Production And Operation Management (B.Com) 5th Sem Previous Year Solved Question Paper 2022

1. Production Capacity:
 - Production capacity refers to the maximum output or production that a business can achieve in a given period under normal working conditions. It’s typically measured in units of output, such as products or services, per unit of time (e.g., widgets per day).
2. Effective Capacity:
 - Effective capacity is the production capacity that a business can realistically achieve under existing constraints. These constraints may include factors like machine downtime, employee availability, and other operational limitations. It’s a more practical estimate of what a business can produce.
3. Maximum Capacity:
 - Maximum capacity represents the absolute upper limit of what a system or operation can produce. This is often theoretical and rarely attainable in practice. It assumes all resources are utilized to their fullest potential without any downtime or constraints.
4. Design Capacity:
 - Design capacity is the production capacity that a system or facility was originally designed for. It’s based on the intended purpose and specifications of the system. However, It may not always be achieved in reality due to various factors, including maintenance and operational limitations.

In summary, production capacity is the potential output, effective capacity is the realistic output, maximum capacity is the theoretical upper limit, and design capacity is what a system was designed for. Understanding these terms is crucial for capacity planning and optimizing production processes in 
business and manufacturing.