Capacity management - how is capacity measured

4 important questions on Capacity management - how is capacity measured

What is the main issue with measuring capacity?

the complexity of organizations

On what three aspects of performance is the OEE based?

1) the time that the equipment is available to operate
2)the quality of the product or service it produces
3)the speed, or throughput rate, of the equipment

What is the formula for utilization?

utilization = actual output / design capacity
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What is the efficiency formula?

efficiency = actual output / effective capacity

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