
Utilization will always be lower than efficiency because Effective capacity is less than design capacity. False, Utilization and efficiency are equal in value • Effective capacity is greater than design capacity. Effective capacity equals design capacity
Answer
Answer: Effective capacity is less than design capacity
We know,
Utilization =
Efficiency =
Utilization < Efficiency,
Hence, Effective capacity < Design capacity
Actual output Designcapacity
Actual output Effectivecapacity
Actual output Designcapacity
Actual output Effectivecapacity