Definitions/Calculations

Efficiency Percentage

The efficiency percentage represents labor efficiency or machine efficiency, depending on the type of workcenter.  It is reported by operation.

Efficiency % =       Earned Hours       x 100

                         Direct Reported Hours

·     Earned Hours:  the hours earned on an operation.  This indicates the productivity of a machine (in a machine-paced workcenter) or an employee (in a labor-paced workcenter).

Earned Hours = Total Quantity Complete x Piece Rate

                                                               (in hours per piece)

·     Direct Reported Hours:  the actual hours reported by a machine or employee against an operation.

Manning Variance

In a machine-paced workcenter, labor hours reported against an operation are expressed in terms of a manning variance, which indicates how well manned the machine was.

Manning Variance = Labor Hrs Reported - (Machine Hours Reported x Number of Persons)
                                                                  Number of Machines

Utilization Percentage

The utilization percentage represents labor utilization or machine utilization, depending on the type of workcenter.  It is a measure of how well a machine or employee is being utilized.

Utilization % = Direct Hours Reported x 100

                     Total Hours Reported

·     Direct Hours Reported:  the total number of hours a machine or employee is actually working on an operation.

·     Total Hours Reported:  the sum of the direct, indirect and setup hours reported by a machine (in a machine-paced workcenter) or an employee (in a labor-paced workcenter).

·     Indirect Hours:  the hours spent by a machine or employee that are not directly related to an order.

·     Setup Hours:  the hours spent by a machine or employee in performing setup tasks.

Efficiency percentages are expressed at the machine/employee, shift, and workcenter levels.  Utilization percentages are expressed at the shift and workcenter levels.

In the summary report, calculated efficiency and utilization percentages are reported against actual percentages for a workcenter.  If the difference between the actual and calculated percentages is greater than the specified filter percentage, the workcenter is flagged for exception; a detail request is processed.

When possible, as-incurred variances (labor, manning and burden) will be calculated for master operations.  The variances will be booked when the order is closed.  The variances will not be calculated for master operations under the following circumstances:

The detail operations are fixed time operations( the piece rate on the master is zero)

The detail operations are all crew operations, but with different crew sizes ( the crew flag on the master is Y, but the number of persons is zero).

The detail operations are machine-paced, but have different machine sizes (the machine/labor paced flag = M, but the number of machines is zero).