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Topic Utilization, Productivity and Efficiency Calculations

Utilization, Productivity and Efficiency Calculations

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This topic contains 36 replies, has 9 voices, and was last updated by  Diego Sanchez 2 months, 3 weeks ago.

Viewing 37 posts - 1 through 37 (of 37 total)
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  • #203499 Reply

    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?

    #203773 Reply

    Hi Sarugna,

    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.

    #203781 Reply


    Lakshmi thanks for your response! It did help me and my calculation was also in the same line for utilization.

    #486191 Reply

    Chetan Kamble


    I just want understand that which are the matrix are impacting on scheduling efficiency and How ?

    #486361 Reply

    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!

    – marke

    #486381 Reply

    @sargunaduraid – evidently there are lots of newbies who like to do homework. They probably have as much competence in the situation as do you. Take their guidance with caution.

    @cseider – why didn’t you warn me about this one?

    #486733 Reply


    Utilization, Productivity and Efficiency Calculations

    #492074 Reply


    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.

    #492088 Reply

    @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.

    #492192 Reply


    How to measure labor performance (if productivity data not available, but overall labor efficiency data available)?

    #493729 Reply


    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

    #493755 Reply

    ss available?

    #500636 Reply


    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

    #500689 Reply


    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 $200 a day and you produce 80 units a day then your productivity would be 80/200 unit/$

    #504440 Reply


    how to calculate the efficiency if a person is multitasking and working for two processes which has different rph and quality, but not all the person in a team are multitasking. for ex: in a team size of 10 only 7 are multitasking and rest are working on a core process. these 7 works on a core process which has rph of 6 for process and 16 for qc
    where other process has core process rph 11 and no qc

    #505836 Reply

    venkat chada


    How to capture staff utilization, efficiency, productivity in hospital – both medical and non medical staff.

    How to make manpower mapping in hospitals?

    Appreciate if anyone can send on

    #506751 Reply


    What does it mean when your utilization percentage is above 100%?


    4 total employees working 2 Processes, one process is projected to take 20 min the other process is projected to take 65 min. For the process with a UPT of 20 min in a week they worked 164 items and for the process w/ a UPT of 65 min they worked 125.
    My Calculation is :
    Time spent on process/ Time available = (164*20)+(125*65)/((450*4)*5) = 126.72%

    My question: is this just a result of incorrect UPTs or is there a bigger problem with staffing?

    #507002 Reply

    Amit Chawla

    please help me the formula to calculate productivity in bpo/call centre

    #507731 Reply


    Hi ,

    Can any one help with one of my confusion , i am very new to a data managing industry so it would be great help if any one can help me on this.


    I have a process where in i have almost 1000 people are in production and i can not predict my work load as their is not fixed projection given by my Clint.

    In current scenario my target for complete 1 transaction is 120 second and my current average transaction per employee is 110-125( Depend Open the work load ).

    Now if management thinking about a Efficiency Engagement program what would be the content or how to make it ?

    #508573 Reply

    Praveen Kumar

    I have a question , Wht should be the target for Quality when you have a transitional process? and why?

    #514939 Reply


    #525019 Reply



    How do i calculate the efficiency i supposed to complete a task in 10 hours and i completed in 8 hours

    #525395 Reply

    Tan — How do YOU think you would calculate efficiency in that case? The iSixSigma audience is helpful, but they are not here to do your work for you.

    #540039 Reply



    I think all the formulas given here are already available in google search. Why we are not giving a basic suggestions without a formula. Which will be more helpful for somebody.


    #582451 Reply

    Isaac Rabin Okumu

    Utilization=worked hrs/available hrs, Efficiency =standard paid hrs/worked hrs, and Productivity =Utilization*efficiency. =standard paid hrs/available hrs. I hope that helps u out.

    #586216 Reply


    My designer worked on a project from start to finish May 1(first billed day) – May 26(last billed day), 160 total billable hours. My designer only billed their timecard for 120 hours. If no other projects were worked by them in this time period but they took breaks, had to go to other meetings, maybe had a day or two waiting for an answer to a question, does this equation tell me how efficient they were?

    (120 / 160)*100% = 75% efficient?

    I’m trying to more accurately predict the time required to complete a project based on the individual’s personal efficiency plus the “slop” that is incurred waiting on answers to questions, break in work, etc.

    #586293 Reply

    Theoretically, yes. However, if they were truly not working and waiting on answers, then this is not only inefficient, but wasteful. At the very least, they should be doing some training or other useful activity during such periods.

    #586514 Reply

    A billable hour may not be efficiently done. Don’t forget about the quality of output.

    #588371 Reply

    Though i belong to a separate industry, below is what i did for one of my project

    1. Divide the whole group of 1000 peoples in to separate divisions or groups.
    2. Build details process => Sub process => Activity => Activity based time – Best and worst time for the activity after conducting adequate measurements.
    3. Develop, finalize measurement for the key activities – process outcomes actual vs desired.
    4. Finally you will get your workload analysis and after that you will get your efficiencies.

    i hope this makes sense for you…

    Best of luck….

    #618130 Reply

    how to compute the effectiveness and efficiency of engineering department based on job order? how can i calculate it based only on drawings and it has different categories. per job order has different time to finish the drawings.

    #618739 Reply

    careful of going down a rabbit hole….

    #660603 Reply


    please assist with helping me formulate an equation that will help me calculate a performance score. I have two variables.
    i have number of good jobs and also average turn around time it takes for one complete a task

    #677371 Reply


    Hi Guy,
    How did you name Utilization (U) x Availability (A)? i-g U x A = ?

    #699529 Reply


    What formula do you use to figure out the non-billable rate

    #699662 Reply

    Sylvester Igunbor

    I greatly appreciate answers here very helpful

    #700841 Reply

    Esme Traube

    I need help in figuring out cost per hour.

    rate for my opex is $66

    Group has 2664 incidents a year, time $66 an hour, they took days to close a task. Days = 264 in hours

    they can prob do 10 incidents an hour

    I was thinking of this formula, but not sure if that is right.
    2664/10*66*264 = $4,641,753 COST

    not sure if my ‘they can do 10 incidents an hour’ is right to decrease the number of incidents

    #706569 Reply

    Diego Sanchez


    I need help with this problem, would you be able to help?

    I need to calculate efficiency, but I need to consider downtime.

    Target: 380 parts (breaks and lunches already taken into consideration)
    Parts per Hour: 50
    Downtime: 15 Minutes

    Actual pieces produced in a shift: 368

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