Answers:
Design Capacity
|
System Capacity
|
Actual Output
|
|
Design capacity of a facility
refers to the fixed rate of
output under normal
conditions. For example,
the design capacity of a
cement plant is 200 tons
per day.
|
System capacity refers to
the maximum output that
can be produced within
the existing production
facility.
|
Actual output refers to the exact output obtained from a
production facility.
|
|
Design capacity reflects an
organisation’s strategy for
meeting demands.
|
System capacity is less
than the design capacity
because of the limitation
of product mix, quality
specification and
breakdowns.
|
Actual output is less
than the system
capacity because of
the short-term
effects, such as the
breakdown of
equipment and
inefficiency of labour.
|