What is the main purpose of "capacity measurement"?

The main purpose of capacity measurement is to assess work performed against planned capacity. This involves evaluating how effectively a company's resources are utilized in comparison to what was initially planned or expected. By measuring capacity, organizations can determine whether they are operating at their desired levels of efficiency, identify any bottlenecks in their operations, and make informed decisions regarding resource allocation, production scheduling, and overall operational improvements.

This process is critical because it helps in understanding discrepancies between actual output and targeted capacity, enabling management to identify areas that require attention or improvement. As a result, businesses can enhance performance, optimize resource utilization, and better meet customer demand in an effective manner.