Question

A manufacturing plant is capable of producing 10 tons of product per day when it runs three shifts with no breakdowns and plenty of raw materials. Over the past week, the plant has produced an average of 7.3 tons per day because the third shift has devoted much of their time to preventive maintenance. What is the utilization of the plant?

Answer 1

Answer: 73%

Explanation:

The plant is capable of producing 10 tons of product in one day.

Currently however, it is only able to produce 7.3 tons per day.

Utilization is therefore:

= Actual production/ Potential production * 100

= 7.3/10 * 100

= 73%