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
Definitions
Available Minutes are the number of minutes available for production during a Pitch, Shift, Day, or Week after planned changeover time is removed.
Earned Minutes are calculated as Actual Parts multiplied by Ideal Cycle Time, divided by 60.
Actual are the number of pieces made.
Ideal Cycle Time is looked up in the Cycle Times table according to Planned Operator Count, Product, and Line.