What is the difference between practical capacity and normal capacity?

Practical capacity is less than its theoretical capacity. However, the practical capacity is likely more than the actual machine hours needed to meet the company’s production schedules. Normal capacity is the annual machine hours that have occurred over a span of several years.

What is theoretical capacity?

Theoretical capacity is the amount of throughput that could be attained if a production facility were able to produce at its peak efficiency level with no downtime. Theoretical capacity should not be used for planning or bonus compensation purposes, since it is nearly impossible to attain in practice.

What is a practical capacity?

Practical capacity is the highest realistic amount of output that a factory can maintain over the long term. It is the maximum theoretical amount of output, minus the downtime needed for ongoing equipment maintenance, machine setup time, scheduled employee time off, and so forth.

What are the benefits of using theoretical or practical capacity?

Theoretical Capacity – The production of output 100 percent of the time. Practical Capacity – The maximum level at which the plant or department can operate efficiently. Practical capacity often allows for unavoidable operating interruptions, such as repair time or waiting time.

What are the different levels of capacity?

There are three ways to categorize capacity, as noted next.

  • Productive Capacity. This is the amount of work center capacity required to process all production work that is currently stated in the production schedule.
  • Protective Capacity.
  • Idle Capacity.

What is the difference between idle time and idle capacity?

Idle capacity is the unused capacity of a plant, equipment or department which cannot be utilised profitably. Idle capacity is related to the unused production potentiality whereas idle time is related to the time not utilised on production.

How do you find theoretical capacity?

The formula is Q ( Theoretical specific capacity) = zF/M. z=No of electrons transferring, z=Farady constant, M= Molecular mass.

How do you calculate theoretical hours?

It is calculated as: (Actual direct labour hours worked ÷ budgeted direct labour hours) × 100%.

How do you calculate theoretical capacity?

What are the 3 types of capacity?

Capacity is defined under 3 categories; design capacity, effective capacity and actual capacity.

What are the 2 levels of capacity?

Capacity Planning Classification Production capacity is the maximum output possible from equipment under normal working condition or day. Sustainable capacity is the maximum production level achievable in realistic work condition and considering normal machine breakdown, maintenance, etc.

What is planned idle capacity?

Idle capacity refers to the time spent in the manufacturing plant where no production occurs. This is the difference between theoretical capacity and actual production. During periods of idle capacity, the company gains no benefit from owning the equipment or hiring the employees.