How do you calculate good-output capacity?

Multiply gross capacity by (1 - uptime loss) and (1 - yield loss). For 1,000 units at 15% downtime and 5% scrap: 1,000 x 0.85 x 0.95 = 807 good units — and at a 15,000 gross scale it lands near 750 in the worked default.

Why don't the losses just add up?

Because they compound multiplicatively. 15% plus 5% is not a flat 20% off; yield loss applies to what survives downtime, so the combined effect is slightly different and must be multiplied, not added.

What is the capacity gap?

It is the difference between gross theoretical capacity and realistic good output — the units you'd wrongly promise if you ignored downtime and scrap. That gap is what causes overcommitted lines.

How is this different from OEE?

OEE blends availability, performance, and quality into one score; this tool focuses on availability (uptime) and quality (yield) to translate a rating directly into shippable units for planning.

What uptime and yield numbers should I use?

Use trailing actuals from your MES, not targets. If a line averaged 85% uptime and 95% yield last quarter, plan with those, not the 95%/99% you hope to reach.

Can I improve good-output capacity without new equipment?

Yes — cutting either loss raises output without capital. Closing a few points of downtime or scrap multiplies straight through to shippable units, often the cheapest capacity you can buy.

Lean Manufacturing & Operations calculator

Capacity Gap Calculator

Capacity gap analysis converts the number on the equipment nameplate into the good units you can actually ship after downtime and scrap eat into it. Operations leaders and S&OP planners use it so they stop promising customers capacity that exists only on paper. The two losses compound — a line that is up 85% of the time and yields 95% good never delivers 95% of its rating, it delivers about 81%. Knowing the real good-output capacity is the difference between a credible commit and a missed quarter.

What this calculator does

Calculate the capacity gap between current proven output and required demand, including scrap and rework losses, to quantify the improvement or investment needed.
Use this calculator during capacity planning to determine whether your current capability can meet projected demand, and if not, how large the gap is.
It multiplies gross theoretical capacity by one minus the uptime loss and one minus the yield loss to give realistic good-output capacity.

Formula used

Good Output Capacity = Gross Capacity x (1 - Uptime Loss%) x (1 - Yield Loss%)

Inputs explained

Gross theoretical capacity:
Uptime loss (downtime):
Yield loss (scrap/rework):

How to use the result

Use it during capacity planning, S&OP, or new-business quoting to size what a line can truly ship per period.
It treats uptime and yield losses as independent and stable; in practice they vary by product mix and interact, so it is a planning baseline, not a guaranteed ceiling.

Current U.S. benchmarks

U.S. manufacturing runs at 75.6% of capacity (Federal Reserve, May 2026). New factory orders are up 2.3% year over year (Census).

Common questions

How do you calculate good-output capacity? Multiply gross capacity by (1 - uptime loss) and (1 - yield loss). For 1,000 units at 15% downtime and 5% scrap: 1,000 x 0.85 x 0.95 = 807 good units — and at a 15,000 gross scale it lands near 750 in the worked default.
Why don't the losses just add up? Because they compound multiplicatively. 15% plus 5% is not a flat 20% off; yield loss applies to what survives downtime, so the combined effect is slightly different and must be multiplied, not added.
What is the capacity gap? It is the difference between gross theoretical capacity and realistic good output — the units you'd wrongly promise if you ignored downtime and scrap. That gap is what causes overcommitted lines.
How is this different from OEE? OEE blends availability, performance, and quality into one score; this tool focuses on availability (uptime) and quality (yield) to translate a rating directly into shippable units for planning.
What uptime and yield numbers should I use? Use trailing actuals from your MES, not targets. If a line averaged 85% uptime and 95% yield last quarter, plan with those, not the 95%/99% you hope to reach.

Last reviewed 2026-05-12.