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Quiz Session - Attempts With Random Questions

APICS CPIM Exam Questions

Page 3 of 80

41.

Which example below is likely NOT an order sequencing priority?

  • Working on the job with the highest critical ratio

  • Working on the job with the lowest lead time 

  • Working on the job with the earliest part due date

  • Working on the job with the longest part lead time

Correct answer: Working on the job with the highest critical ratio

The ASCM Supply Chain Dictionary defines critical ratio as: "A dispatching rule that calculates a priority index number by dividing the time to due date remaining (time remaining) by the expected elapsed time to finish the job (work remaining). A ratio less than 1.0 indicates the job is behind schedule, a ratio greater than 1.0 indicates the job is ahead of schedule, and a ratio of 1.0 indicates the job is on schedule."

The critical ratio is a measure of how well a job is tracking against an expected due date.

Jobs such as longest (not lowest) lead times in either part or total job and nearest to due date all help keep jobs on time and ready to be shipped out per customer order requirements.

42.

As a result of resource planning, the company sees a long-range shortage of skilled labor. What change could the company make to build a competent labor force?

  • Education and training

  • Outsourcing and subcontracting

  • Acquisition

  • Facility startup and shutdown

Correct answer: Education and training

The company could work with the community by sponsoring training programs at area education and vocational schools. The company could also offer internships to help expose students to the company and career opportunities.

Outsourcing and subcontracting, acquisitions, and facility startup and shutdown will not help expand the long-term labor supply for the company.

43.

A visual representation of the scheduling process can be provided by utilizing which of the following?

  • Gantt charts

  • Capacity scheduling

  • Material scheduling plans

  • Priority scheduling rules

Correct answer: Gantt charts

A Gantt chart provides a visual display of project and production scheduling. Gantt charts highlight task dependency and the relationship to start/stop dates.

Capacity, priority, and material scheduling plans are normally depicted as line item schedules. 

44.

When a demand pattern changes shape over time, it is said to be which of the following?

  • Dynamic

  • Stable

  • Flexible

  • Uncontrolled

Correct answer: Dynamic

When a demand pattern changes shape over time, it is said to be dynamic. Dynamic demand patterns affect the actual demand trends, seasonality, and randomness.

A stable demand pattern occurs when a demand pattern retains the same general shape over time. Demand patterns are stable or dynamic, not constant, flexible, or controlled.

45.

Which of the following outputs would be an input for capacity requirements planning?

  • MRP material plan

  • Production plan

  • Master production schedule

  • Demand forecast

Correct answer: MRP material plan

Capacity Requirements Planning (CRP) checks to see if existing capacity can support MRP priorities by reviewing the anticipated load output from MRP.

In the Manufacturing Planning and Control (MPC) hierarchy, the production plan is an input to resource planning. The Master Production Schedule (MPS) is an input to Rough-Cut Capacity Planning (RCCP). The demand forecast is in input to demand management.

46.

Which of the following is a crucial objective of an operations strategy?

  • To define performance objectives

  • To ensure alignment between the master production schedule and the production plan

  • To define tactical procedures

  • To ensure alignment with engineering objectives

Correct answer: To define performance objectives

One of the key objectives of the operations strategy is to define performance objectives that will align with both the business strategy and market requirements. The performance objectives will be driven by capacity and supply network decisions/capabilities/constraints.

Ensuring alignment between the master production schedule and the production plan, defining tactical procedures, and ensuring alignment with engineering objectives are lower-level activities/objectives.

47.

In process manufacturing, what is process design?

  • A sequence of all processes that produce a finished product

  • A collection of a few processes that produce an intermediate product for further processing

  • A diagram of a production process using standardized symbols

  • A control system that feeds work into production to meet planned rates

Correct answer: A sequence of all processes that produce a finished product

The process structure of processing manufacturing includes:

  • Process design: A sequence of all processes that produce a finished product
  • Stages: A collection of a few processes (units) that produce an intermediate product for further processing
  • Units: An activity that performs a single step (e.g., mixing, cooling, etc.)

A typical process structure will have one process design, using multiple stages, with each stage containing at least one unit.

A process flow is a diagram of a production process using standardized symbols. Note that a process design does not rely on standardized process flow symbols. A control system that feeds work into production to meet planned rates is known as flow control.

48.

Which of the following BEST describes the concept of capacity?

  • The rate of doing work

  • The volume of inventory created

  • The number of standard hours earned

  • The quantity of work performed

Correct answer: The rate of doing work

Capacity is concerned with the rate of doing work. The ASCM Supply Chain Dictionary defines capacity as "the capability of a worker, machine, work center, plan, or organization to produce output per period of time." In capacity planning, one machine may be more capable than another in terms of processing speed to transform semi-finished product. Therefore, capacity must be measured and validated, never assumed.

The volume of inventory created and the quantity of work performed need to be couched per unit of time; otherwise, capacity cannot be determined. Standard hours is an important concept in determining capacity but doesn't, by itself, describe the concept of capacity.

49.

A firm's projected build schedule can BEST be described as which of the following?

  • Master production schedule

  • Capacity plan

  • Strategic plan

  • Material requirements plan

Correct answer: Master production schedule

The ASCM Supply Chain Dictionary defines the master production schedule as "the anticipated build schedule for those items assigned to the master scheduler." The master production schedule is prepared during the manufacturing planning stage, which is directly after the production planning stage.

Capacity planning is the process of determining how the capacity required will be achieved. 

Strategic planning is the process of determining an organization's long-term objectives. 

Material requirements planning utilizes the bill of material, inventory, and lead times to plan an organization's material flow.

50.

Carl has calculated the Mean Absolute Deviation (MAD) of his most recent forecast. His forecast indicated that his company would have sold an average of 1,500 deluxe yo-yos last month in each state of the U.S. Based on actual sales, the MAD was 430. How should Carl interpret the MAD result?

  • Forecast values are typically 430 units away from the mean of 1,500

  • The total forecast deviation is 430 units off of the actual total sales

  • The forecast deviation is 1.25σ of the total actual sales distribution

  • The forecast is 1 - (430/1500) *100 or 71% accurate

Correct answer: Forecast values are typically 430 units away from the mean of 1,500

The ASCM Supply Chain Dictionary defines Mean Absolute Deviation (MAD) as "the average of the absolute values of the deviations of observed values from some expected value." In Carl's yo-yo sales forecast, a MAD of 430 would say that the forecast values are typically 430 units away from the mean of 1,500. MAD tells us how far away, on average, a forecasted result is from the mean. The greater the value, the greater the variability in the net between forecast and actual. 

Comparing against absolute total sales, 1.25 standard deviations of the data set distribution, and converting the MAD into a percentage error are incorrect interpretations of the result. 

51.

One of the three V's of supply chain management is reducing variability. There are two types of causes of variation. Which cause tends to lead to larger variations, resulting in unpredictable outputs?

  • Special cause (assignable cause)

  • Common-cause (random cause)

  • Cause-and-effect

  • Root cause

Correct answer: Special cause (assignable cause)

There are two types of causes of variation, common (random) and special (assignable). Special (assignable) causes tend to lead to larger variations that result in unpredictable outputs but can be assigned to specific root causes.

Common causes are inherent in a process over time but are predictable (within a tolerance) and can be controlled using statistical control tools such as Statistical Process Control (SPC). 

Cause-and-effect typically represents a diagram teams can use to identify potential root causes to a problem. This is also known as a fishbone chart or Ishikawa chart and is one of the seven basic tools of quality. 

The root cause is an initiating cause of a condition leading to an outcome. A root cause analysis is an analytical tool used to identify root causes.

52.

A work cell has 4 machines running 5 days a week at 9 hours per day. The cell is utilized for 180 hours but produces 144 hours of standard work. What is the LEAST likely reason for efficiency to be less than 100%?

  • Hidden bottleneck

  • Quality losses

  • Poor changeovers

  • Operator errors

Correct answer: Hidden bottleneck

Efficiency equals the standard hours of work produced divided by the hours actually worked, multiplied by 100%. In the present situation, the work cell is run for the full 180 available hours, with no idle time, as a bottleneck would produce. 

Since 36 hours are lost in the process, the three other choices, including quality losses, poor changeovers, and operator errors are certainly likely causes of the measured inefficiency.

53.

Which of the following scheduling techniques is commonly used for bottlenecks to maintain production schedules?

  • Critical path

  • Resource leveling

  • Resource smoothing

  • Crashing

Correct answer: Critical path

Critical path is the scheduling technique that focuses all efforts on the constraint (e.g., bottleneck) path activities (critical path) to keep them on schedule. It helps identify the most important sequence of tasks in a project and allows project managers to reduce delays and optimize the work along the critical path.

Resource leveling will spread work out over time to fit within existing work center constraints. For example, if a load requires 12 hours and a work center can be active eight hours per day, the load will be spread over two days. Eight hours on the first day, four hours on the next, to fit within the daily resource level.

Resource smoothing keeps the end date fixed but adds slack time between activities to accommodate resource constraints. For example, resource smoothing can create more consistent work across the two days by assigning six hours of work on both days rather than eight and four hours.

Crashing is a scheduling approach that adds resources to an activity in an effort to expand capacity and/or finish work sooner. For example, a task can be completed in eight hours with one person or it can be accomplished in four hours if two people are assigned. Fast-tracking also attempts to compress schedules by overlapping activities (doing them in parallel versus in series) rather than crashing by adding resources.

54.

Which of the following is a business process improvement tool with the intent of minimizing process variation and improving overall product quality?

  • Six Sigma

  • Benchmarking

  • Root cause analysis

  • Pareto chart

Correct answer: Six Sigma

Six Sigma is a method that provides organizations with tools to improve the capability of their business processes. This increase in performance and decrease in process variation helps lead to defect reduction and improvement in profits, employee morale, and quality of products or services. Six Sigma quality is a term generally used to indicate a process is well controlled (within process limits ±3s from the centerline on a control chart and requirements/tolerance limits ±6s from the centerline).

Benchmarking is the process of comparing processes or products to another organization. Root cause analysis is a tool to help identify the core causes of problems or issues rather than minimizing variation or improving product quality. The Pareto chart is a graphical representation that can help identify the small percent of a group that has the most significant impact on results (80/20).

55.

Why perform master planning when master production scheduling translates the company sales and operations plan?

  • Because master production scheduling is a component of master planning

  • It's actually elective, depending on the availability of personnel to perform the task

  • Master planning and master production scheduling are synonymous

  • Because master planning disaggregates the master production schedule

Correct answer: Because master production scheduling is a component of master planning

The ASCM Supply Chain Dictionary defines master planning as "a group of business processes that includes the following activities: demand management (which includes forecasting and order servicing), production and resource planning, and master scheduling (which includes the master schedule and the rough-cut capacity plan)"

In other words, master production scheduling is a component of master planning, which is itself an essential part of generating a sales and operations plan. As such, this activity is mandatory in the manufacturing planning and control system.

56.

Which of the following is a tool that graphically represents steps and decision points in a process?

  • Flowchart

  • Gantt chart

  • Analysis of variance (ANOVA)

  • Run chart

Correct answer: Flowchart

A flowchart is a graphical representation of the steps and decision points in a process. Boxes are used to denote actions, while diamonds are used to denote decisions. There are other symbols for specialized activities, but boxes and diamonds are the two most commonly used symbols.

Gantt charts provide a visual display of project and production scheduling. ANalysis Of VAriance (ANOVA) is a statistical analysis tool. A run chart is a graphical technique illustrating how a process is performing over time.

57.

Which of the following is managed by input/output control?

  • Queue and WIP inventory levels

  • Outsourcing lead times

  • Rough-cut capacity planning

  • System span times

Correct answer: Queue and WIP inventory levels

Input/output control manages the queue and WIP inventory levels by regulating the flow of work into the work centers. When inflow equals outflow, the work will flow smoothly to meet demand. Input/output is generally measured in hours.

Outsourcing lead times, and their close cousin, system span times, are not part of queue and WIP for internal resources. These lead times are managed through contractual agreement and collaborative communication. Rough-cut capacity planning is performed at the aggregate volume levels, whereas I/O control is at the SKU production level of execution. 

58.

When using MRP, why is the planning horizon’s length important?

  • Allows for accurate planning of around component lead times to support due dates

  • Longer planning horizons will have less dependency on forecast accuracy

  • It determines the frequency of MRP processing

  • Ensures available production capacity

Correct answer: Allows for accurate planning of around component lead times to support due dates

For effective planning, the planning horizon should be as long as the cumulative lead time of the end item being planned. If not, invalid due dates may result in missed commitments.

Longer planning horizons will not help minimize the impact of inaccurate forecasts. MRP processing frequency will not be impacted by planning horizons. MRP is an execution system. Capacity should be validated prior to the point of using MRP.

59.

Which of the following is a good indicator that a company has good corporate social responsibility?

  • The company has programs to improve the quality of life for the workforce

  • The company avoids working with local suppliers

  • Employees frequently strike to improve working conditions

  • The company collaborates with suppliers on the design of new products

Correct answer: The company has programs to improve the quality of life for the workforce

A company practicing good social responsibility will have sustainable practices benefiting the community and the quality of life its employees.

If a company avoids working with local suppliers, it may not be a socially responsible company. Employees frequently striking is an indication the company may not be practicing social responsibility. Corporate social responsibility is not directly related to supplier collaboration.

60.

What three characteristics must data have to be useable in demand management?

  • Appropriate, timely, accurate

  • Appropriate, tuned, actual

  • Allowable, tentative, ongoing

  • All, true, additive

Correct answer: Appropriate, timely, accurate

For activities to function as expected in demand management, input data must be appropriate, timely, and accurate. This follows the theory of Garbage In, Garbage Out (GIGO). If data is unreliable, the system will create warnings and alerts to indicate further analysis might be required. For example, if the forecast calls for growth while sales are down, more analysis should be done.

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