1. Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day.

Efficiency is 87.50% and Utilization is 70%

Explanation:

Actual ouput = 7 loans per day

Effective capacity = 8 loans per day

Design capacity = 10 loans per day

Therefore,

Efficiency = actual output:effective capacity*100%

= 7 : 8 * 100%

Efficiency = 87.50%

Utilization = actual output:design capacity*100%

= 7 : 10 * 100%

Utilization = 70%