Chapter 12, Problem 12.5E

1.

To determine

Introduction: The utilization rate is the performance indicator that is used to make plans and determine the success of the company. It is used by manufacturing companies. The utilization rate of equipment can be increased by avoiding machine breakdowns and reducing the average setup times.

The utilization rate.

2.

To determine

Introduction: The efficiency rate is the performance indicator that is used to make plans and determine the success of the company. It is used by manufacturing companies. The efficiency rate of equipment can be increased by avoiding minor work stoppages and properly training operators to maintain the machine regularly.

The efficiency rate.

3.

To determine

Introduction: The quality rate is used by the company to determine the percentage of manufacturing time that is truly productive or defect-free. The quality rate of equipment can be improved by minimizing the number of defective units manufactured as a percent of the total units manufactured.

The quality rate.

4.

To determine

Introduction: The overall equipment effectiveness includes utilization rate, efficiency rate, and quality rate. In the other words, the overall equipment effectiveness is used to measure the productivity of equipment in terms of quality, efficiency, and utilization.

The overall equipment effectiveness (OEE).