Question
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 11,340 minutes Machine time available per week 18,900 minutes Actual run rate this week 7.00 units per minute Ideal run rate 10 units per minute Defect-free output this week 63,504 units Total output this week (including defects) 79,380 units Required: 1. & 2. With respect to the company's overall equipment effectiveness, calculate the following: (Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number.)
1-a.Utilization rate1-b.Efficiency rate1-c.Quality rate1-d.Overall equipment effectiveness2-a.Utilization loss in units2-b.Efficiency loss in units2-c.Quality loss in units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started