Calculating utilization levels lets you identify resources that are working near capacity so you can arrange to reduce their load or, if they’re underutilized, find a way to take advantage of their excess capacity.
- [Narrator] Even a process that is running well…can be close to the breaking point without you realizing it.…Calculating utilization levels lets you identify…resources that are working near capacity so you can…arrange to reduce their load or, if they're underutilized,…find a way to take advantage of their excess capacity.…In this movie I will show you how to calculate…the utilization levels for individual resources.…My sample file is resource utilization and you can find it…in the chapter two folder of your exercise files collection.…
The utilization of a resource is the ratio of…its flow rate to the resource's capacity.…As a reminder, flow rate is the minimum of capacity,…demand, and input expressed in units per time.…I have calculated my flow rate and that is…the minimum of demand per hour…and process capacity per hour.…Demand is given from the outside but I calculated…process capacity and as the minimum…of the individual resource capacities.…
So I see that in this particular case resource number five…can only handle seven point five units 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