Capacity Utilisation Ratio

[Lin_2]

What can Capacity Utilisation Ratio tell? Capacity Utilisation Ration = Unit Actual/ Unit Capacity. 

For example, CUR is calculated for Facility Toy. Since many countries have more than one toy facility and most facilities have more than one unit manufacturing toys. However, the majority of these unit do not operate fully. So, the actual usage is Unit Actual and the total capacity unit provided by Unit Capacity. So, dividing these two unit (Unit Actual/Unit Capacity) can tell anything?

Please, leave some ideas. Thank u.

[Oligolas]

It may be a strategic decision to be able to turn the production up and satisfy demand quickly

If the factory is deliberately underused. It may be too big for the demand.

That could mean the management is not qualified and is not using SAS business solutions 😉

Company may loose money if workers are continuously paid

You have more spare time for barbecue party