Capacity Inputs

Design and Effective Capacity

The book starts by separating maximum design capacity from usable effective capacity.

highlighted = computed this step

Design Capacity

Design capacity is 120 units per period.

design capacity=120\text{design capacity}=120
Capacity inputsThe snapshot starts with design capacity, effective capacity, and actual output.capacity snapshot inputsvaluedesign capacity120effective capacity100actual output80

Effective Capacity

Effective capacity is 100 units per period.

effective capacity=100\text{effective capacity}=100
Capacity inputsThe snapshot starts with design capacity, effective capacity, and actual output.capacity snapshot inputsvaluedesign capacity120effective capacity100actual output80

Design Gap

The design gap is 20 units per period.

design−effective=20\text{design}-\text{effective}=20
Capacity snapshotThe chart recomputes utilization, efficiency, cushion, and the what-if.capacity cushion and utilizationutilization 2/3; efficiency 4/5; cushion 1/5measurevaluemeaningdesign capacity120maximum snapshot rateeffective capacity100usable snapshot rateactual output80observed outputdesign gap20design minus effectivecapacity cushion1/5unused effective sharedesigndesign 120effectiveeffective 100actualactual 80what-if actualwhat-if actual 90what-if utilization 3/4; efficiency 9/10; cushion 1/10