Question

Imagine a machine takes 50 minutes to complete one unit on a production line. Of the 50 minutes, 40 minutes was actual productive utilization. For 10 minutes the resource was idle, needing to pause and wait for other processes to finish during the production. What is the average labor utilization (round to the nearest %)

Answer 1

Answer:

80%

Explanation:

the average labor utilization rate is calculated by dividing total labor time applied by the addition of total labor time applied plus idle time. In this case, total labor time applied is 40 minutes and idle time is 10 minutes:

average labor utilization rate = 40 minutes / (40 + 10 minutes) = 40 / 50 = 0.8 = 80%