COM Capacity Planning & Resource Management 3

Question 1

What does OEE (Overall Equipment Effectiveness) measure in manufacturing capacity management?

Accepted Answer

How effectively equipment is utilized by combining availability, performance, and quality rates

Answer

The total lifecycle cost of owning production equipment

Answer

The energy consumption efficiency of production machinery

Answer

How frequently scheduled equipment maintenance is performed

Question 2

Which of the following best describes a 'capacity cushion' in operations management?

Accepted Answer

Reserve capacity maintained above average expected demand to handle variability

Answer

Physical padding installed on equipment to prevent damage

Answer

Capacity kept below design capacity to save energy costs

Answer

Emergency funding set aside for unplanned capacity expansion projects

Question 3

When performing a 'make or buy' capacity analysis, which factor is MOST critical to the decision?

Accepted Answer

Comprehensive total cost comparison of all relevant costs for internal production versus outsourcing

Answer

The aesthetic design of the product packaging

Answer

The geographic proximity of potential outside suppliers

Answer

Current finished goods inventory levels

Question 4

Which capacity planning approach is most appropriate in a highly uncertain, rapidly changing market environment?

Accepted Answer

Flexible, incremental capacity additions combined with demand management strategies

Answer

Fixed permanent capacity with no adjustments planned

Answer

Maximum upfront investment in large-scale permanent facilities

Answer

Delaying all capacity additions until demand is fully confirmed

Question 5

What is 'Rough-Cut Capacity Planning' (RCCP)?

Accepted Answer

A high-level feasibility check of the master production schedule against key resource capacities

Answer

A detailed work-center scheduling tool for individual machines

Answer

A technique for identifying and cutting excess capacity from operations

Answer

An approach focused on reducing raw material waste

Question 6

A manufacturing plant is consistently operating at 110% of design capacity. What is the most appropriate management response?

Accepted Answer

Investigate root causes and implement corrective actions such as overtime, outsourcing, or capacity expansion

Answer

Continue operating and accept the resulting quality and safety risks

Answer

Immediately shut down all production operations

Answer

Hire additional temporary workers without conducting formal analysis

Question 7

In capacity planning, what is 'demand management'?

Accepted Answer

Using pricing, promotions, and lead-time policies to influence when and how much customers demand

Answer

Refusing all customer orders that exceed current available capacity

Answer

Ignoring demand fluctuations and producing at a constant predetermined rate

Answer

Outsourcing all demand forecasting responsibilities to third-party providers