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Exhibits

Exhibits

Every chart from the flagship report, live and citable: a message title, the data with a source for every row, and a link back to its chapter.

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01

Most plants run well below their capacity

3 exhibits · Read the chapter

  • Exhibit 1 · The capacity you already own

    US manufacturing runs 2.5 points below its own long-run average

    Capacity utilization, US manufacturing, selected readings, percent of capacity, seasonally adjusted

    60%65%70%75%80%85%90%1988–89 high85.5%1994–95 high84.6%Long-run average, 1972–202578.2%1990–91 low77.2%August 2026 (preliminary)75.7%2009 low63.4%2.5 points
    Show data table
    US manufacturing runs 2.5 points below its own long-run average (Capacity utilization, US manufacturing, selected readings, percent of capacity, seasonally adjusted)
    ItemValueUnitCite
    1988–89 high85.5percent of capacityCAP-003
    1994–95 high84.6percent of capacityCAP-003
    Long-run average, 1972–202578.2percent of capacityCAP-003
    1990–91 low77.2percent of capacityCAP-003
    August 2026 (preliminary)75.7percent of capacityCAP-001
    2009 low63.4percent of capacityCAP-003
    Link to this exhibit

    Note: August 2026 is a preliminary estimate. Manufacturing as defined by the Federal Reserve. Highs and lows are cycle readings shown in the release.

    Source: Board of Governors of the Federal Reserve System, G.17 Industrial Production and Capacity Utilization, release of September 18, 2026, summary and summary table (CAP-001, CAP-003).

    From: The capacity you already own, Exhibit 1

  • Exhibit 2 · The capacity you already own

    The average plant operates 66 of the 168 hours in a week

    Average plant hours per week in operation, US manufacturing, Q2 2026, hours; shift references assume 8-hour shifts, five days a week

    1 shift2 shifts3 shifts, 5 days24 × 7Average plant,Q2 202666 hours operated102 hours not operated (TC-D-001)Reference: a 24 × 7continuous plant168 hours (reference, not data)024487296120144168Hours in a week
    Show data table
    The average plant operates 66 of the 168 hours in a week (Average plant hours per week in operation, US manufacturing, Q2 2026, hours; shift references assume 8-hour shifts, five days a week)
    ItemValueUnitCite
    Average plant, hours operated66hours per weekCAP-006
    Hours in a week168hours per weekcalendar
    Hours not operated102hours per weekTC-D-001
    Link to this exhibit

    Note: Standard error 0.9 hours. Continuous-process industries (for example petroleum refineries, paperboard mills) report 168 hours. Shift references assume 8-hour shifts, 5 days a week.

    Source: U.S. Census Bureau, Quarterly Survey of Plant Capacity Utilization, 2026 Quarter 2, Table 1 (CAP-006). Hours not operated: Trapped Capacity derived figure TC-D-001; shift references are arithmetic.

    From: The capacity you already own, Exhibit 2

  • Exhibit 3 · The capacity you already own

    Fourteen of 19 industries run below their own long-run averages

    Capacity utilization by manufacturing industry, August 2026 (preliminary) against each industry's 1972–2025 average, percent of capacity, seasonally adjusted

    60%65%70%75%80%85%90%Gap, pointsFurniture−10.2Printing−10.1Primary metals−9.8Paper−8.5Plastics and rubber−6.4Motor vehicles and parts−5.4Textiles−5.2Chemicals−5.2Wood−4.5Apparel and leather−4.4Food, beverage and tobacco−2.9Computers and electronics−1.3Miscellaneous−0.9Fabricated metals−0.2Aerospace and other transportation0.0Petroleum and coal products+2.4Electrical equipment+4.1Machinery+5.2Nonmetallic minerals+8.51972–2025 averageAugust 2026, below averageabove average
    Show data table
    Fourteen of 19 industries run below their own long-run averages (Capacity utilization by manufacturing industry, August 2026 (preliminary) against each industry's 1972–2025 average, percent of capacity, seasonally adjusted)
    ItemValueUnitCite
    Furniture, August 202667.2percent of capacityCAP-026
    Furniture, 1972-2025 average77.4percent of capacityCAP-026
    Furniture, gap-10.2percentage pointsTC-D-005-01
    Printing, August 202668.6percent of capacityCAP-026
    Printing, 1972-2025 average78.7percent of capacityCAP-026
    Printing, gap-10.1percentage pointsTC-D-005-02
    Primary metals, August 202667.3percent of capacityCAP-026
    Primary metals, 1972-2025 average77.1percent of capacityCAP-026
    Primary metals, gap-9.8percentage pointsTC-D-005-03
    Paper, August 202678.0percent of capacityCAP-026
    Paper, 1972-2025 average86.5percent of capacityCAP-026
    Paper, gap-8.5percentage pointsTC-D-005-04
    Plastics and rubber, August 202675.2percent of capacityCAP-026
    Plastics and rubber, 1972-2025 average81.6percent of capacityCAP-026
    Plastics and rubber, gap-6.4percentage pointsTC-D-005-05
    Motor vehicles and parts, August 202669.0percent of capacityCAP-026
    Motor vehicles and parts, 1972-2025 average74.4percent of capacityCAP-026
    Motor vehicles and parts, gap-5.4percentage pointsTC-D-005-06
    Textiles, August 202672.1percent of capacityCAP-026
    Textiles, 1972-2025 average77.3percent of capacityCAP-026
    Textiles, gap-5.2percentage pointsTC-D-005-07
    Chemicals, August 202671.7percent of capacityCAP-026
    Chemicals, 1972-2025 average76.9percent of capacityCAP-026
    Chemicals, gap-5.2percentage pointsTC-D-005-08
    Wood, August 202672.2percent of capacityCAP-026
    Wood, 1972-2025 average76.7percent of capacityCAP-026
    Wood, gap-4.5percentage pointsTC-D-005-09
    Apparel and leather, August 202671.3percent of capacityCAP-026
    Apparel and leather, 1972-2025 average75.7percent of capacityCAP-026
    Apparel and leather, gap-4.4percentage pointsTC-D-005-10
    Food, beverage and tobacco, August 202677.3percent of capacityCAP-026
    Food, beverage and tobacco, 1972-2025 average80.2percent of capacityCAP-026
    Food, beverage and tobacco, gap-2.9percentage pointsTC-D-005-11
    Computers and electronics, August 202675.8percent of capacityCAP-026
    Computers and electronics, 1972-2025 average77.1percent of capacityCAP-026
    Computers and electronics, gap-1.3percentage pointsTC-D-005-12
    Miscellaneous, August 202676.2percent of capacityCAP-026
    Miscellaneous, 1972-2025 average77.1percent of capacityCAP-026
    Miscellaneous, gap-0.9percentage pointsTC-D-005-13
    Fabricated metals, August 202678.3percent of capacityCAP-026
    Fabricated metals, 1972-2025 average78.5percent of capacityCAP-026
    Fabricated metals, gap-0.2percentage pointsTC-D-005-14
    Aerospace and other transportation, August 202673.4percent of capacityCAP-026
    Aerospace and other transportation, 1972-2025 average73.4percent of capacityCAP-026
    Aerospace and other transportation, gap0.0percentage pointsTC-D-005-15
    Petroleum and coal products, August 202687.9percent of capacityCAP-026
    Petroleum and coal products, 1972-2025 average85.5percent of capacityCAP-026
    Petroleum and coal products, gap2.4percentage pointsTC-D-005-16
    Electrical equipment, August 202685.8percent of capacityCAP-026
    Electrical equipment, 1972-2025 average81.7percent of capacityCAP-026
    Electrical equipment, gap4.1percentage pointsTC-D-005-17
    Machinery, August 202683.4percent of capacityCAP-026
    Machinery, 1972-2025 average78.2percent of capacityCAP-026
    Machinery, gap5.2percentage pointsTC-D-005-18
    Nonmetallic minerals, August 202682.5percent of capacityCAP-026
    Nonmetallic minerals, 1972-2025 average74.0percent of capacityCAP-026
    Nonmetallic minerals, gap8.5percentage pointsTC-D-005-19
    Link to this exhibit

    Note: August 2026 is preliminary and subject to annual revision on November 24, 2026. Industries sorted by gap; the count is unweighted, so a small industry counts the same as a large one.

    Source: Board of Governors of the Federal Reserve System, G.17 Industrial Production and Capacity Utilization, release of September 18, 2026, Table 7 (CAP-026). Gaps and count: Trapped Capacity derived figures TC-D-004, TC-D-005.

    From: The capacity you already own, Exhibit 3

02

Why plants run below capability

1 exhibit · Read the chapter

  • Exhibit 4 · The capacity you already own

    Plants cite weak orders first, then labor and equipment

    Reasons for operating below full production capability, US manufacturing plants, Q2 2026, percent of plants citing at least one reason

    0%20%40%60%80%Insufficient orders67.1%Insufficient supply of labor22.2%Equipment limitations11.5%Insufficient materials11.3%Not profitable at full capacity10.5%Seasonal operations9.0%Sufficient finished-goods inventory7.2%Storage limitations6.3%Logistics or transportation3.5%Environmental restrictions1.6%Lack of fuel or energy0.7%Other10.7%
    Show data table
    Plants cite weak orders first, then labor and equipment (Reasons for operating below full production capability, US manufacturing plants, Q2 2026, percent of plants citing at least one reason)
    ItemValueUnitCite
    Insufficient orders67.1percent of plantsCAP-027
    Insufficient supply of labor22.2percent of plantsCAP-027
    Equipment limitations11.5percent of plantsCAP-027
    Insufficient materials11.3percent of plantsCAP-027
    Not profitable at full capacity10.5percent of plantsCAP-027
    Seasonal operations9.0percent of plantsCAP-027
    Sufficient finished-goods inventory7.2percent of plantsCAP-027
    Storage limitations6.3percent of plantsCAP-027
    Logistics or transportation3.5percent of plantsCAP-027
    Environmental restrictions1.6percent of plantsCAP-027
    Lack of fuel or energy0.7percent of plantsCAP-027
    Other10.7percent of plantsCAP-027
    Link to this exhibit

    Note: Plants may cite more than one reason, so shares overlap and do not sum to 100. Standard errors 0.3 to 1.5 points. Strike or work stoppage withheld by Census. Ultramarine marks the two limits discussed in the text.

    Source: U.S. Census Bureau, Quarterly Survey of Plant Capacity Utilization, 2026 Quarter 2, Table 3b (CAP-027).

    From: The capacity you already own, Exhibit 4

03

Capital spending and productivity growth

2 exhibits · Read the chapter

  • Exhibit 5 · The capacity you already own

    Manufacturers spent $314.3 billion on structures and equipment in 2022

    Capital expenditures, US manufacturing companies with employees, 2021 (revised) and 2022, billions of current dollars

    $0$50$100$150$200$250$300$3502021Equipment $215.5Structures $68.6$284.22022Equipment $237.8Structures $76.5$314.3+10.6% on 2021
    Show data table
    Manufacturers spent $314.3 billion on structures and equipment in 2022 (Capital expenditures, US manufacturing companies with employees, 2021 (revised) and 2022, billions of current dollars)
    ItemValueUnitCite
    2021 equipment215.5USD billionCAP-017
    2021 structures68.6USD billionCAP-017
    2021 total284.2USD billionCAP-017
    2022 equipment237.8USD billionCAP-017
    2022 structures76.5USD billionCAP-017
    2022 total314.3USD billionCAP-017
    Link to this exhibit

    Note: Nominal dollars, not adjusted for inflation. Components may not sum to totals because of rounding. The survey has since been folded into the Annual Integrated Economic Survey; 2022 is its latest year.

    Source: U.S. Census Bureau, 2022 Annual Capital Expenditures Survey, manufacturing table (CAP-017).

    From: The capacity you already own, Exhibit 5

  • Exhibit 6 · The capacity you already own

    Output per hour has grown 0.5% a year this cycle, against 2.1% long-term

    Labor productivity (output per hour worked), US manufacturing sector, average annual growth, percent

    0.0%0.5%1.0%1.5%2.0%2.5%Long-term rate2.1%Previous business cycle0.1%Current business cycle0.5%
    Show data table
    Output per hour has grown 0.5% a year this cycle, against 2.1% long-term (Labor productivity (output per hour worked), US manufacturing sector, average annual growth, percent)
    ItemValueUnitCite
    Long-term rate2.1percent a yearCAP-024
    Previous business cycle0.1percent a yearCAP-024
    Current business cycle0.5percent a yearCAP-024
    Link to this exhibit

    Note: Business-cycle comparison as published by BLS; the current cycle is still open. Rates are averages for the whole sector, not for any plant.

    Source: U.S. Bureau of Labor Statistics, Productivity and Costs, Second Quarter 2026, Revised, news release of September 3, 2026, manufacturing section (CAP-024).

    From: The capacity you already own, Exhibit 6

04

Losses inside scheduled hours

3 exhibits · Read the chapter

  • Exhibit 7 · The capacity you already own

    Downtime took 7.8% of planned production time in the NIST sample

    Downtime as a share of planned production time (NIST survey question 9), US discrete manufacturers, annual values for 2016, percent

    0%3%6%9%12%15%Lowest group 4.0%Highest group 12.8%Average 7.8%
    Show data table
    Downtime took 7.8% of planned production time in the NIST sample (Downtime as a share of planned production time (NIST survey question 9), US discrete manufacturers, annual values for 2016, percent)
    ItemValueUnitCite
    Lowest stratum4.0percent of planned production timeCAP-012
    Average, all surveyed establishments7.8percent of planned production timeCAP-012
    Highest stratum12.8percent of planned production timeCAP-012
    Link to this exhibit

    Note: Self-selected sample: 85 responses returned by maintenance managers, some dropped. The question asks for downtime as a share of planned time; NIST reads it as unplanned. Range shows the lowest and highest survey strata (NAICS 321-339, excluding 324 and 325).

    Source: National Institute of Standards and Technology, Economics of Manufacturing Machinery Maintenance (NIST AMS 100-34), D. S. Thomas and B. A. Weiss, 2020, Table 5.1 (CAP-012).

    From: The capacity you already own, Exhibit 7

  • Exhibit 8 · The capacity you already own

    NIST's lost-sales estimate is large but uncertain

    Maintenance costs and revenue at risk, US discrete manufacturing, NIST estimates, annual values for 2016, billions of dollars

    $0$30$60$90$120$150$180COSTSDirect maintenance spending$57.3Total maintenance-related costs$74.5Downtime cost$18.1Defect cost$0.8REVENUE AT RISKSales lost to delays and defects$100.2$166.8
    Show data table
    NIST's lost-sales estimate is large but uncertain (Maintenance costs and revenue at risk, US discrete manufacturing, NIST estimates, annual values for 2016, billions of dollars)
    ItemValueUnitCite
    Direct maintenance spending57.3USD billion (2016)CAP-008
    Total maintenance-related costs74.5USD billion (2016)CAP-008
    Downtime cost18.1USD billion (2016)CAP-007
    Defect cost0.8USD billion (2016)CAP-007
    Sales lost to delays and defects100.2USD billion (2016)CAP-007
    Lost sales, 90% CI low33.5USD billion (2016)TC-V-001
    Lost sales, 90% CI high166.8USD billion (2016)TC-V-001
    Lost sales, stratified estimate88.3USD billion (2016)TC-V-001
    Link to this exhibit

    Note: Whisker: NIST 90% confidence interval for lost sales, $33.5B to $166.8B; ink mark: NIST's estimate by size and industry strata, $88.3B. Lost sales are revenue, not profit, some of it moved to other US plants; they are not added to the cost rows. Self-selected sample of 85 returned responses.

    Source: National Institute of Standards and Technology, Economics of Manufacturing Machinery Maintenance (NIST AMS 100-34), D. S. Thomas and B. A. Weiss, 2020, Executive Summary, Section 5.3 and Table 5.3 (CAP-007, CAP-008, TC-V-001).

    From: The capacity you already own, Exhibit 8

  • Exhibit 9 · The capacity you already own

    The most reactive plants had 3.3 times the downtime and 16 times the defects

    Downtime (share of planned production time) and defect rate, establishments most and least reliant on reactive maintenance (top and bottom quartile), US discrete manufacturing, NIST self-selected sample, annual values for 2016, percent

    Downtime, % of planned time0%5%10%15%Least reactive quartile4.0%Most reactive quartile13.0% (3.3x)Defect rate, %0%1%2%3%4%Least reactive quartile0.2%Most reactive quartile3.3% (16x)
    Show data table
    The most reactive plants had 3.3 times the downtime and 16 times the defects (Downtime (share of planned production time) and defect rate, establishments most and least reliant on reactive maintenance (top and bottom quartile), US discrete manufacturing, NIST self-selected sample, annual values for 2016, percent)
    ItemValueUnitCite
    Downtime, least reactive quartile4.0percent of planned timeTC-V-002
    Downtime, most reactive quartile13.0percent of planned timeTC-V-002
    Defect rate, least reactive quartile0.2percentTC-V-002
    Defect rate, most reactive quartile3.3percentTC-V-002
    Downtime ratio3.3ratioCAP-010
    Defect ratio16.0ratioCAP-010
    Link to this exhibit

    Note: Associations from 85 returned responses, not causal effects. Small bases: a 16x ratio on defect rates of 0.2% and 3.3%. Each panel has its own scale.

    Source: National Institute of Standards and Technology, Economics of Manufacturing Machinery Maintenance (NIST AMS 100-34), D. S. Thomas and B. A. Weiss, 2020, Executive Summary and Table 7.1 (CAP-010, TC-V-002).

    From: The capacity you already own, Exhibit 9

05

Putting a price on lost hours

4 exhibits · Read the chapter

  • Exhibit 10 · The capacity you already own

    In this illustrative line, four losses take 1,312 of 6,000 planned hours

    Illustrative data

    Planned production time and losses, one constraint line, one year, hours

    01,0002,0003,0004,0005,0006,0006,000Planned time−500Changeovers−300Unplanned stops−416Slow running−96Scrap4,688Fully productivetime
    Show data table
    In this illustrative line, four losses take 1,312 of 6,000 planned hours (Planned production time and losses, one constraint line, one year, hours)
    ItemValueUnitCite
    Planned time6000hours per yearIllustrative
    Changeovers-500.0hours per yearIllustrative
    Unplanned stops-300.0hours per yearIllustrative
    Slow running-416.0hours per yearIllustrative
    Scrap-95.7hours per yearIllustrative
    Fully productive time4688.3hours per yearIllustrative
    Link to this exhibit

    Note: Not a description of any real plant. Replace the assumptions with your own.

    Source: Illustrative data. Trapped Capacity illustrative line model; assumptions are listed in Chapter 5.

    From: The capacity you already own, Exhibit 10

  • Exhibit 11 · The capacity you already own

    In this illustrative line, the four losses cost $1.65 million a year

    Illustrative data

    Annual cost of losses, one constraint line, thousands of dollars of contribution, plus variable cost of scrapped units

    $0k$100k$200k$300k$400k$500k$600k$700kChangeovers$600kSlow running$499kUnplanned stops$360kScrap$191kincl. $77k variable cost of scrapTotal $1.65 million a year
    Show data table
    In this illustrative line, the four losses cost $1.65 million a year (Annual cost of losses, one constraint line, thousands of dollars of contribution, plus variable cost of scrapped units)
    ItemValueUnitCite
    Changeovers, contribution600.0USD thousand per yearIllustrative
    Slow running, contribution499.2USD thousand per yearIllustrative
    Unplanned stops, contribution360.0USD thousand per yearIllustrative
    Scrap, contribution114.8USD thousand per yearIllustrative
    Scrap, variable cost of scrapped units76.5USD thousand per yearIllustrative
    Total1650.6USD thousand per yearIllustrative
    Link to this exhibit

    Note: Prices apply only on a constraint line with demand above output. A scrapped unit forfeits the contribution of its line time and its variable cost. Not a description of any real plant.

    Source: Illustrative data. Trapped Capacity illustrative line model: price $2.00 and variable cost $0.80 a unit ($1.20 contribution), 1,000 units an hour ($1,200 a constraint hour).

    From: The capacity you already own, Exhibit 11

  • Exhibit 12 · The capacity you already own

    Value added per production-worker hour ranged from $62 to $1,022 in 2021

    Value added per production-worker hour, US manufacturing industries (three-digit NAICS), 2021, dollars

    $0$200$400$600$800$1,000Petroleum and coal$1,022Chemicals$489Beverage and tobacco$436Computers and electronics$273Primary metals$247All manufacturing$180Paper$174Electrical equipment$167Machinery$160Miscellaneous$160Transportation equipment$151Food$147Nonmetallic minerals$134Wood$122Plastics and rubber$118Fabricated metals$114Printing$97Textile mills$93Furniture$86Textile products$84Leather$71Apparel$62
    Show data table
    Value added per production-worker hour ranged from $62 to $1,022 in 2021 (Value added per production-worker hour, US manufacturing industries (three-digit NAICS), 2021, dollars)
    ItemValueUnitCite
    Petroleum and coal1022USD value added per production-worker hour, 2021TC-D-006-01
    Chemicals489USD value added per production-worker hour, 2021TC-D-006-02
    Beverage and tobacco436USD value added per production-worker hour, 2021TC-D-006-03
    Computers and electronics273USD value added per production-worker hour, 2021TC-D-006-04
    Primary metals247USD value added per production-worker hour, 2021TC-D-006-05
    All manufacturing180USD value added per production-worker hour, 2021TC-D-006-06
    Paper174USD value added per production-worker hour, 2021TC-D-006-07
    Electrical equipment167USD value added per production-worker hour, 2021TC-D-006-08
    Machinery160USD value added per production-worker hour, 2021TC-D-006-09
    Miscellaneous160USD value added per production-worker hour, 2021TC-D-006-10
    Transportation equipment151USD value added per production-worker hour, 2021TC-D-006-11
    Food147USD value added per production-worker hour, 2021TC-D-006-12
    Nonmetallic minerals134USD value added per production-worker hour, 2021TC-D-006-13
    Wood122USD value added per production-worker hour, 2021TC-D-006-14
    Plastics and rubber118USD value added per production-worker hour, 2021TC-D-006-15
    Fabricated metals114USD value added per production-worker hour, 2021TC-D-006-16
    Printing97USD value added per production-worker hour, 2021TC-D-006-17
    Textile mills93USD value added per production-worker hour, 2021TC-D-006-18
    Furniture86USD value added per production-worker hour, 2021TC-D-006-19
    Textile products84USD value added per production-worker hour, 2021TC-D-006-20
    Leather71USD value added per production-worker hour, 2021TC-D-006-21
    Apparel62USD value added per production-worker hour, 2021TC-D-006-22
    Link to this exhibit

    Note: Current (2021) dollars: value added reflects product prices as well as productivity. Value added includes labor, overhead and profit, so it is not contribution; a line hour uses several production-worker hours. 2021 is the last ASM year.

    Source: U.S. Census Bureau, 2018–2021 Annual Survey of Manufactures, Statistics for Industry Groups and Industries (AM1831BASIC01), fields VALADD and HOURS (CAP-029). Ratios: Trapped Capacity derived figures TC-D-006.

    From: The capacity you already own, Exhibit 12

  • Exhibit 13 · The capacity you already own

    In the illustrative case, the cheapest hour depends on how many the plant needs

    Illustrative data

    Annual cost per productive constraint hour actually needed, by option and by hours needed a year, illustrative line, dollars per hour

    $0$1,000$2,000$3,000$4,00001,0002,0003,0004,0005,000Productive hours needed a yearRecover(up to 328 h)Schedule weekend hours (up to 1,875 h)Recover, then scheduleBuild a new lineBeyond 2,203 h, only a new line covers the need
    Show data table
    In the illustrative case, the cheapest hour depends on how many the plant needs (Annual cost per productive constraint hour actually needed, by option and by hours needed a year, illustrative line, dollars per hour)
    ItemValueUnitCite
    need 300 h: recover1000USD per needed hourIllustrative
    need 300 h: schedule1024USD per needed hourIllustrative
    need 300 h: build10510USD per needed hourIllustrative
    need 300 h: stack1000USD per needed hourIllustrative
    need 1000 h: recovercannot coverUSD per needed hourIllustrative
    need 1000 h: schedule1024USD per needed hourIllustrative
    need 1000 h: build3153USD per needed hourIllustrative
    need 1000 h: stack988USD per needed hourIllustrative
    need 2500 h: recovercannot coverUSD per needed hourIllustrative
    need 2500 h: schedulecannot coverUSD per needed hourIllustrative
    need 2500 h: build1261USD per needed hourIllustrative
    need 2500 h: stackcannot coverUSD per needed hourIllustrative
    need 4688 h: recovercannot coverUSD per needed hourIllustrative
    need 4688 h: schedulecannot coverUSD per needed hourIllustrative
    need 4688 h: build673USD per needed hourIllustrative
    need 4688 h: stackcannot coverUSD per needed hourIllustrative
    Link to this exhibit

    Note: Recover: $300k a year program, up to 328 h (25% of losses). Schedule: weekend hours at $800 per scheduled hour, $1,024 per productive hour, up to 1,875 h. Build: $12M line, 10 years, 10% cost of capital, $1.2M a year to run; adds 4,688 h.

    Source: Illustrative data. Trapped Capacity illustrative model; assumptions in Chapter 5 and formulas in the method notes.

    From: The capacity you already own, Exhibit 13

06

The Hidden Line Test

1 exhibit · Read the chapter

  • Exhibit 14 · The capacity you already own

    A capital request should show seven figures, demand first

    A gate for any request to add capacity; the sponsor shows each figure for the constraint asset

    FIGUREWHAT TO SHOWPASSBORDERLINEFAIL1DemandOrders or forecast thatexceed the constraint'soutputBacklog or lostorders, documentedForecast onlyNot shown2The constraintThe asset that limitsoutput, shown with outputand queue dataNamed and measuredfor 4 weeks or moreNamed fromestimatesNot named3Unscheduled hoursHours the constraint is notscheduled, and the full costof scheduling themHours and full costof added timeHours onlyNot considered4Losses in hoursHours lost in scheduled timelast quarter, by causeRecorded by cause,in hoursSampled orpartly recordedPercentages only5Price of an hourContribution per constrainthourAgreed in writingwith the controllerEstimated byoperationsRevenue perhour, or none6Recoverable hoursHours recoverable within 12monthsA range, an ownerand a plan per lossA singleestimate, noownerNot stated7Cost per neededhourCapital cost per needed houragainst cost per recoveredhourBoth on one pageOne of the twoNeither
    Show data table
    A capital request should show seven figures, demand first (A gate for any request to add capacity; the sponsor shows each figure for the constraint asset)
    ItemValueUnitCite
    DemandOrders or forecast that exceed the constraint's outputPass: Backlog or lost orders, documented | Borderline: Forecast only | Fail: Not shownTC method
    The constraintThe asset that limits output, shown with output and queue dataPass: Named and measured for 4 weeks or more | Borderline: Named from estimates | Fail: Not namedTC method
    Unscheduled hoursHours the constraint is not scheduled, and the full cost of scheduling themPass: Hours and full cost of added time | Borderline: Hours only | Fail: Not consideredTC method
    Losses in hoursHours lost in scheduled time last quarter, by causePass: Recorded by cause, in hours | Borderline: Sampled or partly recorded | Fail: Percentages onlyTC method
    Price of an hourContribution per constraint hourPass: Agreed in writing with the controller | Borderline: Estimated by operations | Fail: Revenue per hour, or noneTC method
    Recoverable hoursHours recoverable within 12 monthsPass: A range, an owner and a plan per loss | Borderline: A single estimate, no owner | Fail: Not statedTC method
    Cost per needed hourCapital cost per needed hour against cost per recovered hourPass: Both on one page | Borderline: One of the two | Fail: NeitherTC method
    Link to this exhibit

    Note: Pass rules are editorial judgment, not industry benchmarks; adjust them to your own hurdle rates. Formula for figure 7 in the method notes.

    Source: Trapped Capacity method.

    From: The capacity you already own, Exhibit 14

+

From insights

  • Exhibit 1 · Changeovers are a capital question

    In this illustrative plant, the same changeover runs longest on the night shift

    Illustrative data

    Average changeover duration by shift, one product family, minutes

    Show data table
    In this illustrative plant, the same changeover runs longest on the night shift (Average changeover duration by shift, one product family, minutes)
    CategoryValue
    Day42 min
    Swing48 min
    Night66 min
    Standard40 min
    Link to this exhibit

    Note: Values are placeholders chosen to demonstrate the exhibit format. Standard is the documented changeover time.

    Source: Illustrative data; placeholder pending research

    From: Changeovers are a capital question

  • Exhibit 1 · Read OEE like a finance partner

    In this illustrative line, availability losses outweigh performance and quality losses combined

    Illustrative data

    OEE losses by category, one line, one year, percentage points of planned time

    Show data table
    In this illustrative line, availability losses outweigh performance and quality losses combined (OEE losses by category, one line, one year, percentage points of planned time)
    CategoryValue
    Availability18 pp
    Performance (speed)9 pp
    Quality4 pp
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    Note: Values are placeholders chosen to demonstrate the exhibit format. OEE is overall equipment effectiveness; performance loss is time lost to running below rated speed.

    Source: Illustrative data; placeholder pending research

    From: Read OEE like a finance partner