Question 9
During the month of July, the operations team at ProMech Components Ltd., a manufacturer of automotive assemblies, observed that the total output from their main assembly line had declined compared to previous months.
Although the production schedule remained unchanged, managers suspected that frequent stoppages and slower production rates might be affecting efficiency.
A review of the production records revealed that the line had been scheduled to operate for 400 hours in July.
However, around 80 hours were lost due to setup adjustments, maintenance delays, and minor breakdowns, leaving less time for productive operation.
Under ideal conditions, the line is capable of producing 200 components per hour, but during the month, the average operating rate dropped to about 150 components per hour.
By the end of July, the plant had assembled 45,000 units, out of which roughly 2,250 failed to pass the final quality inspection.
The management then evaluates how efficiently the assembly line was utilized by estimating its Overall Equipment Effectiveness (OEE) — an integrated measure of availability, performance, and quality.
The international benchmarks are then Interpreted based on the OEE value using the following categorization
● World Class → ≥ 85%
● Industry Average → 60–85%
● Below Average → 40–60%
● Underperforming → < 40%
Based on the above data, answer the given subquestions.
If they could make 20 more components per hour, what would have been the OEE?
(ignore the case of other sub-question)