Labor Utilization Calculations A Superintendent on the ABC project is concerned about the rate of progress on the job - it is fully staffed, but the schedule keeps slipping. She conducted a brief...




Labor Utilization Calculations


A Superintendent on the ABC project is concerned about the rate of progress on the job - it is fully staffed, but the schedule keeps slipping. She conducted a brief study to observe the work practices of the crew. A study determined the number of people performing activities as follows:


Workers observed:  184


Workers performing Effective work  :  92


Workers performing Essential (contributory) work:  43


Workers performing Non-useful (Ineffective) work: 48                  -


a. Calculate the labor utilization factor. LUF


b. Explain why the PPC value is preferred for measuring performance in lean projects.



For reference (similar solved question ) = a) A project superintendent has some concerns about this progress of the XYZ project. She asks for some sampling studies to be carried out.



(Show calculations if possible)



A field rating yields the following results:



·       Workers on site:95



·       Workers observed:79



·       Number seen working:32



a) Calculate and enter the adjusted field rating index_________________________________



YOUR ANSWER:



ANS a) Field rating index = Number seen working/ Workers observed.



Workers observed= 79



Number seen working= 32



Field rating Index = 40.5%



10% added for adjusted field rating Index




Adjusted field rating Index = 40.5+ 10 = 50.5%



ANS b) Labor utilization factor



Workers observed = 90



Number seen working = 39



Number seen doing essential contributory work = 10




Labor utilization factor = ((39+(1/4) *10))/90 = 46.1%








ANS c) In the field rating index, a satisfactory performance might be considerably higher that 60%. In this case, we have 50.5% doing work and the rest are doing ineffective work with accounts for 49.5%. these values allow to identify how much work % is being put into the activities. Actions have to be taken by the managers or supervisors to be able to improve their productivity. The same goes for the labor utilization factor.


Dec 09, 2021
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