The main criteria characterizing the actual and reserve capabilities of a business entity serve as the foundation for drawing up a program for its development. Production capacity is a quantity equivalent to the highest ability of an enterprise to produce a finished product. It is expressed in monetary units or in value, and is considered for a certain period of time.
A quantitative indicator of production capacity most accurately characterizes the scientific and technical level of the technological process, the assortment list, as well as the quality of the manufactured goods. This indicator indicates the forms of organization of labor activity, the availability of energy resources, as well as raw materials and labor. The production capacity of the enterprise is closely connected with the cooperation and specialization of the business entity, as well as with the functional features of its sales service, the work of warehouse units and the transport section. Thus, the value of this indicator is influenced by many factors changing over time. In this regard, the capacity of the production process is periodically subject to recalculation.
In management practice, various types are used that characterize this indicator of the business entity. Production capacity is calculated design and start-up, mastered and physical, planned and balance, input and output. According to the time period, this indicator is divided into input and output.
If the operating conditions of machines and mechanisms, as well as working resources are indicated in the form of a certain value, then it is possible to calculate the maximum number of products in general. The main criterion that affects the production capacity, and also determines the name of this indicator, is equipment, which is the tool that changes the material element of the technological process.
The most convenient and fairly reliable measurement of the largest output of the finished product is the actual size. Production capacity is used in the analysis of the enterprise in those units in which it was reflected in the planning (pieces, meters, tons, etc.).
If the manufactured product has a wide assortment spectrum, then the maximum output indicator can be expressed in conditionally-natural quantities. If the types of finished products are different, then the production capacity of the enterprise is calculated for each item separately. The more technological equipment is used for a certain time, the greater the volume of manufactured products. Along with this, the cost of goods decreases, the amount of income grows, and the company gets the opportunity to quickly improve the production cycle through reconstruction, modernization, as well as the introduction of the latest achievements of scientific and technological progress.
The calculation of production capacity is carried out taking into account information characterizing the state of the equipment involved in the technological cycle. Non-on-board assets held in reserve are excluded from its composition. The production capacity of the enterprise is calculated according to the stock of equipment operating time, which is the maximum possible for a given business entity. The determination of the indicator of the largest output of products implies the use of advanced standardization and advanced forms of organization of the technological process.