CPIM Master Planning and Capacity Management 2

Question 1

Which capacity planning technique evaluates capacity needs at the work-center level using planned and released orders?

Accepted Answer

Capacity Requirements Planning (CRP)

Answer

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?

Accepted Answer

Actual capacity achieved based on historical output data

Answer

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?

Accepted Answer

120%

Answer

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?

Accepted Answer

Overtime, subcontracting, or rescheduling orders

Answer

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?

Accepted Answer

Time a job spends waiting before it is processed at a work center

Answer

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.

(CPIM) Certified in Planning and Inventory Management Practice Test