Increasing The Capacity utilization will Increase plant output ?

Utilising plant idle capacity will definitely increase plant output. Various areas where we need to close work to implement and revised standard operating procedure such as Supply chain managment, inventory management, minimise frequent breakdowns, preventive and predictive maintenace schedules, planning, scheduling, execution and performance analysis of operation and maintenance procecures.identify, analysed and implement correct safe, reliable and long term operating procdure to increase plant utilization  

-  In time Proper PPM of plants.

-  Continue supply of raw materials.

-  Empolyment of Skilled Manpower.

-  Continue supply of utilities/ technical services.

-  Minimize the break down/ shutt down.

 

• Ensure the safe operation and optimum utilization of all plant and equipments

 

Utilizing idle capacity will definitely increase the output but may or may not increase operating income which will depend on increase of fixed cost on account of increase in capacity. Company should always plan output at optimum level where marginal cost = marginal revenue