Final answer:
To calculate the downtime for equipment changeover, the actual production is divided by the utilization rate to find the potential production. The difference in hammers between potential and actual production is converted into minutes. The answer is 120 minutes of downtime.
Step-by-step explanation:
The student is asked to calculate the downtime for equipment changeover at Arry Xia's plant based on the provided utilization rate.
The utilization rate of the plant is the ratio of its actual output to its potential output. Arry Xia's plant has a utilization rate of 75%, which means it is producing at 75% of its capacity. If the plant is limited to making 6,000 hammers per day due to downtime, and its full capacity is 8,000 hammers per day, we can use these figures to calculate the downtime.
Here's how we calculate the downtime:
- First, determine the potential production time: Utilization rate = Actual production / Potential production. To find the potential production time, we invert this to get Potential production = Actual production / Utilization rate. So, Potential production time = 6,000 hammers / 75% = 8,000 hammers.
- Next, we determine the downtime in hammer production units: 8,000 hammers (potential) - 6,000 hammers (actual) = 2,000 hammers lost to downtime.
- Assuming the plant operates continuously over a standard workday, we need to convert these 2,000 lost hammers into time. If there are 480 minutes in a workday (8 hours), we calculate the proportion of downtime: (2,000 hammers / 8,000 hammers) × 480 minutes = 120 minutes.
Therefore, the downtime for equipment changeover in minutes is 120 minutes, which corresponds to option c.