The productive capacity of a company is the maximum amount of goods or services that it can produce within a given period with the resources it has available, such as labor, machinery, technology and raw materials.
Why is it important to evaluate a company's production capacity? Because it allows you to understand your processes very well and how to optimize them to meet market demands. This information is essential to make better decisions about the growth of your business, especially in which areas to invest your money.
A McKinsey study on business development vietnam whatsapp number and innovation selected a group of more than fifty companies that significantly outperformed their competitors with the aim of determining which best practices drove such growth.
The so-called “innovative growers” achieved above-average total shareholder returns for their industry between 2012 and 2022. What did they do differently? They incorporated innovation into their overall strategic aspirations.
If you want to follow in the footsteps of this select group, in this post we tell you how to increase the productive capacity of a company, how to calculate it and what factors can compromise it.
Summary
The productive capacity of a company can be measured and is the maximum amount of goods or services that it can produce within a given period with the resources it has available.
Innovation should always be at the centre of the discussion. At least that is the case for innovative growers. McKinsey noted that these companies talk about innovation twice as much as their peers , and that in those conversations, they emphasise innovation as a means to create profitable and sustainable growth.