operations to reduce the consumption of resources such as energy and water.
4) Increased Revenue: By understanding how your assets are used, you can adjust your operations to increase production capacity.
5) Greater Sustainability: By understanding how your assets are being used, you can change your operations to reduce your impact on the environment. This can help you to meet your sustainability goals and obligations.
6) Improved Safety: By understanding how your assets are being used, you can identify potential safety hazards and make changes to your operations to mitigate them. This can help to create a safer working environment for your employees and reduce the risk of accidents or injuries.
Furthermore, through advanced analytics capabilities, asset utilization data can be leveraged to identify areas for further cost savings or operational improvement opportunities.
Ultimately, by tracking asset utilization metrics with an IoT asset tracking solution, businesses can drastically reduce inefficiencies within their supply chain and unleash numerous benefits, including reduced inventory and improved asset utilization.
Monitor Your Asset Utilization Metrics With Radiant’s IoT Asset Tracking Solution
Asset utilization metrics are key performance indicators that provide essential insights into operations and can help organizations optimize their assets, increase efficiency and drive profits.
However, tracking asset utilization without an IoT solution presents challenges. An IoT platform like Radiant can make tracking these metrics easy and provides numerous benefits, such as reducing unplanned downtime, optimizing workflows, and improving safety.
With our solution, you’ll be able to see significant ROI in a short period of time. Request your demo below to see how we can help you streamline your operations and improve your bottom line.
Last Updated on February 16, 2023 by Radiant