Supplier capacity is the volume of product or service a supplier can deliver within a defined period under stated operating conditions. Available capacity is usually lower than theoretical maximum capacity.
Which factors determine capacity?
- Equipment and labor availability
- Shift pattern and uptime
- Cycle time and yield
- Material availability
- Existing customer commitments
- Maintenance and changeover
Capacity vs. capability
Capability establishes whether the supplier can meet the technical requirement. Capacity establishes how much qualifying output can be delivered and when.
How should capacity be validated?
Request actual output history, line loading, lead times, bottlenecks and committed demand. Site observations and trial runs provide stronger evidence than a stated monthly maximum.
What is available capacity?
Available capacity is the usable output remaining after committed work, downtime and realistic yield. It should be assessed during the periods relevant to the buyer's demand.
How should expansion claims be treated?
Planned equipment or hiring is future capacity until funded, installed, staffed and validated. Include milestones and contingency plans in the sourcing decision.
