capacity utilization

(redirected from Capacity utilisation)

Capacity Utilization Rate

The extent to which a company uses its facilities at capacity, expressed as a percentage. That is, the capacity utilization rate states how much a company produces as a percentage of what it can produce. For example, if a factory produces 1,000 widgets per day but could produce 2,000 for the same cost, it has a capacity utilization rate of 50%. The capacity utilization rate is most useful for companies producing goods rather than services because goods are simply easier to quantify.

capacity utilization

the proportion of a firm's available CAPACITY which is currently being employed in producing output. This depends to a great extent on the state of demand and a firm's competitive abilities. A fall in demand, or a failure to win orders against competition, may force a firm to operate at below BREAK-EVEN levels of capacity utilization. See INDIVISIBILITIES, BUSINESS CYCLE, MACHINE UTILIZATION.
References in periodicals archive ?
Mumbai: The Reserve Bank of India has launched the 40th round of its Order Books, Inventories and Capacity Utilisation Survey (OBICUS).
6 billion to improve its capacity utilisation from the present disgraceful 15%.
In September, the capacity utilisation rate in manufacturing was 77%, or 7.
ANKARA, May 25, 2010 (TUR) -- Turkish Trade and Industry Minister, Nihat Ergun said the rise in capacity utilisation indicated an ongoing economic recovery in Turkey.
3 skills and international networks Source: Survey Data (2008) Table 4: The extent of achievement of corporate objectives by Nigerian firms S/No Objectives Extent of achievement Very High Average Low high 1 Profitability 12(60 8(32) 3(9) 5(10) 2 Increased sales volume 2(15) 5(20) 2(6) 18(36) 3 Customers satisfaction 10(50 10(40 5(15) 4(8) 4 Efficiency and increase 2(10) 4(16) 14(42) 1(2) capacity utilisation S/No Objectives Extent of achievement Very Weighted % low total 1 Profitability 7(7) 118 64.
The Reserve Bank of India has launched the 38th round of its Order Books, Inventories and Capacity Utilisation Survey (OBICUS).
In August, capacity utilisation rate in manufacturing was 75.
ANKARA, May 24, 2010 (TUR) -- The capacity utilisation rate in Turkish manufacturing industry has been 73.
The Reserve Bank of India has launched 35th round of its Order Books, Inventories and Capacity Utilisation Survey (OBICUS).
ANKARA, May 24, 2010 (TUR) -- Turkish Trade and Industry Minister, Nihat Ergun said the rise in capacity utilisation indicated an ongoing economic recovery in Turkey.
Statistics Sweden, the Swedish state statistics agency, said on Tuesday (21 August) that according to preliminary estimates the actual capacity utilisation in the Swedish mining and manufacturing industries increased by 0.
The Reserve Bank of India has launched the 34th round of its Order Books, Inventories and Capacity Utilisation Survey (OBICUS).