Over sized was when Kodak had plants in several places making the same products for a WW market.
Over capacity is when a company makes (or can make) more product than the market can bear. This is a subset of Over Sized.
Kodak is now one plant. It is properly sized for the market, but within that plant, as the market shrinks, it is over capacity for some large part of the product range, for the market out there.
To compensate, Kodak now cannot become smaller, it can only reduce production within its current capacity. It does that by reducing operation hours or days of operation, among other things. It is very difficult to do as the market shrinks, because the capacity in terms of equipment is n ow frozen at a fixed level and there is no capital to redesign the equipment.
This is a very complex dilemma that is the opposite end of the scale from EFKE which drama is playing on in that other thread.