Lesson Plan

Resources → Subject Notes → Business → Notes
Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: the measurement of capacity utilisation
Learning Objective/s:
  • Define capacity utilisation and its relevance to business decisions.
  • Calculate capacity utilisation using the standard formula.
  • Analyse utilisation levels to identify under‑ or over‑use of resources.
  • Evaluate when outsourcing is appropriate based on capacity data.
  • Apply a checklist to decide on capacity expansion, efficiency improvements, or outsourcing.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed worksheets with calculation examples
  • Calculator or spreadsheet software
  • Capacity utilisation formula handout
  • Sample data sets (monthly production figures)
  • Whiteboard markers
 Introduction:
Begin with a quick discussion: “What happens when a factory runs at only half its potential?” Students recall previous lessons on fixed vs variable costs. Today they will learn how to measure capacity utilisation and use the results to guide decisions such as outsourcing. Success will be shown by correctly calculating and interpreting utilisation percentages.
Lesson Structure:
  1. Do‑Now (5’) – Answer a short question on consequences of low utilisation.
  2. Mini‑lecture (10’) – Define capacity utilisation, explain its importance, and present the formula using the projector.
  3. Guided practice (12’) – Work through the provided example calculation together and complete the worksheet.
  4. Group activity (15’) – Teams calculate utilisation for a new data set and interpret the level using the checklist.
  5. Discussion (8’) – Relate results to outsourcing decisions; debate low vs high utilisation scenarios.
  6. Exit ticket (5’) – Write one actionable recommendation based on their calculation.
Conclusion:
Summarise that capacity utilisation links production performance to strategic choices like outsourcing. Students submit an exit ticket recommending a course of action for their scenario. For homework, they will gather real‑world data from a chosen company and prepare a brief report applying the checklist.