Plant Capacity

Production Capacity or Feasible Normal Capacity is defined as the volume or number of

units that can be produced during a given period or the output expectations from the
production of a plant.

Design Capacity - maximum output rate that can be achieved by a facility under
ideal conditions. Design capacity can be sustained only for a relatively short
period of time. A company achieves this output rate by using many temporary
measures, such as overtime, overstaffing, maximum use of equipment and
subcontracting.
Effective Capacity maximum output rate that can be used under normal
conditions. These conditions include realistic work schedules and breaks, regular
staff levels, scheduled machine maintenance, and none of the temporary
measures that are used to achieve design capacity. Effective capacity is usually
lower than design capacity.

The Feasible Normal Capacity should correspond to the demand figure derived from the
market study. This capacity is achievable under normal working conditions taking into
account the following:

Installed equipment
Technical conditions of the plant
a. Feasible equipped capacity
b. Holidays
c. Normal stoppages
d. Desired shift patterns

e. Downtime
f. Tool changes
g. Preventive maintenance and repairs
h. Indivisibilities of major machines to be combined
i. Nature of production process continuous, batch, job
Management system applied

Coverage of this study includes:

1. Data and alternatives
a. Describe data for the determination of plant capacity
b. List possible alternatives on plant capacity
2. Determination of Feasible Normal Plant Capacity
a. Select and describe in detail the Feasible Normal Capacity
b. State reasons for selection
c. Describe Nominal Maximum Capacity
d. Selection of Feasible Normal Plant Capacity should be based on
Parameters of production program
Parameters of minimum economic equipment size
e. Plant Capacity should be determined as Feasible Normal Capacity for:
Entire plant
Main department (semi-finished products)