Pump, Compressor & Rotating Equipment Assembly worked example
Labor Utilization at 98% target utilization: a worked example in pump, compressor & rotating equipment assembly
Push target utilization up to 98% and the picture changes. This example computes every intermediate figure at that operating point. Use it to see how much of paid labor time is productive in Pump, Compressor & Rotating Equipment Assembly and where the gap to target is.
The inputs for this scenario
- Productive (direct) labor hours: 320 hr (unchanged)
- Paid labor hours available: 400 hr (unchanged)
- Target utilization: 98 % (raised for this scenario; the documented default is 85)
Working through the calculation
- Applying the documented formula (Labor utilization = productive labor hours รท paid labor hours available) to the inputs above produces each figure below.
- At this operating point the engine returns 80 % for utilization, the number this scenario is built around.
- At this operating point the engine returns 18 points for gap to target.
- At this operating point the engine returns 320 value for used amount.
- At this operating point the engine returns 400 value for available amount.
How this compares with the baseline
- Against the tool's baseline example, where target utilization sits at 85% and the headline result is 80 %, this scenario lands almost exactly on the baseline at 80 %.
- It computes the ratio of productive direct labor hours to total paid labor hours available, then reports how many percentage points that ratio sits below your target. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.
Results at a glance
- Utilization: 80 % (headline result)
- Gap to target: 18 points
- Used amount: 320 value
- Available amount: 400 value
Run it with your numbers
- Every input above is editable in the live Labor Utilization calculator, which recalculates instantly and can be shared with the inputs intact.
Last reviewed 2026-05-12.