Capacity Baseline Measures

Capacity Baseline MeasuresCapacity can be measured in terms of output or input. Engine capacity can be measured by its rate of output per hour, for example, 1000 pcs / hour. Rate of any capacity that we choose, will cause costs to be borne to keep the capacity at the desired level. This fee is called the cost of capacity. Cost of Capacity consists of : Depreciation of machinery and utilities, Engine maintenance costs, Engine repair costs, Labor costs and training.

Maximum Capacity = theoritical capacity that can be achieved by the machine for 24 hours a day for 365 days, without any downtime.

Optimum Capacity = optimal capacity of the machine taking into account downtime for preventive maintenance, and maximum number of setups per period of time.

Normal Capacity = capacity that can be achieved in normal conditions, by using the cycle time and the cavity (output rate) ever achieved by a certain time period.

Actual Capacity = actual capacity is achieved by operating according to cycle time and downtime per period of time.

Targeted Capacity = capacity created by top management, which is used in the calculation of a business plan and a target for the production team per period of time.

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