Operating at Full Capacity


	Operating at Full Capacity
	Advantages Effectiveness Minimises unit costs Higher chance of reaching break even output No (or little) assets are idle	Disadvantages Negative effect on quality (possibly) - Production is rushed - Less time for quality control- less time for making sure the product is perfect Employees suffer -Added workloads and stress -Demotivating if sustained for too long Loss of sales -Less able to meet sudden or unexpected increases in demand -Production equipment may require repair.
	Evaluation

Negative effect on quality (possibly)
- Production is rushed
- Less time for quality control- less time for making sure the product is perfect
Employees suffer
-Added workloads and stress
-Demotivating if sustained for too long
Loss of sales
-Less able to meet sudden or unexpected increases in demand
-Production equipment may require repair.

Get Revising