Usage Efficiency

You can use the efficiency metric to gauge how efficiently stores are using products across a company.

Navigate to Reports> Cost and Variance> Usage Efficiency (IvA)

Usage Efficiency Metric Defined

  • Product usage efficiency helps visualize your Variance as a percent of Ideal Usage. 

 

  • Usage Efficiency can also be used as a Benchmark Across Stores. 
  • It also shows a guideline for the average across stores.
  • Use this information to evaluate whether an item is a good one to focus on for improvement.









Usage Efficiency Calculation


  • The range will always be a percentage between 0 and 100.
  • It is the absolute value of usage variance divided by ideal usage.
  • Here is the breakdown of how Usage Efficiency is derived:
    • Calculate the total variance (positive and negative) for that item ABS (Ideal Usage – Actual Usage) = Variance
    • Calculate Efficiency1 - (Variance / Ideal Usage) = Efficiency

Ideal UsageActual UsageVarianceUSAGE EFFICIENCY
Prod. A10080|+20| = 201 - (|Variance| / Ideal Usage) = 80% Efficiency
Prod. B100120|-20| = 201 - (|Variance| / Ideal Usage) = 80% Efficiency
Chicken Breast205294|-89| = 891 - ( |-89| / 205 ) = 1 - 0.43415 = 56.59% Efficiency
Cheese Block119218|-99| = 991 - ( |-99| / 119 ) = 1 - 0.83193 = 16.81% Efficiency

Usage Efficiency Over Time

(star)Note: Usage efficiency is most useful on a week to week basis. Interpreting usage efficiency over larger periods of time can give a sense of performance over that larger period, however, it will take into account good and bad efficiency without that context for the user.

0% Efficiency

  • If you see a Variance item showing a 0.00% Usage Efficiency, it could mean that this item has an Actual Usage and no Ideal Usage for the item or an Ideal Usage that is not properly configured in Decision Logic, therefore it will not have theoretical usage efficiency reporting. 
  • It could also mean that the Actual Usage was so high that the Usage Efficiency would be extremely low.
    • For example, if your Ideal usage of lemons was 225 and your Actual Usage was 520, your Variance is larger than your Ideal Usage and your Usage Efficiency would be in the negative percentages.
 

N/A for an Item

If no usage efficiency bar shows at all, and you see the text N/A, this is because the item is not tracked in the DL system or does not have data for actual usage.

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