CPIM CPIM Capacity Planning and Management Questions and Answers 1

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 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'?

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 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?

Accepted Answer

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

Answer

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?

Accepted Answer

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

Answer

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?

Accepted Answer

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

Answer

Efficiency compares actual performance to standard performance, showing whether work is being done faster or slower than the standard time allows.

(CPIM) Certified in Planning and Inventory Management Practice Test

(CPIM) Certified in Planning and Inventory Management Practice Test

CPIM CPIM Capacity Planning and Management Questions and Answers 1