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16 January, 10:15

1. Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day.

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  1. 16 January, 13:26
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    Efficiency is 87.50% and Utilization is 70%

    Explanation:

    Actual ouput = 7 loans per day

    Effective capacity = 8 loans per day

    Design capacity = 10 loans per day

    Therefore,

    Efficiency = actual output:effective capacity*100%

    = 7 : 8 * 100%

    Efficiency = 87.50%

    Utilization = actual output:design capacity*100%

    = 7 : 10 * 100%

    Utilization = 70%
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