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# How does one calculate production rate?

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To calculate production rate, use the following formula: (parts/hours produced) divided by (maximum parts/hours possible) multiplied by 100 percent. Production rate is a formula that determines how many items someone can produce during a specific time period. Someone may also use it to measure worker productivity.

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A higher production rate is not always a good thing because it may result in quantity taking precedence or quality. Many companies use production rate to create goals for their workers so that they have a production, or working goal, for the day. This helps to keep things moving so that workers complete a project on time.

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