Herein lies the difference between those who haven't been there, but think there's a punchline to be found in there somewhere (and many do laugh), and those who have been there but might still be able to laugh, despite hearing it way too often:
bioengr82: the absolute number is relevant when you are a consultant and need to be accountable for every hour of your time
metengr: Being billable does not equate to productive. Look at lawyers or consultant engineers
It's my experience that consultants are more productive than their client counterparts. This is largely due to the fact that consultants can (must, really) focus on "value-added" work, instead of meetings, meetings, phone calls, meetings, delegating tasks to subordinates, meetings, starting to work but being interrupted by the phone, more meetings, and a few more phone calls. Back when I was a consultant, I averaged about 115% billable (because 100% was defined as 40hrs/wk of billable time, which is what the overhead rates were based upon) and about 10hrs of overhead on top of that to manage various projects. I don't think I ever exceeded 225% billable in any week, but (excluding vacations, holidays, and sick days, all of which your department is penalized for) I rarely was less than 80% billable. Billable work at my organization was time during which you could look the client in the eye (if asked) and explain to him exactly how the work you were doing at that instant added value to his project. For a time and materials project, being billable was what determined how much the company earned (or how quickly you could move on to the next job). For a fixed-cost job, being billable determined, well, pretty much the same things. The company would REALLY make money if they could send you out to a client site for a few weeks, squat a contractor at your desk to leave crumbs in your files, and send you work from another client to do from the hotel in the evenings (since you weren't doing anything else anyway).
At another job, I'd spend a good 60% or more of my time in meetings, and a large portion of the rest of my time answering questions posed by coworkers who either walked up or phoned. Before 7am I could be "productive," then it'd be 5pm or 6pm before I could get anything productive going again. One thing that helped to keep me sane was that I'd had a number of people helping me who were (somewhat) insulated from all the meetings and questions, and who could "keep the trains running on time" and get me the correct answers at a moments notice (well, more like 30mins notice).