77.7k views
3 votes
Suppose a service process has the following metrics: Total Direct labor Content = 280, Process Cycle Time = 65, and Number of Workers = 6. What would the Direct Labor Utilization be?

1 Answer

6 votes

Answer:

The Direct Labor Utilization is:

71.8%

Step-by-step explanation:

Data and Calculations:

Total Direct labor Content = 280

Process Cycle Time = 65

Number of Workers = 6

Available labor time = Process Cycle Time * Number of Workers

= 65 * 6 = 390

The Direct Labor Utilization = Direct labor content/Available labor time * 100

= 280/390 * 100

= 71.8%

The direct labor utilization rate shows the usage of direct labor for actual production as opposed to idle time.

User Space
by
8.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories