Utilization rate

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What is Utilization rate?

Utilization rate measures the share of capacity actually consumed, based on logged time, on productive (project) or billable activities.

Key points

Unlike allocation rate, which is forward-looking, utilization is observed from timesheets.

Comparing allocation and utilization reveals gaps between plan and reality and feeds planned-vs-actual metrics.

Formula

Utilization rate = actual time logged on projects ÷ available capacity × 100

Example

12 days logged on projects against 16 days of capacity = 75% utilization.

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