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Production & Operations
Capacity Utilization
The percentage of total production capacity that is actually being used.
Capacity Utilization measures how much of your factory's maximum production potential is being used. It's calculated as (Actual Output / Maximum Possible Output) × 100.
Example
If a machine can produce 1,000 units per day but only produces 750 units, the capacity utilization is 75%. This indicates 25% idle capacity.
Why It Matters
- Low utilization means underutilized resources and higher per-unit costs.
- Very high utilization ({">"}95%) leaves no buffer for urgent orders or breakdowns.
- Ideal range is typically 80-90% for most manufacturers.
See Capacity Utilization in Action
Don't just read about Capacity Utilization. See how Karygar automates this process to reduce manual work and errors on your factory floor.