Capacity utilization rate in work center
how to Calculat/deside Capacity utilization rate in work center ?
Thaila Shree replied
Capacity Utilisation rate = Actual Capacity / Theoritical Capacity
Theoritical Capacity= Shift period * No. of machines available
= 8 hrs * 2 = 16 hrs
Actual Capacity value depends on how the company decides it. Say if the break 30 mins has to be considered, then the actual capacity will be 15 hrs for 2 capacities and hence,
Capacity Utilisation rate = 15 / 16 = 93.8%
So, decide the utilisation rate based on the Company's requiremnt.
Hope the above gives you an idea.