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Kilmer Company has demand for its only product that exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity
Kilmer Company has demand for its only product that 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 | 15,060 | minutes |
---|---|---|
Machine time available per week | 25,100 | minutes |
Actual run rate this week | 3.50 | units per minute |
Ideal run rate | 5 | units per minute |
Defect-free output this week | 31,626 | units |
Total output this week (including defects) | 52,710 | units |
Required:
1. and 2. With respect to the company's overall equipment effectiveness, calculate the following:
Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number.
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