Question

Example of design capacity and effective capacity

Answer 1

fective capacity is the maximumcapacity of something based on itsdesign capacity and resources available to it. The following are illustrative examples.

Production Line

A production line has an effective capacity of 120 units an hour. This is based on the design of the production line such as the throughput of each workstation. It is also based on the resources available to the production line such as labor, power, materials and parts.

Facilities

An office has an effective capacity of 400 employees based on the design of the building and availability of resources such as power that are required to operate