Key Performance Indicators (KPI)

39

Capacity utilisation rate (CUR)

Strategic perspective

Operational processes and supply chain perspective

Key performance question this indicator helps to answer

To what extent are we leveraging our full production/work potential?

Why is this indicator important?

When companies invest in production units (e.g. a machine or a factory) or in people and processes, they want to ensure that they get the intended benefit from this investment (i.e. produce products and deliver services for customers). Capacity is the ability to produce work or output in a given time-frame, e.g. a machine has the capacity to produce 40 widgets per hour and a factory has the capacity of 10,000 machine hours in each 40-hour week.

Capacity utilisation is a measure ...