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    ellenb9999's Avatar
    ellenb9999 Posts: 1, Reputation: 1
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    #1

    Apr 7, 2008, 07:00 AM
    Utilization Issue
    If I have a factory manufacturing widgets and the goal is to operate the factory at 64% (this allows for 20% growth and 16% contingency), if I have take 9% of the factory down for maintenance, does this 9% come out of growth, contingency, or off the top?

    For example, operating at 100% I produce 211 each hour. Allowing for 20% for growth, I produce 169 each hour. I also want to allow for 16% contingency which takes my production down to 134 each hour. Now I find that 9% of my factory must go down for maintenance. Where is the 9% subtracted from?

    Thanks.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Apr 8, 2008, 10:58 AM
    I am not quite sure what you are asking.

    But if at 100% you can produce 211 units…..

    And you normally operate at 64%, that means all you are producing right now is 135

    So if 9% goes down for maintenance that would reduce the 135 amount.

    So now you are operating at 55% or 116 units.

    Therefore I guess to answer your question, it would be off the top as you put it.
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