Difference between effective capacity and actual capacity

Difference between effective capacity and actual capacity, Difference between effective capacity and actual capacity., Difference between effective capacity and actual capacity.

Difference between effective capacity and actual capacity.
Ans:
Effective capacity:
1.     Effective capacity is the maximum rate of the output which can be achieved under the operating constraints.
2.     Always lower then design capacity.
Actual capacity:
1.     The maximum output rate which is actually achieved under the constraints of machine breakdowns, labour inefficiencies and absenteeism.

2.     Always lower then effective capacity. 

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