How to Calculate Production Capacity of a Factory?

The production capacity of a factory is the number of minutes, hours or pieces produced by the factory in a certain period. It is one of the most important criteria for buyers to select the factory to get their shipment on time.

The primary tools to know the capacity of a factory at a glance is the number of sewing lines and machines have the factory. Secondly, it needs to know how many pieces produced by the factory. A merchandiser head should know the capacity of the factory in pieces to book the order for a season. It also needs to know the planner for the onward monthly plan.

In this article, we will know how to calculate the production capacity of a factory in pieces. To calculate the capacity in pieces, the following information is needed-

1.  Factory Capacity in Minutes

2. Average SMV of Products

3. Average Efficiency of Factory

Factory Capacity in Minutes

To determine the factory capacity in minutes, check the total sewing machine in the factory and the average working hour of the factory.
Check how many machines the factory has and how many hours the factory runs in a day.

For example, if

Total number of sewing machine = 300 and

Average working hour = 10 

So, total factory capacity (in minutes) = (300 × 10 × 60) minutes = 180000 minutes/day 

Average SMV of Products

To calculate the average SMV of the products, list all of the product category run in the factory and take SMV of each category and make average.

Say, for example, the average SMV = 22.59

Average Efficiency of Factory

This data of average efficiency should be collected from Industrial Engineering Department. Basically, it is the historical data from a couple of years. if this is not available, need to calculate the efficiency of the factory. This article can help you to calculate factory efficiency.
👉What is Efficiency? How to Measure Efficiency in Garments Industry?

Say for example, the efficiency of factory = 52%

Calculation of Factory Production Capacity in Pieces

Once we have the above information, now we can calculate the factory production capacity in pieces using the following formula - 

Factory Production Capacity (in Pieces) = (Factory Capacity in Minutes/Average SMV of Products) × Average Efficiency of Factory

Now Put the values to get final result.

Factory Production Capacity (in Pieces) = (180000/22.59) × 52% = 15323.32 = 15323 pcs/day

If factory run 26 days in a month, then the monthly capacity = 15323*26 = 398398 pcs