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 Machine time available per week Actual run rate this week Ideal run rate. Defect-free output this week Total output this week (including defects) > Answer is complete but not entirely correct. 1-a. Utilization rate 1-b. Efficiency rate 1-c. Quality rate 1-d. Overall equipment effectiveness 2-a. Utilization loss in 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.) 2-b. Efficiency loss in units 2-c. Quality loss in units 60.00x 85.00 X 70.00 X 35.70 x 6,600 minutes 11,000 minutes 26,400 33,660 X 10,098 5.1 units per minute. 6 units per minute. 23,562 units. 33,660 units

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 17E
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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
Machine time available per week
Actual run rate this week
Ideal run rate
Defect-free output this week
Total output this week (including defects)
X Answer is complete but not entirely correct.
1-a. Utilization rate
1-b. Efficiency rate
1-c. Quality rate
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.)
1-d. Overall equipment effectiveness
2-a. Utilization loss in units
2-b. Efficiency loss in units
2-c. Quality loss in units
60.00x
85.00 X
70.00 X
35.70 x
26,400✔
6,600 minutes.
11,000 minutes
33,660 X
10,098
5.1 units per minute
6 units per minute
23,562 units
33,660 units.
Transcribed Image Text: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 Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) X Answer is complete but not entirely correct. 1-a. Utilization rate 1-b. Efficiency rate 1-c. Quality rate 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.) 1-d. Overall equipment effectiveness 2-a. Utilization loss in units 2-b. Efficiency loss in units 2-c. Quality loss in units 60.00x 85.00 X 70.00 X 35.70 x 26,400✔ 6,600 minutes. 11,000 minutes 33,660 X 10,098 5.1 units per minute 6 units per minute 23,562 units 33,660 units.
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