September 2014
Beginner
224 pages
2h 55m
English
Content preview from 25 Need-To-Know Key Performance Indicators
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Chapter 13
Capacity utilisation rate (CUR)
- Why: To better understand how efficiently internal processes are run
- What: To measure the rate to which full process potential is leveraged
- When: When you want to understand the internal process efficiency
- The question this indicator helps you to answer: to what extent are we working to our full work/production capacity?
Why does this KPI matter?
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: for example, a machine has the capacity to produce ...
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