This
KPI measures the relationship between the number of hours that have
been sold and the number of hours that the Productives have been
available to work.
This
example shows that the Bodyshop has successfully sold more
hours than the Productives have Attended, therefore the Overall
Efficiency of the department is in excess of 100%.
Example:
A) Hours Sold = 1,130 B) Hours Attended = 1,040 C) Overall Efficiency = 108% (A ÷ B X 100)
Discussion:
The
direction and travel of this key performance indicator keeps you
informed of the balance and harmony that must exist between your
Utilisation and Productivity.
Overall Efficiency clearly demonstrates that there is little point in increasing one and ignoring the other.
Example:
A) Utilisation = 92%
B) Productivity = 114%
C) Overall Efficiency = 104.88% (A X B ÷ 100)