This thesis identifies capacity utilization and productivity measures applicable to Department of the Navy (DON) Research, Development, Test and Evaluation (RDT&E) laboratories. The recent emphasis on efficiency and sound business practices from a financial management perspective mandates that the Navy evaluate and incorporate appropriate laboratory performance measures. Industry capacity utilization and productivity measurement techniques and models were evaluated for their potential application to the Naval Air Warfare Center Aircraft Division (NAWCAD) RDT&E organization. The CAM-I capacity model was selected from the twelve industry models reviewed as a measure of capacity utilization. Additionally, laboratory productivity was examined in terms of revenue and full cost with measures of return on operations, operating margin, and operating margin per square foot. Productivity data were collected from NAWCAD accounting records. Observations, interviews, and a questionnaire were used to gather laboratory operating characteristics and capacity utilization data. The data were input to the selected measures and the results were analyzed. This analysis found that the measures identified provide a financial basis for responsible RDT&E resource decision-making and have potential application to all Department of Defense (DOD) RDT&E laboratory activities.