Certified Supply Chain Professional (CSCP) Practice Exam

What is the function of a rough-cut capacity plan in capacity management?

1. It provides detailed scheduling of production activities

2. It is a high-level overview assessing manufacturing capabilities

3. It determines the exact needs for raw materials

4. It simplifies the production equipment maintenance schedule

The correct answer is: It is a high-level overview assessing manufacturing capabilities

A rough-cut capacity plan serves as a strategic tool in capacity management by providing a high-level overview of manufacturing capabilities. Its primary purpose is to measure the capacity of production resources against the forecasted demand. By doing so, it helps organizations understand whether they have adequate capacity to meet planned production volumes, allowing them to identify potential capacity shortfalls early in the planning process. This overview does not delve into the minutiae of scheduling production activities, which is more the domain of detailed production planning tools. Instead, it focuses on broader considerations such as the availability of key resources — including labor and equipment — necessary to meet the planned levels of production. The rough-cut capacity plan infers capacity based on demand forecasts and existing resource allotments, making it a vital component in strategic capacity planning rather than operational details like raw material needs or maintenance schedules. This level of insight is crucial for effective decision-making related to capacity adjustments, investment in additional resources, or alterations in production planning. Thus, the emphasis on a high-level overview underscores the rough-cut capacity plan's role in guiding long-term capacity decisions rather than managing day-to-day operations.