In the LINQ model, People perform Actions and in so doing, LINQ records how their capacity is being utilised.
It is important to appreciate what the ‘People’ node represents in LINQ. It is not a whole Person, rather it is the utilisation of a person’s time taken to perform an Action. One person’s overall utilisation will typically be represented by multiple People nodes in a LINQ diagram.
In a typical organisation, about 80% of the costs in an Information Supply Chain are incurred as People perform Actions. LINQ calculates these costs by multiplying the person’s hourly cost by the frequency and duration of the Action being performed.
The person has a burdened hourly cost rate (R)
The action has a duration and a frequency:
- Duration (D): how long an action takes (in hours)
- Frequency (F): how many times a year an action occurs
Annual cost = R * D *F
People in LINQ therefore represent:
- The slice of a person that is performing a specific action
- The utilisation of a person based on the frequency and action of the action being performed
There are more connection tips about People and Actions here.