Opportunity Gap

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Opportunity gap, abbreviated as OG, is the difference between what an asset is capable of producing and what it actually produces.

 

Opportunity gap Formula

\(\large{ OG = \frac { AO }{ MC }  }\)  

Where:

\(\large{ OG }\) = opportunity gap

\(\large{ AO }\) = actual output

\(\large{ MC }\) = maximum capacity

 

Tags: Equations for Manufacturing