Every organization needs to balance their production capacities with demand. This paper focus on the capacity utilization issues using the company's true capacity utilization, efficiency, and Overall Equipment Effectiveness (OEE). The use of the company's Enterprise Resource Planning (ERP) system assists in defining the present production utilization, efficiency, and history of the customer sales needs. The company's yearly production data for the year 2012-13 taken as a model to define and allow the company to better understand its true calculated capacity versus its sales and develop a plan to correct the constraints. One of the objective is to compare the data from the company's ERP system to define the company's present rated capacity level with efficiency, utilization, and work schedules and another objective is to define the company's capacity according to OEE. The paper contributed the company to identify what constraints are truly causing issues in the company's capacity and suggests alternatives for improving the Capacity Utilization

Keywords: Capacity Utilization, Overall Equipment Effectiveness, Pareto Diagram, Capacity expansion Strategies.