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.

Discovery & Asset Analysis

Our process begins by analyzing the unique demand patterns of your business, as well as your organization’s ability to match and balance its resources to meet those demands. We assess these demand patterns by both customer and product (or service). We study how work flows to, through, and out of your organization and where constraints restrict that flow. Optimizing the flow increases the capacity of the entire system. We then work with you to determine what to do with the additional capacity, so you can financially capture the benefit.

Implementation

Once we identify performance objectives and gaps to be addressed, we work shoulder-to-shoulder with your managers to implement process improvements, management systems, and training programs designed to optimize the flow of work through the organization. We take an integrated team approach, working closely with frontline management to implement process changes to smooth workflow and free up constraints.

Sustainability

To make certain these improvements are sustainable, we provide your leaders at all levels with the coaching, training, and tools they need to control the workflow. Our emphasis on aligning management throughout an organization so they are working collectively toward the same fundamental objectives—combined with strong metrics and management reporting—helps reinforce a culture of accountability that leads to consistent performance over time.