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Industrial Engineer Engineering and Management Solutions at Work

January 2014    |    Volume: 46    |    Number: 1

The member magazine of the Institute of Industrial Engineers

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The full potential of your assets

Utilization metrics help manufacturers find improvement opportunities

By Kenneth Gram

Typically, production managers, industrial engineers and lean practitioners are responsible for designing a shop to suit the demands of their organization’s customer. Ideally, design must be done before purchasing a building to ensure that the space suits the product; however, in reality, customer requirements change, operations have been in a building for years with changing deliverables, or bad habits form, resulting in a redesign of operations. A major aerospace corporation uses a set of asset utilization metrics that indicate how effectively it uses its assets. Assets include not only machines, but allocated building space and workstations, among other things.


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