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Capacity Utilization Total Equipment Efficiency Performance 53200 2 Capacity,Utilization,Productivity,Equipment,Performance,Manufacturing,Make,OEE The ratio between the total available time and the loading time.
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Revision as of 18:05, 26 February 2025
Capacity Utilization measures the time that equipment or a factory is operating (being utilized) as a percentage of its maximum potential capacity.
Contents
[hide]Calculation
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where:
- Equipment Availability = The percentage of time the equipment is ready and able to run, excluding planned and unplanned downtime.
- Equipment Performance = The percentage of time the equipment is running at its maximum speed, without minor stops or slow cycles.
- Produced Quality = The percentage of good parts produced, excluding defects or rework.
Importance
{{this} provides insights in how much potential you have to increase throughput with the equipment you already own.
Notes
Capacity Utilization has an inverse relationship with average cost of goods or cost per unit – the higher the utilization rate, the lower the average cost of goods and vice versa.
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