Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jefferson Companys demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting

Jefferson Companys demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units.

Actual run time this week 6,336 minutes
Machine time available per week 7,200 minutes
Actual run rate this week 7.04 units per minute
Ideal run rate 8.00 units per minute
Defect-free output this week 14,420 units
Total output this week (including defects) 20,600 units

Required: 1. Compute the utilization rate. (Round your answer to 2 decimal places.) 2. Compute the efficiency rate. (Round your answer to 2 decimal places.) 3. Compute the quality rate. (Round your answer to 2 decimal places.) 4. Compute the overall equipment effectiveness (OEE). (Do not round intermediate calculations. Round your final answer to 3 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Employee Relations Audits

Authors: C. Jennings, W. E. J. McCarthy, R. Undy

1st Edition

0415786614, 978-0415786614

More Books

Students also viewed these Accounting questions