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Productivity at an org level is not intuitive. For example, the whole org working at 25% capacity on the same thing sounds terrible, but it could produce better
by ZephyrBlu 4y ago
Productivity at an org level is not intuitive. For example, the whole org working at 25% capacity on the same thing sounds terrible, but it could produce better results than everyone working at 90% capacity on different things. For ICs, the first scenario feels bad and wrong.
- btschaegg 4y agoA reason for that might be lead time, for example: https://en.wikipedia.org/wiki/Kingman%27s_formula https://en.wikipedia.org/wiki/Kingman%27s_formula Since c_a, c_s and tau are out of your control, focus on the left part (rho / (1-rho)): 25% vs 90% utilization: .25/.75 vs .9/.1 = 27x increase in lead time.