The design capacity of the computer repair entity is 80 repairs within one day. Effective production is 64 repairs while the actual production is 62 repairs within a day. Evidently, the actual productions in terms of repairs is less than what can be efficiently produced by the firm. The differences caused by the deficiency of the two units may be caused by absenteeism among the employees. If all the employees turned up for work according to the schedule, the firm would be able to its anticipated efficiency levels of 64 repairs in a day. The gap between the design capacity and the expected levels of efficiency.
Considering the firm has 8 employees, and they have an actual output of 64 repairs per day, they will have the following output per hour: 64/8 = 8 repairs per employee in a day
In case there is an absenteeism say two employees in one day, there is a hypothetical increase in the length of time taken by the employees to carry one repair. Mathematically, the concept can be expressed in the following manner:
64/6= 10.667 repairs per employee in a day.
The amount of workload has increased and the employee has to deal with an additional workload of approximately three units. Given that such is the hypothetical situation created by the absenteeism of the employees in the firm, the differences in the actual output and the expected output may be caused by the absenteeism. The manager must check the effect of absenteeism for the inability of the firm to meet its target. However, the inability of the firm to reach its design capacity can be attributed to other factors such as depreciation.