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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

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