Utilization
Utilization is the percentage of time that units, excluding Shuttle units, have been in use during a given period. Simply put, it is calculated by: Agreement Days ÷ In Service Days. This is the number of calendar days a unit was in use on agreements ÷ number of days the unit was in service, multiplying by 100 to arrive at a percentage.
However, depending on your manufacturer, certain unit statuses and types of agreements may be excluded from utilization calculations.
Monitoring utilization on a weekly and monthly basis will help you determine your business's efficiency and properly rotate units to ensure proper fleet mix. See "Best Practices: Fleet Utilization" for more information.
How is utilization calculated and which units and agreements are excluded from impacting utilization?
Utilization calculation formula: Agreement Days ÷ Days in Service during the reporting period, multiplying by 100 to arrive at a percentage.
"Agreement Days" is the number of single calendar days a unit was In Use on an agreement; "Days in Service" is the number of calendar days the unit was in service. However, note that your manufacturer may choose to exclude calendar days on which a unit spends solely on certain statuses from being counted as "Days in Service" (e.g., On Maintenance, Recall, or Body Shop).
- Specifically, what are "Agreement Days"?
An Agreement Day (also known as "In Use Day" or "Contract Day") is defined as a single calendar day during which a unit is In Use on an agreement (excluding Internal Use agreements, if applicable). (Calendar days increment each day at midnight, not on a 24-hour clock starting from the Checkout Date/Time.)
If a unit is assigned to two agreements in one calendar day, each agreement is counted as a separate agreement day; that's two (2) Agreement Days for that unit. (Therefore, when used to calculate utilization, utilization can become higher than 100%.)
Example: During the month of February, a unit is assigned to an agreement A1 from 2/01 - 2/03, agreement A2 from 2/14 - 2/21, and agreement A3 from 2/21 - 2/22. In this case, the unit has 13 Agreement Days for February (3 + 8 + 2).
- Specifically, what are "Days in Service"?
A unit's Days in Service (also known as "In-Service Days") is calculated as the total number of days the unit has been in service over its single or multiple life cycles, either from the unit's Service Start Date to today (if the unit is still in service), or to the date the unit was removed from the fleet, inclusive of the Service End Date. However, note that your manufacturer may choose to exclude calendar days on which a unit spends on certain statuses from being counted in the "Days in Service" portion of calculations (e.g., On Maintenance, Recall, or Body Shop).
Units with multiple life cycles reflect utilization for days in service spent in the fleet. If your manufacturer has a Pre-Owned Vehicle program, this includes both life cycles for Pre-Owned units in your location's fleet; days in service during it's first, non-pre-owned life cycle, and days in service during its second pre-owned life cycle will be counted toward utilization.
- What units and agreements are excluded from impacting utilization?
The following calendar days are not counted toward the "In Service Days" portion of utilization calculations:
- Days a unit has the Flagged for Auto Removal status.
- Days after a Removed From Fleet unit's Service End Date.
- Days on which a unit spends the entirety with one or more "Exclude From Utilization" statuses, as determined by the manufacturer's setting (e.g., Pending Import Details, On Maintenance, Recall, and/or Body Shop), if applicable.
When it comes to counting Agreement Days (calendar days during which a unit was In Use on an agreement), the report considers all open and closed agreements. The following calendar days are not counted toward the "Agreement Days" portion of utilization calculations:
- Days a unit is In Use on a Shuttle or Internal Use agreement, if your location uses these types of agreements.
- Days a unit is In Use on an agreement that was later voided.
- Days a unit is In Use on an agreement of a certain Classification, as determined by your manufacturer's setting, if applicable.
- What if an agreement was opened at one location and closed at another? For which location does the unit and this agreement impact utilization? If an agreement was opened at one location and closed at another, the utilization for that unit is attributed toward the location that opened the agreement.
Where can I find utilization in the application?
Utilization calculations are consistent throughout the application, depending on the reporting period. You can view utilization in the following areas:
