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

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Jefferson Company's 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 6,636 minutes Machine time available per week 7,900 minutes Actual run rate this week 1.78 units per minute Ideal run rate 2.00 units per minute Defectfree output this week 11,696 units Total output this week (including defects) 13,600 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 nal answer to 3 decimal places.) Utilization rate Efciency rate Quality rate Overall equipment effectiveness Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing system. The company is finding it necessary to make many changes in operating procedures. Progress has been slow. particularly in trying to develop new performance measures for the factory. In an effort to evaluate performance and determine where improvements can be made, management has gathered the following data relating to activities over the last four months: Month 1 2 3 4 Quality control measures: Number of defects 203 181 142 97 Number of warranty claims 64 57 48 45 Number of customer complaints 120 114 97 76 Material control measures: Purchase order lead time 10 days 9 days 7 days 5 days Scrap as a percent of total cost 1% 1% 2% 3% Machine performance measures: Machine downtime as a percentage of availability 2% 3% 3% 4% Use as a percentage of availability 96% 93% 90% 86% Setup time (hours) 10 12 13 14 Delivery performance measures: Throughput time ? 7 ? ? Manufacturing cycle efficiency (MCE) ? ? ? ? Delivery cycle time ? ? ? ? Percentage of ontime deliveries 97% 96% 93% 90% The president has read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is sure how they are computed. You have been asked to assist the company, and you have gathered the following data relating to these measures: Average per Month (in days) 1 2 3 4 Wait time per order before start of production 9.0 10.7 12.0 14.0 Inspection time per unit 0.8 0.7 0.7 0.7 Process time per unit 2.7 2.6 2.3 2.2 Queue time per unit 5.1 5.4 6.4 7.4 Move time per unit 0.4 0.6 0.6 0.7 ' Required: 1-a. Compute the throughput time for each month. 1b. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Compute the delivery cycle time for each month. 3-a. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE. 3-b. Refer to the inspection time. process time. and so forth, given for month 4. Assume that in month 6 the inspection time. process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during production and the inspection time using Lean Production. Compute the new throughput time and MCE. Complete this question by entering your answers in the tabs below. Required 1 Required 3 3-a. (Month 5) Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE. 3-b. (Month 6) Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 6 the inspection time, process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during production and the inspection time using Lean Production. Compute the new throughput time and MCE. (Round your answers to 1 decimal place.) Show less A Throughput time Manufacturing cycle efciency (MCE) ( Required 1 In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below: Costs (in thousands) Last This Year Year Inspection $ 600 $ 780 Quality engineering $ 360 $ 675 Depreciation of test equipment 35 255 $ 150 Rework labor $ 1,200 $ 1,740 Statistical process control $ 0 $ 225 Cost of field servicing $ 1,125 $ 1,050 Supplies used in testing 3; 45 $ 45 Systems development $ 540 $ 750 Warranty repairs $ 3,150 $ 1,350 Net cost of scrap $ 630 $ 1,200 Product testing $ 900 $ 1,650 Product recalls $ 2,625 $ 750 Disposal of defective products $ 810 $ 1,020 ' Sales have been flat over the past few years, at $75,000,000 per year. A great deal of money has been spent in the effort to upgrade quality, and management is anxious to see whether or not the effort has been effective. Required: 1. Prepare a quality cost report that contains data for both this year and last year. (Enter amount values in thousands. Round your percentage answers to 2 decimal places (Le 0.1234 should be entered as 12.34).) Prevention costs: $ 44,800 Total prevention costs 44,800 0.00 0.00 \\ Appraisal costs Total appraisal costs 0.00 0.00 Internal failure costs: Total internal failure costs 0.00 0.00 External failure costs: Total external failure costs Total quality cost

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