What is the ratio of standard hours of work produced to hours actually worked called?

The ratio of standard hours of work produced to hours actually worked is referred to as efficiency. This concept measures how effectively a workforce is performing relative to the potential output based on standard time. In essence, efficiency provides insight into the productivity of the labor force by comparing actual performance against predetermined standards.

When companies analyze efficiency, they aim to understand how well resources, particularly labor hours, are being utilized to meet production targets. A higher efficiency ratio indicates that workers are completing tasks more quickly or effectively than the standard, while a lower ratio suggests there may be issues such as bottlenecks, inadequate training, or other operational challenges.

Other terms like effectiveness and utilization, while related, focus on different concepts. Effectiveness generally assesses how well processes are achieving their intended outcomes, and utilization measures the extent to which available resources (labor, machinery, etc.) are used compared to what is possible. Uptime is more concerned with the availability of equipment or systems rather than labor productivity. Thus, efficiency is the most accurate term for describing the output in relation to the time worked.