Production capacity is the quantity a facility or process can produce during a stated period under defined operating assumptions. Available capacity is the portion that can actually be allocated to the buyer.
The operating decision
Ask for the bottleneck process, shift pattern, utilization, changeover, maintenance, labor and material constraints. A headline factory total may be irrelevant to the required product.
Evidence to retain
Record rated capacity, demonstrated output, current commitments, available allocation, ramp plan and the evidence date.
| Area | What to record |
|---|---|
| Decision | Ask for the bottleneck process, shift pattern, utilization, changeover, maintenance, labor and material constraints. A headline factory total may be irrelevant to the required product. |
| Evidence | Record rated capacity, demonstrated output, current commitments, available allocation, ramp plan and the evidence date. |
| Watch point | Capacity claims expire quickly. Confirm them again before a large award or demand increase. |
A common sourcing mistake
Capacity claims expire quickly. Confirm them again before a large award or demand increase.
Related definitions: strategic sourcing, supplier prequalification, landed cost.
