Productivity and Efficiency

Efficiency

Efficiency compares standard hours with actual labor hours.

highlighted = computed this step

Divide standard by actual

Efficiency is standard hours divided by actual hours.

efficiency=standard hours/actual hours\text{efficiency}=\text{standard hours}/\text{actual hours}
Labor ratiosThe table exposes productivity, standard hours, and efficiency.labor ratiosvalueproductivity4standard hours96/5efficiency4/5

Efficiency

Efficiency is 4/5.

96/5/24=4/596/5 / 24 = 4/5
Labor ratiosThe table exposes productivity, standard hours, and efficiency.labor ratiosvalueproductivity4standard hours96/5efficiency4/5