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What is the name of the common indicator, often expressed as a percentage of time when an organisation's core resource (equipment or people) is engaged in production or transformation activities?
Suggested Answer: D
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Comprehensive and Detailed Explanation From Exact Extract:
Utilisation rate measures the proportion of available capacity that is actually used for productive activity. It is calculated as:
'Utilisation Rate'='Throughput Rate' /'Design Capacity' 100
This indicator helps managers understand how efficiently facilities or resources are being used. High utilisation may indicate efficiency but could also suggest limited flexibility. (Reference: CIPS L5M10 Study Guide, Capacity utilisation and performance measures, p. 132)
4 comments · newest first
KE
Keneth
20 hours ago
I thought it was called the waiting rate at first, but now I’m thinking it’s definitely D) Utilisation rate based on that practice question we did last week.
KA
Kasandra
6 days ago
I’m leaning towards D) Utilisation rate too, but I keep mixing it up with C) Production rate. They both seem similar!
MA
Marilynn
11 days ago
I remember discussing this in class, and I feel like it was related to how effectively resources are used. Could it be A) Downtime rate?
VI
Viola
16 days ago
I think the answer might be D) Utilisation rate, but I’m not completely sure. It sounds familiar from our last practice session.