Capacity and Efficiency

Capacity refers to the maximum amount of output or work a system or operation can produce under ideal conditions, like a factory’s full production limit. Efficiency measures how well resources—such as time, energy, and materials—are used to achieve that output, comparing actual results to the optimal or maximum possible. Improving efficiency means doing more with less, reducing waste and cost. Together, capacity indicates potential, while efficiency assesses actual performance in utilizing that potential effectively.