Capacity Management and Resource Utilization Quiz

What is capacity management?

• The process of managing customer demand

• The process of setting prices for products

• The process of hiring new employees

• The process of determining the production capacity needed by an organization

What does capacity planning involve?

• Hiring new employees

• Setting the effective capacity of the operation to respond to demand fluctuations

• Managing customer complaints

• Setting the prices for products

What is design capacity?

• The maximum theoretical output of a system

• The actual achievable output in practical scenarios

• The average output of a system

• The output of a system under ideal conditions

What is the coping zone?

• The area of significant resource utilization where the technician becomes stressed

• The area of low resource utilization

• The area where customers are satisfied

• The area where employees are relaxed

What is the impact of too little capacity?

• Customers waiting, overwork, variable quality

• Underutilized resources, empty buildings, demotivated employees

• Maintenance and repair programs, deliberate policy by management, lower than expected market demand

• Loss of market share, seasonal variation in demand, recent increase in capacity

What is the measure of efficiency?

• Actual output divided by effective capacity

• Actual output divided by design capacity

• Design capacity divided by actual output

• Effective capacity divided by actual output

What are strategies for flexing capacity to match demand?

• Raise prices, cross-train employees, rent or share facilities

• Use sales and advertising, modify hours of operation, lay off employees

• Perform maintenance, schedule vacations, charge full price for the service

• Change pattern of demand, make customer wait, absorb demand

What is the principle influencing waiting times perception?

• Uncomfortable waits feel longer than comfortable waits

• The more valuable the service, the longer customers will wait

• Unfair waits are longer than equitable waits

• Solo waiting feels longer than group waiting

What is the purpose of managing bottlenecks and queues?

• To reduce potential customer satisfaction

• To design queues into the service

• To ensure that only essential work passes through

• To increase customer waiting time

What is the impact of too much capacity?

• Underutilized resources, empty buildings, demotivated employees

• Customers waiting, overwork, variable quality

• Loss of market share, seasonal variation in demand, recent increase in capacity

• Maintenance and repair programs, deliberate policy by management, lower than expected market demand