Capacity Utalisation And Mango

Question 1

Low capacity utalisation advantages

Answer 1

Flexbiity to take in new orders

Less stress on workforce

Question 2

Capcity utilization

Answer 2

Measures how much of a businesses maximum output is actually being used

Question 3

Way to improve Capacity Management

Answer 3

Training staff to be flexible
Use of technology and automation
Match staff to seasonal demand

Question 4

Disadvantages of low capacity utilization

Answer 4

Lower profits
Higher cost
Inefficient due to unused resources

Question 5

Stakeholder impact on High utalisation

Answer 5

Workers-More working hours,increase workload,possible burnout
Managers-higher profits
Shareholders-higher profits and dividends
Customer-possible lower quality In goods

Question 6

Stakeholder impact on low utalisation

Answer 6

Employees-decrease workload,boardem
Managers-pressure to cut cost
Shareholders-Lower profits
Customers-higher quality goods

Question 7

What is capacity management

Answer 7

The process of ensuring a business has the right capacity to meet demand

Question 8

What can a business do when utalisation is low

Answer 8

Reduce staff
Close underperforming facilities
Market in order to boost demand

Question 9

Capcity utalisation Formula %

Answer 9

Current output/Maximum possible output x100

Question 10

What can a business do when utalisation is too high

Answer 10

Hire more staff and machinery
Increase operating hours