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Compute the overall equipment effectiveness

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Reference no: EM132761610

Problem - 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 7,482 minutes

Machine time available per week 8,700 minutes

Actual run rate this week 3.75 units per minute

Ideal run rate 5.00 units per minute

Defect-free output this week 12,876 units

Total output this week (including defects) 17,400 units

Required -

1. Compute the utilization rate.

2. Compute the ef?ciency rate.

3. Compute the quality rate.

4. Compute the overall equipment effectiveness (OEE).

Reference no: EM132761610

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