A manufacturer of printed circuit boards has a design capacity of 1,000 boards per day. The effective capacity, however, is 686 boards per day. Recently, the production facility has been producing 913 boards per day.

Compute the design and effective capacity utilization measures.

The manufacturer is utilizing 91.3% of the design capacity and 133.1% of the effective capacity. This indicates the manufacturer is overworking its resources by producing more than its effective capacity.

The manufacturer is utilizing its capacity to produce printed circuit boards in two ways, namely design capacity and effective capacity. Calculating capacity utilization is done by using the formula:

(Actual output/Design or Effective capacity) x 100%.

Design Capacity Utilization = (Actual output/Design Capacity) * 100% = (913/1000) * 100% = 91.3%

Effective Capacity Utilization = (Actual output/Effective Capacity) * 100% = (913/686) * 100% =133.1%

This means the manufacturer is utilizing 91.3% of the design capacity and 133.1% of the effective capacity. It indicates that the manufacturer is overworking its resources, as it is producing more than its effective capacity. This could lead to increased wear and tear on the equipment and reduced lifespan of the machinery.

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A manufacturer of printed circuit boards has a design capacity of 1,000 boards per day. The effective capacity, however, is 686 boards per day. Recently, the production facility has been producing 913 boards per day.Compute the design and effective capacity utilization measures.

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A manufacturer of printed circuit boards has a design capacity of 1,000 boards per day. The effective capacity, however, is 686 boards per day. Recently, the production facility has been producing 913 boards per day.

Compute the design and effective capacity utilization measures.