Determine the utilization and the efficiency for each of these situations A loan processing operation that processes

QUESTION:

Determine the utilization and the efficiency for each of these situations:

(a) A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day.

(b) A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the effective capacity is five furnaces a day.

(c) Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems? Explain.

ANSWER:

(a)

https://lh3.googleusercontent.com/xzfS_WEeUvexzWvR2VdjFLlVKr7AZNDWuJkGL_44i7Uk8W0ApKsQCWg9pVhrHhOgwWEO8IYR6OGVbi5NsmAq5uOrx5c2HAjJSYa6LvBcAGFC_0ssSnpVcnDDbwAmDnzjQdtBH8guEj1VENdH9w

https://lh5.googleusercontent.com/Oa0QYbuCm8xU3pFrvdUZFFbSliXEo-Sx7de3XkpuRt-08CmpYufTKixr3AQ6fTbyI8iAfoyN2mMz5e6Xkp227r-b1B2qCLcBcm_OJKZA3NRay1kzhd0tMTkevWeGlLTH5i-CN3mvInLmAZcv7g

(b)

https://lh6.googleusercontent.com/B7MMPiBehC1xmUPNVd-XOkSvW_lqV2I7KDdM5E_lR4x-w9QxECWzFfRRonb8poun6o2jIzQ5c2zy0NG1lC6TFVRN1u87ARQARs73mWsO43R-3j_U-jDgfucrQmQAKc3-yabyXxzG7bNglsqGIg

https://lh5.googleusercontent.com/8dIEVPDFxxqMpt2Gf7HfEj2yO4E1Qr2Bao59rRx1d0CFWAOgqy80d5PeQjP_ZjNc8L0Bdxlz2WuHDpIdGYRWlSLY3DAyV_5ehd6QI2e_W98npbdUO0QURHTP90T5BGCyPhXjBDV2MAhVn24qFw

(c) This is not necessarily true. If the design capacity is relatively high, the utilization could below even though the efficiency is high.

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