level: Production capacity
Questions and Answers List
level questions: Production capacity
| Question | Answer |
|---|---|
| Production capacity | The maximum rate of output that a production facility is able to produce under a given set of operating conditions. In the context of a plant or factory, this is dubbed plant capacity |
| Assumed operating conditions | - Number of shifts per day - Of hours per shift - Employment levels |
| Plant Capacity eq | see image |
| adjusting plant capacity short term | - Change number of workers - Change number of shifts per week - Change hours per shift e.g. overtime |
| adjusting plant capacity intermediate and long terms | - Change number of machines - Change processing technology |
| Costs of manufacturing operations | Fixed costs - Building, equipment, insurance, rates Variable costs - Direct labour, raw materials, power |