What are potential effects of over-utilization of capacity in a new factory?

• A. Over-utilization can create bottlenecks, maintenance problems, lower quality, and worker stress.
• B. It automatically reduces maintenance costs due to economies of scale.
• C. It eliminates the need for capacity planning.
• D. It guarantees higher profitability without risk.

Answer: (A)

Running capacity at or beyond sustainable levels means the plant is pushed too hard, and that quickly creates a chain of problems. In a new factory, one stage can become a bottleneck, slowing the whole line and eroding throughput. The machinery and systems wear faster, making maintenance more frequent and more challenging to schedule, which can lead to unexpected downtime. Operators and managers often rush to meet tight schedules, which can reduce attention to detail, raise defect rates, and lower quality. All of these factors together raise stress and burnout among workers, further increasing the chance of errors and absences. So the most accurate description is that over-utilization can create bottlenecks, maintenance problems, lower quality, and worker stress.

It doesn’t automatically cut maintenance costs—actually, wear and tear tend to rise with heavier use. It also doesn’t remove the need for capacity planning; planning becomes more crucial to avoid bottlenecks and ensure sustainable operation. And it certainly doesn’t guarantee higher profitability without risk—higher output comes with greater risk of breakdowns, quality problems, and delivery issues that can erase any throughput gains.