How to Calculate Production Capacity of a Factory ?

Production Capacity of a Factory

Maximum potential output by using all current resourcees of a production floor is treated as Production Capacity of that floor. It is very important criteria to select vendor by the buyers based on production capacity to get their product on time. So it is very important to know factory capacity for Planning, Merketing & Merchandising dept. to book the order. Production capacity mainly depends on machine availability of a factory.

Calculate Production Capacity of a Production Floor

To calculate production capacity in pices of a factory in a day, we need following data,

• Factory capacity in hours ( Input Hours )

For calculating factory capacity in hours, we need total available machines and working hour in a day.

For example,

Total machines of the factory = 260

And working hour per day   = 10 hour

So,Total factory capacity in hours = 260*10 = 2600 hours.

• Average product SMV

If only one style will run then need only that style smv to calculate factory capacity. And for multiple style with different product category, we need average SMV of all styles. 

Say for example, average SMV is = 12.15

• Average Efficiency

Take average achieved efficiency to calculate factory capacity in pieces. Say for example, factory efficiency is = 70%

Read more to learn : How to calculate factory efficiency?

Calculation of factory production capacity ( in pieces ) considering above data like below,

Production Capacity In Pieces = (Capacity in Hours*60/Avg SMV)* Avg Efficiency of a Factory

 Production Capacity In Pieces = (2600*60/12.15)*70%

                                                   = 8988 Pieces in a day.

That is daily average production capacity of that factory. Now if we wants to calculate month total capacity of that factory then we need number of working days and multiple it with day days capacity.

If we consider 26 working days in a month then,

Monthly Capacity = Daily Capacity * No of Working Days in a Month

                            = 8988 * 26

                            =233688 pieces.

Read also : How Many Days Required To Complete an Order Of 45000 Pieces?