capacity utilisation

What does the capacity utilization rate help describe?

• The extent to which a company's maximal production capacity is being utilized.

• The amount a company can produce at a given time

• The necessary amount of equipment a company needs to produce at 100% capacity

• The speed at which a company's resources are being utilized

How would you calculate capacity utilization rate?

• Actual output / potential output

• Potential output / actual output

• Output speed / potential output

• Potential speed / actual output

Which of the following statements is true?

• Efficiency is always higher than utilisation.

• Utilisation and efficiency are usually equal.

• Utilisation is lower than efficiency in almost all cases

• Efficiency is lower or equal to utilisation.

The maximum output of a system in a given period is called the

• Efficiency.

• Effective capacity

• Design capacity.

• Break-even point.

Just-in-Time was successfully implemented by

• Toyota

• Honda

• Suzuki

• Volkswagen

The following is (are) the prerequisite(s) for JIT.

• Multi skilled workers

• Vendor should produce defect free

• Worker should be empowered his own decision

• All of the above

-JIT does not believe in

• Quality

• Over production

• Human relations

• All of the above

Just-In-Time aimed at

• Zero inventories

• Reduced manpower

• Over production

• All of the above

Applying the concepts of just-in-time tends to reduce

• the cost of handling incoming materials.

• he cost of materials storage.

• the cost of materials movement inside the plant.

• a. and b.

• all of the above.

Just in Case Inventory Management: Disadvantages

• Higher storage space

• Higher customer satisfaction

• Risk of inventory waste

• Lower risk of stock-outs