Asked by Kelly Bazely on Jul 08, 2024
Verified
A fleet repair facility has the capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each, and only 400 trucks were repaired. What are the utilization and efficiency of the repair shop?
Fleet Repair Facility
A dedicated center for the maintenance and repair of a collection of vehicles, ensuring they remain operational and safe.
Utilization
The extent to which a resource, such as equipment or labor, is being used effectively, typically expressed as a percentage of total available capacity.
Efficiency
The ratio of the output generated to the input used, expressing the effectiveness of a system or process in utilizing resources.
- Comprehend the differences among design capacity, effective capacity, utilization, and efficiency.
Verified Answer
Effective Capacity = 600 trucks
Actual Output = 400 trucks
Utilization = actual output design capacity \frac { \text { actual output } } { \text { design capacity } } design capacity actual output = 400800\frac { 400 } { 800 }800400 = 50.0%
Efficiency = actual output design capacity \frac { \text { actual output } } { \text { design capacity } } design capacity actual output = 400600\frac { 400 } { 600 }600400 = 66.7%
Learning Objectives
- Comprehend the differences among design capacity, effective capacity, utilization, and efficiency.
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