the upper limit or ceiling on the load that an operating unit can handle
The maximum output rate or service capacity an operation, process, or facility is designed for.
Design Capacity minus allowances such as personal time, and maintenance (usually less than design capacity)
the ratio of actual output to effective capacity.
The ratio of actual output to design capacity.
It is not unusual for managers to focus exclusively on efficiency, but what is wrong with this?
in many instances this emphasis can be misleading. This happens when effective capacity is low compared to design capacity. In those cases, high efficiency would seem to indicate effective use of resources when it does not.