Question: In the Efficiency calculation formula, you have mentioned this - Factory efficiency% = (Total minutes produced X 100)/Total minutes attended. I don't understand the difference between the terms Total Minutes Produced and Total Minutes Attended in above mention formula. Kindly help me out.
I would love to explain it to you. The difference between minutes produced and minutes attended/ minutes worked terms are explained here.
The total minute produced is calculated from the production quantity and garment SAM. Let's say a line made 400 garments. Garment SAM is 25 minutes.
In this example total produced minutes by the production line = (400 x 25) minutes =10,000 minutes
Minutes attended are the total minutes worked by the employees in a line.
The minutes attended term is also called as minutes worked. In hours it is called as hours worked.
Let's say, in a production line, 30 operators worked full shift (8 hours a day) and they made 400 garments. Here per operator attended minutes are 480 minutes. Total attended minute by 30 operators in that line will be 480x30 = 14,400 minutes.
Therefore, the efficiency of this line would be = (10,000/14,400)x100 =69.44%
The same way total minutes worked and total produced minutes are calculated for individual operators as well. For individual operators, you need to consider the SAM of the operation(s) done by the operator. Let's operator made 600 garments for one operation and SAM of that operation is 0.5 minutes. Here, Minutes produced by that operator is 600x0.5 minutes = 300 minutes.
The efficiency of this operator is = (300/480)x100 = 62.5%
When you need to calculate factory efficiency, you need to calculate total minutes produced by all lines in your factory and total hours attended by all the employees working in the production lines.
I hope now you understand it. Let me know if you need more clarification on this.
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