Capacity is defined as:

Study for the Lean IT Foundation Exam. Prepare with questions, hints, and explanations. Ensure you're ready for success!

Capacity refers to the calculated maximum volume of a process or step, which is essential for understanding how much work can be handled under optimal conditions. This concept helps organizations determine the upper limits of production or service delivery and is crucial for effective management and resource allocation.

When planning operations, knowing the maximum capacity allows businesses to align resources appropriately, forecast needs, and avoid overloading processes. It also aids in identifying bottlenecks and enhancing process efficiency.

While actual output reflects what a process is currently producing, capacity looks ahead to the potential maximum output. Efficiency rate deals with how effectively resources are used compared to the maximum capacity, and average workload managed by a team refers to the typical amount of work handled rather than the capability to handle work at peak levels. Thus, understanding capacity is foundational for operational excellence and strategic planning in Lean IT practices.

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