Business – 4.3 Capacity utilisation and outsourcing – Capacity utilisation | e-Consult
4.3 Capacity utilisation and outsourcing – Capacity utilisation (1 questions)
Login to see all questions.
Click on a question to view the answer
Assume the company moves from a single‑shift (8 hours) to a two‑shift (16 hours) pattern while keeping the same resources. The table below shows the effect on capacity utilisation.
| Scenario | Available Hours | Actual Output Hours | Capacity Utilisation |
| Single‑shift (current) | 8 hrs/day | 5.2 hrs/day (65%) | 65% |
| Two‑shift (proposed) | 16 hrs/day | 12.8 hrs/day (80%) | 80% |
By extending operating hours, the firm raises utilisation from 65% to 80%, increasing overall productivity without additional equipment.