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The Goode and Cooke Company produces several models of frying pans. There is little difference in the production time required for the various models; the plant is designed to produce160 frying pans per eight-hour shift, and there are two shifts per working day. However, the plant does not operate for the full eight hours: the employees take two12-minute breaks in each shift, one in the first four hours and one in the second four hours; two hours per week are devoted to cleaning the factory and performing maintenance on the machines; one four-hour period every four weeks is devoted to the meeting of the quality circle. The plant usually produces about3,500 frying pans per four-week period. You may ignore holidays in solving this problem. Answer the following questions by adjusting the data to a four-week time period.
What is the design capacity in frying pans?
What is the effective capacity in frying pans? As a percent?
What is the actual output?
What is the efficiency?
What is the utilization?
Re-work the problem using a time period of one eight-hour shift.
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