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 Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) Required: 1. Compute the utilization rate. Note: Round your answer to 2 decimal places. 2. Compute the efficiency rate. Note: Round your answer to 2 decimal places. 3. Compute the quality rate. Note: Round your answer to 2 decimal places. 5,146 minutes 6,200 minutes 4.00 units per minute 5.00 units per minute 10,665 units 13,500 units 4. Compute the overall equipment effectiveness (OEE). Note: Do not round intermediate calculations. Round your final answer to 3 decimal places.
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 Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) Required: 1. Compute the utilization rate. Note: Round your answer to 2 decimal places. 2. Compute the efficiency rate. Note: Round your answer to 2 decimal places. 3. Compute the quality rate. Note: Round your answer to 2 decimal places. 5,146 minutes 6,200 minutes 4.00 units per minute 5.00 units per minute 10,665 units 13,500 units 4. Compute the overall equipment effectiveness (OEE). Note: Do not round intermediate calculations. Round your final answer to 3 decimal places.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 5E
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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
Machine time available per week
Actual run rate this week
Ideal run rate
Defect-free output this week
Total output this week (including defects)
Required:
5,146 minutes
6,200 minutes
4.00 units per minute
5.00 units per minute
10,665 units
13,500 units
1. Compute the utilization rate.
Note: Round your answer to 2 decimal places.
2. Compute the efficiency rate.
Note: Round your answer to 2 decimal places.
3. Compute the quality rate.
Note: Round your answer to 2 decimal places.
4. Compute the overall equipment effectiveness (OEE).
Note: Do not round intermediate calculations. Round your final answer to 3 decimal places.
Utilization rate
Efficiency rate
Quality rate
Overall equipment effectiveness](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fda7e606b-32d4-41ef-8b54-f39caca1e4db%2F5db887b0-35f0-40ca-8665-c49a40eaf584%2Fbwp80in_processed.png&w=3840&q=75)
Transcribed Image Text: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
Machine time available per week
Actual run rate this week
Ideal run rate
Defect-free output this week
Total output this week (including defects)
Required:
5,146 minutes
6,200 minutes
4.00 units per minute
5.00 units per minute
10,665 units
13,500 units
1. Compute the utilization rate.
Note: Round your answer to 2 decimal places.
2. Compute the efficiency rate.
Note: Round your answer to 2 decimal places.
3. Compute the quality rate.
Note: Round your answer to 2 decimal places.
4. Compute the overall equipment effectiveness (OEE).
Note: Do not round intermediate calculations. Round your final answer to 3 decimal places.
Utilization rate
Efficiency rate
Quality rate
Overall equipment effectiveness
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