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).