From the course: Excel: Business Process Analysis
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Calculate implied utilization
From the course: Excel: Business Process Analysis
Calculate implied utilization
- [Instructor] So far, we have talked about utilization based on the minimum of demand inputs and process capacity. In this movie, I will discuss implied utilization, which is how much work a process' resources must do at a given demand level. As my sample file, I will use the implied utilization workbook, you can find that in the chapter two folder of your exercise files collection. I have already performed a number of calculations, specifically I have the time in minutes for each of the six resources, capacity per minute, which as we see in cell F6 is one divided by the time, so per minute, resource number five can do 1/8 or 0.125 units. I've then multiplied each of those capacities by 60 to get the capacity per hour, so again for resource number five, I see that as 7.5, and that is the minimum of my six capacities, so I see that I have capacity per hour of 12, 20, and so on. However, the minimum is the bottleneck, and that's what controls the process overall, so if I click in cell…
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