Which term represents the capacity that has actually been achieved, based on actual performance data?

• A. Dispatching
• B. Demonstrated capacity
• C. Demurrage
• D. Demand lead time

Answer: (B)

Capacity planning uses a term that captures what a resource actually delivers, based on real performance data. That term is demonstrated capacity. It reflects the true production rate observed in operation, including downtime and other real-world effects, not just what the equipment is theoretically capable of. This makes it the most realistic basis for planning, scheduling, and setting targets because it mirrors what the process has proven it can achieve. In contrast, dispatching is about sequencing and releasing work, demurrage is a cost for delays, and demand lead time is the time from when a customer places an order to when it is fulfilled. For example, if a line could theoretically run at 120 units per hour but, due to maintenance and uptime, actually produces 95 units per hour on average, the demonstrated capacity is 95 units per hour.