# Define: Resource Utilization

Resource Utilization: Percentage of hours actually worked, when compared with possible working hours.

Formulas:
Utilization = ActualWork / TotalHours
EffectiveRate = ActualAmount / TotalHours

Standard Time® contains a resource utilization report that looks similar the to image below.  Notice the ‘Scheduled Hours’ value, and the ‘Actual Hours’ under it.  These number are used in the formula above to arrive at the ‘Utilization Percentage’ of 103.8%.  This person obviously worked an extra 1.5 hours.

The effective billing rate is related to these numbers as well.  In this case, the person worked on some high-value projects at caused his effective billing rate to be higher than normal.  That’s a good thing!

–ray