Question

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.

Answer 1

Answer:

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%