Understand the importance of the productive capacity of the industry

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Have you heard of productive capacity? You may not know it, but this is a very important factor for your business, especially when it comes to industry management. After all, for a manager to be able to do this job well, it is important that he has knowledge of the capacity of his company, in addition to other factors like shift schedule, performance management system, capital management system and so on.

For those who still do not know, the productive capacity is nothing more than the maximum number of products that an organization can generate in a given period of time, with the resources they have at their disposal. Want to know more why this is so important for the industry? So, keep on reading this exclusive post that we have prepared especially for you!

How to define and analyze productive capacity?

Keep in mind that there is no general formula for defining and analyzing a plant’s productive capacity. However, rest assured that there are some methods that can fit your reality very well. To help you better understand this topic, we have prepared a list of the main productive capacity methods. 

Installed productive capacity

This method is considered only a hypothetical way of visualizing the productive capacity. It aims to assist any decision making related to production. Here, the industry must indicate its maximum productive capacity.

Available productive capacity

The method of available productive capacity is very similar to that of installed productive capacity. This similarity is related to not taking into account the unforeseen losses, problems and stops in the factory’s production.

Effective productive capacity

The method of effective productive capacity takes into account the planning of losses that are predictable: change of employees, maintenance, sampling, among others. This loss is determined as a percentage.

Realized productive capacity

In this case, there is an emphasis on the expected losses in productive capacity, which, in fact, are effective. Here, problems that were not expected are considered.

What is the importance of understanding about productive capacity?

Now that you know how to define your company’s productive capacity, let’s highlight here why it is important to understand and work with this method in your industry. We have created a list for you to better understand the topic.

Assistance in decision making

For industry management, knowing their productive capacity is important, as this factor helps in decision making. We know that over time it is necessary to decide on the path of the production line. When there is a sense of what is going on, these decisions become much more efficient. It may seem just a detail, but for those who are a factory manager, having help based on facts to make decisions is of great help, since this practice brings more security to your day to day.

Help to maintain optimal stock levels

Another good reason to know the productive capacity of your company is that it is definitely much easier to control inventory, avoiding excess and lack of products and materials that are part of your business. This is very important, especially for industries that work with products that need to remain in packaging. This is because there must be a strict control of these packages that are purchased, which makes the filling process more than ideal.

Reduced production costs

Another important point is to understand the cost reduction that the analysis of the productive capacity can provide, because, among other advantages, it is possible to make better use of the production resources. We are talking about simply improving the management of employee performance, as well as avoiding waste of materials during the processes so that the product is successfully produced. In other words, using the methods of productive capacity, it is possible to reduce losses relatively, so that costs become the minimum possible.

Aid to optimize the work routine

Finally, we bring here the optimization of the work routine of the factory as a whole. After all, it is possible to identify which are the bottlenecks of production, bringing more clarity to what needs to be done, in order to optimize the day to day in the industry.

In this way, it will be possible to improve the processes both in terms of the operation of the machines and in relation to the work efficiency of employees.

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