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Quiz Session - Attempts With Random Questions

APICS CPIM Exam Questions

Page 10 of 80

181.

Leveraging the technical capability and expertise of suppliers during product design will result in all the following EXCEPT:

  • Reduce product quality

  • Increase component standardization

  • Increase speed to market

  • Lower production costs

Correct answer: Reduce product quality

Working with suppliers during product design should improve, not reduce, product quality if done properly.

The other answer options are considered as standard benefits of early involvement of suppliers in the design process. Leveraging supplier input during product design (concurrent or participative design/engineering) can result in quicker speed to market, lower production and total costs through standardization and lean improvement, and improved quality.

182.

Using the data below, determine the reorder point:

On-hand balance = 200
Weekly usage = 200
Lead time = 3w
Safety stock = 100

  • 700

  • 800

  • 200

  • 300

Correct answer: 700

To calculate the reorder point, add together the Demand During Lead Time (DDLT) and the safety stock: 3(200) + 100 = 700.

Order point = DDLT + Safety stock DDLT = 3 week lead time x 200 units per week usage = 600

Order point = 600 + 100 = 700

183.

Using the information below, what is the available weekly capacity rounded to the nearest standard hour?

Machines = 3, Operations per shift = 2, Shifts per day = 1, Days worked per week = 7, Hours worked per shift = 8, Machine utilization = 80%, Operator efficiency = 90%

  • 121

  • 142

  • 86

  • 70

Correct answer: 121

The available capacity is calculated using rated capacity = available time x utilization x efficiency.

Available time = 3 machines x 1 shift per day x 7 days x 8 hours per day. Available time = 168. Utilization = 80%. Efficiency = 90%.

Capacity = 168 x .8 x .9 = 120.96 or 121 hours

184.

Who discovered the Theory of Constraints?

  • Dr. Eliyahu Goldratt

  • W. Edwards Deming

  • Walter Shewhart

  • Eiji Toyoda

Correct answer: Dr. Eliyahu Goldratt

In 1984, Dr. Eliyahu Goldratt published the now famous book, The Goal, in which he described the concept of a bottleneck, or constraint, and how to manage around this in a production setting.

W. Edwards Deming made important contributions in the area of total quality management.

Walter Shewhart developed the Plan-Do-Check-Act cycle of continuous improvement.

Eiji Toyoda developed the Just-In-Time manufacturing process.

185.

A product's demand over the past three months has been 360, 420, and 510. Use a short-term forecasting technique to determine the forecast for month four.

  • 430

  • 520

  • 600

  • 660

Correct answer: 430

A three-month moving average is a short-term forecasting technique and is calculated by adding the demand for three months (360, 420, and 510) and dividing by the number of periods (3).

(360 + 420 + 510)/3 = 430

Therefore, month four's forecast would be 430.

186.

To calculate the manufacturing lead time, which of the following data sources is NOT necessary?

  • Component purchase lead time

  • Order preparation time

  • Setup time

  • Interoperation time

Correct answer: Component purchase lead time

Component purchase lead time is associated with procurement lead time, not manufacturing.

The ASCM Supply Chain Dictionary defines manufacturing lead time as "the total time required to manufacture an item, exclusive of lower-level purchasing lead time."

Elements of manufacturing lead time are as follows:

  • Order preparation time
  • Setup time
  • Run time
  • Interoperation time (wait, move, queue)

187.

Standard costs are generally established before actual production in a standard cost system. Using this system, how would management determine how well goals are achieved by production?

  • Favorable variances from standard cost

  • High productivity per hours of work

  • Low defects per 1,000

  • Machine utilization above 90%

Correct answer: Favorable variances from standard cost

Favorable variances from standard cost should exist because actual cost will be less than the standard cost.

Although the other answer choices also may contribute to favorable variances, they are not determined by standard cost.

188.

Which manufacturing process layout groups equipment together by operation performed, and the product flows from area to area?

  • Functional (Process)

  • Fixed-position

  • Cellular

  • Product-based

Correct answer: Functional (Process)

Functional (Process) layout groups similar operations in the same area, and product is moved from area (function) to area (function). For example, punch press machines, saws, spot welders, etc. This layout can be seen in a job shop or custom manufacturing environment.

The other answer options are defined as follows:

  • Fixed-position: The product remains in a fixed location, and the labor, equipment, and materials are brought to the location.
  • Cellular (Work cells): Similar to functional layout but dedicated to specific product families.
  • Product-based: Similar to cellular but dedicated to specific products or lines with workstations in a sequential flow.

189.

A worker measures the dimension of 500 bolts and records the data so that they can identify any unnatural distributions. Which basic tool of quality is this worker MOST likely using?

  • Histogram

  • Control chart

  • Pareto chart

  • Cause-and-effect diagram

Correct answer: Histogram

A histogram is the basic tool of quality. A histogram is a bar chart that presents measurement data for a process, such as dimensions or weight. There are seven basic tools of quality: histogram, cause-and-effect diagram, check sheet, flowchart (process map), Pareto chart, control chart, and scatter diagram.

A control chart is defined by the ASCM Supply Chain Dictionary as “a graphic comparison of process performance data with predetermined computed control limits, while a Pareto chart is an evaluation that reflects the regularity of items/causes in a data set and is based on Pareto’s law, which is “a concept … that states that a small percentage of a group accounts for the largest fraction of the impact, value, and so on." A cause-and-effect diagram is a diagram used to organize a process’ or a problem’s causes and subcauses for investigation.

190.

Why is one of JITs main goals to reduce the number of levels in a bill of material?

  • Each level represents a stocking point

  • It is easier to schedule any product

  • There are fewer chances for BOM errors

  • The size of the hidden factory is reduced

Correct answer: Each level represents a stocking point

Reducing inventory is a key goal in JIT, which views inventory as waste. While simplification of BOMS does translate to ease of planning, the measurable uptick in overall performance is not as significant as the inventory reduction. BOM errors may be reduced, but as there are many sources of these errors, just simplifying a BOM does not guarantee error reduction. Removing an entire level within the BOM represents significant inventory reduction.

191.

Using the two variable criteria in forecast management, which forecasting method will work in a stable and complete data environment?

  • Econometric

  • Exponential smoothing

  • Naïve

  • Delphi

Correct answer: Econometric

The ASCM Supply Chain Dictionary defines econometric modeling as "a set of equations intended to be used simultaneously to capture the way in which dependent and independent variables are interrelated." Regression analysis forecasting methods work well when data is stable and complete. Examples include econometric, simple, and multiple regression.

Exponential smoothing and naïve are better fits when data is stable but incomplete. Delphi is a fit for unstable and incomplete data environments.

192.

Regarding sustainability, a company will evolve through three stages as they adopt sustainability strategies. What is a tool, used in stage two, to help a company produce cost advantages associated with sustainability?

  • Life cycle costing

  • Life cycle analysis

  • Product life cycle management

  • Activity-based costing

Correct answer: Life cycle costing

A company will evolve through three stages as they adopt sustainability strategies. In stage two, a company will begin to produce cost advantages associated with sustainability by using life cycle costing to assess costs over the entire time of product ownership.

In stage one, a company will focus on regulations and compliance. In stage three, the company begins to integrate sustainability into the corporate strategy.

Life cycle analysis is a quantitative tool used in forecasting. Product Life cycle Management (PLM) is the process of facilitating the development, use, and support of products. Activity-based costing is an accounting model associating costs with specific activities.

193.

Why would one choose to employ safety lead time over safety stock?

  • To protect against manufacturing and distribution delays

  • To protect against supply and demand fluctuations

  • The time from the receipt of a customer order to the delivery of the product

  • The total time required to manufacture an item

Correct answer: To protect against manufacturing and distribution delays

The ASCM Supply Chain Dictionary states that safety lead time is "an element of time added to normal lead time to protect against fluctuations in lead time so that an order can be completed before its real need date." For instance, if a supplier of a key ingredient has been unpredictable in delivery performance, a planner might decide to add some safety time to the existing lead-time assumption to protect against this variability.

A quantity of stock planned to be in inventory to protect against fluctuations is safety stock. 

The time from the receipt of a customer order to the delivery of the product is the delivery lead time. 

The total time required to manufacture an item is the manufacturing lead time.

194.

From a five-forces model perspective, routine price cuts, large investment in advertising, and frequently redesigning products is an indicator of which of the following?

  • Strong market rivalry

  • Weak market rivalry

  • High threat of new entrants

  • High industry attractiveness

Correct answer: Strong market rivalry

Using the five-forces model, strong market rivalry is indicated by routine price cuts, heavy advertising, frequent product redesigns, and customer service differentiation. In a market with strong rivalry, there is generally a low threat of new entrants given low industry attractiveness. Such a market can be a target of new technology or approaches that disrupt normal economics and displace companies who cannot compete. 

Weak market rivalry conditions prevail in a monopoly or where few companies possess the leading technology. As patent protection decreases, this type of market becomes increasingly attractive to new entrants

195.

Which of the following is unlikely to be the basis of an operations plan?

  • Revenue

  • Capacity

  • Volume of output

  • Cost of goods sold

Correct answer: Revenue

Revenue is not likely to be the basis of an S&OP, as this metric would be aspirational and not controlled by how much the company manufactured over the planned time period. 

Operations plans are commonly stated in terms of capacity utilized, volume of output, and the value of that output. The decision on how to measure the result of the operations plan is based on the business strategy and the desired outcome of that strategy.

196.

Six Sigma Black Belt Kenley is running a project to quickly reduce the impact of Work Station 7, which is the primary bottleneck on the factory floor for more than a year. She has completed his analysis of viable alternatives in the Analyze phase and is now ready to pilot a number of potential solutions in the Improve phase. 

Which item below was the most likely item DESELECTED in the Analyze phase?

  • Qualify the more generic products on Work Centers 1-6

  • Implement automation to reduce manual labor

  • Outsource a qualified subset of all products run on Work Center 7

  • Satisfy only actual demand

Correct answer: Qualify the more generic products on Work Centers 1-6

Kenley likely had the idea of switching products to other work centers on her list. However, as WC7 has been a bottleneck for more than a year, this low hanging fruit of an idea was most likely already plucked with little more to gain should it be further pursued. 

Automation can reduce turnaround times as well as reduce quality errors, making it viable to pursue. 

Outsourcing qualified products is always worth pursuing in a bottleneck situation. 

By satisfying only actual orders coming to the business versus making product to stock, one can free up available machine time.

197.

Which of the following is a synonym for lot size?

  • Order quantity

  • Order point

  • Order entry

  • Economic Order Quantity (EOQ)

Correct answer: Order quantity

The ASCM Supply Chain Dictionary defines lot size as "the amount of a particular item that is ordered from the plant or a supplier issued as a standard quantity to the production process." Lot sizing will differ by production strategy: chase, level, JIT, or a combination of these.  

Economic Order Quantity (EOQ) is a type of fixed order quantity model. Order point is the trigger for replenishing inventory. Order entry is the process of getting customer requirements into terms used by the supplier.

198.

Decoupling is the point in the production process where product supply is no longer dependent on the actual demand. In a make-to-stock hardware manufacturer, the decoupling point is which of the following?

  • The hardware store

  • The stock of sub-assemblies

  • The ordering of raw materials

  • The transportation of goods

Correct answer: The hardware store

In a make-to-stock company, the decoupling point is generally the finished goods store, where finished goods are sold to customers. This is where the product supply is no longer dependent on the actual demand.

The other choices are incorrect because these are either dependent demand or ancillary supply chain activities (transportation).

199.

In a manufacturing environment, there is a limited number of end items being manufactured from a large number of components. How would the product be master scheduled?

  • At the end item (finished) level

  • At the level in which numerous end items are combined for planning purposes

  • At the level in which the configurations are based on numerous options

  • At the planning item level

Correct answer: At the end item (finished) level

The scenario in the question represents a Make-To-Stock (MTS) manufacturing environment, where there is a limited number of end items being manufactured from a large number of components, and the product would be master scheduled at the end item (finished) level.

In a manufacturing environment, there area large number of end items being manufactured from a small number of components, and the product would be master scheduled at the level in which numerous end items are combined for planning purposes. This is the decoupling point between demand and supply. 

One would not attempt scheduling at the level where there are numerous items, as these serve only as subassemblies or raw materials that comprise the final product.

At the planning item level is incorrect because this is not a level in which products are master scheduled.

200.

Which of the following is a KEY element in selecting a factory location site?

  • Cost of transportation

  • Availability of water

  • Warehouse capacity and cost

  • Parking lot flow

Correct answer: Cost of transportation

When siting a factory, the availability and cost of transportation are the critical elements to be considered. Incoming materials and outgoing finished goods must be routed affordably and reliably.

Availability of water, warehouse capacity and cost, and parking lot flow may all be considerations when picking a factory site; however, the cost of transportation is a critical element considered.

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