Full-Time Equivalent (FTE)

FTE converts headcount and availability into a single number that represents the actual productive capacity of the workforce at a step. Two employees at 80% availability contribute 1.6 FTEs, the equivalent of 1.6 people working full-time.

FTE is used to calculate capacity (more FTEs = more units can be processed simultaneously) and cost (labour cost is allocated per FTE).

Formula

FTE = Employees × Resource Availability

Example

A step has 3 employees, each with 85% resource availability. FTE = 3 × 0.85 = 2.55

This means the step has the productive equivalent of 2.55 full-time workers. The capacity of the step uses this FTE figure: Capacity = FTE × 60 / Process Time.

Note on broader FTE usage: In process analysis, FTE reflects productive availability during scheduled hours. In accounting and HR contexts, FTE can also account for overtime. An employee working an 8-hour shift at 100% availability is 1.0 FTE. If the same employee works 1 hour of overtime, their FTE becomes 1.125 (9/8). The calculator uses the process definition (availability-adjusted), but organizations tracking labour costs may see higher FTE figures when overtime is factored in.

Why It Matters

Using headcount alone overstates your capacity. FTE gives a realistic picture of the productive workforce, accounting for the fact that no one works at 100% availability all day. When calculating labour costs and capacity, FTE is the correct basis, not raw headcount.