Determine the utilization and the efficiency for each of these situations: a. A
ID: 398934 • Letter: D
Question
Determine the utilization and the efficiency for each of these situations:
a. A loan processing operation that processes an average of 6 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 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 3 furnaces a day if the design capacity is 9 furnaces a day and the effective capacity is 5 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 "low or high?_____, the utilization could be "low or high?"_____ even though the efficiency was "low or high?"_____
Explanation / Answer
Answer a:
Actual output= 6
Design capacity= 10
Effective capacity= 8
Now Utilization= actual output/ design capacity = 6/10 = 0.6, 60%
And Efficiency = actual output/effective capacity = 6/8 = 0.75, 75%
Answer b:
Actual output= 3
Design capacity= 9
Effective capacity= 5
Now Utilization= actual output/ design capacity = 3/9 = 0.333, 33.3%
And Efficiency = actual output/effective capacity = 3/5 = 0.6, 60%
Answer c:
This is not necessarily "True” If the design capacity is relatively "low”, the utilization could be "high" even though the efficiency was "low".
We can deduce this bye considering the above examples: In second case the design capacity was high, but utilization was low, if the actual output changes to 4 , then the efficiency would have been 80%.
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