Capacity Utilisation Rate measures the extent to which a company is leveraging its full production or work potential. It puts the actual capacity in relation to the possible capacity.
Capacity Utilisation Rate = (Actual Capacity in time period t / Possible Capacity in time period t ) x 100
This indicator is included in the book: Key Performance Indicators - the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.
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