Definition
Capacity is the maximum sustainable amount of work, output or service that a process, resource or system can deliver under defined operating conditions.
Human Explanation
Capacity represents what a system is realistically capable of producing. It depends on available resources, operating conditions and existing constraints rather than on theoretical maximum output.
Why it Matters
Understanding capacity enables better planning, resource allocation and decision-making while reducing overload, delays and unmet demand.
Conceptual Boundary
Capacity is not the same as throughput or productivity. Having greater capacity does not guarantee higher output if demand, constraints or process conditions prevent it from being utilised.
Practical Perspective
Increasing capacity where no constraint exists rarely improves overall system performance.