Storage Space Usage:
= Square Footage of storage space occupied by materials /Total square footage available for storage
This measure correlates with inventory; all of the things equal, higher SSU is the result of more materials occupying space.
Equipment
Enlightened measures of equipment shift emphasis from machines doing the most of work to being capable of doing the work while work is needed and in the best way possible. These measures may be applied to individual pieces of equipment or, on average, to all of the equipment in the organization.
One measure, equipment availability, is the proportion of time a machine is available (in usable condition) for work while it is needed.
Equipment Availability = (Planned Running Time - All Downtime) /Planned Running Time
This measure emphasizes uptime and encourages preventive maintenance. Higher equipment availability translates into fewer inventories required to cover equipment breakdowns.
Equipment effectiveness is a good integrative measure because it emphasizes the, capability, availability and proficiency of the equipment at any given time.
Equipment Effectiveness
= Equipment Availability × Performance Efficiency × Rate of Quality