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.
How should a business apply Production Capacity?
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.
What records support Production Capacity?
Record rated capacity, demonstrated output, current commitments, available allocation, ramp plan and the evidence date.
Production Capacity: what the sourcing record should show
| 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. |
What is a common Production Capacity mistake?
Capacity claims expire quickly. Confirm them again before a large award or demand increase.
