Adequacy of manufacturing facilities
Developing an efficient production plan requires consideration of the adequacy of manufacturing facilities, Sufficient capacity must be maintained to produce the planned volume of goods and to meet peak loads during the planning period. The production capacity of individual departments,processes and machines should be assessed and coordinated in the production budget to avoid production bottlenecks and idle capacity.
Plant and development capacities for each responsibility center should be analyzed by production managers in terms of potential or maximum plant capacities and normal or practical capacity. Maximum capacity may be thought of