A work center consists of 2 machines working 8 hours a day and 5 days a week.
Historically, utilization has been 80% and the efficiency 90%. The effective capacity, to the nearest hour, would be:
A) 80 hours
B) 40 hours
C) 30 hours
D) 50 hours
E) 58 hours

Question

Quizplus · Accepted Answer

Effective capacity = Design capacity × Utilization × Efficiency. Here, Design capacity = 2 machines × 8 hours/day × 5 days/week = 80 hours/week. Utilization = 80% or 0.8, and Efficiency = 90% or 0.9. So, Effective capacity = 80 × 0.8 × 0.9 = 57.6 hours, which rounds to 58 hours.

A Work Center Consists of 2 Machines Working 8 Hours