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Determine the utilization and the efficiency for each of these situations:

a. A loan processing operation that processes an average of 4 loans per day. The operation has a design capacity of 15 loans per day and an effective capacity of 13 loans per day. (Round your answer to 1 decimal place. Omit the "%" sign in your response.)

Utilization _____%

Efficiency _____%

b. A furnace repair team that services an average of 5 furnaces a day if the design capacity is 7 furnaces a day and the effective capacity is 6 furnaces a day. (Round your answer to 1 decimal place. Omit the "%" sign in your response.)

Utilization ________%

Efficiency ______%

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

This is not necessarily true or false. If the design capacity is relatively high or low , the utilization could be low or high even though the efficiency was high or low.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92491443

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