Please enable JavaScript.
Coggle requires JavaScript to display documents.
Capacity Utilisation - Coggle Diagram
Capacity
Utilisation
Capacity
how much output
it can achieve in a
given period
potential out put
costs
=equipment
=facilities
=labour
utilisation
=extent capacity is
used during a specific
period
Importance
useful measure
of productivity
and idle resources
higher utilisation
can reduce unit costs
due to increased output
Why Businesses
operate below
full capacity
lower than
expected market
demand
maintenance
and repairs
Drawbacks
of High Capacity
less time for
repairs and
maintenance
=may lead to
break downs
demotivation
and absenteeism
customer service
becomes poorer
Increasing
Capacity
increase
workforce hours
subcontract
some production
activities
reduce maintenance
time
Pros of Full
Capacity
lower unit
costs
efficient use
of resources
job security
profitablility
if there’s demand
Cons of
Full Capacity
strain on
resources
accidents and
breakdowns
turning away
new orders
no time for
training
issue of
quality
maintenance