This measure calculates the percentage of direct labor in manufacturing that is available for manufacturing activities. Direct labor refers to labor full-time equivalent (FTE) employees who produce a specific product or provide a specific service in manufacturing. This measure is part of a set of Process Efficiency measures that help companies optimize the performance of their "produce/manufacture/deliver product" process by minimizing waste and refining resource consumption.
Percentage of direct labor in manufacturing that is available for manufacturing activities
Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.