Define the hours before comparing them
Record what each meter or report measures. Engine-running time, key-on time, idle classification and productive-work definitions may differ between systems. Ask for the reporting period and any missing data. Do not compare two percentages until their denominators and definitions match. Preserve the original report rather than copying one utilization number into the machine description.
Map time to the work calendar
List working, waiting, travelling, servicing and unavailable periods for your own operation. Identify whether delays come from the machine, loading support, transport or the job schedule. This is a planning exercise, not a diagnosis from telematics alone. A low utilization figure may reflect intermittent demand rather than poor mechanical condition; inspection remains a separate assessment.
Calculate the effect on fixed cost
With chosen annual fixed costs of CAD 18,000, 900 productive hours allocate CAD 20 per productive hour. At 600 hours, the allocation becomes CAD 30. The fixed-cost total has not changed; the amount recovered through each working hour has. Add operating, labour and mobilization costs separately. These figures illustrate the arithmetic and should be replaced by your own business inputs.
Use the result to improve the purchase brief
Ask whether the candidate improves the actual constraint: setup, attachment changes, service access or the ability to complete a different task. Compare the cost of renting for intermittent work and owning for dependable demand. Keep expected hours conservative enough to reflect seasonality and downtime. An optimistic work calendar can make almost any purchase appear inexpensive per hour.
Decision worksheet
| Decision | Evidence to collect | How it changes the shortlist |
|---|---|---|
| Engine hours | Meter/report definition | Describes recorded machine use |
| Productive hours | Work definition and reporting period | Provides a cost-allocation denominator |
| Availability | Downtime and scheduling records | Shows time the machine could actually work |
Before you decide
Questions to close out
- Document each hour definition.
- Use matching reporting periods.
- Separate idle classification from condition.
- Calculate a lower-utilization cost case.
Utilization helps explain your business case. It should not be used alone to label a used machine healthy, worn out or valuable.
Continue your research
Sources and further reading
Technical references supporting this guide. Machine manuals and documentation for the actual configuration remain essential when applying the guidance.