What is the Difference Between “Design” Capacity and “Effective” Capacity?

Definition of Capacity The (output) capacity of an operation is the maximum amount of value-adding output (per time period) that can be sustained under normal operating conditions. Capacity can be measured in many different ways across many different industries, typically as a unit of output per a unit of time. There is no one-size-fits-all capacity […]

What is the Difference Between “Design” Capacity and “Effective” Capacity? Read More »