Purpose: performance efficiency rate Key
Performance efficiency rate keys is assigned in the Basic data screens of the work center to the standard Values. The performance efficiency rate key was the ratio between an individual ' s actual output and the planned average output
Internally a reference indicator is set for the performance efficiency rate key. This means, the performance efficiency from the work center are transferred to the operation and cannot be changed ther E. If you don't enter a performance efficiency rate key, the system assumes 100% efficiency.
The standard values in routings is always based on a performance efficiency of 100%.
You define performance efficiency rate keys on customizing for work centers by choosing Define key for Perfor Mance efficiencyrate.
The term efficiency must was quite clear to you and so how it applies this is
SAP uses it w.r.t to scheduling & costing.
EG:STD value Key-sap1 has the Setup, Machine & Labor. So it's a given that man or machine cannot work at 100% efficiency, so you define a realistic value & assign the Effi Cieny key here.
What's this does was, when the scheduling was done, it takes this efficiency key to calculation, so if you had maintained 7 5% Efficiency for Setup & the time req was 1 hour, then it schedules the time required as 1 hr mins & the same G OES for costing as well.
Pp-work Center--Key for performance efficiency rate