Explore BrainMass

Explore BrainMass

    Operational Efficiency and Utilization

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Southeastern Oklahoma State University's business program has the facilities and faculty to handle an enrolment of 2,000 new students per semester. However, in an effort to limit class sizes to a "reasonable" level (under 200, generally), Southeaster's dean, Holly Lutze, placed a ceiling on enrolment of 1,500 new students. Although there was ample demand for business courses last semester, conflicting schedules allowed only 1,450 new students to take business courses. What are the utilization and efficiency of this system?

    © BrainMass Inc. brainmass.com October 2, 2022, 5:29 am ad1c9bdddf
    https://brainmass.com/business/operations-research/operational-efficiency-utilization-602443

    SOLUTION This solution is FREE courtesy of BrainMass!

    Question:
    Southeastern Oklahoma State University's business program has the facilities and faculty to handle an enrollment of 2,000 new students per semester. However, in an effort to limit class sizes to a "reasonable" level (under 200, generally), Southeaster's dean, Holly Lutze, placed a ceiling on enrollment of 1,500 new students. Although there was ample demand for business courses last semester, conflicting schedules allowed only 1,450 new students to take business courses. What are the utilization and efficiency of this system?

    Answer:
    Efficiency is defined as being the ratio of Actual Output to Effective Capacity. To calculate Efficiency you must determine the Effective Capacity of an operation. For example, does the company in question have a "target" or "benchmark" of some kind? Like total units produced per shift or customers served per hour. It helps to know what the ultimate Design Capacity of the system is because you can use such a number in calculating Effective Capacity.

    Efficiency = Actual Output/Effective Capacity x 100%
    Efficiency = 1,450/1,500 x 100% = 96.7%

    Utilization is defined as the ratio of Actual Output to Design Capacity and gives a better picture of how an operation is making the most of its potential.

    Utilization = Actual Output/Design Capacity x 100%
    Utilization = 1,450/2,000 x 100% = 72.5.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com October 2, 2022, 5:29 am ad1c9bdddf>
    https://brainmass.com/business/operations-research/operational-efficiency-utilization-602443

    ADVERTISEMENT