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The Value of Measuring Capacity
CAPACITY IN TRADITIONAL MANUFACTURING
In manufacturing, the term “capacity” typically refers to the production
capabilities of the factory. Understanding your production capabilities
allows you to project the total number of resources (or capacity) required,
as well as to measure the eectiveness of those resources.
Traditional manufacturing companies use MRP (manufacturing
resource planning) soware to calculate their total capacity. A production
forecast is input into the soware, which uses data such as bills of mate-
rial and production run rates to calculate material requirements and the
number of machine ...