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Dear Sir,
Could you please help to specify whether there is any difference in the denominator of ratio ‘Return per factory hour’and ‘Cost per factory hour’?
Per F5 paper note, it indicate the denominator of ‘Return per factory hour’ as ‘time on key resource’. Whileas to ‘Cost per factory hour’, it using ‘total time available on key resource’.There is a big difference!
The denominator of return per factory hour is the time on key recourse, per unit.
The denominator of cost per factory hour is the total (limited) time available.
Have you watched my lecture on this (on this website)?
Dear John,
Thank you for your explanantion.
No, I haven’t watch your lecture. And I will do it now.
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