The AER company operates 24 hours a day. The performance measures of the production equipment used for 1 month are as follows: -Open time is 30 days -The expected time of non-availability of production equipment is 97 hours -The Unplanned hardware downtime is 25.5 hours - Hardware downtime attributable to employee delays is 2817 minutes - Equipment downtime due to power outages is 4578 minutes ' Determine the efficiency rate and the utilization rate of production equipment
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The AER company operates 24 hours a day. The performance measures of the production equipment used for 1 month are as follows:
-Open time is 30 days
-The expected time of non-availability of production equipment is 97 hours
-The Unplanned hardware downtime is 25.5 hours
- Hardware downtime attributable to employee delays is 2817 minutes
- Equipment downtime due to power outages is 4578 minutes '
Determine the efficiency rate and the utilization rate of production equipment
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- George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year: Last Year 1,000 300 Now 1,000 275 45 12,000 2,500 Units Produced Labor (hours) Resin (pounds) Capital Invested ($) Energy (BTU) The productivity-change for each of the inputs (Labor, Resin, Capital, and Energy) is: Labor Productivity Change = 9.09% enter your response as a percentage rounded to two decimal places and include a minus sign if necessary). 60 8,500 2,900 Resin Productivity Change =% (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary).A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows: Process 1 Production rate Daily production time Process 2 35 parts/hour 4 hours/day 20% 15 parts/hour 7 hours/day 9% Percent parts rejected Assume that the daily demand for hubs allows all defect-free hubs to be sold. Select the process that maximizes profit per day if each part is made from $4 worth of material and can be sold for $30. Both processes are fully automated, and variable overhead cost is charged at the rate of $40 per hour.SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared 4,000 of these meals using 960 direct labor- hours. The company paid its direct labor workers a total of $19,200 for this work, or $20.00 per hour. According to the standard cost card for this meal, it should require 0.25 direct labor-hours at a cost of $19.75 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 4,000 meals? 2. What is the standard labor cost allowed (SH x SR) to prepare 4,000 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1.…
- Management of Mittel Company would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported: Inspection time 0.7 days Wait time (from order to start of production) 16.9 days Process time 2.7 days Move time 1.0 days Queue time 4.3 days 1. Compute the throughput time. 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non–value-added activities? (Round your percentage answer to nearest whole percent.)Management of Mittel Company would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported: Inspection time 0.7 days Wait time (from order to start of production) 16.9 days Process time 2.7 days Move time 1.0 days Queue time 4.3 days 1. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 2. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Do not round intermediate calculations. Round your percentage answer to 1 decimal place.)Tombro Industries is automating one of its plants and developing a flexible manufacturing system. In an effort to revise its performance measurement system, the company gathered the following data for the last four months: Quality control measures: Number of defects Number of warranty claims Number of customer complaints Material control measures: Purchase order lead time Scrap as a percent of total cost Machine performance measures: Machine downtime as a percentage of availability Use as a percentage of availability Setup time (hours) Delivery performance measures: Throughput time Manufacturing cycle efficiency (MCE) Delivery cycle time Percentage of on-time deliveries Month 1 2 3 4 191 169 130 91 52 45 36 33 108 102 85 64 10 days 9 days 7 days 5 days 2% 2% 3% 6% 5% 6% 6% 10% 95% 92% 89% 85% 10 12 13 14 ? ? ? ? ? ? ? ? ? ? 96% 95% ? 92% ? 89% The president read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is…
- A process is designed to produce 2,050 units per hour. The process has a scrap rate of 0.9% and a 14% inherent inefficiency. Assuming that the actual output of the process is 1,550 units per hour, what is the process design capacity, available capacity, actual capacity, capacity utilization, efficiency and the output gap for this process? The design capacity is ____ units per hour. (Enter your response as a whole number.)Three employees at a fast-food restaurant each perform one of the three activities in serving a customer: take the order, process the order, and deliver the order. The processing time for each activity is given as follows: Activity Processing Time Take the order 30 seconds Process the order 2 minutes Deliver the order 1 minute Assume that the demand is 20 customers/hour. What is the average labor utilization? a 38.9% b 85.7% c 66.7% d 100%A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows: Process 1 Process 2 35 parts/ hour 4 hours/ day 15 parts/hour 7 hours/day 20% 9% Production rate Daily production time Percent of parts rejeted based on visual inspection Assume that the daily demand for hubs allows all defect-free hubs to be sold. Additionally, tested or rejected hubs cannot be sold. Find the process that maximizes profit per day if each part is made from Php 200 worth of material and can be sold for Php 1,500. Both processes are fully automated, and variable overhead cost is charged at the rate of Php 2,000 per hour.
- George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year: Last Year Now Cost Per Input Unit Units Produced 1 comma 0001,000 1 comma 0001,000 Labor (hours) 300300 275275 $1010 per hour Resin (pounds) 5050 4545 $66 per pound Capital Invested ($) 10 comma 00010,000 11 comma 00011,000 22% per month Energy (BTU) 3 comma 0003,000 2 comma 8502,850 $0.600.60 per BTU The percent change in productivity for one month last year versus one month…SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,300 of these meals using 1,250 direct labor-hours. The company paid its direct labor workers a total of $11,250 for this work, or $9.00 per hour. According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $8.50 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 4,300 meals? 2. What is the standard labor cost allowed (SH × SR) to prepare 4,300 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance?Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported: Inspection time 0.5 days Wait time (from order to start of production) 16.1 days Process time 2.6 days Move time 0.7 days Queue time 3.9 days Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non–value-added activities? (Round your percentage answer to nearest whole percent.) 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round…
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