Definition of Ramp up:
Ramp up is a significant increase in the level of output of a company's products or services. A ramp-up typically occurs in anticipation of an imminent increase in demand. While it is generally a feature of smaller companies at an early stage of development, a ramp up can also be undertaken by large companies that are rolling out new products or expanding in new geographies.
Sometimes a company needs to increase its capacity utilization to meet a surge in demand or expected demand in the near term. A ramp up typically entails substantial outlays of capital expenditures, which are large amounts of spending by a company on physical assets, such as property, buildings, and manufacturing equipment. A ramp up in spending can also involve funds being used for technology upgrades as well as investments in hiring staff for an expected increase in sales or production.
An increase in quantity, pace, output, intensity, etc.; a boost. Compare ramp, 2b.
Gradually increase energy supplied, manpower deployed, or quantities produced. This term is applied generally to low rate initial production runs where output rate is gradually increased as the production process is proven, or required approvals or funds are obtained.
How to use Ramp up in a sentence?
- Ramping up is costly and requires large capital investments in equipment and capacity. If demand does not last or is smaller than expected, a firm may be left with excess capacity.
- The bank decided to ramp up the number of employees that would be working during their busiest hours that way they could provide adequate customer service and keep up their business.
- The term ramp up refers to when a company substantially increases its output in response to increased demand or an expected increase in the near-term.
- We decided to ramp up our production as the orders were coming in faster than expected and we had just begun our marketing campaign.
- When I started my online craft business I only worked weekends but as more orders increased I had to ramp up production, working five days per week.
- Start-up companies also ramp up once they leave the prototype stage and begin regular production for the market.
Meaning of Ramp up & Ramp up Definition