Your factory capacity is most effective when your workforce is well matched to the size of your plant. If your workforce and your plant get out of balance this means that your factory is not working as efficiently as it could be, possibly costing your firm more than is necessary.
Total Factory Capacity (SCU) = Squareroot (Factory Workforce Capacity SCU * Plant Capacity SCU)
(See the Manufacturing Responsiveness Report)
This equation allows you to emphasize one form of capacity over another depending on how each approach fits with your strategic plan.
Click here for examples on how to calculate total capacity.