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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

Auto parts manufacturersare leadingthe way in capacity utilization

unit costsresultingfrom higher capacity utilization

The decline may have been on account of prolonged maintenance during the periodleadingto lower capacity utilization

that demand is picking up in the economyleadingto higher capacity utilization

Practice of uninterrupted productionwill leadto higher capacity utilization

Margin improvement for the quarterresultedfrom higher capacity utilization

firms ... productionledto lower capacity utilization

Falling throughput or contract demandleadingto lower capacity utilization

Lower availability of phosphoric acidalso ledto lower capacity utilization

Lower availability of phosphoric acidledto lower capacity utilization

These threecauseslower capacity utilization

the aggressive growth and evolving strategycould leadto under - utilization of facility capacity

Best operating level capacity for whichwas designedCapacity utilization rate

financial capacity ... in turninfluencescurrent capacity utilization

2 ) Technological Problems Machinery imbalancecausinglower capacity utilization

Technological Problems Machinery imbalancecausinglower capacity utilization

high installed capacitiesresultingin low capacity utilization

Machinery imbalancecausinglower capacity utilization

local situationleadingto low capacity utilization

fixed costsresultingfrom low capacity utilization

imported inputsleadingto severe under - utilization of capacity

higher costsresultingfrom lower capacity utilization

capacity for whichwas designedCapacity utilization rate

inventory destocking in the quarter(passive) caused bylower capacity utilization

account of raw material availabilityleadsto low capacity utilization

Shortage of labor and restriction on truck movementwill resultin low capacity utilization

raw material availabilityleadsto low capacity utilization

raw materialsleadingto low capacity utilization

raw materialleadsto low capacity utilization

Businesses cooperative modes ... teamsleadsto poor capacity utilization

these plants ... imported spare parts and machineryhas resultedin low capacity utilization

the unavailability of continuous power supplyhas ledto low capacity utilization

loss of 80 million yuan(passive) caused bythe low capacity utilization

these approachescausediseconomies due to under utilization of capacity

seasonality in the availability of raw material ... , working capital intensive nature of operation and regulated and fragmented nature of the industryleadsto low capacity utilization

capitalization and cash flowsresultingin low capacity utilization

by loss of 80 million yuan recognized drag(passive) caused bythe low capacity utilization

The shortage of foreign currency , commodities , skilled labor and technology as well as low domestic demandhave also ledto low capacity utilization

The huge steel demand from construction , automobile and machinery building sectors due to a growing urbanization and infrastructure , andwill leadproper capacity utilization

a strong organization for water management and maintenanceresultedin substantial capacity under utilization

to much higher gross marginsto leadto much higher gross margins

This gap in supply and demand ,(passive) caused byThis gap in supply and demand ,

to rising inflationwill leadto rising inflation

to high processing costleadingto high processing cost

in lower unit costsresultsin lower unit costs

in lower unit costsresultedin lower unit costs

to inefficient decisionswould leadto inefficient decisions

to low profitabilityleadingto low profitability

to higher depreciation rate of capitalleadsto higher depreciation rate of capital

in lack of investment inresultingin lack of investment in

in inflation pressuresresultsin inflation pressures

overhead costs and a corresponding reduction in gross marginresultedoverhead costs and a corresponding reduction in gross margin

from better scheduling and fewer delaysresultingfrom better scheduling and fewer delays

in lower unit costs and targeted cost reductions and $ 19 million of higher sales volumeresultedin lower unit costs and targeted cost reductions and $ 19 million of higher sales volume

to deterioration in operating marginleadingto deterioration in operating margin

in higher unit costsresultingin higher unit costs

above the trend rateleadsabove the trend rate

to less number of tripsleadsto less number of trips

to supply constraintswould leadto supply constraints

to rising inflationwill leadto rising inflation

Its inefficiency(passive) is caused byIts inefficiency

in higher per unit costsresultsin higher per unit costs

from equipment shutdowns , untrained operators or incorrect materialscan resultfrom equipment shutdowns , untrained operators or incorrect materials

from reduced sales volumesresultingfrom reduced sales volumes

congestioncausescongestion

to more productioncan leadto more production

to low credit offtake / supply augurs well for spread compression in the sub - AAA segmentleadingto low credit offtake / supply augurs well for spread compression in the sub - AAA segment

to high unemployment that created slack in the economyledto high unemployment that created slack in the economy

in lower unit costsresultingin lower unit costs

in declining prices and marginsresultingin declining prices and margins

to more delays of unexpected durationsleadsto more delays of unexpected durations

Return on sales(passive) was influenced byReturn on sales

reduced overhead absorptioncausingreduced overhead absorption

Profitability(passive) was influenced byProfitability

in improved profitabilityresultedin improved profitability

to corporate capex picking up leading to broader revival in Investment cycle and earnings growthshould leadto corporate capex picking up leading to broader revival in Investment cycle and earnings growth

to reduction of cost of powerleadingto reduction of cost of power

reduced overhead absorption , coupled with modest increased investments to expand its cloud data center engineering capabilitiescausingreduced overhead absorption , coupled with modest increased investments to expand its cloud data center engineering capabilities

to increase in profitwill leadto increase in profit

further increase in cost of production per unitcausingfurther increase in cost of production per unit

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Smart Reasoning:

C&E

See more*