Asset Utilization Analysis
Asset utilization is a critical driver of long-term performance for many organizations. It’s driven by many factors including how skillful the organization is at forecasting customer demand, understanding what current capacities it has (e.g. equipment, inventory, space), scheduling and planning to optimize those capacities, and then executing the plan. Over time, as organizations grow and expand (sometimes through mergers and acquisitions), the true capacity of the organization can be blurred. For more than 20 years, Carpedia has helped executives through asset utilization analysis to uncover the true capacity of their organizations in order to get more from their existing assets.
Increasing Capacity and Profitability
Improved asset utilization is often a natural outcome of improving the planning, execution and measurement of an organization. On virtually all of our engagements, we work with management to improve the planning and scheduling of existing resources. This often leads to freed up capacity. It can also help organizations avoid unnecessary costs when freed up capacity eliminates or reduces the need for planned capital costs.
Occasionally, asset utilization is the entire focus of the analysis. This could be increasing the flow-through of a manufacturing plant, optimizing storage in a distribution center or optimizing the bed capacity of a large urban hospital.