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what_is_wrong_with_100_utilization_thinking [2016/10/25 19:40] – [Understanding Real Cause and Effect of Utilization] hpsamioswhat_is_wrong_with_100_utilization_thinking [2020/06/04 11:19] (current) – Removed LINKBACK hans
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 ====== What Is Wrong With 100% Utilization Thinking? ====== ====== What Is Wrong With 100% Utilization Thinking? ======
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-====== Premise ====== 
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 As a person who has spent way too many years managing many projects, working with a lot of financial people, and who has worked to improve the results of a lot of organizations, one thing I was expected to focus on was "utilization rates" for people. The thinking seems straight-forward - if we are paying a certain amount of money for a person we can increase the return (value produced) associated with that person by making sure, at a minimum, that the person is working all the time and is always busy. As result I'd work to ensure that people were 90%, 100% utilized and be happy when people reported 110% utilization. As a person who has spent way too many years managing many projects, working with a lot of financial people, and who has worked to improve the results of a lot of organizations, one thing I was expected to focus on was "utilization rates" for people. The thinking seems straight-forward - if we are paying a certain amount of money for a person we can increase the return (value produced) associated with that person by making sure, at a minimum, that the person is working all the time and is always busy. As result I'd work to ensure that people were 90%, 100% utilized and be happy when people reported 110% utilization.
  
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 Interestingly you instinctively understand this effect even if you have not applied this to software. If you have a road system filled to capacity with cars and you are a car trying to get from point "A" to point "B" what are your chances? A "road system filled to capacity" is a traffic jam and so you will take a long time to get to your location. Interestingly you instinctively understand this effect even if you have not applied this to software. If you have a road system filled to capacity with cars and you are a car trying to get from point "A" to point "B" what are your chances? A "road system filled to capacity" is a traffic jam and so you will take a long time to get to your location.
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 ====== Now What Are You Going To Do? ====== ====== Now What Are You Going To Do? ======
  
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   * [[http://www.leanessays.com/2010/11/managing-pipeline.html|"Managing the Pipeline"]] by Mary Poppendieck. Mary is one of the original thinkers in the are of lean principles applied to software development. Her essays are always useful and get more useful as you need to grow your implementation of agile and lean to the overall organization.   * [[http://www.leanessays.com/2010/11/managing-pipeline.html|"Managing the Pipeline"]] by Mary Poppendieck. Mary is one of the original thinkers in the are of lean principles applied to software development. Her essays are always useful and get more useful as you need to grow your implementation of agile and lean to the overall organization.
   * [[http://brodzinski.com/2015/01/slack-time-value.html|Economic Value of Slack Time]]   * [[http://brodzinski.com/2015/01/slack-time-value.html|Economic Value of Slack Time]]
 +  * [[https://observablehq.com/@troymagennis/how-does-utilization-impact-lead-time-of-work?collection=@troymagennis/agile-software-development|How Does Utilization Impact Lead Time of Work]]: Excellent interactive model by @TroyMagennis allowing you to explore different how the Kingman formula works.
   * [[http://brodzinski.com/2012/03/myth-of-100-utilization.html|A Myth of 100% Utilization]]   * [[http://brodzinski.com/2012/03/myth-of-100-utilization.html|A Myth of 100% Utilization]]
  
  
 {{tag>Enterprise Utilization Slack Risk RiskManagement FAQ PresentationIdea}} {{tag>Enterprise Utilization Slack Risk RiskManagement FAQ PresentationIdea}}
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-~~LINKBACK~~ 
-~~DISCUSSION~~ 
  
/home/hpsamios/hanssamios.com/dokuwiki/data/attic/what_is_wrong_with_100_utilization_thinking.1477449658.txt.gz · Last modified: 2020/06/02 14:28 (external edit)