Asked by Gavin Laielli on Jul 23, 2024
Verified
A fleet repair facility has the capacity to repair 850 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 725 trucks per month. Last month, two of the employees were absent several days each, and only 483 trucks were repaired. What are the utilization and efficiency of the repair shop?
Utilization
The extent to which a resource, such as equipment or labor, is used for its intended purpose, often expressed as a percentage.
Efficiency
The ratio of the useful output to the total input in any system, reflecting how well resources are utilized without waste.
- Compute and explain the usage and productivity of company processes.
Verified Answer
SB
sheika bondsJul 25, 2024
Final Answer :
Design Capacity = 850 trucks
Effective Capacity = 720 trucks
Actual Output = 483 trucks
Utilization = actual output design capacity \frac { \text { actual output } } { \text { design capacity } } design capacity actual output = 483/850 = 56.82%
Efficiency = actual output design capacity \frac { \text { actual output } } { \text { design capacity } } design capacity actual output = 483/720 = 67.08%
Effective Capacity = 720 trucks
Actual Output = 483 trucks
Utilization = actual output design capacity \frac { \text { actual output } } { \text { design capacity } } design capacity actual output = 483/850 = 56.82%
Efficiency = actual output design capacity \frac { \text { actual output } } { \text { design capacity } } design capacity actual output = 483/720 = 67.08%
Learning Objectives
- Compute and explain the usage and productivity of company processes.
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