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Precision Machinery has set standard times for its field representatives to perf

ID: 417819 • Letter: P

Question

Precision Machinery has set standard times for its field representatives to perform certain jobs. The standard time allowed for routine maintenance is 10 hours (i.e., "standard outpu"-0.1 jobs per hour). One of Precision's field representatives records the results below. Calculate the rep's efficiency for each customer and her average efficiency. Customer ABC Company Preztel SCR Industries BeetleBob Actual time required to perform routine maintenance 10.5 hours 8.5 hours 19.4 hours 6.6 hours Calculate the rep's efficiency for each customer. Fill in the table below (enter your responses rounded to one decimal place) Actual time required to perform Eficiency Customer ABC Company Preztel routine maintenance 10.5 hours 8.5 hours 95.2%

Explanation / Answer

Standard time allowed for routine maintenance is 10 hours. So Standard output = 1/10 hours = 0.1 jobs per hour

Efficiency = (Actual output / Standard output) 100

So using the above formula we will calculate the efficiency for each customer

Average efficiency = Sum of the efficiency for each customer / number of customers

= (95% + 118% + 52%+152%) / 4

= 417% / 4

= 104.3%

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