Learn about implied utilization, which is how much work a process’s resources must do at a given demand level.
- [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 B8, you'll see…that I found the process capacity per hour…
LinkedIn Learning (Lynda.com) is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- Drawing process flow diagrams
- Calculating process capacity
- Identifying bottlenecks
- Determining cycle time and idle time
- Calculating labor
- Calculating utilization
- Analyzing batch processes
- Calculating optimal order quantities