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Capacity can be refined into two useful definitions of capacity: Design capacity and effective capacity. Design capacity is the maximum rate of output achieved under ideal conditions. Effective capacity is usually less than design capacity owing to realities of changing product mix, the need for periodic maintenance of equipment, lunch breaks, coffee breaks, problems in scheduling and balancing operations, and other similar circumstances.

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Q: What is design and effective capacity?
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What is the difference between effective capacity and design capacity?

Design capacity is the maximum theoretical output of a system. Normally expressed as a rate Effective capacity is the capacity a firm expects to achieve given current operating constraints. Often lower than design capacity


What is the difference between design capacity and effective capacity?

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