From the course: Cost Reduction Tips - How To Cut Costs And Maximize Profits

Unlock this course with a free trial

Join today to access over 22,600 courses taught by industry experts.

Utilization of people

Utilization of people

From the course: Cost Reduction Tips - How To Cut Costs And Maximize Profits

Start my 1-month free trial Buy for my team

Utilization of people

“

- Now I just want to introduce the concept of utilisation of people. We're going to back to this later when we look at utilisation of equipment. So the utilisation of a person is the percentage of time that they're working on something useful. So if they're spending 80% of the time actually on the job, then that's 80% utilisation. If a machine is actually cutting metal 80% of the time, that's what it means. So if you've got a lawyer who has to wait for the photocopier or something, then that's reducing utilisation of that lawyer. And, you know, they're worth hundreds of pounds an hour. So they should never have to wait for a photocopier. If your copier's not very good, get another one. Have two, have five copiers. It doesn't matter, because the lawyer is worth far more than a copier. What does a copier cost? Printers nowadays are probably only about two or 300 pounds. And that's one hour of lawyer time. If you could save one hour, that would pay for a whole new color printer. So the…

Contents