CPIM Practice Exam

What does capacity control measure?

1. Production output against capacity plans

2. The cost efficiency of machine operation

3. Worker satisfaction during production

4. Raw material consumption rates

The correct answer is: Production output against capacity plans

Capacity control primarily focuses on assessing how well production output aligns with pre-established capacity plans. It measures the efficiency and effectiveness of production processes by comparing actual output to the planned capacity, thereby helping organizations identify whether they are meeting production goals, over- or under-utilizing their resources, and making necessary adjustments to production schedules or capacity as needed. This ensures that resources such as machinery, labor, and materials are optimally utilized to meet demand. The other options involve important aspects of production and operations but do not directly pertain to capacity control. Cost efficiency of machine operation relates to evaluating the financial performance and upkeep of machines rather than measuring capacity against output. Worker satisfaction pertains to the human resource aspect of production, focusing on employee engagement and morale, which is separate from technical capacity measures. Lastly, raw material consumption rates relate to material management and inventory control rather than the assessment of production output against capacity plans. Therefore, the focus of capacity control distinctly lies in the alignment of actual production with planned capacity.