Proven capacity calculated from actual performance data, usually expressed as the average number of items produced multiplied by standard hours per item.

• A. Demonstrated capacity
• B. Demand planning
• C. Demurrage
• D. Detention

Answer: (A)

Proven capacity is the real, observed capacity an operation has demonstrated based on actual performance. It is derived from the production data by combining what is actually produced with the time it should take to produce each item. Specifically, you take the average number of items produced and multiply by the standard hours per item, giving the standard hours of capacity that the plant has demonstrated in that period. This approach grounds capacity planning in what the operation can actually deliver, including any downtime or inefficiencies, rather than just theoretical maximums. It differs from demand planning, which is about forecasting future needs, and from demurrage or detention, which are logistics charges and not capacity measures.