1. Determine the utilization and the efficiency for each of these situations & answer the question:

A) A shipping company has a vehicle repair department with the following data: Design capacity = 50 trucks per day Effective capacity = 40 trucks per day Actual output = 36 trucks per day

(1) State both formulas:

(2) Calculate both answers:

(3) Which should you focus efforts on – improving design capacity or effective capacity? Why?

B) A computer repair service has a design capacity of 80 repairs per day. Its effective capacity, however, is 64 repairs per day, and its actual output is 62 repairs per day.

(1) State both formulas:

(2) Calculate both answers:

(3) Which of the following factors would you recommend that the manager investigate: quality problems, absenteeism, or scheduling and balancing? Why.