Question

Imagine a resource takes 35 minutes to complete a production on a production line. Of the...

Imagine a resource takes 35 minutes to complete a production on a production line. Of the 35 minutes, 29 minutes of that is productive processing of a unit. For the 6 minutes the resource was idle, needing to pause and wait for other earlier processes to finish during the production.

What is the average labor utilization (round to the nearest %).

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Answer #1

Total time taken by labour resource to complete production of one unit = 35 minutes

Out of which,

Active involvement of labour ( on idle time ) to complete production of one unit = 29 minutes

Therefore,

Average labour utilization

= Active involvement of labour /Total time taken by labour x 100

= 29/35 x 100

= 82.85% ( 83% rounded to nearest %)

AVERAGE LABOUR UTILIZATION = 83%

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