Measuring Performance
When employees cannot perform their work within standard times, performance can suffer. Effective training can increase performance by improving the skills that directly impact the quality of output. A skilled operator knows how to measure work, understands the impacts of variability, and knows to stop production for corrective actions when quality falls below specified limits. Accurately measuring this metric with OLE can pinpoint performance improvement opportunities down to the individual level.
Calculation: Performance = Actual output of the operators / the expected output (or labor standard)
Example:
Two employees (workforce) are scheduled to work an 8-hour (480 minute) shift with a 30-minute scheduled break.
Available Time = 900 Min Sched – 120 Min Unsched Downtime = 780 Minutes
The Standard Rate for the part being produced is 60 Units/Hour or 1 Minute/Unit
The Workforce produces 700 Total Units during the shift.
Time to Produce Parts = 700 Units * 1 Minutes/Unit = 700 Minutes
Performance = 700 Minutes / 780 Minutes = 90%
Read more about this topic: Overall Labor Effectiveness
Famous quotes containing the words measuring and/or performance:
“As an example of just how useless these philosophers are for any practice in life there is Socrates himself, the one and only wise man, according to the Delphic Oracle. Whenever he tried to do anything in public he had to break off amid general laughter. While he was philosophizing about clouds and ideas, measuring a flea’s foot and marveling at a midge’s humming, he learned nothing about the affairs of ordinary life.”
—Desiderius Erasmus (c. 1466–1536)
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—Faye J. Crosby (20th century)