COM Capacity Planning & Resource Management 2 — Questions and Answers
Question 1: Resource leveling in capacity and project management is used to:
- Maximize resource utilization above 100% capacity
- Eliminate project milestone requirements
- Resolve resource over-allocations by adjusting the schedule (Correct answer)
- Increase the approved project budget
Correct answer: Resolve resource over-allocations by adjusting the schedule
Resource leveling adjusts activity start and finish dates to address resource constraints and prevent team members or equipment from being over-allocated.
Question 2: Efficiency in capacity planning is correctly calculated as:
- Actual output divided by design capacity × 100%
- Effective capacity divided by design capacity × 100%
- Actual output divided by effective capacity × 100% (Correct answer)
- Design capacity divided by effective capacity × 100%
Correct answer: Actual output divided by effective capacity × 100%
Efficiency = Actual output / Effective capacity × 100%, measuring how well the realistically available capacity is being utilized.
Question 3: What is 'aggregate planning' in operations management?
- Detailed scheduling of individual machines hour by hour
- Medium-term planning that matches production capacity with forecasted demand over 3–18 months (Correct answer)
- Long-term strategic decisions about facility location
- Daily workforce scheduling and shift assignments
Correct answer: Medium-term planning that matches production capacity with forecasted demand over 3–18 months
Aggregate planning is a medium-term approach that balances overall production capacity with demand forecasts, typically over a 3 to 18-month horizon.
Question 4: A 'chase strategy' in aggregate production planning means:
- Maintaining a constant workforce while varying finished goods inventory
- Always maintaining significant excess capacity as a buffer
- Adjusting workforce or capacity levels to closely match demand fluctuations (Correct answer)
- Outsourcing all production during seasonal peak demand periods
Correct answer: Adjusting workforce or capacity levels to closely match demand fluctuations
The chase strategy adjusts workforce size or capacity levels to follow demand patterns, minimizing inventory but requiring frequent hiring or layoffs.
Question 5: The Theory of Constraints (TOC) in capacity management is primarily concerned with:
- Reducing all operational costs simultaneously
- Identifying and exploiting the system's single limiting constraint (Correct answer)
- Maximizing buffer inventory throughout the production system
- Eliminating all non-value-added activities across processes
Correct answer: Identifying and exploiting the system's single limiting constraint
TOC focuses on identifying the binding constraint limiting system throughput and systematically exploiting it to improve overall performance.
Question 6: Which analytical technique is used to determine the optimal number of service counters, machines, or servers needed to minimize customer wait times while controlling costs?
- Linear programming
- Queuing theory (Correct answer)
- Monte Carlo simulation
- Critical path method
Correct answer: Queuing theory
Queuing theory mathematically models waiting lines and service rates to determine optimal resource levels that balance service quality with operational cost.
Question 7: In workforce capacity planning, 'workforce flexibility' is primarily aimed at:
- Permanently reducing employee compensation costs
- Enabling rapid adjustment to changing demand through cross-training and variable staffing arrangements (Correct answer)
- Continuously increasing permanent headcount
- Standardizing all job roles across the organization
Correct answer: Enabling rapid adjustment to changing demand through cross-training and variable staffing arrangements
Workforce flexibility enables organizations to quickly adjust capacity by deploying multi-skilled workers or varying staffing levels in response to demand changes.
COM Capacity Planning & Resource Management 2
Resource leveling in capacity and project management is used to: