Rental Statistics - Utilization

The number of days in a period wherein a piece of equipment could potentially be on rent. The number of potential rental days in a given period is affected by the utilization start date, stand down days, transfer outside the facility, transit days, and sales date. You can also define service days that have an impact.

'Possible rental days' is calculated as 'No of days in facility' - 'Service days'. NDPR = noOfPossibleRentalDaysInFACI - NRSD

The number of days in the facility is calculated according to movement, sales, and acquisition dates.

Service days are defined as a "day out of service" which will reduce the potential number of rental days. This is defined by parameter 'Available for rent' (AVHI) in 'Settings – Service Day Calculation' (STS660).

'Available for rent' indicates if the work performed is affecting the equipment's rental availability on the service day. Note that this has no meaning to the actual reservation or allocation of the equipment. It is only used by the rental statistics and utilization calculation in (STS655). If 'Available for rent' is set to false, the service day will be counted as a 'Day out of service'. The number of possible rental days will be reduced by the number of days out of service.

For example, a piece of equipment is sold on March 21, 2015 and is located in the same facility during the period, 'Possible rental days' is 21 for the period 201503.

Stand down days are days when a piece of equipment is on rent but for which the customer is not to be charged for.

Stand down days are calculated or summarized per period according to the defined days in the STAGDN table. Stand down days can be defined on both header and line level.

Stand down days have an impact on 'Net rented days' in the statistics but not on 'Rental days' since 'Net rented days' shows the number of days that can be charged, but the number of ‘Rental day’ shows how many days a piece of equipment has actually been on rent (not charged).

Number of days a piece of equipment is on service according to the 'service days' rule.

For example, a certain service is defined in (STS660) with 'Service day rule' = 1. This service counts as one service day for every day the equipment is on service.

In maintenance integration divisions, (STS660) can be used to control how this field is calculated. (STS660) defines rules for how service days are counted depending on the service. It is also possible to set up which services should affect the number of possible rental days.

This is how service days compare to NRSD, whether or not they affect the number of possible days.

The number of days a piece of equipment is on rent based on the table STLIDE.

This is the number of days a piece of equipment has been checked out on a rental agreement(s) during a period. Goods in transit, stand down days, and service days are not considered.

The number of rental days is obtained by reading the relevant records in table STLIDE (rental line details) to count the number of days a piece of equipment has been on rent during that period. A rental day is defined as a day on a rental agreement on which the piece of equipment has been checked out from the rental yard. If the equipment is checked out before the start of the period, the first day of the period is the first rental day of the period.

For active agreements: When running statistics in an ongoing period, for example today's date, the statistics can, for obvious reasons, not be exact since many factors are not known.

Calculation is performed by taking the start date of the active agreement line and calculate the number of days to the period end unless the agreement line is terminated. If an equipment has been on rent for 2 out of 5 days and there are 10 days to the period end, the number of rental days will be 10 if the line has not been terminated.

The number of rented days in a period - stand down days in the period. The service days do not affect the calculation of net rented days. Net rented days are only affected by stand down days.

Calculation as 'No of rented days' – 'Stand down days'. In M3 BE terms, it is calculated as: NDRN = NDRT – NDSD.

The number of days the equipment has been on rent on daily rate in this period.

It is calculated per agreement line and invoice and as the average number of rental days per rate type during this period. The distribution of 'on rent days' are based on number of invoiced days per contract length.

Calculated as: 'Number of on rent days in period' * ('invoiced days per rate type'/ 'Contract days')

• Number of on rent days in period is impacted by stand down days. Only stand down days for the specific agreement period are considered.
• Invoiced days per rate type are retrieved from the rental agreement details table STAGHD.
• Contract days are calculated as follows:

  1- First day of the contract date is check out date and last date is the termination date.

  2- If no termination date exists, check in date is seen as the end date.

  3- If not checked, not terminated, and not checked in yet, use planned contract (line) end date.

  Example:

  Contract length is 10 days and 5 days occur in previous period and 5 days in current period. The rate type used is 'weekly rate' with 7 days per week. The average number of days on rent on a 7 days per week contract is 7/10 or 0.7 days per on-rent day.

  Since 5 days occur in this period, the average number of days on rent for this rate type (W7) and contract and period is 0.7*5 = 2.5 days.

The number of days the equipment has been on rent on a 5-day week contract in this period.

It is calculated per agreement line and invoice and as the average number of rental days per rate type during this period. The distribution of 'On rent days' are based on number of invoiced days per 'contract' length.

Calculated as: 'Number of on rent days in period' * ('invoiced days per rate type'/ 'Contract days')

See 'ORDA' for a detailed explanation of the calculation.

The number of days the equipment has been on rent on a 6-day week contract in this period.

It is calculated per agreement line and invoice and as the average number of rental days per rate type during this period. The distribution of 'On rent days' are based on number of invoiced days per contract length.

Calculated as: 'Number of on rent days in period' * ('invoiced days per rate type'/ 'Contract days')

See 'ORDA' for a detailed explanation of the calculation.

The number of days the equipment has been on rent on a 7-day week contract in this period.

It is calculated per agreement line and invoice and as the average number of rental days per rate type during this period. The distribution of 'On rent days' are based on number of invoiced days per contract length.

Calculated as: 'Number of on rent days in period' * ('invoiced days per rate type'/ 'Contract days')

See 'ORDA' for a detailed explanation of the calculation.

The number of days the equipment has been on rent on a monthly contract based on 5 days a week.

See 'ORDA' for a detailed explanation of the calculation.

The number of days the equipment has been on rent on a monthly contract based on 6 days a week.

It is calculated per agreement line and invoice and as the average number of rental days per rate type during this period. The distribution of 'On rent days' are based on number of invoiced days per contract length.

Calculated as: 'Number of on rent days in period' * ('invoiced days per rate type'/ 'Contract days')

See 'ORDA' for a detailed explanation of the calculation.

The number of days the equipment has been on rent on a monthly contract based on 7 days a week.

It is calculated per agreement line and invoice and as the average number of rental days per rate type during this period. The distribution of 'On rent days' are based on number of invoiced days per contract length.

Calculated as: 'Number of on rent days in period' * ('invoiced days per rate type'/ 'Contract days')

See 'ORDA' for a detailed explanation of the calculation.

This is the utilized contract days in the period on day rate, meaning the number of days the equipment was on rent on daily rate in this period compared to the number of days in the whole rental period. This is calculated as (1/ contract days) * on rent days in period.

If all on rent days for a rate type on the agreement line occurred in this period, the utilization is 1.0.

If the contract days for a line is 10 days, each day is 1/10 in relative value. If 3 of the 10 contract days occurred in one period, the utilization is 0.3 for that period and rate type ((1/10) *3).

Calculated as 'Number of rental days'/ 'Possible Rental days'.

In M3 BE terms, it is calculated as: GTUT = NDRT – NDPR This means that the gross time utilization is not affected by stand down days, or service days.

Example for period 201502: possible rental days = 28 and Rented days = 14 'Gross time utilization' = 0.5.

Calculated as 'Net rented days'/ 'Possible Rental days'.

This means that the gross time utilization is affected by stand down days, but not by service days.

Example for period 201502: possible rental days = 28 and net rented days = 12 'Net time utilization' = 0,4285 (2 'Stand down days').

The time utilization for the period.

The time utilization is calculated per day to capture variations of the equipment’s weighted OEC and the total fleet value and aggregated per equipment and period.

Calculated as: Time utilization = OEC Weighted for specific date/ Number of days in period.

The age in months since 'Commission date'.

Example commission date = 20140130, current period 201503 gives Fleet age = 15.

Fleet age is calculated as the number of whole months between the (MMS240) commission date and the last date of the utilization period. Commission date will always have a value, as it is mandatory to be able to calculate utilization. If commission date is blank or if it is set to a later date (after current period), the record is not included.

The age expressed in months with decimals since 'Commission date' until the last day in the utilization period. If statistics are run for current period, the age is calculated to current date.

Calculated as: Today’s date – commission date /30.4375

30.4375 is the average length of a month over a 4-year period which includes a leap year and is calculated as follows: ((3*365) +366)/4 /12 = 30.4375

The fleet age expressed in month calculated with its OEC (Original Equipment cost) weighted.

OEC is the relative value of an equipment compared to the rental fleet. This is used to indicate the importance (weight) of the equipment in the fleet. An equipment’s OEC is calculated by dividing its total acquisition cost, including refurbishment with the total acquisition cost of the rental fleet. Depreciation is not included.

Calculated as: Equipment’s OEC * (Today's date – commission date) /30.4375

30.4375 is the average length of a month over a 4-year period which includes a leap year and is calculated as follows: ((3*365) +366)/4 /12 = 30.4375

When calculating statistics for present period, the present (run) date is used to calculate the OEC of the equipment. When calculating statistics in a previous period, the last date in that period is used for calculation of OEC.

The age expressed in whole months from 'Manufacturing date' until the last day in the utilization period. If the manufacturing date is blank, equipment age will be 0.

Manufacturing date (MFDT) is set in the lot master table on (MMS235/F) (MILOMA).

The average book rate is the average day price in all price lists where a certain item exists in all divisions and for a specific piece of equipment.

It is calculated as accumulated day price from all valid price lists for the period or number of occurrences in the price lists.

This rate is seen as a possible average book value. If an equipment is found in two different price lists, in two different divisions, the day price from both price lists are accumulated and divided by the number of occurrences (days).

Example:

'Item number' A exist in price list = 1 with day price = 100 and in price list = 2 with a day price = 110. Average book rate is 100+110/2 = 105.

The example does not show the actual rate used, it is the day price in the price list.

The average net rate (ANRT) is calculated by averaging the additional day rate of each rental agreement line on which the equipment has been on rent during the period. This includes invoice lines and lines to be invoiced in the future in this specific period. When calculating the additional day rate the rate type (CCAP) is considered. The rate type can be day, week, month, periodic, or best price.

Additional day rate is calculated as follows: ADDR = Net period rate (PNCA)/ number of days in the invoicing period.

For day rate: Additional day rate = Net daily rate (PDAN)

For week rate: Additional day rate = Net period rate (PNCA) / Days per week (ADPW) which is 5, 6, or 7 days.

For best price or periodic rate: Net period rate' (PNCA)/ number of days in the invoicing interval.

The invoiced rental amount which excludes charges.

Accumulated value from table OSBSTD for an internal customer 'Customer type' = 7.

Condition: If order category is "short term rental debit" (S) or "Short term rental - credit" (C) and line suffix is lower than 67.

The invoiced rental amount which excludes charges.

Accumulated value from table OSBSTD for an external customer. Condition: If order category is "short term rental debit" (S) or "Short term rental - credit" (C) and line suffix is lower than 67.

The possible net revenue calculated using the average day rate calculated from all agreement lines (this includes invoiced lines from the past, but within the period, and lines on future agreements) multiplied by the possible number of rental days.

'Average net rate' * 'Possible rental days'

In M3 BE terms, it is calculated as: PNRE = ANRT * NDPR

This is the average day price of all price lists a certain item exists in (in all divisions) multiplied by the possible number of rental days for the period.

'Average book rate' * 'Possible rental days'

In M3 BE terms, it is calculated as: PNRE = AVBR * NDPR

This is the actual net revenue calculated using the average day rate calculated from all agreement lines (this includes invoiced lines from the past, but within the period, and lines on future agreements) multiplied by the net rented days. This means that stand down days has an impact on the calculation since they are included in 'net rented days', while the service days do not affect the calculation.

'Average net rate' * 'Net rented days'

In M3 BE terms, it is calculated as: ACNR = ANRT * NDRN

The average day price of all price lists a certain item exists in (in all divisions) multiplied by the net rented days in the period.

Calculated as 'Average book revenue' * 'Net rented days'

In M3 BE terms, it is calculated as: ACBR = AVBR * NDRN

This means that stand down days have an impact on the calculation since they are included in 'net rented days' while the service days do not affect the calculation.

Financial utilization based on book values.

Calculated as 'Actual book revenue' / 'Possible book revenue'.

In M3 BE terms, it is calculated as: BRUT = ACBR/ POBR

Financial utilization based on net values for the agreement lines.

Calculated as 'Actual net revenue'/'Possible net revenue'

In M3 BE terms, it is calculated as: NRUT = ACNR/ PNRE

This means that stand down days have an impact on the calculation since they are included in the actual net revenue, while the service days do not affect the calculation.

This is the number of days invoiced per day rate in this period (not realized in this period).

The invoice date determines the period to which the quantity should be assigned to if the invoicing period stretches over two calendar periods. If fourteen days are invoiced in October, all these days will update the IQDR regardless if 7 of these days occurred in September. The reason is that we look at invoice date (14 days have been invoiced in October).

1 quantity = 1 day

The number of weeks invoiced on 5-days week rate in this period (not realized in this period).

The invoice date decides the period to which the quantity should be assigned to if the invoicing period stretches over two calendar periods. If 10 days are invoiced in October, all these days will update the IQW5 regardless if 5 of these days occurred in September. The reason is that we look at invoice date (10 days have been invoiced in October).

1 quantity = 1 week of 5 days

The number of weeks invoiced on 6-days week rate in this period (not realized in this period).

The invoice date decides the period to which the quantity should be assigned to if the invoicing period stretches over two calendar periods. If 12 days are invoiced in October, all these days will update the IQW6 regardless if 6 of these days occurred in September. The reason is that we look at invoice date (12 days have been invoiced in October).

1 quantity = 1 week of 6 days

The number of weeks invoiced on 7-days week rate in this period (not realized in this period).

The invoice date decides the period to which the quantity should be assigned to if the invoicing period stretches over two calendar periods. If 14 days are invoiced in October, all these days will update the IQW7 – regardless if 7 of these days occurred in September. The reason is that we look at invoice date (14 days have been invoiced in October).

1 quantity = 1 week of 7 days

The number of months invoiced on a monthly rate based on 5-days weeks in this period (not realized in this period).

The invoice date decides the period to which the quantity should be assigned to if the invoicing period stretches over two calendar periods.

If 10 days are invoiced in October, all these days will update the IQW7 regardless if 7 of these days occurred in September. This is since we look at invoice date (10 days have been invoiced in October).

1 quantity = 1 month. When having 5-days weeks one month is 21 days.

The number of months invoiced on a monthly rate based on 6-days weeks in this period (not realized in this period).

The invoice date determines the period to which the quantity will be assigned to if the invoicing period stretches over two calendar periods.

1 quantity = 1 month. When having 6-days weeks one month is 25 days.

The number of months invoiced on a monthly rate based on 7-days weeks in this period (not realized in this period).

The invoice date determines the period to which the quantity will be assigned to if the invoicing period stretches over two calendar periods.

1 quantity = 1 month. When having 7-days weeks one month is 30 days.

The daily realized revenue based on daily rate contracts.

This is the invoiced amount that originates from daily rate, allocated to all on rent days for this contract in this period. If the contract has 10 on rent days and we have invoiced 3 days on daily rate (because of graduated best rate), the invoiced amount for the 3 days is evenly allocated to all 10 days.

Calculated as: RRDD = RDD* On rent days in period

RDD = (Qty per rate type) * (Rate for the rate type)/ (Number of on rent days for this agreement).

Example:

• A rental agreement line for a piece of equipment stretches from August to September.
• The piece of equipment is on rent for 9 days in total.
• It is on rent for 7 days in August and 2 days in September (on the same agreement).
• The customer is invoiced $890 on (7- days) weekly rate, and $650 for two days on daily rate (2*$325).

$890 is to be evenly distributed over the 9 on rent days. 7 days in August and 2 days in September.

$650 is to be evenly distributed over the 9 on rent days. 7 days in August and 2 days in September.

• (1/9) *7 *890 = 692,22 $ is to be realized on 7-days weekly rate (RRW7) in August.
• (1/9) *2 *890 = 197,77 $ is to be realized on 7-days weekly rate (RRW7) rate in September.
• (1/9) *7 *650 = 505,55 $ to be realized on daily rate (RRDD) in August.
• (1/9) *2 *650 = 144,44 $ to be realized on daily rate (RRDD) in September.

The daily realized revenue origin from 5-days week contracts.

See RRDD on how it is calculated.

If a 5-day week stretches over two periods, the realized revenue daily (RRD) must be assigned to each period according to the number of on rent days. Calculate and multiply by the number of on rent days in this period for this contract and add value to RRW5. This computation will give us the total realized revenue origin from 5-days week rate contracts.

The daily realized revenue origin from 6-days week contracts.

See RRDD and RRW5 for calculation.

The daily realized revenue origin from 7-days week contracts.

See RRDD and RRW5 for calculation.

The daily realized revenue from monthly rate based on 5-days weeks.

An invoiced month based on a 5-days a week contract is equal to 20 days.

See RRDD and RRW5 for calculation.

The daily realized revenue from monthly rate based on 6-days weeks.

An invoiced month based on a 6-days a week contract is equal to 25 days.

See RRDD and RRW5 for calculation.

The daily realized revenue from monthly rate based on 7-days weeks.

An invoiced month based on a 7-days a week contract is equal to 30 days.

See RRDD and RRW5 for calculation.

The financial utilization is calculated per each day to capture variations of both the equipment's weighted OEC and the total fleet value.

The financial utilization is calculated as: Financial utilization = Realized revenue * OEC Weighted / total fleet value

The financial utilization is aggregated per equipment and period.

The acquisition cost is retrieved and calculated based on the fixed asset value from 'Fixed Asset. Connect Value Types' (FAS003) where 'Value type' = Acquisition value.

'Acquisition cost' does not consider refurbishment which would increase the actual acquisition cost.

This cost includes the equipment’s total acquisition cost and refurbishment.

Rental firms tend to measure their performance on a cost basis, and the most commonly used cost base for rental equipment is original equipment cost (OEC).

The OEC is calculated by summarizing the valid records in the fixed asset history table FAHIS related to acquisition costs and costs related to refurbishment.

This value is never stored in STUTIL since it can vary from one day to another and statistics in STUTIL are stored on periodic level.

The equipment's acquisition cost in relation to the total acquisition cost of the rental fleet expressed in percentage. This figure gives us the equipment's relative value in the rental fleet.

The OEC weighted approach allows us to derive several components of the equipment rental penetration calculation using well-established data and techniques. For example, the Financial Utilization metric is defined as the rental revenue earned by an equipment unit divided by the OEC of the unit.

The original equipment cost is calculated as: OEC weighted = Equipment's acquisition cost (OEC)/total fleet value.

This calculation is performed per day to capture changes of the OEC weighted and is never stored in table STUTIL. An equipment’s weighted OEC can change if refurbishment is done on the specific unit or another unit, or if other units enter (acquired) or exit (sold) the rental fleet.

OEC weighted assumes that the rental fleet value is available when doing the calculation. The rental fleet value is generated by (STS675) and is stored daily in the table STUFVA (Short term utilization fleet value). You cannot generate data from the past in (STS675), only for the current date.

This is the depreciation value from day one of the period to current day. The cost is retrieved and calculated based on the fixed asset value from (FAS003) where 'Value type' = Depreciation.

The depreciation cost is calculated as 'Depreciation value for the period'/ 'Total number of days in the period' * current day number in the period.

In M3 BE terms, it is calculated as: CODN = FAHIS.getFAVA()/ NDBW * noOfDays

This is the cost of planned service.

For maintenance integration: The scheduling parameter in the service history table is used to determine the maintenance cost.

A service is considered to be planned if SCHD (scheduled maintenance service) is greater than 0 (1-6) in the service history table (MWOPLA).

If the 'Advanced order costing' parameter is activated on the work order type (CALE = 1 on the work order type, MORDT), then the "Actual cost" from Order Costing Header (CPOHED) in 'Order Costing. Display' (CAS310) is used.

If the 'Advanced order costing' parameter is not activated on the work order type (CALE = 0 on the work order type, MORDT), then "Planned values" from the Post Calculation Maintenance table CPOCAW in (CAS305) is used.

This is the cost of unplanned service. The scheduling parameter in the service history table is used to determine this.

A service is considered to be unplanned if SCHD is set to 0 in the service history table (MWOPLA).

• Advanced order costing : "Actual cost" (TOAF) from Order Costing Header (CPOHED) in (CAS310) is used.
• Not advance costing: "Planned value - Release" (TOSV) from Post Calculation Maintenance (CPOCAW) in (CAS305) is used.