Asked by Tiffany McClendon on Jul 11, 2024
Verified
Halpert Corporation has been in operation for one year. The only product they produce is a specific bicycle chain. They want to make sure they are effectively utilizing the machinery they use to create this product. Below is the information concerning the machine that produces the bicycle chain: Halpert's utilization rate for the week was:
A) 0.42
B) 0.75
C) 0.80
D) 0.85
Utilization Rate
The ratio of the time that a resource is actually used to the total time it is available for use, often used in assessing the efficiency of production resources or employees.
Machinery
Equipment or devices designed for a specific task, often used in manufacturing and industrial processes.
- Explore and calculate the deployment, operational efficiency, and quality standards in manufacturing operations.
Verified Answer
CD
Cinthia Dela CruzJul 14, 2024
Final Answer :
C
Explanation :
To calculate utilization rate, we use the formula:
Utilization rate = Actual output / Maximum possible output
From the given information, the machine produces one bicycle chain every 4 minutes. In a 40 hour week (assuming a 5-day work week), there are 2400 minutes available (40 hours x 60 minutes per hour).
Therefore, maximum possible output = 2400 / 4 = 600
If Halpert Corporation produced 480 bicycle chains during the week, then the actual output for the week is 480.
Utilization rate = 480/600 = 0.80
Therefore, the answer is C (0.80).
Utilization rate = Actual output / Maximum possible output
From the given information, the machine produces one bicycle chain every 4 minutes. In a 40 hour week (assuming a 5-day work week), there are 2400 minutes available (40 hours x 60 minutes per hour).
Therefore, maximum possible output = 2400 / 4 = 600
If Halpert Corporation produced 480 bicycle chains during the week, then the actual output for the week is 480.
Utilization rate = 480/600 = 0.80
Therefore, the answer is C (0.80).
Learning Objectives
- Explore and calculate the deployment, operational efficiency, and quality standards in manufacturing operations.
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