How Resource Efficiency and Resource Utilization Are Calculated

While scheduling resources, the planning process uses resource efficiency and utilization that you specify at the resource level. Resource efficiency is a measure (expressed in percentage) of the actual output to the standard output expected.

Resource efficiency determines the time that a resource takes to complete a task.

For example, if you expect a resource having an efficiency of 100% to complete a task in 12 hours, the resource having an efficiency of 50% would take 24 hours to complete the task. Effective usage of a resource is the ratio of resource hours as specified in routing (theoretical usage) to efficiency.

The following figure illustrates the calculation used for actual resource usage.

Actual resource usage equals, open parenthesis, quantity multiplied by resource hours per resource, closed parenthesis, divided by, open parenthesis, resource efficiency multiplied by resource utilization, closed parenthesis.

Resource utilization is a measure (expressed in percentage) of how intensively a resource is used. For example, a resource may take frequent breaks or you may assign maintenance tasks to the resource. This indicates that a percentage of the resource time isn't available for the task. The actual usage is the ratio of the resource hours as specified in routing to the product of efficiency and utilization. For example, a routing has a resource requirement for 2 hours. The efficiency and utilization of the resource is expected to be 90% and 75%, respectively. Therefore, the actual resource usage is calculated as 2.96 hours.

Actual Resource usage = (1 each multiplied by 2 hours per resource) divided by (90% multiplied by 75%) = 2 hours divided by 0.675 = 2.96 hours

For a Make Order to manufacture 50 units, using the same routing as described in the previous example, you have:

Actual Resource usage= (50 each multiplied by 2 hours per resource) divided by (90% multiplied by 75%) = 100 hours divided by 0.675 = 148.15 hour

Considering the actual resource efficiency and utilization, the planning process generates a plan. If an additional resource usage is required to satisfy a demand, the planning process recommends inflating the resource usage.

Configure the Precision of Resource Usage Calculations

You can configure the level of decimal precision to which resource usage calculations are rounded to accurately calculate resource requirements in supply planning. Use the Decimal Precision for Resource Usage profile option to set the decimal precision to up to 9 digits.