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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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Capacity Utilization
Capacity Utilization measures the time that production assets, equipment or a factory is operating (being utilized) as a percentage of its maximum potential capacity.
Contents
[hide]Calculation
| Capacity Utilization | ||||
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where:
- Planned Production Time = The time production assets/equipment is planned to operate in days or hours.
- Total Time = 365 days or 365 x 24 hrs.
Importance
Capacity Utilization 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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