Knowing how much capacity is needed to accomplish tasks, serve your customers, or to make things, vs$.$ the available capacity that you have, is key to the smooth running of any business $-$ the best run businesses always know what kind of capacity they are needing, and what their capacity utilization looks like. How long it takes to do a particular task and how many tasks need to be completed, vs$.$ the capability of meeting that demand, is known as capacity utilization. There are $2$ aspects of determining how much capacity is needed $-$ the set$-$up time for the particular task or set of tasks is important to know, as is the amount of time it takes to execute each task. If you are painting cars in your workstation, it's easy to understand that when you switch from painting blue cars to red cars, that you likely need to clean out the painting equipment, before you can switch to the new color $-$ otherwise the first few red cars might turn out a little purple looking. The time to clean the equipment and ready the new paint, in this scenario, is the set$-$up time. Obviously, if you can paint multiple blue cars, before painting red cars, then you taking advantage of the situation, by not needing to clean the equipment between each car. In turn, your ability to paint more cars in a period of time, such as a day or a week, increases, vs$.$ the situation of setting up$,$ between each car.