Certified Supply Chain Professional (CSCP) Practice Exam

What three factors are necessary to measure available capacity for a given period?

1. Staffing levels, efficiency, overtime hours

2. Available time, utilization, efficiency

3. Workload, number of shifts, employees

4. Production rate, downtime, capacity reduction

The correct answer is: Available time, utilization, efficiency

To measure available capacity for a given period, it is essential to consider the concepts of available time, utilization, and efficiency. Available time refers to the total time that is available for production activities within a specific period, taking into account the scheduled operating hours minus planned downtime, such as maintenance or holidays. This factor establishes the baseline from which capacity calculations are made. Utilization measures how well the actual production time is used compared to the available time. It is typically expressed as a percentage, indicating the proportion of available time that is effectively utilized for productive activities. High utilization rates imply that more of the available time is being used for output, reflecting operational effectiveness. Efficiency reflects how well the input resources are converted into output. This is determined by comparing the actual output achieved during a specific time frame against the expected or standard output. Efficiency considers factors like machine speed and operational proficiency, providing insights into how effectively resources are being employed. By evaluating these three factors—available time, utilization, and efficiency—companies can accurately assess their capacity to produce goods and meet demand within a defined timeframe. This approach ensures that organizations can efficiently plan and manage their production processes while remaining responsive to market needs.