What is Capacity?
Capacity
The amount that can be made in a set amount of time.
What it means
Producible quantity is the amount that people and equipment can produce in a day (or hour, or week). On the shop floor, it is called production capacity, or CAPA for short.
No matter how many orders there are, we cannot make more than this quantity. So, make your plan within these numbers. Overflow orders may need to be pushed to the next day, or facilities or working hours must be increased.
At the pen factory
The ballpoint pen factory has one assembly unit and assembles 100 pens per day. Both black and blue cost 100 pens. The order to be sent by November 8th is 150 pens, so one order is bound to be late.
Why it matters
If you promise a delivery date without knowing how much you can make, you will be making a promise that you cannot keep. You need to know this number to be able to answer “How long will it take?”