Manufacturing Capacity Definition
Manufacturing capacity is the maximum amount of product that a manufacturing facility can produce. The purpose of calculating manufacturing capacity is to determine whether a company has the ability to meet customer demand. There are two types of manufacturing capacity: theoretical and practical.
Theoretical manufacturing capacity is the maximum output that could be achieved by a manufacturing process, using ideal conditions and assuming no downtime. Practical manufacturing capacity takes into account the reality of factors such as equipment efficiency, downtime for maintenance, and worker productivity.
To calculate manufacturing capacity, you need to know the following information:
-The production time for one unit of product
-The number of machines in the production line
-The uptime for each machine (how many hours it can operate per day)
-The number of workers in the production line
-The average production rate per worker
Once you have this information, you can use the following formula to calculate theoretical manufacturing capacity:
Capacity = (Production time x Number of machines) / Uptime
For practical purposes, you would use the following formula:
Capacity = (Production time x Number of machines x Efficiency) / Uptime
