Could please someone explain the two concepts? Thanks!
Difference btw capacity and capability.
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.
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
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
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.
Capability: I am even able to do it (knowledge)
Capacity: Do I have bandwith
These two are often used interchangeably.
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