Manufacture: Labor Efficiency & MOTD

Manufacture: Labor Efficiency & MOTD

Data & Calculation

Manufacture performance can be measured in terms of labor efficiency and manufacture ontime delivery (MOTD).

Labor Efficiency =  Actual Output in hours / Available Hours over a period, for instance, month.

  • Actual Output in hours = sum of quantities x  standard time per unit for all components and/or products produced in the period.

 

  • Available Hours = Paid hours – unavailable hours due to vacation and medical leave in the same period.

MOTD (Manufacture Ontime Delivery):  It is to measure whether a job is completed on time or not.  A completed job has two dates:  original due date being set when a job is released and actual completed date when it is completed.

  • Delta = Actual_Completed_Date –Original_Due_Date.
  • If Delta >1, Late Delivery, else Ontime Delivery.

For a period, say Month-To-Day (MTD) or Year-to-Day (YTD)

  • MOTD % = 1- (no of late completion)/(total jobs)

You are always welcome to contact us to discuss how to start a project.