How do we measure utilization and productivity?
Tuesday, August 2, 2016
Utilization is throughput/capacity expressed as a percentage
- Utilization is strongly affected by the timing of capacity additions versus demand growth
- Low utilization may signal low productivity, loss of demand, or reserve capacity
- High utilization may signal high productivity, demand spikes, or capacity constraints
Productivity is typically a ratio of throughput per asset unit
- TEU or tons per acre
- Vessel or barge calls per berth
- Crane moves per hour
Averages summarize key characteristics and “smooth out” differences between terminals and over time
- Average truck turn time
- Average tons per vessel or barge call
- Average cranes per berth