What is the name of the common indicator, often expressed as a percentage of time when an organisation's core resource (equipment or people) is engaged in production or transformation activities?
Comprehensive and Detailed Explanation From Exact Extract:
Utilisation rate measures the proportion of available capacity that is actually used for productive activity. It is calculated as:
'Utilisation Rate'='Throughput Rate' /'Design Capacity' 100
This indicator helps managers understand how efficiently facilities or resources are being used. High utilisation may indicate efficiency but could also suggest limited flexibility. (Reference: CIPS L5M10 Study Guide, Capacity utilisation and performance measures, p. 132)