How to Calculate 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 )
- Average product SMV
- Average Efficiency
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?
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