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PROBLEM 12-12 Overall Equipment Effectiveness LO12-3 Kilmer Company has demand for its only product that exceeds its manufacturing capacity. The company provided the following
PROBLEM 12-12 Overall Equipment Effectiveness LO12-3 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. Required: 1. Actual run time this week. Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) 6,600 minutes 11,000 minutes 5.1 units per minute 6.0 units per minute 23,562 units 33,660 units With respect to the company's overall equipment effectiveness, calculate the following: a. The utilization rate. b. The efficiency rate. c. The quality rate d. The overall equipment effectiveness (OEE). With respect to the company's overall equipment effectiveness, calculate the following: a. The utilization loss in units during the week. b. The efficiency loss in units during the week. C. The quality loss in units during the week.
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