What is the percentage of time the work center is active compared to the available time called?

The term that describes the percentage of time the work center is active compared to the available time is utilization. Utilization measures how effectively a work center is using its available time resources. It is calculated by taking the actual productive time a work center is engaged in work and dividing it by the total available time, then multiplying by 100 to express it as a percentage.

Utilization is a key performance indicator in operations management because it helps organizations understand how well they are using their capacity. High utilization rates can indicate that a work center is operating efficiently, while low rates may suggest overstaffing, downtime, or inefficiencies in the production process. This concept is crucial for optimizing operations and ensuring that resources are being used effectively.

In contrast, efficiency refers to how well resources are being used to produce output relative to the input, whereas effectiveness is about achieving desired outcomes or goals. Uptime generally refers to the proportion of time a system is operational, but it does not specifically measure the active time of a work center against its available time.