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Capacity utilization is the percentage of capacity that is actually used. It is calculated using actual output and capacity:capacity utilization = (actual output / capacity) × 100
Facility ExampleAn office has a effective capacity of 430 employees and currently houses 401 employees.capacity utilization = (401 / 430) × 100 = 93.26%Production ExampleA 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 ExampleAn 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 ExampleA software platform can handle 3,400 concurrent users. Last month, its peak usage was 330 concurrent users.capacity utilization = (330 / 3400) × 100 = 9.71%|
Type | | Definition | The percentage of capacity that is actually used. | Notes | | Related Concepts | |
Capacity Planning
This is the complete list of articles we have written about capacity planning.
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A guide to capacity planning.
An overview of capacity management.
A definition of production capacity with examples.
The common types of capacity.
A definition of design capacity with examples.
A definition of effective capacity with examples.
A definition of capacity analysis with examples.
An overview of different types of plans with full examples.
An overview of planning with examples.
An overview of capacity management.
A definition of business capacity with examples.
The common types of capacity strategy.
A definition of capacity constraint with examples.
A definition of service capacity with examples.
A definition of concurrent user with examples.
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