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Knowledge of average annual utilisation is critical to the assessment of what your plant and fleet is actually doing.  Most organisations have this information, but not all use it to assess what they are doing. 

In my experience the reasons why some organisations don’t use the information is one or more of the following: 

• They don’t realise the value of knowing their fleet’s actual utilisation, so the knowledge just stays in the mechanical workshop

• Their data capture systems don’t have the ability to track utilisation so there is no monitoring occurring.

• Inaccurate mileage/engine hour data causes frustration and diminishes the reliability of the data, and therefore its perceived value

In a nutshell, utilisation data is the single most important tool in the procurement and management of plant and vehicles. Having actual utilisation data in kilometres or engine hours enables fleet management to:

• Service vehicles based on a manufacturer's recommended service intervals (programmed maintenance). Preventative maintenance minimises downtime and maximises availability to work crews.

• Monitor operational productivity. Utilisation tells us how much the item is actually working in the field, as opposed to being out in the field.

• Develop a 10 year replacement program and change plant & fleet at the optimum replacement point. This is critical to annual capital budgets (and long term financial planning) and minimising fleet costs. Replacement based on age alone can have serious implications when utilisation is higher than expected.

• Develop accurate operational budget forecasts. Utilisation is needed to estimate the annual fuel allocation to each item of plant and the maintenance budget.

• Compare utilisation benchmarks for continued ownership of existing items or, in the case of a new item, whether to buy or hire. Low utilisation needs to be investigated, as it may be cheaper to hire than to own.

In my consulting work, 99% of mechanical workshop supervisors or mechanics in the smallest of organisations know the actual utilisation of the plant and fleet. They have to because their scheduled maintenance depends on it. But often the information never goes beyond them!

Utilisation can be a very useful guide to operational productivity. Admittedly, you can’t make an in depth assessment about the need for an item by just reviewing utilisation data. But it does provide a valuable indicator and it flags the need to view utilisation at an operational level.

Under-utilisation should be challenged and questions should be asked about potential operational changes to increase utilisation, or whether the item should be owned or hired. Other questions should explore whether opportunities exist to increase utilisation by sharing equipment, applying equipment to varying roles or making it more mobile in the case of slow moving plant?

There will always be some cases where items are essential for the job regardless of utilisation, but low utilisation needs to be reviewed and national benchmarks should be used as a trigger for further investigation.