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Compute the overall equipment effectiveness

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Reference no: EM132747372

Question - Jefferson Company's 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 6,723 minutes

Machine time available per week 8,100 minutes

Actual run rate this week 1.52 units per minute

Ideal run rate 2.00 units per minute

Defect-free output this week 12,496 units

Total output this week (including defects) 17,600 units

Required -

1. Compute the utilization rate.

2. Compute the efficiency rate.

3. Compute the quality rate.

4. Compute the overall equipment effectiveness (OEE).

Reference no: EM132747372

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