Your utilisation is high because you did the job twice

Rework consumes the same hours as first-time delivery and records itself exactly the same way: which is why it sets your capacity ceiling without ever appearing in a report.

By Steve 5 min read
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A recurring pattern in service and production businesses: the team is visibly busy, utilisation looks healthy, lead times are drifting out, and gross margin per job is worse than the estimate said it would be. The obvious reading is that the work is underpriced or the team is short-handed. Often neither is true. The hours were spent: they just weren’t all spent moving work forward. Some of them were spent doing something for the second time. Rework books itself as work Most time and job costing systems record hours against…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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