Certified Production & Operations Manager (POM) Practice Exam

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What would efficiency be given effective capacity of 50 units, design capacity of 100, and actual output of 30 units?

The correct answer is: 60%

To determine efficiency, you can use the formula: Efficiency = (Actual Output / Effective Capacity) × 100% In this context, the effective capacity is provided as 50 units, and the actual output is given as 30 units. Plugging these values into the formula gives: Efficiency = (30 units / 50 units) × 100% = 60% This calculation illustrates that efficiency measures how well the effective capacity is being utilized in terms of actual output. A 60% efficiency suggests that 60% of the operational capability (effective capacity) is being realized through actual production. In this scenario, while design capacity is also part of the context, it is primarily the effective capacity that is relevant for calculating efficiency focused on actual performance metrics. Thus, the result aligns with the mathematical computation for efficiency based on the provided values.