CPIM Practice Exam

What factor is important for understanding the efficiency of a work center?

1. The average time taken for setup.

2. The ratio of standard hours produced to actual hours worked.

3. The number of machines operated.

4. The total output over a specific period.

The correct answer is: The ratio of standard hours produced to actual hours worked.

The ratio of standard hours produced to actual hours worked is a critical measure of efficiency in a work center. This ratio provides insights into how well the work center is performing relative to established standards. By comparing standard hours, which are predetermined based on optimal operation conditions and productivity levels, to the actual hours worked, it reveals whether the work center is operating efficiently or not. A ratio greater than one indicates that the work center is producing more than the standard level, suggesting high efficiency, while a ratio less than one signifies a performance under expectation, signaling inefficiencies that may need addressing. In contrast, the average time taken for setup, while important for understanding potential delays, does not directly measure overall work center efficiency. The number of machines operated can provide context about capacity but does not directly reflect how effectively those machines are utilized toward productivity goals. Total output over a specific period is useful for assessing volume but does not consider the comparative efficiency aspect relative to standards, which is encapsulated in the ratio of standard to actual hours.