Capacity Utilization Flashcards
1
Q
What is the formula?
A
Actual output/Potential output x 100
2
Q
How do you increase it?
A
Subcontract workers
3
Q
What is the main issue with increasing work hours in order to increase it?
A
Employees could become stressed
4
Q
Why would it be counter-productive for employees to be stressed?
A
Could result in absenteeism or becoming demotivated
5
Q
If a company only operates at 95%, what is the rest?
A
Spare capacity
