Facility Example
An office has a effective capacity of 430 employees and currently houses 401 employees.capacity utilization = (401 / 430) × 100 = 93.26%Production Example
A production line has a design capacity of 14,000 units a day. The line is currently running one shift and producing 830 units a day.capacity utilization = (830 / 14000) × 100 = 5.93%Service Example
An airline has monthly inventory of 123,000 seats on its flights. Last month, its total filled seats were 121,000.capacity utilization = (121000 / 123000) × 100 = 98.37%Technology Example
A software platform can handle 3,400 concurrent users. Last month, its peak usage was 330 concurrent users.capacity utilization = (330 / 3400) × 100 = 9.71%| Overview: Capacity Utilization | ||
Type | ||
Definition | The percentage of capacity that is actually used. | |
Notes | Depending on the analysis, the calculation of capacity utilization can be based on either effective capacity or design capacity. | |
Related Concepts | ||
