Efficiency And Target Calculation

Engr. Motahar Hosen

B.Sc. in IPE(SUST), MBA(EWU),
MEcon in Environmental Economics(DU)

1
 Time Perspective

What is Input for a team or line?

What is Output for a team or line?
 Some Formula
1. Input minute= Manpower*Working Time
2. Output minute= SMV * Production Quantity

3. Efficiency= (SMV * Production Quantity/ No

of Manpower*Working Time)*100%
OR
Efficiency=(Output Minute/Input Minute)*100%

4. Target = Manpower*Working Time

/SMV
Q-1: Based on below table answer the following
question?

Product Type Jeans Jacket

SMV 3o min 40 min

Manpower 40 40
Working min 60 60

Production 50 40
Quantity
 Question?

1. What is input minute for Jeans and Jackets?

2. What is output minute for Jeans and Jackets?
3. Which product is superior in terms of
production quantity?
4. Which product is superior in terms of
efficiency? Justify your answer with efficiency
formula.
5. Which Product is maximizing profit and Why?
 Solution

1. Input minute: 2. Output minute:

Jeans: 40*60=2400 min Jeans: 30*50=1500 min
Jacket: 40*60=2400 min Jacket: 40*60=1600 min

2. Superior in terms of production

quantity:
Jeans
 Solution Cont.…..
3. Which product is superior in terms of efficiency? Justify your
answer with efficiency formula.
Jeans:
Efficiency = (SMV * Production Quantity/ No of
Manpower*Working Time)*100%
= (30*50/40*60)*100%
= 62.50%
Jacket:
Efficiency= (SMV * Production Quantity/ No of
Manpower*Working Time)*100%
= (40*40/40*60)*100%
= 66.67%

## Jacket:
 Solution Cont.…..

4. Which Product is maximizing profit and Why?

Jacket is maximizing profit because this product utilizes

manpower more.
Question: The below information is of a sewing
line details:

Product SMV:10 min

Working Time: 1 hours or 60 minute
No of Manpower: 25 (22 operators & 3
Helpers.)

# What is the target at 100% and 80% efficiency

level?
 Solution
Target = Manpower*Working Time /SMV

At 100% Efficiency:
Target = (25*60 /10)* 100%
= (1500 / 10)* 1
= 150 Pcs

At 80% Efficiency:

Target = (25*60 /10)* 80%

= (1200 / 10)* .80
= 120 Pcs
Thanks'