Design Capacity and Effective Capacity - Calculating Capacity Utilization and Efficiency Rate

[@nesternunez8430]

This whole playlist is exceptional..!!

[@drdhaywood]

Thanks a ton.

[@GorgeousFlakes]

This playlist along with study guides helped me pass this class! Thank you!!!

[@drdhaywood]

Glad to help.

[@MamaOwlbear]

You are such a good teacher!

[@drdhaywood]

That's very kind of you. Thank you! 😃

[@tinnagrace8008]

im happy i found this playlist before my exam in 2weeks im hoping for a pass

[@drdhaywood]

Hope the exam went well...

[@mihaelaivanova5799]

wgu student! I hope i pass.. thanks for this ! much help

[@drdhaywood]

You're welcome!

[@user-ut4gq8rh6n]

Thanks for explanation

[@drdhaywood]

You're welcome.

[@ahmedahmed-yc5bi]

i know its a year ago but thank you

[@drdhaywood]

You’re welcome

[@Simplified_Business_Systems]

I was under the impression that we should calculate design based on 24 hours even if the facility is only open for 8. Is this correct?

[@drdhaywood]

Hey - good question. It depends- You can calculate design capacity based on 24 hours but usually it is based on the production time. That can be a standard 8 hr work day, 12 hr work day, or a 24 hr work day for production companies that produce 24 hrs a day. It ultimately depends on how the organization chooses to do the calculation relative to their production schedule. Hope this helps.

[@beccao5477]

Thanks for the explanation. I now have a fair idea of capacity utilization. Can this be applied to a service product? if yes how?

[@drdhaywood]

You're very welcome...And Yes! For example, a restaurant has a specific level of capacity for the number of people they can serve. Both capacity utilization and efficiency rate can be calculated based on the number of people they serve relative to the design capacity and effective capacity. I hope this helps.