Question

The Design capacity is:

• A. Rate of goods output under full operating conditions
• B. Rate of goods output under actual operating conditions
• C. Rate of goods output under reduced operating conditions
• D. Rate of goods output under half operating conditions

Hint:

Design capacity serves as a goalpost for evaluating system performance. Comparing actual output against design capacity helps to pinpoint inefficiencies and areas for improvement.

Answer 1

The Correct Option is A

Design capacity refers to the maximum output a system is designed to achieve under ideal conditions. It represents the theoretical maximum production rate when the system is operating at its full potential, without interruptions, maintenance issues, or other operational constraints. Design capacity is a critical measure for capacity planning and is used as a benchmark to evaluate the performance of the system. In practice, however, actual production is often less than the design capacity due to factors such as machine downtime, operator inefficiencies, or other operational challenges. While design capacity serves as an important reference, actual performance may vary depending on the conditions under which the system is running. Understanding design capacity helps in identifying potential bottlenecks in the system and provides a target for improving efficiency. Comparing the actual output with the design capacity can reveal areas where improvements are needed to achieve optimal performance.