**96% Efficient? What's your calculation?**

After speaking to several engineers, they told me that their plant runs 96% efficient on a their shop floor system. I’m thinking that there is no way possible that a plant can run 96%. Then, it dawned on me that they may have been talking about on-standard efficiency, not * real-efficiency*.

**I have illustrated 4 types of operator efficiency calculations below.**

- On-Standard Efficiency
- Off-Standard Efficiency
- Combined Efficiency
- Real Efficiency

How do you determine your efficiency?

**On-Standard efficiency** – This scenario is when you’re measuring the operator’s efficiency. They are sewing at their normal workstation performing the operation for which they have been trained. In a Real-Time shop floor, the operator scans the bundle ticket and starts sewing and continues throughout the day, scanning one bundle ticket after the other, no hiccups, no issues.

**How do you calculate On-Standard Efficiency?**

Efficiency = # of SAMs completed while on-standard/time it took to complete

For example: It takes 2 minutes to complete the operation. The operator completes 170 units x 2 minutes. The total SAMs would be 340.

Let’s say that the operator had 6 hours of on-standard work (6 hours = 360 minutes)

The equation would be 340/360 x 100 = 94.4% of “On-Standard” efficiency

**What is a SAM?**

**A SAM is Standard Allowed Minutes. The number of minutes spent performing your operation(s)**

**Off-Standard efficiency** – Off standard is when the operator is performing operations that aren’t standard. In other words, they have been asked to do operations that they haven’t been trained for, they’re on a “training curve”, or performing someone else’s work.

In a real-time shop floor environment, getting your supervisor approval is completed using a wireless tablet alerting your mechanic and/or supervisor that you are having an issue that needs to be addressed.

Additionally, the pay is automatically calculated with an off-standard rate.

In our example let’s assume the operators’ machine had mechanical problems and ran slow.

**How do you calculate Off-Standard Efficiency?**

Efficiency = # of SAMs completed while off-standard/time it took to complete

The operator still has 2 minutes to do the same operation but produces fewer because the machine wasn’t working properly. In 1.75 hours, they completed 80 SAMs (105 minutes).

The equation would be 80/105 x 100 = 76.1% “Off-Standard” efficiency

**Combined efficiency - On-Standard and Off-Standard Efficiency combined** – Combined is exactly what it says, On and Off Standard efficiency.

In a real-time shop floor control environment, the combined efficiency and rate are automatically calculated and reported.

In our example the employee had 6 hours of on-standard work, 1.75 hours off-standard because their machine ran slow.

Either way, their efficiency must be calculated using a combined on-standard/off-standard equation.

**How do you calculate Combined On-standard, Off-Standard Efficiency? **It is calculated the same way as the above example except you combine the SAMs completed and minutes it took to complete.

Efficiency = Combined SAMs/time it took to complete

The equation would be 420/465 x 100 = 90.3% Combined on-standard, off-standard efficiency

**Real Efficiency** – The real efficiency of the operator is when you consider the entire day. All 480 minutes of the day if it is an eight-hour shift.

**How do you calculate Real Efficiency?**

Efficiency = SAMs completed/Total minutes for the day

Going back to our example this operator produced 420 SAMs in an 8-hour shift (480 minutes). Is this an example of a typical day for your shop floor?

The equation would be 420/480 x 100 = 87.5% “Real efficiency”.

Throughout this blog, I’ve illustrated how efficiencies are calculated, but I have also intertwined the advantages of using a real-time shop floor solution. You can calculate all the same data using a batch system, but it will take more time and is less efficient when comparing to a real-time, wireless tablet, data collection system with push notifications.

**How do you determine your efficiencies? Is it efficient? Is it digital?**

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