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3 Examples of Production Capacity

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Production capacity is the volume of products or services that can be delivered by the operational resources of an organization. Resources include factors such as land, labor, facilities, infrastructure and machines. The following are illustrative examples of production capacity.

Information Technology

A software platform has production capacity for 14,000 concurrent users based on constraints such as network infrastructure.

Infrastructure

A solar power plant has production capacity of 30 megawatts based on the equipment such as solar modules that are currently operational at the site.

Manufacturing

A production line has production capacity of 350 units an hour based on the speed of the slowest workstation on the line.
Overview: Production Capacity
Type
Capacity Planning
Definition
The volume of products or services that can be produced with the currently operational resources of an organization.
Related Concepts
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