If the cycle time increases--and everything else remains constant--average labor utilization decrease.
The average labor utilization is defined as the total labor content divided by the sum of labor content and total idle time. The average labor utilization thus tells us the overall performance or productivity of the process.
Average labor utilization = labor content / (labor content plus idle time)
Cycle time is the time taken from the start of production of a particular unit to the completion of production. So, it is an internal metric and may not be visible to the customer. It signifies the effort spent on making the product.
Cycle time = Production time + Waiting time for Production
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