Capacity of Production

It is always necessary to differentiate between an industrial company’s production capacity (it shows the industrial company’s maximum possible production in a time interval of one year), the production achieved by the industrial company, and industrial company’s size (its size in terms of production volume that it may achieve). The production capacity can be analysed under two aspects, dynamic and static. Taking into account the specificity of the production departments within an industrial company, the production capacity must be calculated separately for the basic departments, auxiliary departments, and service departments. Knowing the production capacity and production volume achieved, the capacity reserves shall be determined, which can generally be extensive or intensive. When analysing and optimising the level of the production capacity, the operative management has a special role. The constructive, material, and technological preparation of production that shall be achieved within the industrial companies influences how the production capacity is calculated as well as its size.