Capacity Utilization
Performance
Capacity Utilization
Actual output divided by available or rated capacity, expressed as a percentage.
Examples
- 01Capacity utilization of the paint shop is 74 %: it produces 37,000 parts a week against a capacity of 50,000.
- 02The weekly review compares capacity utilization with target and shows that one shift could be removed in the summer months.
- 03When capacity utilization stays above 95 % for six weeks, management approves a third shift.