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.