Answer to Question #193330 in Management for Stefanie Eduvala

Question

Compute performance eating of Juan in a given task with the Following information.

*Normal Time= 5 hours

*Standard Personal Time = 30 minutes

*Standard Allowance for Delay=10 minutes

*Actual time of work= 450 minutes

Compute the efficiency and utilization rate of a plant with the given data

Answer 1

Efficiency = $\frac{standard or normal labor hours}{Actual time for work} \times 100$

= standard normal labor hours $\div$ Actual time for work $\times$ 100

standard normal labor hours( 5$\times 60$ )= 300 minutes

Actual time for work = 450 minutes

Efficiency = $\frac{300}{450} \times 100= 66.67$ %

Utilization Rate = $\frac{ billabe time }{total hours availabe} \times 100$

Billable time = Standard time normal time - standard personal time- delays in time

= 300- 30 -10 = 260 minutes

Utilization Rate = $\frac{ 260 }{300} \times 100 = 86.67$ %