Utilization Rate

And finance Allah shmoop What is utilization rate Thie utilization

rate allows you to track how much you use something

the rate of use A rate of utilization Very cleverly

named All right people You're a connoisseur of nose hair

grooming You have a display case full of nose hair

clippers Most are collector's items just on display there looking

good there on the glass you know so you can

impress your fellow knows grooming hobbyists Well you want to

figure out utilization rates for each of your main clippers

That way you can report the numbers for the fans

of your popular Blawg the sniffer snipper Well there are

three clippers that you use for day to day nostril

Curation what Monday through Thursday you used the clip tastic

five thousand It's a turbocharged industrial model originally developed during

the Cold War to close the nose hair gap with

the USSR Well it gets the job done efficiently without

much wear and tear Perfect for the work week Well

Friday and Saturday you use the Sheikh Shaper X nine

popular with Instagram models and French politicians It gives a

much finer more alluring cut perfect for date night or

clubbing you know with your crew Sunday requires a more

Jim You're cut something more reflective more relaxed It's time

for the with whisper blew It provides a slow comfortable

trimming experience Well those air the clippers you use on

a regular basis time to determine utilization rates you use

the clip tastic five thousand forty's Week Monday Tuesday Wednesday

Thursday there seven possible day so utilization right here's four

divided by seven are about fifty seven percent used The

sheik Shaper X nine two days a week Friday and

Saturday two out of seven twenty nine percent And the

whiff whisper only gets use once a week one out

of seven on the rate they're fourteen percent In real

life businesses can use the utilization rate to see how

efficiently they're using Their resource is like What if they

had a tractor smelter thing that was just sitting there

Not used four days a week But they may be

rented to another tractor smelter and make more money Something

like that Well really businesses can figure out how much

they operate equipment see if they have additional slack to

ramp up production And in that slack sometimes they can

run it out or do everything's with it and make

a fortune And if that's not the case well then

they can use it as an employee evaluation tool Like

by looking at a worker's utilization rate a company can

see if their employees time is getting applied effectively like

one cashier only processes one hundred twelve grocery store shoppers

a day But everyone else processes at least one hundred

eighty then it's likely she's probably spending social hour too

often with her customers yapping them about their purchases right

Okay well so you start a nose clipper consultancy business

to take advantage of your vast knowledge of the industry

You contract your services to manufacturers test their products and

advise them on various high level Clipper related problems You

work forty hours a week but only twenty two of

those hours are pay billable hours working for clients The

rest of the time you're working on well marketing and

processing billing and watching YouTube videos about the history of

nose hair So you stay current on the industry so

that's twenty two of forty hours working with clients are

billing them for your time That's a utilization rate ofyour

time We're actually being paid for it of fifty five

percent Probably some room for improvement there right You really

need all that research Could you get more clients to

then Bill Okay so maybe it's time to switch to

the Sheik shaper for work days It will get you

that more impressive cut for client meetings Yeah How'bout that

Hopefully you'll be able to jack up those billable hours

Increase the utilization rate for the sheik shape or to

eighty six percent Pretty much every day but Sunday Yeah

that'd be big Then maybe you can get your billable

hours utilization right above sixty percent Right You make a

lot more money If you do that after all a

few more clients And then you can afford a few

more collector clippers in the display case here Like the

Clipper Lincoln used before giving the Gettysburg or the Clipper

that Neil Armstrong took to the moon Remember the quote

One small clip for man You know something like that