The formula to calculate the Production Increase (PI) is:
\[ PI = OPR \times \frac{I}{100} \]
Where:
Production Increase refers to the additional amount of output produced as a result of an increase in the production rate. It is calculated by multiplying the old production rate by the percentage increase, divided by 100. This measure helps in understanding the impact of changes in production efficiency or capacity.
Consider an example where:
Using the formula to calculate the Production Increase:
\[ PI = 100 \times \frac{20}{100} = 20 \text{ units/time} \]
This means that the production increase for this example is 20 units/time.