Hi All – It would be of great support, if any of you could assist me in arriving at individual and team Utilization, Productivity and Efficiency in the given scenario: There are three products (GFE, TIL, HUD) and while working on any of these products there could be three different outcomes – Decisioned (30 mins to complete one transaction) or Sent for Clarification (20 mins to complete one transaction)or Out of Scope (15 mins to complete one transaction). Available hours is 9 i.e., (540 mins). How do calculate Utilization, Productivity and Efficiency for every individual and for the team?
Let me throw some light on your query:
Utilization : Number of actual hours spent / Number of available hours*100 (8 hours spent on production and 9 available hours so utilization is 8/9*100=88.88%
Please let me know if this works fine for you. For productivity I will provide after your confirmation.
Lakshmi thanks for your response! It did help me and my calculation was also in the same line for utilization.
I just want understand that which are the matrix are impacting on scheduling efficiency and How ?
Sarguna.. I have a point to make on the process based on your desciption (I am sure you have already observed it).. if your process takes 15 minutes per transaction to decide if it is out of scope and does not need to be processed at all or 20 minutes per transaction to understand what clarifications are needed to proceed further for an overall 30-minute trasaction.. then you you are likely to have huge amounts of waste in your process (time spent on out of scope & clarification cases) and clearly needs a Lean diagnostic study. As a principle, if the process has to fail (out of scope/clarification) then make it fail as early in the value stream as possible.. good luck!
Utilization, Productivity and Efficiency Calculations
Anyone ls help me
A conference center has the physical ability to accommodate 1,100 participants. However, the conference management personnel believe that only 1,000 participants can be handled effectively for most events. Although the last event was forecasted to have 1,000 participants, only 950 participants attended. Calculate the utilization and efficiency of the conference facility.
@Elle — What do you think? How would you approach this question?
iSixSigma readers are generous with help, but they are not here to do your homework for you.
How to measure labor performance (if productivity data not available, but overall labor efficiency data available)?
Hi guys. Can anyone help me on this matter please? I am calulating the resource utilization: actual time worked(ss)/ss available in one hour.Do you still take off the 15% from the ss available in one hour??? Thanks
I would average the two maximum attendees (1000 + 1100 /2 = 1050)
Then, I would use that number and the actual attendee count (950) to arrive at my utilization rate (950/1050=0.9047619047619048 x 100 = 90.48% utilization rate).
That’s my $.02 – your mileage may vary
Efficiency is = (actual output/Effective capacity), effective capacity would be your benchmark or target set for that task.
Utilization is = (actual output/designed capacity), designed capacity is the target which can be achieved under ideal condition for e.g you have 8 hr/day to work , 8 hrs would be your designed capacity but in real time you are working 7 hrs (excluding break, and ideal time) so 7 hrs is your effective capacity.
Productivity is simple (output/ input) but it is always multi-factor for e.g total cost for you is $200 a day and you produce 80 units a day then your productivity would be 80/200 unit/$