Certified Supply Chain Professional (CSCP) Practice Exam

In terms of work center capacity, how is it measured?

1. Number of products produced

2. Standard hours of work available

3. Cost per hour of operation

4. Total number of employees

The correct answer is: Standard hours of work available

The measurement of work center capacity primarily revolves around the standard hours of work available. This approach effectively captures the amount of productive time that can be allocated to generating output in a work center. By using standard hours, companies can quantify the capability of their work centers to meet production demands. Standard hours provide a consistent unit of measure that reflects how long it should take to produce a specific level of output under normal conditions. This allows for better planning and resource allocation, ensuring that capacity aligns with production schedules. It also aids in evaluating performance and identifying any discrepancies between actual and expected output. In contrast, measuring capacity by the number of products produced does not account for the variability in production time for different items and hence may not provide an accurate representation of capability. Similarly, while the cost per hour of operation is essential for financial analysis, it does not directly indicate the productive capacity of the work center. Lastly, the total number of employees may not reflect actual capacity due to differences in skill level, machine availability, or efficiency among workers. Thus, using standard hours of work available is the most effective and standardized way to measure work center capacity.