Definition from Wiktionary, the free dictionary
- (management, operations) The percentage of the capacity of a device or system that is being used productively.
- The determination of capacity and the determination of productive use require a great deal of specification. For example, "nameplate capacity" of a machine does not make any allowance for the number of shifts of operation, holidays, vacations, preventive maintenance, repairs, cleaning time, use for training and experimentation, and set-up or changeover time.
capacity utilization — see capacity utilization rate