3 A German car manufacturer defines ‘utilisation’ as the ratio of actual output for a process to its design capacity, where design capacity is the capacity of a process as it is designed to operate. However, it knows that it is rarely possible to achieve this theoretical level of capacity. This is why the company uses a measure that it calls ‘effective capacity’, which is the actual capacity of a process, once maintenance, changeover, other stoppages, and loading have been considered. The ratio of actual output for a process to its effective capacity is defined as its ‘efficiency’.

The company has a painting line with a design capacity of 100 m2 per minute and the line is operated 24 hours per day, 7 days a week (168 hours). Records for a week show lost time in production as given in Table 8.6 .
During this week, production was only 100 * 60 * (168 - 100) = 408,000 m2 per week. What is the painting line’s ‘utilisation’ and ‘efficiency’ according to the company’s definitions?