Question

Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems? Explain.

Answer 1

Complete Question:

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.

b. A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the

effective capacity is five furnaces a day.

c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than

those other systems? Explain.

Explanation:

It's not (true) actually. Whether the design capacity is comparatively (high), the utilisation could be (low) even though the efficiency was (high).

Utilisation = Output / Design capacity = $\frac{17}{10}$ x 100%

Efficiency = Output / Effective capacity = $\frac{7}{8}$

Utilisation = $\frac{4}{6}$

Efficiency  = $\frac{4}{5}$

U = 1000/2000

e = 1000/1000