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Capacity utilisation - Coggle Diagram

- - - - When a business is not using its full capacity, several problems can occur:
        
        Higher costs per item: Fixed costs (like rent) are spread across fewer products, making each item more expensive to produce
        
        Unhappy staff: Workers standing around with nothing to do become unmotivated and bored
        
        Bad reputation: An empty restaurant or cinema looks unsuccessful and may discourage customers
        
        Possible job losses: The business may need to make staff redundant or sell equipment
- - - - Damaged reputation: Poor quality products or bad customer service
      - Tired and stressed staff: Too much overtime can lead to mistakes and accidents
      - Broken machinery: No time to maintain equipment means machines break down
      - Poor training: Staff cannot receive proper training, leading to errors
      - Lower quality: Products and services suffer when the business is stretched too thin
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