OpenDevelopment

Asset Efficiency is a Performance Attribute describing the ability to optimally utilize assets in support of generating revenue or performing a task. Example assets include: Cash, Inventories, Property, Plant & Equipment. Asset Efficiency has three dimensions:

• Asset Availability = The ability to consistently make the asset available for use. Consider the time an asset is available as a percentage of total time. (uptime/downtime ratios).
• Asset Performance = The ability to effectively utilize the asset during the time it is available. Consider actual output as a percentage of possible output.
• Asset Yield = The ability to qualitatively utilize the asset to produce results within specifications. Consider good output as a percentage of total output.

The following metrics have been identified as strategic and diagnostic metrics for Asset Efficiency:

Strategic	Diagnostic)
ID Name AE1 Cash Conversion Cycle	ID Name AE11 Days Receivables Outstanding	ID Name AE111 On-time Receipts Ratio AE112 Late Receipts Ratio AE113 Uncollectable Receivables Ratio
	ID Name AE12 Days of Inventory	ID Name AE121 Days of Raw Materials Inventory AE122 Days of WIP Inventory AE123 Days of Finished Goods Inventory
	ID Name AE13 Days Payables Outstanding	ID Name AE131 Early Payments Ratio AE132 On-time Payments Ratio AE133 Late Payments Ratio AE134 Duplicate Payments Ratio
ID Name AE2 Fixed Asset Turns	ID Name AE21 Gross Fixed Assets
	ID Name AE22 Asset Depreciation Ratio

Compare also to other performance Attributes: Adaptability, Cost, Dependability, Responsiveness, Sustainability.

Community Importance Rating:

5.00

(one vote)

Hierarchy

ID	Name	Level	x
AE	Asset Efficiency	0	AE
AE1	Cash Conversion Cycle	1	AE1
AE2	Fixed Asset Turns	1	AE2

Asset Efficiency 50000 0 Performance, Attribute, Metric, Asset, Efficiency, Inventory, Cash Conversion Cycle, Payables, Receivables The ability to optimally utilize assets in support of generating revenue or performing a task.