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CPIM Capacity Planning and Management Questions and Answers Flashcards

6 cards from real CPIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CPIM Capacity Planning and Management Questions and Answers flashcards as text

  1. What is 'capacity requirements planning' (CRP) and when is it performed?

    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.

  2. How is 'demonstrated capacity' different from 'rated capacity'?

    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.

  3. What is the formula for 'rated capacity' at a work center?

    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.

  4. In capacity planning, what does 'utilization' measure?

    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.

  5. What is 'efficiency' in the context of capacity management?

    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.

  6. Which capacity management technique is used at the Resource Requirements Planning (RRP) level?

    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.