From the course: Excel: Value Stream Mapping

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Calculate process utilization

Calculate process utilization - Microsoft Excel Tutorial

From the course: Excel: Value Stream Mapping

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Calculate process utilization

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- [Instructor] Each station within a process is called a resource. When you create your value stream map, you need to determine how close to capacity each resource is running. This calculation, usually expressed as a percentage, is the resource's utilization. I'll start out in Excel to do the utilization calculations. My sample file is 03_03 Utilization Legal, and you can find it in the exercise files folder. So we have our Takt time of 80 minutes. That's the heartbeat of the process. Every 80 minutes we need to have a contract come out, on average. And we have our process time and cycle time for the Interview, Draft, and Review resources, or steps in the process. Now we can compare the cycle time to the Takt time to get our utilization percentages. I'll go down to cell C7, click there, and I will divide the cycle time by the Takt time. So I'll type equal, and then C6. And I will divide that by the value in C1, which…

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