What is performance efficiency rate in SAP PP - Production Planning and Control?

SAP Term: performance efficiency rate

• Component: PP

• Component Name: Production Planning and Control

• Description: The performance efficiency rate is the ratio of target duration to actual time attained. It can be defined for one person, several people, a department, or a factory. The performance efficiency rate is assigned to the work center. The standard times used by capacity planning and costing are modified by this performance efficiency rate.

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• Key Concepts: 
  Performance efficiency rate is a measure of how well a production process is running. It is calculated by dividing the actual output of a process by the expected output. In SAP Production Planning and Control (PP), performance efficiency rate is used to measure the efficiency of production processes and identify areas for improvement. 
  
  How to use it: 
  In SAP PP, performance efficiency rate can be calculated by entering the actual output and expected output into the system. The system will then calculate the performance efficiency rate and display it on the screen. This information can then be used to identify areas for improvement in the production process. 
  
  Tips & Tricks: 
  When calculating performance efficiency rate, it is important to ensure that the actual output and expected output are accurate. This will ensure that the performance efficiency rate is an accurate measure of how well the production process is running. 
  
  Related Information: 
  Performance efficiency rate can be used in conjunction with other measures, such as cycle time and throughput time, to gain a better understanding of how well a production process is running. It can also be used to compare different production processes and identify areas for improvement.