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What Is Asset Availability? And How Can It Be Calculated?

What Is Asset Availability

Published on November 25th, 2022

Asset availability is the percentage of time that an asset is operational and available for use. Asset availability measures how often support is available for use.

It is calculated by dividing the total time an investment is available for use by the time the asset is needed. Several factors can impact asset availability, including maintenance schedules, operator availability, and the reliability of the equipment itself.

By tracking asset availability and monitoring trends, companies can identify potential problems and take steps to improve their overall production efficiency.

What Is Asset Availability?

A high asset availability indicates that a company can utilize its assets more effectively and is less likely to experience production delays due to equipment downtime.

Asset availability is the expected number of hours that an asset will be operational over a given period and can be calculated by dividing the total number of hours that investment is available to operate by the total number of hours in the period.

However, inventory management is a process that is used to track, monitor, and control inventory levels. This process can follow any inventory, including raw materials, finished goods, and work-in-process.

And How Can It Be Calculated?

Many different methods can be used to calculate asset availability. The most common way is to use the average inventory method. This method takes the intermediate inventory level over time and uses that as the asset availability.

Another standard method is to use the maximum inventory method. This method looks at the highest inventory level over time and uses that as asset availability.

However, the last common way is to use the minimum inventory method. This method looks at the lowest inventory level over time and uses that as the asset availability.

Regardless of the method, asset availability is an important metric to track. This metric can make inventory-level decisions and help ensure that the business meets customer demand.

What Factors Contribute To Asset Availability?

Asset availability is determined by several factors, including but not limited to asset type, age, condition, and location. Many factors contribute to asset availability.

In any given organization, some assets are more critical than others. The factors contributing to asset availability can be categorized into three broad categories: technical, organizational, and environmental.

Technical factors include the design of the asset, its age, how well it is maintained, and whether it is compatible with other assets in the organization.

Organizational factors include how the support is used, how it is managed, and who has access to it. Environmental factors include things like the climate, the terrain, and the availability of resources.

Asset availability is a critical success factor for any organization. The goal is to have the right assets in the right place at the right time to meet the organization’s needs. To do this, organizations must carefully consider all factors contributing to asset availability.

How Can Organizations Ensure Their Assets Are Available When Needed?

Asset availability is an essential metric for manufacturing and other businesses that rely on machines and other equipment to produce goods or levels of service.

Organizations can ensure their assets are available when needed by keeping track of their inventory and scheduling regular maintenance.

Organizations are responsible for ensuring their assets are available when required to protect their investment, maintain operations, and serve their customers. Here are four ways to help ensure your organization’s assets are available when needed:

Have A Plan

The first step is to have a plan for what needs to be done and when to keep your assets available. This plan should consider things like what assets need to be maintained, what preventive maintenance needs to be performed, and what processes need to be in place to ensure availability.

Train Your People

Once you have a plan, you must train your people to execute it. This includes things like teaching them how to perform preventive maintenance, how to troubleshoot problems, and how to care for their assets properly.

Use Technology

Technology can be a great asset in helping to keep your assets available. For example, sensors can monitor asset performance and identify potential problems before they become critical.

Additionally, automated maintenance systems can help to keep your assets in top condition by performing tasks like scheduled oil changes and filter replacements.

Monitor And Adjust

Things can still go wrong even with a good plan and the right tools. That’s why monitoring your assets and adjusting as needed is essential. This might include changing your preventive maintenance schedule based on asset usage or increasing your spare parts inventory in case of an unexpected failure.

FAQ

How Can Asset Availability Be Improved?

Asset availability can be improved by increasing the number of assets available, reducing the demand for purchases, or both. Increasing the number of public support can be done by buying new, leasing, or renting.

What Is The Difference Between Asset Availability And Asset Utilization?

Asset availability measures how often an asset is available for use, while asset utilization counts how much of the asset’s potential is being used.

What Is The Relationship Between Asset Availability And Maintenance?

Asset availability is the percentage of time that an asset is operational and available for use. Maintenance is the work performed to keep an asset in operating condition.

However, the relationship between asset availability and maintenance is that asset availability is increased by performing maintenance.

What Are The Benefits Of Good Asset Availability?

The benefits of good asset availability are twofold. First, good asset availability allows a company to keep its operations running smoothly and efficiently.

Second, good asset availability can help a company save money by reducing the need for costly repairs and replacements.

Conclusion

Asset availability is a measure of how well a company is using its assets. Also, it is calculated by dividing the day’s support available for use by the total number of days in the period.

Do you now understand what asset availability is and how to calculate it? If not, please let us know by leaving a comment below.

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