Full Time Equivalent

1 Definition

The amount of resource equal to one person employed full time in an organisation. Can be used in Lean Six Sigma to estimate benefits from waste reduction. One FTE saved can be converted into money using either direct employment costs or full employment costs with overheads (as advised by the finance department). As "FTE's saved" can raise prospects of redundancy and reduce morale, it may be better to express LSS savings as "capacity increase in FTE's".