550435
Description
Mind Map by Mingetron 4000, updated more than 1 year ago
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Created by Mingetron 4000
almost 11 years ago
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Capacity Utilisation
- Productive capacity
- Total level of production or output that it could give in any given
amount of time
- Total level of production or output that it could give in any given
amount of time
- Percentage of the firms total production
capacity that is being used
- Formula:Current output/ Maximum
output X 100
- Company can make 10,000 units (Productive capacity)
Company currently making 7000 units (70%)
- Company can make 10,000 units (Productive capacity)
Company currently making 7000 units (70%)
- Why don't all businesses work at
100% Capacity?
- Not enough time for routine maintenance
which means machines may break
- May not be possible to meet new or unexpected
orders so the business can not grow without
expanding its scale of production
- Busy working space, untidy, less
efficient
- Staff may feel under excessive pressure
and therefore make mistakes
- Not enough time for routine maintenance
which means machines may break
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