Question
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 | 7,020 | minutes |
Machine time available per week | 9,000 | minutes |
Actual run rate this week | 9.35 | units per minute |
Ideal run rate | 11.00 | units per minute |
Defect-free output this week | 18,000 | units |
Total output this week (including defects) | 20,000 | 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.)
Utilization rate Efficiency rate Quality rate Overall equipment effectiveness
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