Homework answers / question archive / Jefferson Company's demand for its only product exceeds its manufacturing capacity

Jefferson Company's demand for its only product exceeds its manufacturing capacity

Management

Share With

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 5,696 minutes

Machine time available per week 6,400 minutes

Actual run rate this week 1.68 units per minute

Ideal run rate 2.00units per minute

Defect-free output this week 12,670 units

Total output this week (including defects) 18,100units

Required:

1. Compute the utilization rate. (Round your answer to 2 decimal places.)

2. Compute the efficiency rate. (Round your answer to 2 decimal places.)

3. Compute the quality rate. (Round your answer to 2 decimal places.)

4. Compute the overall equipment effectiveness (OEE). (Do not round intermediate calculations. Round your final answer to 3 decimal places.)