A manufacturing facility has 20 drill presses 2 are schedule

A manufacturing facility has 20 drill presses. 2 are scheduled consistently for routine maintenance. 14 are typically in use. What is the capacity utilization rate of the drill presses?

Solution

Utilization rate = ( Actual Output/ Potential Output ) * 100 %

Actual outout = 14

Potential output = 20

Utilization rate = 14/ 20 * 100 = 70%