Equipment Utilisation
Equipment utilisation measures the extent to which available equipment is being productively used, typically expressed as a percentage of available time or capacity. It is calculated by dividing actual usage time (or output) by total available time (or maximum capacity). Utilisation data can come from meter readings, operator logs, GPS tracking, or telematics systems. It is a key operational efficiency metric in asset-intensive industries.
Why it matters
Low utilisation means the organisation is carrying more equipment than it needs, tying up capital and incurring unnecessary ownership costs. High utilisation across the fleet may indicate a risk of overworking assets, leading to accelerated wear and increased breakdowns. Understanding utilisation helps optimise fleet size, inform purchase and disposal decisions, and identify assets that should be redeployed, hired out, or sold.
How MapTrack helps
MapTrack calculates equipment utilisation from meter readings, GPS data, and telematics feeds, providing dashboards that highlight underutilised and over-utilised assets across the fleet.
Frequently asked questions
What is a good equipment utilisation rate?
Target utilisation varies by equipment type and industry. For construction plant and equipment, 60–80% utilisation is generally considered healthy. Below 40% may suggest the asset is surplus to requirements. Above 85% sustained utilisation may indicate insufficient capacity and increased breakdown risk. The right target depends on the asset’s role, availability requirements, and operating context.
How is equipment utilisation calculated?
The most common calculation divides actual operating hours by available hours in the period. For example, if an excavator operated 120 hours in a 200-hour month (excluding planned maintenance downtime), its utilisation is 60%. More sophisticated calculations may factor in idle time, productive vs. non-productive use, and capacity utilisation rather than just time-based metrics.
Related terms
Fleet Management
Fleet management is the administration of an organisation’s vehicles and mobile plant, including acquisition, maintenance, fuel management, driver compliance, GPS tracking, and disposal. It covers light vehicles, heavy vehicles, trailers, mobile plant, and any other registered or unregistered mobile assets. Modern fleet management relies on telematics, GPS tracking, and software platforms to optimise operations and reduce costs.
Downtime
Downtime is any period during which an asset is unavailable for its intended function. It can be planned (scheduled maintenance, shutdowns, inspections) or unplanned (breakdowns, failures, waiting for parts). Downtime is typically measured in hours and expressed as a percentage of total available time, providing a key indicator of asset availability.
OEM Telematics
OEM telematics refers to the factory-installed tracking and diagnostic systems built into vehicles, plant, and heavy equipment by the original equipment manufacturer. These systems collect and transmit data including GPS location, engine hours, fuel consumption, fault codes, idle time, and operating parameters. Major OEMs such as Caterpillar, Komatsu, John Deere, Volvo, and Hitachi each offer proprietary telematics platforms.
Asset Lifecycle Management
Asset lifecycle management (ALM) is the practice of managing a physical asset through every stage of its life, from planning and acquisition through operation, maintenance, and eventual disposal or replacement. It integrates financial, operational, and technical data to optimise decisions at each stage. The goal is to maximise the value an asset delivers over its entire useful life while minimising total cost of ownership.
Total Cost of Ownership (TCO)
Total Cost of Ownership (TCO) is a financial metric that captures all costs associated with owning and operating an asset over its entire lifecycle, including acquisition price, financing costs, maintenance and repair, fuel or energy, insurance, registration, operator costs, downtime costs, and disposal or residual value. TCO provides a comprehensive view of the true cost of an asset beyond its purchase price.
See how MapTrack handles equipment utilisation