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Question 96 - CPIM-Part-2 discussion

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Which of the following factors may be used to calculate available capacity?

A.
Productivity
Answers
A.
Productivity
B.
Load
Answers
B.
Load
C.
Yield
Answers
C.
Yield
D.
Efficiency
Answers
D.
Efficiency
Suggested answer: D

Explanation:

Available capacity is the difference between the required capacity and planned operating capacity1.It refers to how capable the resources in an organization are in formulating and implementing strategy1.To calculate available capacity, factors such as the number of machines or workers, the number of shifts, utilization, and efficiency are considered1. Efficiency, in particular, is a crucial factor as it measures how effectively resources are used to produce output.It is calculated as the ratio of actual output to standard output within a specific time period1. Therefore, efficiency directly impacts available capacity by determining how much output can be produced with the available resources and time.

The other options, while important in production and operations management, are not directly used to calculate available capacity:

Productivity measures the output per unit of input and is more about overall performance rather than available capacity.

Load refers to the amount of work assigned to a resource or facility but does not directly indicate available capacity.

Yield measures the percentage of products that meet quality standards out of total units produced but does not directly calculate available capacity.

asked 16/09/2024
Gurdeep Girn
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