Available hours refer to the total number of hours that can be allocated to complete a job, task, or process within an accounting period, expressed in terms of machine hours, direct labor hours, or production hours.
Capacity planning is a long-term strategic process that determines the production capacity needed by an organization to meet changing demands for its products.
Maximum capacity refers to the highest amount or output that a system, facility, company, or equipment can handle under specified conditions without having to violate specific regulations or operational constraints.
Normal capacity is a measure of production that reflects the average level of operating activity needed to meet production demands over a long period. It considers both seasonal fluctuations and normal occurrences of idle time.
Practical Capacity is the highest activity level at which a factory can operate efficiently, considering unavoidable losses of productive time such as vacations, holidays, and equipment repairs. It is also known as maximum practical capacity.
