CPIM CPIM Capacity Planning and Management Questions and Answers

Question 1

What is 'capacity requirements planning' (CRP) and when is it performed?

Accepted Answer

CRP translates MRP planned and released orders into detailed work center load requirements, performed after MRP

Answer

CRP sets the overall production rate for the S&OP process

Answer

CRP validates the MPS against key resources before MRP is run

Answer

CRP calculates safety stock levels based on demand variability

Question 2

How is 'demonstrated capacity' different from 'rated capacity'?

Accepted Answer

Demonstrated capacity is based on actual historical output, while rated capacity is a theoretical calculation based on hours and efficiency

Answer

Demonstrated capacity is always higher than rated capacity

Answer

Rated capacity accounts for downtime; demonstrated capacity does not

Answer

They are synonymous terms used interchangeably in CPIM

Question 3

What is the formula for 'rated capacity' at a work center?

Accepted Answer

Number of machines × hours per shift × shifts per day × days per week × utilization × efficiency

Answer

Number of workers × standard hours per unit × production rate

Answer

Available hours × utilization only

Answer

Shift hours × number of machines only

Question 4

In capacity planning, what does 'utilization' measure?

Accepted Answer

The percentage of available time that a work center is actually productive (scheduled hours ÷ available hours)

Answer

The ratio of actual output to standard output

Answer

The percentage of orders completed on time

Answer

The proportion of capacity consumed by setup times

Question 5

What is 'efficiency' in the context of capacity management?

Accepted Answer

The ratio of standard hours produced to actual hours worked at a work center

Answer

The percentage of machines currently running

Answer

Throughput divided by total available capacity

Answer

The number of defect-free units produced per hour

Question 6

Which capacity management technique is used at the Resource Requirements Planning (RRP) level?

Accepted Answer

Comparing the production plan to aggregate resource profiles to validate long-range feasibility

Answer

Detailed load calculations at individual work centers

Answer

Rough-cut checks of the MPS against key machines

Answer

Input/output control at the shop floor level