Does anybody understand these calculations?
I don’t understand why Epicor thinks the efficiency is 50% when the estimated labor and quantity match the actual labor and quantity.
Estimated and actual completed quantity: 25 pieces
Estimated and actual labor: 2 hours
Production standard: 25 pieces per hour
How is the efficiency not 100%?
I’m having a hard time understand how this works because if I change the production standard to 12.5 pieces per hour, then the estimated labor hours goes up to 4 and the estimated machine hours goes up to 2. But its supposed to take 1 machine hour and 2 labor hours to make 25 pieces.
Even though its showing estimated hours of 1 on this screen, my understanding is that is the estimated machine hours which do NOT count crew size.
On the production detail report, it (correctly) shows estimated LABOR hours of 2 hours.
It appears to me as if the production detail report is mixing apples and oranges.
Its taking the actual LABOR hours and dividing by the actual MACHINE hours and saying the efficiency is 50%. That’s totally illogical.