Labor Efficiency is a measure which 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 product.
Definitions and Calculation

 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 is the amount of product actually produced during the Pitch, Shift, Day, or Week

 Planned Production Minutes is taken from the Production Pitch Boards. These minutes are determined during the scheduling of the pitch board.
 Demand is the amount of product that must be produced during the Pitch, Shift, Day, or Week to meet customer needs
Substituting in the equations for the terms and reducing produces:
The Line Pitch Board (Production > Pitch Board) and the Product information (Production > Products) contains the information required to calculate the Labor Efficiency value.
Pitch Calculation
Example: Pitch is from 14:0015:00 with a 15minute planned break; no changeover is planned during the pitch, demand is 42 units, and actual production is 41 units.
 Available Minutes = 45 – 0 = 45
 Planned Cycle Time = (45 / 42) * 60 = 64.2857
 Earned Minutes = (41 * 64.2857) / 60 = 43.9286
Labor Efficiency = 43.9286 / 45 = 97.62%
MultiplePitch Calculation
Example Data: Each row is data for a pitch; data acquired from the Pitch Board is in white; the CRBN333NON changeover time in the Products information is 56 min.
Labor Efficiency for All Pitches
 Planned Minutes for All Pitches = Sum of Planned Minutes per Pitch = 45 + 60 + 50 + 60 + 45 + 60 + 30 + 60 + 45 + 60 + 50 + 60 = 515
 Planned Changeover Minutes for All Pitches = Sum of Planned Changeover Minutes per Pitch = 56
 Available Minutes for All Pitches = Planned Minutes for All Pitches – Planned Changeover Minutes for All Pitches = 515 – 56 = 459
 Planned Production Minutes for All Pitches = Sum of Planned Production Minutes per Pitch = 45 + 60 + 50 + 60 + 45 + 60 + 30 + 60 + 45 + 60 + 50 + 60 = 515
 Demand for All Pitches = Sum of Demand per Pitch = 48 + 64 + 33 + 64 + 48 + 64 = 321
 Planned Cycle Time for All Pitches = (Planned Production Minutes for All Pitches / Demand for All Pitches) * 60 = (515 / 321) * 60 = 96.26
 Actual for All Pitches = Sum of Actual per Pitch = 65 + 35 + 64 + 48 + 28 = 240
 Earned Minutes for All Pitches = (Actual for All Pitches * Planned Cycle Time for All pitches) / 60 = (240 * 96.26) / 60 = 385.05
 Labor Efficiency for All Pitches = Earned Minutes for All Pitches / Available Minutes for All Pitches = 385.05 / 459 = 83.89%
Under Production > Settings, the label for the Labor Efficiency metric can be customized as well as the numerical precision (decimal places). The equations for the metric and its components are also available.
Prorating
This metric will be prorated in certain areas of the application. Please see the article on Prorated Production Metrics for more information.
Comments
0 comments
Please sign in to leave a comment.