Determine the utilization and efficiency for each of the following situations.


a. A loan processing operation that processes an average of 7 loans per day. The operation has a

design capacity of 10 loans per day and an effective capacity of 8 loans per day.


b. A furnace repair team that services an average of four furnaces a day if the design capacity is

six furnaces a day and the effective capacity is five furnaces a day.


c. Would you say that systems that have higher efficiency ratios than other systems will always

have higher utilization ratios than those other systems? Explain