Mind map
Capacity Utilisation
Map content
Capacity Utilisation
Productive capacity
- Total level of production or output that it could give in any given amount of time
Percentage of the firms total production capacity that is being used
Formula:Current output/ Maximum output X 100
- Company can make 10,000 units (Productive capacity) Company currently making 7000 units (70%)
Why don't all businesses work at 100% Capacity?
- Not enough time for routine maintenance which means machines may break
- May not be possible to meet new or unexpected orders so the business can not grow without expanding its scale of production
- Busy working space, untidy, less efficient
- Staff may feel under excessive pressure and therefore make mistakes
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- Description
- PLIDA (Proyecto Lengua Italiana Dante Alighieri) Business Studies (BUSS 2) Mind Map on Capacity Utilisation, created by Mingetron 4000 on 14/02/2014.
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- Mingetron 4000
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