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