What does Capital Improvement Program (CIP) refer to in capacity planning?

• A. Customer Information Program.
• B. Capital Improvement Program; it allows prioritization of projects to address bottlenecks.
• C. Compliance Inspection Protocol.
• D. Corporate Investment Policy.

Answer: (B)

In capacity planning, a Capital Improvement Program is a formal, multi-year plan that identifies needed investments in facilities, equipment, and infrastructure to increase capacity and relieve bottlenecks. It provides a structured way to assess upcoming demand, estimate costs, and rank projects so that the most impactful constraints are addressed first. By prioritizing and sequencing investments, it ensures limited capital is spent where it will improve throughput, service levels, and long-term performance, aligning projects with strategic goals and available funding.

The other options don’t fit capacity planning in this context: a Customer Information Program focuses on customer data or communications, a Compliance Inspection Protocol centers on regulatory checks, and a Corporate Investment Policy is a broader governance document about investments not specifically tied to capacity bottlenecks.