![]() Had she billed all 2,000 of her available hours to billable client work, her utilization rate would have been 100%, but that almost never happens and it isn't desirable. This means that last year Leslie was 75% billable. Using this utilization ratio, we can calculate her utilization rate as: Now let's say she bills 1,500 hours to various client projects throughout the year. Assuming she takes two weeks of vacation, her total available hours for the year is 2,000. In a given week, she has 40 available hours. Let’s say we want to find the utilization rate for Leslie, a front-end developer at a web design firm. Total Billable Hours / Total Hours Available Here’s the formula to calculate utilization: In this article, we'll cover the definition of resource utilization, the utilization rate formula, what we can learn from utilization rates, what an ideal utilization rate is and how you calculate it, and how to raise utilization rates. While utilization rate is generally applied to people, not objects, you get the idea. The difference between the number of widgets it can make compared to the number of widgets it makes is the basis for the machine's utilization rate. This means it will never make as many widgets as it's capable of producing. It needs to shut down occasionally for maintenance and repairs, user training, and any number of other reasons. But of course, it can't run non-stop, every day, all day. That's the machine’s total available capacity. Let's say, assuming the machine runs non-stop, it can produce 1,000 widgets a day. The machine has a maximum number of widgets it can produce in a day, because it takes a certain amount of time for the machine to manufacture one widget. To understand utilization and utilization rates, let’s imagine we have a widget-making machine. Managing Work Collections of actionable tips, guides, and templates to help improve the way you work.Solution Center Move faster with templates, integrations, and more.Events Explore upcoming events and webinars.Content Center Get actionable news, articles, reports, and release notes.Partners Find a partner or join our award-winning program.Professional Services Get expert help to deliver end-to-end business solutions.Technical Support Get expert coaching, deep technical support and guidance.Help Center Get answers to common questions or open up a support case.Smartsheet University Access eLearning, Instructor-led training, and certification.Community Find answers, learn best practices, or ask a question.Learning Center Find tutorials, help articles & webinars.A quarterly roundup of the innovations that’ll make your work life easier. What’s up next A sneak peek at upcoming enhancements.Digital asset management Manage and distribute assets, and see how they perform.Resource management Find the best project team and forecast resourcing needs.Intelligent workflows Automate business processes across systems.Governance & administration Configure and manage global controls and settings.Streamlined business apps Build easy-to-navigate business apps in minutes. ![]()
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