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Efficiency Loss due to Overtime

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Sonya Cortez
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Is there a formula to calculate efficiency loss due to overtime/acceleration?


Rafael Davila
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Renzo Constenla B...
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Hi Sonya:


there is not a "formula", but in general the efficiency (or performance) decrease exponentially (not linear), and the cost is increased exponentially.

This is due several factors:

  • overtime (man-hours) are more expensive
  • overtime has a natural loss of efficiency (for human resources)
  • additional shifts (night shifts) have the same problems (above)
  • contribution of additional resources (people) finally is inefficient (due the "decreasing performance law). In fact, too much additional resources will block the progress
  • additional incentive payments will be requested
  • additional supervision is required

If your problem is to recover a delay or just to decrease the total time (through the critical path), the are 2 options: fast track or crashing time.

For details, see PMBOK or other (exists a large literature).


(note: the picture is not mine, but it is a classical)