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Not Just One Answer
Perhaps there are several answers to this. Printing companies have found solutions: 12-hour working days with three and four day work weeks, using less equipment with faster working capital turnover—less plant and faster turns.
So what do we mean when we say "capacity?" I submit that 24/7 is the best we can do. If we choose to operate our plants on a "usable capacity" basis, that's a matter of choice, a judgment call. We make that choice to operate more plant and equipment on more or lesser hours. We'll operate with more debt, rents, overheads and depreciation in proportion to throughput of product.
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- Companies:
- NAPL
- People:
- Ledger Accounting
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