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Equipment Management

Rolling 12-Month Moving Average: Unlock Equipment Performance Insights

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RepNotes Blog 22 - Rolling 12-Month Moving Average Unlock Equipment Performance Insights

Tracking equipment performance is crucial for controlling costs and ensuring efficiency. While monthly data seems helpful, it often hides important trends. To uncover these insights, businesses should adopt Rolling 12-Month Moving Average methods.

Why Monthly Data Alone Isn’t Enough

Relying on monthly repair costs or other performance metrics can be misleading. Imagine tracking your dump truck’s monthly repair costs — you may notice spikes one month and unusually low costs the next.

Why Monthly Data Alone Isn’t Enough - Monthly Repair Cost Dump Truck 1

This pattern doesn’t tell you whether your equipment is improving or deteriorating. Random factors like rare major overhaul can distort the true picture.

The Solution: Rolling Moving Average

Rolling Moving Average smooth out these fluctuations by averaging data over a defined period — either six or twelve months — giving you a clearer view of overall trends.

Rolling 12-Month-Ma Repair Cost for Dump Truck 1

Rolling 12-Month Moving Average (RTMMA-12)

The Rolling 12-Month Moving Average is calculated by averaging the previous twelve months of data. This method helps reveal trends, as seen in the table above.

Example Calculation:

For December 2024, the RTMMA-12 would average monthly costs from Jan 2024 to Dec 2024.

✅ Minimizes the impact of one-off events
✅ Useful for identifying trends

Real-World Example: Identifying Cost Trends

Consider the repair costs of Dump Truck #1:

  • In January 2023, the RTMMA-12 was $3,529.
  • By December 2024, the RTMMA-12 increased to $6,690 — a staggering 89% rise.

This upward trend reveals a concerning spike in repair costs that might have been hidden if using only monthly data.

How Are These Values Calculated?

 Each data point is derived from the average of the preceding months. For example:

  • The December 2024 RTMMA-12 is the average of costs from January 2024 to December 2024.
  • The November 2024 RTMMA-12 is the average of costs from December 2023 to November 2024.
  • The October 2024 RTMMA-12 follows the same pattern.

This rolling method smooths out sudden spikes and dips, giving you a more accurate trend line.

Which Method Should You Choose?

  • Use the Rolling 6-Month Moving Average for medium-term performance changes and trends.
  • Use the Rolling 12-Month Moving Average for long-term trend analysis.

By adopting these methods, you gain deeper insights into your equipment’s performance, helping you make informed decisions. Whether you’re tracking repair costs, fuel usage, or downtime rates, the Rolling Moving Average approach reveals trends that monthly data alone often conceals. 

Stay informed and proactive — leverage Rolling Moving Averages to keep your equipment running efficiently. Connect with us on Facebook and LinkedIn to stay updated with expert insights on equipment performance management!


Maximize Efficiency: How to Calculate Your Equipment’s Availability, Utilization, and Idle Rates

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Blog 9- Maximize Efficiency: How to Calculate Your Equipment's Availability, Utilization, and Idle Rates

For equipment owners, continuously measuring and monitoring key performance indicators (KPIs) is essential to maintaining a productive and efficient fleet. The three most critical KPIs you should focus on are:

  1. Availability Rate
  2. Utilization Rate
  3. Idle Rate

Understanding these metrics allows you to assess how well your equipment is performing, identify areas for improvement, and make data-driven decisions that optimize your operations.

What Are Availability, Utilization, and Idle Rates?

Availability Rate measures how reliable your equipment is. It tells you the percentage of time your equipment is available and ready to work versus the time it is down for repairs or maintenance. A high availability rate indicates that your equipment is dependable and minimizes downtime, which is crucial for maintaining operational efficiency.

Utilization Rate measures how much your equipment is being used. It shows the percentage of time your equipment is actively working compared to the total time it could potentially be used. High utilization rates indicate that your equipment is being effectively used, maximizing its value.

Idle Rate is the percentage of time your equipment is parked or not in use. While some idle time is inevitable, excessive idleness can indicate inefficiencies in your operations or underutilization of assets.

How to Calculate These KPIs

These KPIs are typically expressed as percentages of time. You can choose to measure them over various time frames, depending on what is most relevant for your business:

  1. 8-Hour Work Day
  2. 5-Day Work Week (Sample calculations below uses this)
  3. 20-Day Work Month
  4. Custom Time Frame – any other time frame he/she feels is the most relevant time frame to use for his/her business

Sample Calculation: 5-Day Work Week

Let’s assume you want to measure your equipment’s performance over a standard 5-day work week. Here’s how you can calculate each KPI:

5-day work week table

Tracking these KPIs allows you to:

  1. Proactively Address Downtime: Identify and resolve issues that cause excessive equipment downtime, ensuring your fleet remains productive.
  2. Optimize Equipment Utilization: Adjust your marketing strategies or operations to increase utilization and reduce idle time, maximizing your investment in equipment.
  3. Make Informed Purchase Decisions: Use data from these KPIs to decide which equipment to purchase or upgrade, aligning with your business growth opportunities.
  4. Efficiently Dispose of Underperforming Equipment: Identify equipment that is no longer in demand and make decisions about selling or repurposing those assets.

Regularly measuring and monitoring your equipment’s availability, utilization, and idle rates is essential for maintaining an efficient and profitable operation. By understanding and optimizing these KPIs, you can ensure that your equipment is being used effectively, downtime is minimized, and your business continues to thrive.

For more insights and tips on how to optimize your equipment management, connect with us on Facebook and LinkedIn.

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