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Correct Efficiency formula

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LaneDawg

LaneDawg

Industrial
Joined
Mar 25, 2008
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2
Location
US
A question has arisen in our department on the correct formula to use for Labor Efficiency using downtime.

Option 1 : (Hours allowed + downtime)/Hours worked

Option 2 : (Hours allowed)/(Hours worked - downtime)

All input is appreciated!
 
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The equations should have been:

Option 1 : (Hours EARNED + downtime)/Hours worked

Option 2 : (Hours EARNED)/(Hours worked - downtime)

Again, all input is appreciated!
 
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