CPSM Resource Planning & Capacity Management

Question 1

In professional services, what does 'utilization rate' primarily measure?

Accepted Answer

The percentage of billable hours worked relative to total available hours

Answer

Utilization rate measures the percentage of an employee's available hours that are spent on billable client work, a key productivity metric in professional services.

Question 2

Which capacity planning approach begins with forecasted demand and works backward to determine required staffing levels?

Accepted Answer

Demand-driven planning

Answer

Demand-driven planning starts with projected client demand or sales pipeline data and determines the headcount and skills required to meet that demand.

Question 3

A professional services firm has 10 consultants each available 40 hours/week. If 320 hours are committed to billable projects, what is the team utilization rate?

Accepted Answer

80%

Answer

320 billable hours divided by 400 total available hours (10 × 40) equals 80% utilization.

Question 4

What is 'bench time' in the context of professional services resource management?

Accepted Answer

Non-billable time when consultants are available but not assigned to client projects

Answer

Bench time refers to periods when consultants are paid and available but not generating billable revenue because they lack active project assignments.

Question 5

Which technique uses historical project data and current pipeline visibility to predict future resource shortfalls?

Accepted Answer

Rolling resource forecasting

Answer

Rolling resource forecasting continuously updates projections based on the latest pipeline and project data, typically in a 3-to-12-month horizon.

CPSM - Certified Professional Services Manager Practice Test

CPSM - Certified Professional Services Manager Practice Test

CPSM Resource Planning & Capacity Management