Packaging Utilization Rate
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Category:  
Operational

Measures the percentage of packaging material used efficiently in the production process.

What it Measures ?

% of packaging volume effectively used.

Relevant StakeHolders 

Packaging, Warehouse Ops

In-depth Use Case / Real-world Example

A company manufacturing food products calculates Packaging Utilization Rate by measuring how much of the packaging material (boxes, plastic, etc.) is used effectively. For example, if 80% of the packaging material is used efficiently while 20% is wasted, the packaging utilization rate is 80%. Optimizing this rate reduces costs and minimizes waste.

KPI Definition

Business Value

Movement Direction

Sample Formula

(Effective Packaging Volume / Total Packaging Volume) * 100

Should Aim For
1
2
3
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