How to Calculate Production Capacity of a Factory?

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SOURCE: http://www.onlineclothingstudy.com/2011/11/how-to-calculate-production-capacity-of.html

In apparel Manufacturing, “Production capacity” is one of the most important criteria used for vendor selection by the buyers. It is because; the production time of an order is directly proportional to vendor’s production capacity. So it is very important that marketing and planning personnel should aware about the production capacity of their production units.

Capacity of a factory is primarily expressed in terms of total machines factory have. Secondly, how much pieces the factory produces on daily for the specific products? In general, total numbers of machines in a factory mostly remains same for a period. But factory may produce various types of product during the season. According to the product (style) category, machine requirement may change and daily average production in each style may vary. So to be specific during booking orders, planner should know exactly how much capacity he or she needed to procure the order in a given time period.

Sewing Floor (Image Credit: Shahi Exports Pvt. Ltd. via Facebook page)

A factory’s capacity is presented in total minutes or hours or in pieces (production per day). The method used to calculate capacity has been explained in the following. To calculate Daily production capacity (in pieces) one needs following information.

1. Factory capacity in hours
2. Product SAM
3. Line efficiency (Average)