Excess production capacity must be discarded. As it is discarded, it is expressed as lower operating performance. This video (below) explains that operating performance is really a measure of capacity utilization. It demonstrates that capacity utilization must be improved before operating performance can be improved.
Productivity Step Change (PSC) is a global Management Consulting Group based in the US dedicated to maximizing Capacity Utilization, improving Return on Invested Capital (ROIC), and increasing productivity for its clients across industry. Our enterprise-level, data-led, cross-functional business analysis typically requires 4-6 calendar weeks and is designed to provide evidence of your opportunities for overall growth. Please contact us if you would like to schedule time for a discussion and presentation.