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?
A) 10 tons/day
B) 7.3 tons/day
C) 137%
D) 73%

Question

Quizplus · Accepted Answer

Utilization is calculated as actual output divided by maximum potential output. The maximum potential output of the plant is 10 tons per day. The actual output over the past week is (7.3 tons/day x 7 days) = 51.1 tons. Therefore, the utilization is (51.1 tons / (10 tons/day x 7 days)) x 100% = 73%. Therefore, the correct answer is D) 73%.

A Manufacturing Plant Is Capable of Producing 10 Tons of Product