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Capacity

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What is a Capacity?

Capacity is the total output level a firm can sustain over a period of time. In simple terms, capacity is the limitation of a company’s ability to maintain business operations. In some cases, capacity boils down to production processes, technical thresholds, and HR allocation. Realistically, no company wants to operate at full capacity for a long time. And that’s because there is always a chance of delay, error, or inefficiency that can impact overall production.

Capacity Examples

Examples of a company’s capacity revolve around:

  • Example 1 : Services
  • Example 2 : Processes
  • Example 3 : Facilities
  • Example 4 : Production lines
  • Example 5 : Teams
  • Example 6 : Devices
  • Example 7 : Machines
  • Example 8 : Infrastructure

Here is a comprehensive article about capacity.

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