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:
Compare also to other performance Attributes: Adaptability, Cost, Dependability, Responsiveness, Sustainability.
Community Importance Rating
|AE1||Cash Conversion Cycle||1||AE1|
|AE2||Fixed Asset Turns||1||AE2|