Calculate how much of your total production capacity is actually being used by accounting for downtime and maintenance periods
Learn how to use the Effective Capacity Calculator and understand its working principles
Effective capacity is a crucial metric that shows how much of your total production capacity is actually being utilized. It accounts for all the time when your production isn't happening due to downtime, maintenance, holidays, or other interruptions.
The formula used in this calculator is:
Effective Capacity = Total Capacity × (Operating Hours per Week - Downtime per Week - Maintenance Time per Week)
Capacity utilization is the percentage of potential output that is actually realized. It's calculated as:
Capacity Utilization (%) = (Effective Capacity / (Total Capacity × Operating Hours)) × 100%
A higher capacity utilization typically indicates more efficient operations, though the ideal percentage varies by industry.
Suppose a factory has the following parameters:
With these parameters, the calculator would show an effective capacity of approximately 4,400 units per hour, with a capacity utilization of about 88%.