Measures actual output against maximum capacity.
Actual hours/output — Business metric. Affects cost, margin, or break-even; validate against recent data. Example: 0.1.
Actual hours/output is required
capacity — Business metric. Affects cost, margin, or break-even; validate against recent data. Example: 0.101.
capacity is required
Measures actual output against maximum capacity.
Formula
utilization = actualHoursOutput ÷ capacity