Hello, Assume that a company produce 100 units of laptops in assembly line process, using the...
Hello,
Assume that a company produce 100 units of laptops in assembly line process, using the bellow information, calculate the throughput ratio to measure the process efficiency:
Process time = 11 hours , Waiting time = 2 hours
Could you please answer with an explaination ? As I know here we are supposed to use the throughput ratio expressed as a percentage.
Thanks in advance :)
Homework Answers
Throughput ratio can be defined as the return per factory hour divided by the cost per factory hour.
which is 11/11+2 = 11/13 = 0.8461
which is equal to the process efficiency = 84.61%
The ratio means that company is paying its resources for 13 hours ( 11 productive and 2 non productive hours), but it is getting a work worth 11 hours only. Hence the efficiency of 84.61%.
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