Factors Affecting Capacity
Capacity is affected by both external and internal factors. The external factors include (a) government regulations (working hours. safety, pollution), (b) union agreements, and.(c) supplier capabilities. The internal factors include (a) product and service design, (b) personnel and jobs (worker training, motivation, learning, job content, and methods), (c) plant layout and process flow, (d) equipment capabilities and maintenance, (e) materials management, (j) quality control systems, (g) product mix decisions, and (h) management capabilities.