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Process Capacity

Process Capacity

It refers to the production capacity of workers or machines, and is usually expressed by "hours". The Process Capacity of workers is called human capacity, while that of machines is called machine capacity.
They are calculated by means of the following formula:

Human capacity = actual working hours x attendance rate x direct labor rate x equivalent manpower

(it is obtained by converting direct labor hours of actual working hours to the capacity of a worker with normal skills)

Machine capacity = operating hours x operating rate x the number of machine


Related term: Capacity, Capacity Adjustment

Reference:JIT Business Research Mr. Hirano Hiroyuki

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