How to calculate labor utilization?

Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter8: Producing Quality Goods And Services
Section8.7C: The Impact Of Automation, Robotics, And Computers On Productivity
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How to calculate labor utilization?

 

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Two significant execution measures are the normal labor utilization and the expense of direct labor. 

Normal labor utilization: Normal labor utilization is characterized as the all-out labor content partitioned by the amount of labor substance and all-out inactive time. In the event that, for instance, the complete labor content is 30 minutes and the all-out inactive time is 10 minutes, the normal labor utilization is 30/40 = 0,75 = 75%. The normal labor utilization subsequently discloses to us the general presentation or efficiency of the cycle. 

 

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