How do you calculate peak utilization?

Peak utilization is calculated by dividing the maximum output or capacity achieved during a specific period by the total potential output or capacity for that same period. The formula is:

[ \text{Peak Utilization} = \left( \frac{\text{Maximum Output}}{\text{Total Capacity}} \right) \times 100 ]

This value is expressed as a percentage, indicating how effectively resources are being used at their highest capacity.