capacity utilization rate

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capacity utilization rate (plural capacity utilization rates)

  1. (management, operations) The percentage of the capacity of a device or system that is being used productively.

Usage notes[edit]

  • 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.