### Syllabus B1bvi)

Explain and calculate labour efficiency, capacity and production volume ratios.

### Labour efficiency, capacity and production volume ratios

#### Labour Efficiency Ratio

The labour efficiency ratio measures the performance of the workforce by comparing the actual time taken to do a job with the expected time.

Labour Efficiency Ratio =

Expected hours to produce output x 100%

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Actual hours to produce output

#### Labour Capacity Ratio

The labour capacity ratio measures the number of hours spent actively working as a percentage of the total hours available for work.

Labour Capacity Ratio =

Number of hours actively spent working x 100%

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Total hours available

#### Labour Production Volume Ratio

The labour production volume ratio compares the number of hours expected to be worked to produce actual output with the total hours available for work.

Labour Production Volume Ratio =

Expected hours to produce actual output x 100%

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Total hours available