What is the term for the expected output capability of a resource or system, calculated from planned hours, efficiency, and utilization?

• A. RCCP
• B. Purchase requisition
• C. Rated capacity
• D. Quality costs

Answer: (C)

Rated capacity describes the expected output a resource can produce under planned conditions. It combines planned hours, efficiency, and utilization to quantify how much a resource should be able to achieve in a given period. The standard calculation is Planned hours × Efficiency × Utilization. For example, if a work center has 40 planned hours in a week, an efficiency of 0.9 (90%), and utilization of 0.95 (95%), the rated capacity is 34.2 units per week. This measure helps you compare capacity with demand and identify potential bottlenecks.

Rough-Cut Capacity Planning (RCCP) is a broader planning method used to assess capacity feasibility at a high level, not the exact output capability itself. The other terms relate to purchasing or quality costs, not capacity output.