Workforce, Labor Standards & Skills Planning worked example

Labor Efficiency at 65% target labor efficiency: a worked example

This worked example runs the labor efficiency numbers for a tougher week than the baseline: 65% target labor efficiency instead of the typical 90%. Measure labor efficiency for Workforce, Labor Standards & Skills Planning — earned standard hours as a percentage of actual hours worked.

The inputs for this scenario

  • Earned (standard) hours from routings: 340 hr (held at the documented default)
  • Actual clocked hours worked: 400 hr (held at the documented default)
  • Target labor efficiency: 65 % (the input this scenario stresses; the baseline uses 90)

Working through the calculation

  • The calculation starts from the formula this tool documents: Labor efficiency = earned (standard) hours ÷ actual hours worked.
  • Labor efficiency works out to 85 % at these inputs, and this is the headline figure for the scenario.
  • Gap to target works out to -20 points at these inputs.
  • Earned standard hours works out to 340 value at these inputs.
  • Actual hours worked works out to 400 value at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where target labor efficiency sits at 90% and the headline result is 85 %, this scenario lands almost exactly on the baseline at 85 %.
  • Use it at the end of each shift, cell, or work order to compare earned time against clocked time and catch drift before it hits your labor variance report. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Labor efficiency: 85 % (headline result)
  • Gap to target: -20 points
  • Earned standard hours: 340 value
  • Actual hours worked: 400 value

Run it with your numbers

  • To rerun this with your own numbers, open the live Labor Efficiency calculator, set target labor efficiency to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.