CPIM Practice Exam

What is included in the planning input of a work center?

1. Total sales revenue

2. Hours planned for operation

3. Actual output produced

4. Variances calculated in reports

The correct answer is: Hours planned for operation

The planning input of a work center primarily includes information essential for scheduling and capacity planning. Hours planned for operation is a crucial factor in this context, as it directly influences how the work center can allocate resources and time to meet production demands. This information helps in determining how much time is available for work, potentially affecting lead times and overall efficiency. On the other hand, total sales revenue does not provide direct insights into the operational aspects of a work center; rather, it's more related to financial performance. Actual output produced is typically considered when analyzing performance after operations, making it a retrospective measure rather than a planning input. Variances calculated in reports focus on discrepancies between planned and actual performance, which again is more about evaluation than planning. Thus, hours planned for operation naturally stands out as the most relevant factor in the context of planning inputs for work centers.