CPIM Master Planning and Capacity Management 2 — Questions and Answers
Question 1: Which capacity planning technique evaluates capacity needs at the work-center level using planned and released orders?
- Rough-Cut Capacity Planning
- Capacity Requirements Planning (CRP) (Correct answer)
- Resource Requirements Planning
- Sales and Operations Planning
Correct answer: Capacity Requirements Planning (CRP)
CRP uses MRP output (planned and released orders) to calculate detailed capacity loads at each work center.
Question 2: In capacity planning, what does 'demonstrated capacity' represent?
- Maximum theoretical output if there are no constraints
- Actual capacity achieved based on historical output data (Correct answer)
- Capacity planned based on engineering standards
- Capacity after subtracting scheduled maintenance downtime
Correct answer: Actual capacity achieved based on historical output data
Demonstrated capacity is the historical average of actual output achieved, reflecting real-world performance rather than theoretical maximums.
Question 3: A company has a planned load of 480 standard hours and a demonstrated capacity of 400 hours per week. What is the load percentage?
- 83%
- 100%
- 120% (Correct answer)
- 150%
Correct answer: 120%
Load % = (Planned Load / Capacity) × 100 = (480 / 400) × 100 = 120%, indicating the work center is overloaded.
Question 4: Which of the following is a technique to manage capacity overloads identified in CRP?
- Increasing safety stock levels
- Overtime, subcontracting, or rescheduling orders (Correct answer)
- Reducing the planning horizon
- Lowering the order quantity
Correct answer: Overtime, subcontracting, or rescheduling orders
Common responses to overloads include authorizing overtime, subcontracting work, splitting lots, or rescheduling orders to under-loaded periods.
Question 5: What is 'queue time' as used in capacity and scheduling planning?
- Time a job spends waiting before it is processed at a work center (Correct answer)
- Time required to set up a machine between jobs
- Transit time between operations
- Time added for inspection after an operation
Correct answer: Time a job spends waiting before it is processed at a work center
Queue time is the waiting time that a job spends at a work center before actual processing begins, often the largest component of total lead time.
Question 6: Which input is NOT typically used in Capacity Requirements Planning (CRP)?
- Planned order releases from MRP
- Work center master data (capacity)
- Customer satisfaction scores (Correct answer)
- Routing file (operations, standards)
Correct answer: Customer satisfaction scores
CRP relies on MRP output, work center capacity data, and routing information — customer satisfaction scores are not an input.
CPIM Master Planning and Capacity Management 2
Which capacity planning technique evaluates capacity needs at the work-center level using planned and released orders?