Set up utilization in three simple steps:




Utilization is a statistical concept (Queueing Theory) as well as a primary business measure for the rental industry. [Wikipedia]

Utilization can be thought of as the percentage that a resource (e.g. cashier, machine, server, inspector) is used. So if an employee has an average service rate of 30 customers per hour and customers arrive at 25 per hour, then utilization is 0.8333. This can be interpreted as "the employee is busy 83.33% of the time". [Wikipedia]

In equipment and tool rental companies, utilization is the primary method by which asset performance is measured and business success determined. In basic terms it is a measure of the actual revenue earned by assets against the potential revenue they could have earned. [Wikipedia]