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zepelin [54]
3 years ago
6

A machine is available 10 hours a day. Each part takes 90 minutes to fabricate and 10 minutes to setup. 10% of the parts made ar

e defective and must go through the machine again to be reworked, during which both setup and fabrication have to be performed again. The machine is idle for any unused time. On average, 5 good parts are made each day. What is the overall equipment effectiveness of the machine?
O 0.17
O 0.75
O 0.075
O 0.83
Business
1 answer:
Eddi Din [679]3 years ago
6 0

Answer:

0.75

Explanation:

Time available each day:

= 10 hours

= 10 × 60 minutes

= 600 minutes

Time take to fabricate 1 part = 90 minutes

Time setup 1 part = 10 minutes

Total parts made in one day = 5

Parts defective = 10%

Total time to produce 1 part:

= Time take to fabricate + Time setup

= 90 + 10

= 100 minutes

Thus, time taken to produce 5 parts:

= 5 × 100 minutes

= 500 minutes

Number of parts defective = 10% of the parts made are defective

                                            = 5 × 10%

                                            = 0.5 parts

Time taken to replace defective part:

= 0.5 × 100

= 50 minutes

Value added time:

= time taken to produce 5 parts - Time taken to replace defective part

= 500 - 50

= 450 minutes

Effectiveness:

= Value added time ÷ Total time

= 450 minutes ÷ 600 minutes

= 0.75

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Solution

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Answer:

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Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator.

For the first option, the present value is $1,460,000.

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For the fourth option:

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Present value = $1,614,077.65

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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