Identify Three Specific Measures That Indicate How Well Assets Are

question 152

Essay

Identify three specific measures that indicate how well assets are utilized. What are the formulas for each measure?

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Definitions:

Maintenance

The activities involved in keeping a system’s equipment in working order.

Quick Response

A strategy aimed at reducing lead times within the production and distribution systems to improve service levels and reduce costs.

Raw Material

Basic substances or components that are processed or transformed into finished goods through manufacturing or production.

Utilizes Capacity

Utilizes Capacity refers to the extent to which an organization or system employs its available resources, such as manpower, equipment, or space, effectively.