Question

In: Operations Management

A paper manufacturer uses 3 different automated production lines to produce its’ product. Each line was...

A paper manufacturer uses 3 different automated production lines to produce its’ product. Each line was installed at different times as the business grew. The business started with the first machine in 2005, the 2nd line was added in 2010, and the 3rd line was installed in 2015. Each line operates 24 hours/day, 7 days/week and are only down when switching between types of paper, clearing jams, and performing routine maintenance. Because of their age differences each line has a different design capacity and has different amounts of downtime (i.e. newer lines experience fewer jams and take less time to set up and perform maintenance). The plant manager collected the statistics for each line over the last four weeks of operation and they are provided in the table below. Calculate the Effective Capacity, Efficiency, and Utilization for each line. ROUND EFFICIENCY & UTILIZATION ANSWERS TO 4 DECIMAL PLACES

Prod Line Design Capacity in tons per Hour Average hours of Run Time per Day Actual Output over last 4 weeks (in Tons)

2005 25 18.5 11,250

2010 37.5 19.5 17,910

2015 45 21 23,475

Solutions

Expert Solution

Below is the screenshot of the formula applied -

Below is the screenshot of the result calculated -

keosha answered 1 year ago
Next > < Previous

Related Solutions

A product is being assembled and packaged on three production lines (line A, line B, and...
A product is being assembled and packaged on three production lines (line A, line B, and line C). Each day, the quality control team selects a production line and inspects a batch chosen at random from the output of the selected production line. Line A is selected with probability .5, line B is selected with probability .2, and line C is selected with probability .3. The probability that no defects will be found in a batch selected from line A...
Gigabody, Inc., a nutritional supplement manufacturer, produces five lines of protein supplements. Each product line is...
Gigabody, Inc., a nutritional supplement manufacturer, produces five lines of protein supplements. Each product line is managed separately by a senior-level product engineer who is evaluated, in part, based on his or her ability to keep costs low. The five product lines are produced in a joint production process. After splitting off from the joint production process, all five lines are processed further before resale. Traditionally, joint product costs have been allocated to the five product lines using the physical...
What should the company do regarding this product, purchase, produce semi-automated or produce fully automated?
A company has the following product information:                        Buy Product                  Produce Semi-Automated                      Produce Fully AutomatedFixed cost             -------                        $150,000                                          $200,000Variable cost        $20.00                       $18.00                                                $15.00What should the company do regarding this product, purchase, produce semi-automated or produce fully automated?At what volume would the company be indifferent to buying the product or producing it semi-automated?
A drug manufacturer uses two production facilities to produce a pain reliever. The amount of the...
A drug manufacturer uses two production facilities to produce a pain reliever. The amount of the active ingredient of the drug in the capsules at the two​ facilities, X1 and X2, are normally distributed random variables. The desire of the quality control manager is that the population mean amounts of the active ingredient in the​ capsules, μ1 and μ2​, be equal. Recent tests on small samples have indicated a noticeable increase in the amount of the active ingredient in capsules...
A manufacturer uses a new production method to produce steel rods. A random sample of 17...
A manufacturer uses a new production method to produce steel rods. A random sample of 17 steel rods resulted in lengths with a standard deviation of 2.1 cm. At the 0.05 significance level, test the claim that the new production method has lengths with a standard deviation different from 3.5 cm, which was the standard deviation for the old method. Use the p-value method. Initial Claim: Null Hypothesis: Alternative Hypothesis Test statistic (make sure you state which test statistic that...
A manufacturer uses a new production method to produce steel rods. A random sample of 17...
A manufacturer uses a new production method to produce steel rods. A random sample of 17 steel rods resulted in lengths with a standard deviation of 4.7 cm. At the 0.10 significance level, test the claim that the new production method has lengths with a standard deviation different from 3.5 cm, which was the standard deviation for the old method.
A manufacturing company operates two production lines.when both lines are operating,the production rate on each line...
A manufacturing company operates two production lines.when both lines are operating,the production rate on each line is 500 units per hour.At this production rate on each line is 500 per hour.At this production rate the failure rate of line 1 is 3 failures per 8-hr day(CFR) and the failure rate of line 2 is 2 failures per 8-hr day.when one line fails.the production rate of the second line must be increased in order to make production quotas.At the increased rate...
Whack Ltd, a tennis racquet manufacturer, has broken the production process into three lines, each in...
Whack Ltd, a tennis racquet manufacturer, has broken the production process into three lines, each in a different department: framing, stringing, and finishing. The following information relates to each department for the month of April:                              FRAMING STRINGING FINISHING Direct Costs       $20,000      $30,000         $66,000 Indirect Costs $10,000      $20,000         $30,000 Labour Hours   2,000 hrs   5,000 hrs      3,000 hrs Machine hours 500 hrs      0 hrs            0 hrs Production for April is 10,000 racquets Refer to the table above. The overhead recovery rate for stringing...
Lumega Designs Ltd is a small LED lighting company that has recently automated its production line...
Lumega Designs Ltd is a small LED lighting company that has recently automated its production line of specialist commercial lighting. It has two shareholders, each of whom is involved in the day-to-day management of the company. Lumega Designs Ltd has only three employees, and assets of $20,000,000. In buying goods and services, the company has a pool of about 100 suppliers from whom it can purchase any of its goods and services. Of these suppliers, it has about 40 trade...
Miller Corporation is a manufacturer with four product lines. Below is some financial information about each...
Miller Corporation is a manufacturer with four product lines. Below is some financial information about each of the four product lines. Product Segment Booyas Widgets Humdrums Loonies Total Sales to nonaffiliates $10,000 $30,000 $35,000 $15,000 $90,000 Intersegment sales 2,000 6,000    8,000 16,000 32,000 Total revenue $12,000 $36,000 $43,000 $31,000 $122,000 Operating profit (loss) 1,000 6,000 (1,000) 8,000 14,000 Identifiable assets 10,000 15,000 60,000 80,000 165,000             Using all the tests below, determine which of the product segments are reportable...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT