RESULTS: How Achieved   >   Resource Capacity & Utilization

    Enlarge Utilization Diagram
  • In addition to understanding NOP, the decomposition of financial performance by process, and the drivers behind that performance, it is important to understand the capacity of the resources dedicated to those processes. That is to say, the people, equipment, and property, etc., that a company employs to support its operations have limits on how much work they can perform. Understanding what those limits are (capacity), and how much of that capacity is being consumed (utilization) is an important insight for Benchmarking purposes in support of Planning & Budgeting for Staffing Levels, Supply Chain decisions, and Pricing, to name a few.
  • The VDDW elucidates capacity and utilization metrics process-by-process to enable initiatives like those mentioned above, and more. The diagram to the right illustrates how the VDDW displays this information. That is, activity by activity it connects the capacity consumed by an activity (highlighted in Red) with the capacity contributed to that activity by various Resource pools (highlighted in Brown), allowing for a simple computation of Process-Based utilization (highlighted in Blue). Further, the simple sum of Consumed Capacity divided by the sum of Contributed Capacity gives a measure of the overall utilization of that Resource Pool.
  • As with the other valuable metrics supplied by the VDDW, Utilized Capacity is also completely analyzable in ad hoc fashion along any dimension or combination of dimensions: customer, supplier, product, etc.