Chapter 1: Efficiency Example

incl. Solution

•GBUS1VO - General Business

Administration
•1st Semester, Bachelor Informatics
•Prof. (FH) Mag. Gerhard Kormann
•Gerhard.Kormann@fh-krems.ac.at
• Example: A taxi company operates 2 cabs. For each car 2
drivers are employed. The following figures have been
collected/calculated:
cab 1 cab 2
km per year 50.000 30.000
Fuel consumption l/100 km 10 12
Working hours per per day and 6 8
driver
Usage of car in hrs per day 12 16
Labour costs per month and 15.000 15.000
driver (14 times per year)
Revenue per year 840.000 630.000
Tours per year 1.500 3.600
Passengers per year 3.000 5.400
Operating days per year 300 300
Costs of cab excl. of fuel / km 5 5
Fuel price per l 8 8
 Efficiency
• Efficiency (total value, of all factors)
V revenue 840.000 630.000
= = 1,18 = 1,05
V total costs 710.000 598.800

• Labour V
=
revenue
V labour costs
840.000
420.000
= 2,0
630.000
420.000
= 1,5

• Operating facilities
V revenue 840.000 630.000
= = 3,36 = 4,20
V operating costs 250.000 150.000

V revenue 840.000 630.000

=
• Fuel V fuel costs 40.000
= 21,0
28.800
= 21,88
 Productivity
• Mixed total productivity
Q passengers
=
V labour cos ts + operating cos ts + fuel cos ts
3.000 5.400
= 0,004 = 0,009
420.000 + 250.000 + 40.000 420.000 + 150.000 + 28.800

Q tours 1.500 3.600

= = 0,002 = 0,006
V total costs 710.000 598.800

Q kilometers driven 50.000 30.000

= = 0,07 = 0,05
V total costs 710.000 598.800
 Productivity of labour
• Pure factor productivities
Q passengers 3.000 5.400
= = 0,83 = 1,13
Q working hours 2 x 6 x 300 2 x 8 x 300
Q tours 1.500 3.600
= = 0,42 = 0,75
Q working hours 2 x 6 x 300 2 x 8 x 300

• Mixed factor productivities

V revenue 840.000 630.000
= = 233,33 = 131,25
Q working hours 2 x 6 x 300 2 x 8 x 300

Q passengers 3.000 5.400

= = 0,007 = 0,013
V labour costs 2 x 15.000 x 14 2 x 15.000 x 14

Q kilometers driven 50.000 30.000

= = 0,12 = 0,07
V labour costs 2 x 15.000 x 14 2 x 15.000 x 14
 Productivity of operating facilities
• Pure factor productivities
Q passengers 3.000 5.400
= = 0,83 = 1,13
Q operating hours 12 x 300 16 x 300
Q tours 1.500 3.600
= = 0,42 = 0,75
Q operating hours 12 x 300 16 x 300
Q kilometers driven 50.000 30.000
= = 13,89 = 6,25
Q operating hours 12 x 300 16 x 300
• Mixed factor productivities
V revenue 840.000 630.000
= = 233,33 = 131,25
Q operating hours 12 x 300 16 x 300
Q passengers 3.000 5.400
= = 0,012 = 0,036
V operating costs 5 x 50.000 5 x 30.000
Q kilometers driven 50.000 30.000
= = 0,2 = 0,2
V operating costs 5 x 50.000 5 x 30.000
 Productivity of fuel
• Pure factor productivities
3.000 5.400
Q
=
passengers = 0,6 = 1,5
50.000 30.000
Q fuel consumptio n x10 x12
100 100
Q tours 1.500 3.600
= = 0,3 = 1,0
Q fuel consumptio n 50.000 30.000
x10 x12
100 100
• Mixed factor productivities

Q tours 1.500 3.600

= = 0,04 = 0,13
V fuel consumptio n 50.000 30.000
x10 x8 x12 x 8
100 100

Q kilometers driven 50.000 30.000

= = 1,25 = 1,04
V fuel consumptio n 50.000 30.000
x10 x8 x12 x 8
100 100