Explain the term capacity verification.

Ans. Capacity verification of prospective suppliers is one of the important function of quality control organization which is essential for exercising control over the quality of the purchased product. Capacity verification generally takes the from of survey of vendor’s production resources and his ability for their proper utilization. Before the quality engineers of the purchasing organization visit the vendor’s works he may be asked to furnish the necessary data. Preliminary study of the data furnished by the vendor may itself indicate that the firm is not capable of executing the order and thus rule out further consideration of the firm. Any form of criticism of the company should be strictly forbidden. The investigators should confine themselves to only those areas which directly reflect the vendor’s ability to execute the order in question.