Demonstrated capacity is the actual output achieved by a resource or a system over a period of time, such as a day, a week, or a month. It is determined from actual results, such as production records, time studies, or historical data. Demonstrated capacity reflects the past performance, not the future load, of a resource or a system. It may be lower or higher than the rated capacity, which is the theoretical or design capacity of a resource or a system. Demonstrated capacity considers utilization and efficiency factors, such as machine availability, operator skills, product mix, quality issues, or maintenance schedules, that affect the actual output. References:
Managing Supply Chain Operations, Chapter 5: Capacity Planning and Management, Section 5.2:
Capacity Planning Decisions, page 132-133.
Manufacturing Planning and Control for Supply Chain Management: The CPIM Reference, Second Edition, Chapter 6: Capacity Management, Section 6.2: Capacity Planning, page 156-157.
CPIM 8.0 Exam Content Manual Preview, Module 5: Plan and Manage Supply, Section 5.1: Plan and Manage Capacity, page 9.