What is the effective capacity


Case Scenario:

If a plant was designed to produce 7,000 hammers per day, but is limited to making 6,000 hammers per day because of the ime needed to change equipment between styles of hammers, what is the utilization?

For the past month, the plant [in the above problem], which has an effective capacity of 6,500, has made only 4,500 hammers per day because of material delay, employee absences, and other problems. What is its efficiency?

If a plant has an effective capacity of 6,500 and an efficiency of 88%, what is the actual (planned) output?

Material delays have routinely limited production of household sinks to 400 units per day. If the plant efficiency is 80%, what is the effective capacity?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: What is the effective capacity
Reference No:- TGS01739227

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)