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LABOR ROUTING ACCURACY

Description: This measurement is created by the industrial engineering staff, and is intended to provide the production planning staff with a listing of the production times needed at all work stations through which a product must pass during the manufacturing process. By multiplying a product's labor routing by the number of units to be produced, the production planning staff can tell how much direct labor and machining time is needed to complete a production run. A labor routing accuracy level of 95% is considered the minimum acceptable level to plan production properly.

Formula: Summarize the total number of correct machining times and machine codes in each labor routing, and divide by the total number of line items in the routing. When calculating this measurement, a line item should be considered incorrect if either the machining time or the machine code (which identifies the correct work station to be used) is incorrect. Having one or the other correct does not mean that the entire line should be listed as correct for the purposes of the calculation. The formula is:


  

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