Final answer:
Machine utilization measures the percentage of time a machine is actively working during the time it is available. It is an essential metric in gauging the efficiency and productivity of machinery in the production process.
Step-by-step explanation:
Machine utilization is a productivity metric that measures the percentage of time a machine is actually operating and performing work, as opposed to when it is available but not in use. Factors of production, including labor, materials, and machinery, are critical components in the manufacturing process. Utilization rates are important because they help businesses understand how effectively they are using their resources. If a machine has a high utilization rate, it means that it's being used to produce goods or services most of the time it's available, which can lead to higher productivity and efficiency. On the other hand, a low utilization rate might indicate that there is room for improvement in production scheduling or that there is excess capacity that isn't needed.