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28 May, 20:20

Precision Machinery has set standard times for its field representatives to perform certain jobs. The standard time allowed for routine maintenance is 0.4 hours (i. e., "standard output"equals2.5 jobs per hour). One of Precision's field representatives records the results below. Calculate the rep's efficiency for each customer and her average efficiency.

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  1. 28 May, 20:23
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    Efficiency is given as follows:

    Efficiency = (Actual Outputs/Standard Outputs) x 100%

    Actual Output (Units per Hour) = 1/Actual Time per Unit

    Standard Output (Units per Hour) = 1/Standard Time per Unit

    Thus, the efficiency formula can be rewritten as follows:

    Efficiency = (1/Actual Time Per Unit) / (1/Standard Time Per Unit) X 100%

    Efficiency = (Standard Time Per Unit) / (Actual Time Per Unit) X 100%

    For the Precision's field representative's case,

    Standard time = 0.4 hours per customer

    For ABC Company Actual Time is 1.4:

    E = 0.4/1.4 x 100% = 28.57%

    For Preztel Actual Time is 0.7:

    E = 0.4/0.7 x 100% = 57.14%

    For SCR Industries Actual Time is 1.1:

    E = 0.4/1.1 x 100% = 36.36%

    For BeetleBob Actual Time 0.8:

    E = 0.4/0.8 x 100% = 50%
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