Utilization VS Implied Utilization

The UTILIZATION tell us how well a resource is being used. It is measured as  the ratio between FLOW RATE and CAPACITY.

The UTILIZATION always lies between 0% and 100%. It is calculated as follow:

FLOW RATE/CAPACITY (%)

The IMPLIED UTILIZATION tell us how much of that resource is being used according to CUSTOMER DEMAND.
It is measured as the ratio between DEMAND and CAPACITY.

The IMPLIED UTILIZATION can be higher than 100%. It is calculated as follow:

DEMAND/CAPACITY (%)

 

 

Let’s PRACTICE!

 

 
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3 comments

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  • Hello there,

    My name is Aly and I would like to know if you would have any interest to have your website here at lean6sigma4all.eu promoted as a resource on our blog alychidesigns.com ?

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  • Hi Aly,
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