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4 Examples of Effective Capacity

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Effective capacity is the maximum capacity of something based on its design capacity and resources available to it. The following are illustrative examples.

Production Line

A production line has an effective capacity of 120 units an hour. This is based on the design of the production line such as the throughput of each workstation. It is also based on the resources available to the production line such as labor, power, materials and parts.

Facilities

An office has an effective capacity of 400 employees based on the design of the building and availability of resources such as power that are required to operate the facility.

Services

A flight has an effective capacity of 220 passengers based on the design of the aircraft and availability of staff and inputs such as fuel.

Technology

A cloud software platform has effective capacity of 20,000 concurrent users. The design of the software allows for practically unlimited capacity. The firm that operates the software has reserved access to 200 computing units that are the basis of the concurrent user limit. The firm can easily increase effective capacity by adding more computing units.
Overview: Effective Capacity
Type
Definition
The maximum capacity of something based on resources available and design capacity.
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