9609 · 4.3.1
Significance and measurement of capacity utilisation
9609 AS - capacity utilisation formula, under/over-utilisation effects, and improvement strategies.
Need to know
What you need to know
- Formula: (Current output level / Maximum output level) × 100.
- Measures the proportion of potential output currently being achieved.
- A key indicator of productive efficiency.
- Maximum output is the total potential output if all resources are fully engaged.
Explanation
Significance and measurement of capacity utilisation
- Formula: (Current output level / Maximum output level) × 100.
- Measures the proportion of potential output currently being achieved.
- A key indicator of productive efficiency.
- Maximum output is the total potential output if all resources are fully engaged.