Prepared by: Group 6

Catarungan, Joven B.
Liban, Jero
Pinpin, Marx Amiel P.

Capacity Planning Questions and Answer

I. Identification

1. It is the process of determining the production capacity needed.

Answer: Capacity Planning

2. It expects to achieve given current operating constraints.

Answer: Effective Capacity

3. It is the maximum theoretical output of a system.

Answer: Design Capacity

4. What is the formula of Efficiency?

Answer: Efficiency = Actual output

Effective Capacity

5. What is the formula of Utilization?

Answer: Utilization = Actual Output

Design Capacity

6. It is the approach to capacity changes and prepare to deal with capacity?

Answer: The role of Developing Capacity Alternatives

7. The maximum theoretical output of a system?

Answer: Design Capacity

8. It expects to achieve the current given operating constraints.

Answer: Effective Capacity

9. The rate of output actually achieved.

Answer: Actual Capacity
10. It is the attempt to smooth out capacity requirements and identify
the optimal operating level?
Answer: Developing Capacity Alternatives

II. TRUE or FALSE?

1. Effective Capacity expects to achieve given current operating constraints.

Answer: TRUE
2. Effective Capacity is the maximum theoretical output of a system.
Answer: FALSE
3. Utilization is not measured as percentages.
Answer: FALSE
4. Efficiency is measured as percentages.
Answer: TRUE
5. Design Capacity is one of the types of Measuring System Effectiveness.
Answer: TRUE

III. ENUMERATION

1. What are the 3 types of Measuring System Effectiveness?

Answer: Design Capacity

Effective Capacity
Actual Output.

2. What are the 2 keys of decision of capacity needed? There are 4 keys, just give
at least 2.

Answer: Any of the 4:

Amount of Capacity Needed
Timing of changes
Extent of flexibility of facilities
Need to maintain balance