Utilization will typically be lower than efficiency because:
A) effective capacity is less than design capacity.
B) effective capacity is greater than design capacity.
C) effective capacity equals design capacity.
D) expected output is less than actual output.
E) expected output is less than rated capacity.

Question

Quizplus · Accepted Answer

Utilization is the actual output as a percentage of design capacity, while efficiency is the actual output as a percentage of effective capacity. Effective capacity takes into account factors such as delays and downtime. Since effective capacity is typically less than design capacity, utilization will also be lower than efficiency, making choice A the correct answer.

Utilization Will Typically Be Lower Than Efficiency Because