Capacity utilisation
How much of the capacity you already own is being used.
01 What it is
Why anyone looks at this number
How much of the capacity you already own is being used.
It decides whether the answer to more demand is a better schedule or a capital request. The most expensive capacity there is, is the kind you buy before using what you have.
02 The formula
How it is worked out
Capacity utilisation = actual_output ÷ practical_capacity grain : week × line × site unit : percentage source : Production reporting or MES, joined to the asset register
Practical capacity, not nameplate. The demonstrated rate net of changeovers and planned maintenance is the only honest denominator; the specification sheet produces a number that is permanently and comfortably wrong.
03 Worked example
The same number, with real inputs
| Output | 41,200 units |
| Practical capacity | 52,000 units |
| OEE on the same lines | 62% |
| Calculation | 41,200 ÷ 52,000 |
| Result | 79% |
79% utilised at 62% OEE. There is close to a line's worth of capacity inside the losses, and it costs a fraction of buying one.
04 What moves it
Four things that actually change this number
Demand
The half of this metric operations does not control.
Changeovers
Short runs and a wide product range consume capacity invisibly.
Availability
Breakdowns and maintenance, which OEE measures properly.
Labour and shift pattern
Capacity you own but are not staffing.
05 Where the number lives
The system, the record and the fields
| System of record | Key record | Fields you need |
|---|---|---|
| Production reporting or MES, joined to the asset register | Line / Work centre joined to Production order | line_id, period, units_produced, demonstrated_rate, available_hours, planned_downtime |
Practical capacity, not nameplate. The demonstrated rate net of changeovers and planned maintenance is the only honest denominator; the specification sheet produces a number that is permanently and comfortably wrong.
06 How it goes wrong
Three ways this metric misleads people
Nameplate capacity as the denominator
Utilisation looks low and the improvement case is built on capacity that never existed.
Fix: Use the demonstrated rate, agreed with operations.Site averages
The constraint is one work centre and the average hides it entirely.
Fix: Measure the bottleneck; the rest of the plant follows it.Utilisation as a target
Running everything at 100% builds work in progress and lengthens lead times.
Fix: Target flow and service; let utilisation be the consequence.08 Questions
Frequently asked
How is this different from OEE?
Utilisation asks how much of your capacity demand called for; OEE asks how much of the time you did run was productive. Low utilisation with high OEE is a commercial problem; the reverse is an engineering one.
What is a healthy level?
It depends entirely on demand variability. High-mix operations that run at 95% cannot absorb a rush order without missing something else, and the service metrics show it before the plant does.
One definition, everywhere it is used
SCIKIQ stores this metric once and serves it to every dashboard, board pack and agent that asks.