expert
Expert with best answer

Sidi

100% Recommendation Rate

312 Meetings

1,789 Q&A Upvotes

USD 319 / Coaching

Difference btw capacity and capability.

Anonymous A asked on May 05, 2019 - 4 answers

Could please someone explain the two concepts? Thanks!

4 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Sidi
Expert
updated his answer on May 06, 2019
McKinsey Engagement Manager & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 100+ candidates secure MBB offers
Book a coaching with Sidi

100% Recommendation Rate

312 Meetings

1,789 Q&A Upvotes

USD 319 / Coaching

A simple and crystal clear way to distinguish:

  • Capability determines WHETHER a person or organization can offer a certain product or service.
  • Capacity determines HOW MUCH of this service or product can be offered within a defined time frame

Hence, capability ensures that you can get going, and capacity ensures that you can meet the demand that you face.

Cheers, Sidi

(edited)

Vlad replied on May 05, 2019
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School
Book a coaching with Vlad

98% Recommendation Rate

350 Meetings

4,997 Q&A Upvotes

USD 319 / Coaching

Hi,

Capability is a broad definition that refers to the differentiators the company can have:

  • Cheap suppliers
  • Intellectual property
  • Unique contracts with distributors
  • Economies of scale
  • Talent
  • Etc

Capacity usually refers to how much the company can produce. If the company has more capacity than anyone else on the market it's also a unique capability

Best

Daniel replied on May 05, 2019
Imperial College PhD, Rolls-Royce Project Engineer, RWTH Aachen Mechanical Engineer and Business Administrator, Software Engineer

Hi,

first, I wouldn't necessarily speak of concepts when relating to these words. These are just two words.

Capability means the ability to do something, for instance, "does company A have the capability to produce product B?" is synonymous with "does company A have the ability to produce product B?" In other words, "CAN company A produce product A?"

In contrast, capacity tells you about the maximum amount/extent something can do, contain, produce, etc., something. For instance, machine A can have a capacity of 2000 parts/min. So the outcome of having this machine producing parts is 2000 parts/min.

I hope this helps.

Regards,

Daniel

Guennael
Expert
replied on May 06, 2019
Ex-MBB, Experienced Hire; I will teach you not only the how, but also the why of case interviews
Book a coaching with Guennael

99% Recommendation Rate

250 Meetings

1,231 Q&A Upvotes

USD 269 / Coaching

Capability: I am even able to do it (knowledge)

Capacity: Do I have bandwith

These two are often used interchangeably.

Related BootCamp article(s)

Interviewer-Led vs Candidate-Led cases

Case Interviews can be led by the candidate or by the interviewer: In Candidate-led cases the main challenge is the structure. In Interviewer-led cases the main challenge is to adapt quickly

Related case(s)

Bain case: Asian lubricants producer

Solved 95.0k times
4.7 5 27146
| Rating: (4.7 / 5.0)

LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). ... Open whole case

Bain Case: Old Winery

Solved 33.8k times
4.4 5 897
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e. ... Open whole case

McKinsey Questions

Solved 31.7k times
4.5 5 830
| Rating: (4.5 / 5.0) |
Difficulty: Intermediate | Style: Fit interview | Topics: Personal fit

Tell me of a situation where you had an opinion and no one seemed to agree with you. What was your goal when you decided to join university / work / clubs / a sports team? Did you have a goal that you were not able to reach? What did you do? What do you want to be remembered for and how are you a ... Open whole case

Well Being health care

Solved 28.7k times
4.3 5 1855
| Rating: (4.3 / 5.0) |

Your client is Well Being (WB), a private healthcare company based in Germany. Well Being operates 10 hospitals in Germany (in comparison to 1,000 public hospitals). These hospitals are normally half the size of the public ones and are not providing Accident and Emergency (ER). Revenue comes fro ... Open whole case

BCG Questions

Solved 21.4k times
4.5 5 184
| Rating: (4.5 / 5.0) |
Difficulty: Intermediate | Style: Fit interview | Topics: Personal fit

What arouses your interest when you are working / studying / doing another activity (from the CV)? Tell me of a time where you had no idea what you were doing. When did you use an uncommon approach to do something? Have you ever had responsibility for other people? Tell me of a situation where y ... Open whole case