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Quiz Session - Attempts With Random Questions

APICS CPIM Exam Questions

Page 7 of 80

121.

Supplies such as shop towels that are used in support of general operations are known as which of the following?

  • MRO supplies

  • Consumable supplies

  • Shop supplies

  • Janitorial supplies

Correct answer: MRO supplies

These supplies are known as Maintenance, Repair, and Operating (MRO) supplies.

Shop supplies and consumable supplies are usually those associated with producing a product or providing a service, not maintaining the facility. Janitorial supplies are part of MRO supplies.

122.

Which of the following is a disadvantage to using a pull system?

  • Bullwhip effect

  • Higher inventory carrying cost

  • Deficiencies in information flow

  • Central planning

Correct answer: Bullwhip effect

Disadvantages of using a pull system include:

  • Bullwhip effect
  • Requires trained staff
  • Inventory accuracy
  • Distribution inventory location
  • Transaction timeliness

Higher inventory carrying costs and deficiencies in information flows are disadvantages of using a push system. Central planning is an advantage of using a pull system.

123.

What is NOT a reason to create a decoupling point?

  • To reduce cycle counting costs

  • Increase flexibility

  • Increase business agility

  • Mitigate unforeseen disruption

Correct answer: To reduce cycle counting costs

The ASCM Supply Chain Dictionary defines decoupling points as "the locations in the product structure of distribution network where inventory is placed to create independence between processes or entities." Decoupling points are commonly used in supply chains to help link push and pull systems.

The advantage of a decoupling point is to create a buffer between demand and supply to mitigate unforeseen events, such as the sudden loss of raw material supply or unforeseen equipment breakdown. This helps increase a business' flexibility and agility to manage disruption in general—a highly valuable position to be in. On the other hand, it is not to reduce costs that are otherwise obligations of sound inventory management, such as executing the appropriate number of inventory cycle counts to ensure proper inventory accuracy upon which the business relies for other critical functions such as ATP (Availalbe-to-Promise).

124.

Which of the following monitors output, compares output with capacity plans, and takes corrective actions?

  • Input/output control

  • Capacity required

  • Capacity management

  • Capacity planning

Correct answer: Input/output control

Capacity control monitors output, compares output with capacity plans, and takes corrective actions.

Capacity required is the resources needed to produce outputs in a specific time period. Capacity management provides, monitors, and controls capacity to meet the priority plan. Capacity planning determines the required resources and methods needed to make capacity available to meet the priority plan.

125.

Regarding inventory record accuracy, which of the following statements is TRUE?

  • Can impact service levels and productivity

  • It does not affect the MRP system output validity

  • It is only important for raw material parts

  • It is only necessary at physical inventory time

Correct answer: Can impact service levels and productivity

Having poor inventory record accuracy can result in the following:

  • Lost sales
  • Overproduction
  • Reduced productivity
  • Increased backorders
  • Excessive expediting
  • Missed schedules
  • Later deliveries

Inventory record accuracy is important for all types and functions of inventory, all the time.

126.

Which of the following is an advantage of back scheduling?

  • Back scheduling avoids inventory buildup and cost

  • Back scheduling levels the workload

  • Back scheduling commits necessary resources as early as possible

  • Back scheduling takes advantage of excess capacity

Correct answer: Back scheduling avoids inventory buildup and cost

Back scheduling allows manufacturing to avoid committing resources until they are needed; therefore, avoiding inventory buildup and cost. 

Workload will therefore vary, possibly widely, as resources vary according to demand. 

Back scheduling commits resources as late as possible, rather than as early as possible, to avoid cost. 

Back scheduling only uses the resources needed to meet demand and does not specifically take advantage of excess capacity.

127.

What is an advantage of a decentralized decision-making structure?

  • Improves motivation and retention of employees

  • Quicker decision making on organization-wide issues

  • Greater control by the owners of corporate strategy

  • Greater accountability

Correct answer: Improves motivation and retention of employees

Decentralized decision making disburses a certain degree of decision-making authority to lower levels of management and even front-line employees. Advantages of this approach include:

  • Improves motivation and retention of employees
  • Increases pool of potential new ideas
  • Increases market responsiveness

Attributes of centralized decision making include:

  • Quicker decision making on organization-wide issues
  • Greater control by the owners of corporate strategy
  • Greater accountability

128.

To handle short-term capacity changes, all EXCEPT which of the following can be done?

  • Purchase additional equipment

  • Purchase items already made instead of manufacturing them

  • Work extra hours

  • Hire temporary workers

Correct answer: Purchase additional equipment

Purchasing additional equipment would require additional capital, which must be planned for; therefore, it is a long-term capacity change.

Short term capacity tactics include:

  • Scheduling overtime or weekend work
  • Hiring temporary or seasonal workers
  • Using sub-contractors with a specific start and stop date

129.

If the order quantity for a product is 750 and the safety stock for the product is 200, what is the product’s average inventory?

  • 575

  • 375

  • 950

  • 550

Correct answer: 575

To find the product’s average inventory, you will use the following formula:

Average inventory = Order quantity ÷ 2 + Safety stock

Average inventory = 750 ÷ 2 + 200

Average inventory = 375 + 200

Average inventory = 575

130.

Which of the following is a tool based on PDCA that helps a team uncover causes of problems that may not be considered?

  • A3 problem solving

  • Ishikawa diagram

  • Histogram

  • Pareto analysis

Correct answer: A3 problem solving

A3 problem solving is a structured problem-solving and continuous-improvement approach based on PDCA used to help a team more fully understand problems and their core causes.

Ishikawa diagram, histogram, and Pareto analysis are quality tools but are part of the seven basic tools of quality rather than being based on PDCA.

131.

In which industry is inventory tracking (traceability) MOST common?

  • Food and drugs

  • Auto industry

  • Defense industry

  • Consumer packaged goods

Correct answer: Food and drugs

While most industries will benefit from full lot or inventory traceability, the food and drug industries are the most common, given the potential need for recalls of contaminated products. Traceability can be at basic lot level down to details on transit stages, time at each supply chain echelon, chain of ownership, storage conditions, etc.

Other industries, including auto, defense, and consumer goods, while they have their own standards of traceability, don't have the same elevated level of concern as the food and drug industry.

132.

What S&OP demand information input is needed for a make-to-stock manufacturing environment?

  • Product family forecast

  • Product SKU level forecast

  • Design specifications from engineering

  • Product configuration options

Correct answer: Product family forecast

S&OP demand input will vary by manufacturing environment. For Make-To-Stock (MTS), the product family forecast drives the S&OP process. S&OP planning is done at the volume level, not mix; therefore, a product SKU forecast will not be made available out of this process.

For Engineer-To-Order (ETO), products are unique and engineered to specific customer requirements. For Make-To-Order (MTO), product offerings are more standardized but driven by designs and material specifications from engineering. Assemble-To-Order (ATO) works from predefined subassemblies that are configured to customer preferences.

133.

Which of the following monitors output, compares output with capacity plans, and takes corrective actions?

  • Capacity control

  • Capacity required

  • Capacity management

  • Capacity planning

Correct answer: Capacity control

The ASCM Supply Chain Dictionary defines capacity control as "the process of measuring production output and comparing it with the capacity plan, determining if the variance exceeds pre-established limits, and taking corrective action to get back on plan if the limits are exceeded. Monitors output, compares output with capacity plans, and takes corrective actions." Master schedulers and manufacturing personnel alike are particularly interested in participating in this process, as key planning assumptions that determine how many orders can be fulfilled over a specific time period hinge on accurate capacity planning. Additionally, if the capability of an area is consistently overestimated, manufacturing will always be pressured to perform overtime, skip maintenance, or change planning schedules in the attempt to meet an overly optimistic plan, all of which could lead to poor quality or unplanned machine downtime, further exacerbating the growing backlog problem.

Capacity required is the resources needed to produce outputs in a specific time period.

Capacity management provides, monitors, and controls capacity to meet the priority plan. 

Capacity planning determines the required resources and methods needed to make capacity available to meet the priority plan.

134.

What is NOT an ultimate objective of JIT?

  •  Lot size increases

  • Modular systems

  • Level loading

  • Whole person

Correct answer: Lot size increases

Traditional planning methods, such as MRP, seek to optimize production efficiencies through large lot sizes to reduce transitions and spread fixed costs over greater volume.

Modular systems that can be added or subtracted on demand, level loading to even out the flow of materials through production, and whole person engagement in the production system are core traits of JIT.

135.

Which of the following is NOT a capacity requirements planning procedure?

  • CPOF

  • Examine status of scheduled receipts

  • Review shop order cycle time

  • Sum planned arrivals at a work center

Correct answer: CPOF

CPOF, or Capacity Planning using Overall Factors, is a technique used in rough cut planning. It is not used in the more detailed capacity requirements planning.

Reviewing scheduled receipts, shop order cycle times, and planned arrivals all are medium-range activities belonging to capacity requirements planning.

136.

Lean principles depend more on coaching and learning from those with experience rather than a management directive. A leader or coach in this environment can be referred to as:

  • Sensei

  • Kaizen

  • Jidoka

  • Master scheduler

Correct answer: Sensei

The Sensei concept is related to lean management and means teacher or one with experience.

Jidoka is the concept of training operators to find problems and empowering them to stop production to minimize waste created in defective parts. Kaizen is the Japanese word for improvement. Master Scheduler is the person responsible for managing the master schedule for production.

137.

Which metric measures the dependability, reliability, and quality of the order fulfillment cycle?

  • Perfect order fulfillment

  • Seven rights of customer service

  • Balanced scorecard

  • Inventory turns

Correct answer: Perfect order fulfillment

Perfect order fulfillment is the metric used to determine how successful companies are at delivering perfect orders.

A perfect order is a successful outcome for the customer if the seven rights of customer service or logistics has been properly observed: getting the right product, to the right customer, at the right price, in the right quality, in the right quantity, to the right place, at the right time. 

Balanced scorecard is a higher-level list of metrics used to help align measurements, objectives, and strategies. 

Inventory turns essentially measures the number of times a unit of investment in working capital can be reused in an annual period.

138.

In which industry can lean principles be successfully implemented?

  • Any industry

  • Manufacturing

  • Distribution

  • Farming

Correct answer: Any industry

The best known examples of lean can be found in manufacturing environments. However, lean principles (the elimination of waste) can be found in any industry or process, including distribution and farming.

139.

When a company produces to a forecast, with no sharing of information with trading partners, and tends to focus on demands of the immediate downstream trading partner, they face the potential problems of:

  • Bullwhip effect

  • Whiplash effect

  • Demand relations

  • Uncertainty effect

Correct answer: Bullwhip effect

The ASCM Supply Chain Dictionary defines the bullwhip effect as "an extreme change in the supply position upstream that is generated by a small change in demand downstream." The bullwhip effect is caused by independent forecasting at each echelon and little or no communication of ultimate demand information. Errors built into each level of forecast are magnified into successive levels, resulting in a rapid and often unexpected large change that must be managed by upstream suppliers.

Whiplash effect and uncertainty effect are not terms used in relation to this phenomenon.

140.

Organizational structures are established to manage and execute production strategies. Which structure aligns with a paint shop manager and team, an assembly manager and team, and a sub-components manager and team, all reporting to a plant manager?

  • Process focused

  • Product focused

  • Focused factory

  • Virtual cell

Correct answer: Process focused

In a process-focused organizational structure, functional departments report to functional line managers who, in turn, report to executive management.

In a product-focused organizational structure, teams are organized around specific products or product families with decentralized management authority at each product level. This is a structure often found in a multidivisional company.

A focused factory can be either an area in a large factory or a stand-alone factory. The focus is on a limited set of products, markets, or technologies defined by the company's competitive strategy. 

A virtual cell is a type of manufacturing process layout.

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