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