The maximum achievable results that can be attained in a manufacturing system based on limitations imposed.
Example: McDonald’s could not build a complete aircraft carrier in its’ kitchen, but it could create a fine “BigMack tm.”
Size, weight, complexity of parts, environmental regulations, and processes (to name a few) all figure in to determining the capability of a manufacturing system.
Note: Some definitions propose an opposing notion that capability is merely what is possible based on limitations. We prefer the more positive definition sited above.