Management and Production Activity
Control ACTUAL QUESTIONS AND
CORRECT ANSWERS
capacity available - CORRECT ANSWERS✅✅The capability of a system or resource to
produce a quantity of output in a particular time period
load - CORRECT ANSWERS✅✅The amount of planned work scheduled for and actual
work released to a facility, workcenter, or operation for a specific span of time
efficiency - CORRECT ANSWERS✅✅A measurement, usually expressed as a percentage,
of the actual output to the standard output expected
forward scheduling - CORRECT ANSWERS✅✅A technique where the scheduler proceeds
from a known start date and computes the completion date for an order, usually proceeding
from the first operation to the last
capacity requirements - CORRECT ANSWERS✅✅The resources needed to produce the
projected level of work required from a facility over a time horizon
infinite loading - CORRECT ANSWERS✅✅Calculation of the capacity required at work
centers in the time periods required regardless of the capacity available to perform this work
backward scheduling - CORRECT ANSWERS✅✅A technique where the schedule is
computed starting with the due date for the order and working backward to determine the
required start date or due dates for each operation
rated capacity - CORRECT ANSWERS✅✅The expected output capability of a resource or
system. Hours available × efficiency × utilization
finite loading - CORRECT ANSWERS✅✅Assigning no more work to a work center than it
can be expected to execute in a given time period
, control - CORRECT ANSWERS✅✅Comparing actual to planned performance and taking
corrective action, as needed, to align performance with plan
production activity control (PAC) - CORRECT ANSWERS✅✅The function of routing and
dispatching the work to be accomplished through the production facility and of performing
supplier control
utilization - CORRECT ANSWERS✅✅A measure (usually expressed as a percentage) of
how intensively a resource is being used to produce a good or service. This measure
compares actual time used to available time. Traditionally, this measure is the ratio of direct
time charged (run time plus setup time) to the clock time available
b. 58 Hours
Rated capacity = available time x utilization x efficiency = (2 machines x 8 hours/day x 5
days) x 0.8 x 0.9 = 57.6 hours, or 58 hours) - CORRECT ANSWERS✅✅A work center
consists of two machines working eight hours a day and five days a week. Historically,
utilization has been 80%, and efficiency has been 90%. To the nearest hour, what is the rated
capacity?
a. 80 Hours
b. 58 Hours
c. 40 Hours
d. 30 Hours
c. Utilization
Utilization = hours actually worked/hours of available time. Answer a is incorrect because
efficiency measures standard hours of work produced per actual hours worked, not the
percentage of time worked. Answer b is not relevant to the question. Answer d relates to the