Problem 5-1 Determine the utilization and the efficiency for each of these situa

Question

Problem 5-1 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 15 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 7 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 . If the design capacity is relatively , the utilization could be even though the efficiency was .

Explanation / Answer

a)

Utilization (%) = (6/8)*100 = 75

Efficiency = (8/15)*100 = 53.3

b)

Utilization(%) = (3/7)*100 = 42.9

Efficiency (%) = (7/9)*100 = 77.9

c)

No, It is not necessary that systems that have higher efficiency ratios have higher utilization ratios. The same can be seen in the above examples too.

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