How to Calculate Machine Utilization using IoT

Maximizing Asset Utilization with IoT Long-Range Wireless Machine Uptime Monitoring Sensor

Asset utilization is a critical metric for any business looking to optimize the efficiency and productivity of its machinery and equipment. Understanding how well assets are utilized can significantly improve operational performance, cost savings, and overall profitability. This article will explore asset utilization, calculate it using IoT, and explain how the IoT Long-Range Wireless Machine Uptime Monitoring Sensor from NCD can automate this process.

Understanding Asset Utilization

Asset utilization measures the effectiveness of an organization’s assets in generating revenue. It reflects how hard your assets work for you, highlighting areas where you can improve efficiency. This metric is crucial for identifying underutilized assets, optimizing resource allocation, and enhancing operational strategies.

Asset Utilization Calculation Using IoT

Traditional methods of calculating asset utilization can be time-consuming and prone to errors. However, with IoT technology, businesses can automate this process, ensuring accurate and real-time data collection. Here’s a step-by-step guide on calculating asset utilization using IoT:

  1. Data Collection: The first step involves collecting data on the operational status of your assets. This includes runtime, downtime, and idle time. The IoT Long-Range Wireless Machine Uptime Monitoring Sensor from NCD is designed to provide this data seamlessly. It monitors the uptime of machines and transmits this information wirelessly to a central database.

  2. Data Transmission: The sensor uses long-range wireless communication to send data over considerable distances, ensuring reliable and uninterrupted data flow. This capability is crucial for large facilities where machines may spread over a wide area.

  3. Data Analysis: Once the data is collected and transmitted, it’s analyzed to calculate the asset utilization rate. The formula for asset utilization is:

    Asset Utilization=(Actual Operating Time/Total Available Time)×100 

  4. Real-Time Monitoring: IoT-enabled sensors provide real-time monitoring and updates. This allows businesses to track asset performance continuously, enabling prompt decision-making and swift corrective actions.

Automatic Asset Utilization with NCD’s IoT Solution

The IoT Long-Range Wireless Machine Uptime Monitoring Sensor from NCD revolutionizes how businesses manage asset utilization. Here’s how it simplifies and enhances the process:

  • Automated Data Collection: The sensor automates operational data collection, eliminating the need for manual recording and reducing the risk of errors.

  • Long-Range Wireless Communication: With its long-range wireless capability, the sensor ensures that data is transmitted efficiently, regardless of the distance between the asset and the central monitoring system.

  • Easy Integration: The sensor can be easily integrated with existing systems and platforms, allowing for seamless data flow and analysis.

  • Scalability: Whether you have a small facility or a large industrial plant, the sensor’s scalable design makes it suitable for various operational sizes and complexities.

  • Real-Time Alerts and Reports: The sensor provides real-time alerts and comprehensive reports, enabling proactive maintenance and swift response to any issues that may arise.

Advantages of Using NCD’s IoT Sensor

The NCD IoT Long-Range Wireless Machine Uptime Monitoring Sensor offers several key advantages that make it an ideal choice for businesses looking to optimize asset utilization:

  • Versatility: The sensor can be used with virtually any machine, making it a versatile solution for various industrial applications.

  • Battery-Powered: Being battery-powered, the sensor is easy to install and maintain, without the need for complex wiring or power sources.

  • Long-Range Wireless: The sensor supports long-range wireless communication, ensuring reliable data transmission over large distances.

  • No Monthly Subscription: Unlike many IoT solutions, NCD’s sensor does not require a monthly subscription, providing a cost-effective solution for businesses.

  • Data Ownership: Users own all the data collected by the sensor, ensuring privacy and control over critical operational information.

  • Node-RED Integration: Using Node-RED, users can send data to any CMMS (Computerized Maintenance Management System) and issue work orders based on machine performance or maintenance requirements. This integration further enhances automation and operational efficiency.


Maximizing asset utilization is essential for any business aiming to enhance operational efficiency and profitability. By leveraging IoT technology, specifically NCD’s IoT Long-Range Wireless Machine Uptime Monitoring Sensor, businesses can automate the calculation of asset utilization, ensuring accuracy and real-time insights. This drives improvement strategies, optimizes resource allocation, and enhances overall performance.

Incorporating IoT solutions into asset management practices is no longer a luxury but a necessity in today’s competitive landscape. Embrace the future of asset utilization with NCD’s cutting-edge IoT sensor technology. For more info, checkout the product manual.