Labor Efficiency is a measure that correlates actual output against the anticipated output for a period of time. This metric is valuable as a means to understand and assess how well resources are being utilized to generate products.
Labor Efficiency with Ideal Cycle Time uses the theoretical time it takes to make a part versus using demand in the calculation. L2L offers both options. This option is better suited to sites not setting demand.
Labor Efficiency (with Ideal Cycle Time) = Earned Minutes/ Available Minutes
Available Minutes = Planned Minutes - Planned Changeover Minutes
Earned Minutes = Actual Parts * Ideal Cycle Time / 60
Planned Minutes are the number of planned minutes within a Pitch, Shift, Day, or Week.
Planned Changeover Minutes are the number of planned changeover minutes within a Pitch, Shift, Day, or Week. These minutes come from the Changeover Dispatch Type.
Actual number of pieces made
Ideal Cycle Time is looked up in the Cycle Times Table according to Planned Operator Count, Product, and Line.