Reasons for operating below & above 100% capacity utilisation

Below 100%: 

- Lack of demand from customers or lack of demand due to seasonal factors. 

- Insufficient operations - poor operations management.

- Machine breakdowns. 

- Higher than expected labour turnover - temporary shortage of employees. 

Above 100%: 

- Increasing overtime working / putting on extra shifts / hiring temporary labour.

- Subcontracting some work to outside suppliers.

- Reducing the amount of time spent on the machines.