APICS Certified In Planning And Inventory Management (CPIM) Exam 1 Practice

The technique being tested is about watching how a work center actually performs against what was planned, using a formal baseline developed through planning. In this approach, planned inputs and planned outputs are created by Capacity Requirements Planning (CRP) and then approved by management to establish the approved workload. On the shop floor, actual inputs and actual outputs are tracked, and variances between what was planned and what actually happened are monitored. This allows you to detect when a work center is over- or under-loaded and take timely corrective actions to keep capacity in balance. Infinite loading would ignore capacity limits and push schedules regardless of feasibility. CRP itself is the planning step that computes the required capacity and the planned inputs/outputs, but it doesn’t perform the ongoing monitoring of actual performance. Kanban governs material flow with a pull system and does not focus on monitoring capacity against a planned baseline.