Kilmer Company has demand for its only product that 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 12,800 minutes Machine time available per week 16,000 minutes Actual run rate this week 6.30 units per minute Ideal run rate 9 units per minute Defect-free output this week 72,576 units Total output this week (including defects) 80,640 units
Kilmer Company has demand for its only product that 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 12,800 minutes Machine time available per week 16,000 minutes Actual run rate this week 6.30 units per minute Ideal run rate 9 units per minute Defect-free output this week 72,576 units Total output this week (including defects) 80,640 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Kilmer Company has demand for its only product that 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 | 12,800 | minutes |
|---|---|---|
| Machine time available per week | 16,000 | minutes |
| Actual run rate this week | 6.30 | units per minute |
| Ideal run rate | 9 | units per minute |
| Defect-free output this week | 72,576 | units |
| Total output this week (including defects) | 80,640 | units |
Required:
1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: (Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number.)
| 1a. Utilization rate | |
| 1b. Efficiency rate | |
| 1c. Quality rate | |
| 1d. Overall Equipment effectiveness | |
| 2a. utilization loss in units | |
| 2b. Efficiency loss in units | |
| 2c. Quality loss in units |
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