The term signifies the ratio of average load to peak load over a specified period. It quantifies the efficiency of resource utilization, illustrating how consistently a system operates at its maximum capacity. For example, if a factory has a maximum possible production output of 100 units per day, and its average daily production is 60 units, the corresponding value is 60%. This value provides insights into operational effectiveness.
Understanding this ratio offers significant benefits in resource management. A higher value indicates consistent demand and efficient use of assets, potentially leading to reduced operational costs and improved profitability. Historically, its calculation has been crucial in optimizing energy consumption in power grids and improving the efficiency of manufacturing processes.