Labor Efficiency with Ideal Cycle Time

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.

Actual number of pieces made

Ideal Cycle Time is looked up in the Cycle Times Table according to Planned Operator Count, Product, and Line.