Labor Efficiency measures actual output against anticipated output for a given 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
- Available Minutes = Planned Minutes − Planned Changeover Minutes
- Actual is the amount of product actually produced during the Pitch, Shift, Day, or Week.
- Planned Cycle Time = (Planned Production Minutes / Demand) × 60
- Planned Production Minutes are taken from the Production Pitch Boards. These minutes are determined during pitch board scheduling.
- 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 Product information (Production > Products) contain the inputs used to calculate Labor Efficiency.
Pitch Calculation
Example: The pitch runs from 14:00-15:00 with a 15-minute 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%
Multiple-Pitch Calculation
Example data: Each row represents one pitch. Data acquired from the Pitch Board is shown in white, and the CRBN333NON changeover time in Product information is 56 minutes.
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, you can customize the label used for the Labor Efficiency metric and set its numerical precision (decimal places). The metric equations and component equations are also available there.
Prorating
This metric is prorated in some areas of the application. For more detail, see Prorated Production Metrics.