Question

Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an average of 5 loans per day. The operation has a design capacity of 11 loans per day and an effective capacity of 9 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 4 furnaces a day if the design capacity is 8 furnaces a day and the effective capacity is 6 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 ((Click to select) A. If the design capacity is relatively ( (Click to select) 9), the utilization could be ((Click to select) A even though the efficiency was (Click to select) ).

Answer 1

a. Utilization = (Actual Output/Design Capacity)*100

= (5/11)*100

= 45.5%

Efficiency = (Actual Output/Effective Capacity)*100

= (5/9)*100

= 55.6%

b. Utilization = (4/8)*100

= 50%

Efficiency = (4/6)*100

= 66.7%

c. This is not necessarily true, if the design capacity is relatively High, the utilization could be low, even though efficiency was high.

Based on the formula, the utilization depends on the design capacity a d hence this would vary accordingly.