CPIM CPIM Capacity Planning and Management Questions and Answers 1 — Questions and Answers
Question 1: What is 'capacity requirements planning' (CRP) and when is it performed?
- CRP translates MRP planned and released orders into detailed work center load requirements, performed after MRP (Correct answer)
- CRP sets the overall production rate for the S&OP process
- CRP validates the MPS against key resources before MRP is run
- CRP calculates safety stock levels based on demand variability
Correct answer: CRP translates MRP planned and released orders into detailed work center load requirements, performed after MRP
CRP uses MRP output to calculate detailed capacity loads at each work center, identifying overloads and underloads across the planning horizon.
Question 2: How is 'demonstrated capacity' different from 'rated capacity'?
- Demonstrated capacity is based on actual historical output, while rated capacity is a theoretical calculation based on hours and efficiency (Correct answer)
- Demonstrated capacity is always higher than rated capacity
- Rated capacity accounts for downtime; demonstrated capacity does not
- They are synonymous terms used interchangeably in CPIM
Correct answer: Demonstrated capacity is based on actual historical output, while rated capacity is a theoretical calculation based on hours and efficiency
Demonstrated capacity reflects what a work center has actually produced historically, making it a more realistic planning figure than theoretical rated capacity.
Question 3: What is the formula for 'rated capacity' at a work center?
- Number of machines × hours per shift × shifts per day × days per week × utilization × efficiency (Correct answer)
- Number of workers × standard hours per unit × production rate
- Available hours × utilization only
- Shift hours × number of machines only
Correct answer: Number of machines × hours per shift × shifts per day × days per week × utilization × efficiency
Rated capacity incorporates all key factors: equipment count, available time, utilization rate, and efficiency to calculate the theoretical maximum output.
Question 4: In capacity planning, what does 'utilization' measure?
- The percentage of available time that a work center is actually productive (scheduled hours ÷ available hours) (Correct answer)
- The ratio of actual output to standard output
- The percentage of orders completed on time
- The proportion of capacity consumed by setup times
Correct answer: The percentage of available time that a work center is actually productive (scheduled hours ÷ available hours)
Utilization measures how much of the scheduled time a resource is actually working versus the total time it could be available.
Question 5: What is 'efficiency' in the context of capacity management?
- The ratio of standard hours produced to actual hours worked at a work center (Correct answer)
- The percentage of machines currently running
- Throughput divided by total available capacity
- The number of defect-free units produced per hour
Correct answer: The ratio of standard hours produced to actual hours worked at a work center
Efficiency compares actual performance to standard performance, showing whether work is being done faster or slower than the standard time allows.
Question 6: Which capacity management technique is used at the Resource Requirements Planning (RRP) level?
- Comparing the production plan to aggregate resource profiles to validate long-range feasibility (Correct answer)
- Detailed load calculations at individual work centers
- Rough-cut checks of the MPS against key machines
- Input/output control at the shop floor level
Correct answer: Comparing the production plan to aggregate resource profiles to validate long-range feasibility
RRP uses aggregate resource profiles to check whether the long-range production plan is feasible given overall resource availability such as people and facilities.
CPIM CPIM Capacity Planning and Management Questions and Answers 1
What is 'capacity requirements planning' (CRP) and when is it performed?