What is rate of utilization in SAP (SCM-APO-MD - Master Data)?

SAP Term: rate of utilization

• Component: SCM-APO-MD

• Component Name: Master Data

• Description: Percentage ratio of the actual available work time productive time to the theoretically available work time for a resource. The theoretically available work time can be reduced by organizational or technical disturbances, for example machine downtime. With the rate of resource utilization you estimate the average reduction. The system calculates the productive time of a resource using the rate of resource utilization and the working time data.

Smart SAP Assistant

• Key Concepts: 
  Rate of utilization is a term used in SAP SCM-APO-MD Master Data to describe the rate at which a resource is used. It is calculated by dividing the total amount of time a resource is used by the total amount of time it is available. This calculation helps to determine the efficiency of a resource and can be used to identify areas for improvement. 
  
  How to use it: 
  In order to calculate the rate of utilization, you must first determine the total amount of time a resource is available. This can be done by looking at the resource’s availability schedule or by calculating the total amount of time it takes to complete a task. Once you have determined the total amount of time available, you can then divide this number by the total amount of time the resource was actually used. The result will be the rate of utilization. 
  
  Tips & Tricks: 
  When calculating the rate of utilization, it is important to take into account any downtime that may have occurred due to maintenance or other factors. This will help ensure that your calculation is accurate and that you are getting an accurate picture of how efficiently your resources are being used. 
  
  Related Information: 
  The rate of utilization can be used in conjunction with other metrics such as cost per unit and throughput to gain a better understanding of how efficiently resources are being utilized. Additionally, it can be used to identify areas for improvement and help optimize processes for maximum efficiency.