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Quiz Session - Attempts With Random Questions

APICS CPIM Exam Questions

Page 8 of 80

141.

Bryan has asked his telephone operators to use hash marks to record every time a phone call is a complaint, a billing question, or a delivery question. Which basic tool of quality is Bryan using?

  • Check sheet

  • Pareto chart

  • Cause-and-effect diagram

  • Histogram

Correct answer: Check sheet

A check sheet is the basic tool of quality that Bryan is using. A check sheet is a tool used to count the frequency of events. The following are the seven basic tools of quality: check sheet, cause-and-effect diagram, flowchart (process map), histogram, Pareto chart, control chart, and scatter diagram.

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” (ASCM Supply Chain Dictionary). 

A cause-and-effect diagram is a diagram used to organize a process’ or a problem’s causes and subcauses for investigation. 

A histogram is a bar chart that presents measurement data for a process, such as dimensions or weight.

142.

Using the following data and exponential smoothing, what is the new forecast?

Old Forecast = 75 
Alpha = 0.8 
Demand = 95

  • 91

  • 96

  • 106

  • 59

Correct answer: 91

The new forecast can be determined by using the following formula:

New Forecast (NF) = old forecast + alpha x (actual demand - old forecast).

NF = 75 + 0.8 (95 - 75)

NF = 75 + 0.8 (20)

NF = 75 + 16 NF = 91

143.

Which of the following is a management approach, originally practiced in Japan, focused on long-term success through customer satisfaction?

  • Total Quality Management (TQM)

  • Quality Control (QC)

  • Quality Function Deployment (QFD)

  • Quality at the source

Correct answer: Total Quality Management (TQM)

The ASCM Supply Chain Dictionary defines Total Quality Management (TQM) as "a term coined to describe Japanese-style management approaches to quality improvement. . .TQM is a management approach to long-term success through customer satisfaction." The practice of TQM became popular in the U.S. in the 1980s, where it became nearly a mandatory approach to quality management.

Quality Control (QC) is the process of measuring quality conformance. Quality Function Deployment (QFD) is a methodology used to identify major customer requirements. Quality at the source is a concept of providing 100% conformance from the supplier/producer. Quality control, QED, and Quality at the source can be components of a company's TQM philosophy.

144.

When operating within a lean manufacturing environment, which of the following is considered waste?

  • Any non-value added process

  • Any overhead process

  • Operator overtime

  • Component scrap

Correct answer: Any non-value added process

In lean manufacturing, waste is considered to be any non-value added process or activity. These activities include overtime, scrap, paperwork approvals, wait times, and any other process that doesn't add value from the customer's perspective.

145.

Regarding the product tree, an assembly is considered which of the following?

  • A parent

  • A component

  • A child

  • A template

Correct answer: A parent

Regarding the product tree, an assembly is considered a parent. For example, a table is the parent. The legs, sides, top, and hardware are its components.

A component is the items that comprise the parent. An assembly is not considered a child or a template.

146.

A company creates a new manufacturing process allowing them to produce products at a lower cost than rivals, and the rivals CANNOT easily duplicate the new process. What is this an example of?

  • Operations excellence

  • Competitive analysis

  • Competitive intelligence

  • Competitive bid

Correct answer: Operations excellence

The ASCM Supply Chain Dictionary defines competitive advantage as "the advantage a company has over its rivals in attracting customers and defending against competitors. Sources of advantage include characteristics a competitor cannot duplicate without substantial cost and risk, such as a manufacturing technique, brand name, or human skillset." Operations excellence seeks to produce goods and services at the lowest possible cost to win in the marketplace.

Competitive analysis is a detailed review of a competitor's strategies, capabilities, etc. 

Competitive intelligence is information that is used to conduct a competitive analysis. 

A competitive bid is part of the proposal process.

147.

For planning purposes, it is helpful to understand the relationships and quantities of component parts to all parent parts. What process is used to help with this planning?

  • Bill-of-material explosion

  • Indented bill of material

  • Planning bill of material

  • Single-level bill of material

Correct answer: Bill-of-material explosion

A Bill-Of-Material (BOM) explosion helps expose the relationships and quantity requirements of component parts across all parent parts. For example, if part one of part B goes into part A and two of part B goes into part C, and part C goes into part A, exploding the bill of material will show the relationship of part B to part A and C and the total part B requirement of 3.

An indented bill of material is a way of displaying a multilevel bill of material. A planning bill of material is used to help with planning in an assemble-to-order environment. A single-level bill of material is a specific type of BOM.

148.

What is the purpose of a functional specification?

  • Specify product or services form, fit, and function

  • Specify the components needed to make the product

  • Specify the manufacturing operations required, sequencing of work centers, and lead times

  • Ensure all major customer requirements are identified and met through the product design process

Correct answer: Specify product or services form, fit, and function

The purpose of a functional specification is to specify a product or services form, fit, and function to align with what the customer expects.

A Bill-Of-Materials (BOM) is used to specify the components needed to make the product. 

The routing file in Production Activity Control (PAC) specifies the manufacturing operations required, sequencing of work centers, and lead times. 

Ensure all major customer requirements are identified and met through the product design process is called Quality Function Deployment (QFD).

149.

Final assembly scheduling generally occurs when which of the following is in place?

  • A variety of options are available to the customer

  • Machining efficiency concerns are resolved

  • A plan for capacity constraints is in place

  • Usable parts are on hand to satisfy open orders

Correct answer: A variety of options available to the customer

Final Assembly Scheduling (FAS) occurs only after the customer order is received. The final assembly schedule assures that the customer gets what they want, as it is designed to make a great variety of options available to the customer. 

While the other choices represent situations that may need to be resolved, only having a variety of choices enables the final assembly activities.

150.

What is an example of a cost that is NOT a component of Cost of Goods Sold (COGS)?

  • Operations manager secretary

  • Raw materials

  • Process equipment maintenance

  • ERP software maintenance

Correct answer: Operations manager secretary

Support postitions, including secretarial, janitorial, and legal, are not included in the direct labor component of the COGS calculation.

The ASCM Supply Chain Dictionary defines Cost of Goods Sold (COGS) as "an accounting classification useful for determining the amount of direct materials, direct labor, and allocated overhead associated with the products sold during a given period of time." Raw materials and process equipment maintenance are direct costs associated with products sold. ERP software maintenance is an allocated overhead.  

151.

Physical supply/distribution involves all activities that are related to which of the following?

  • Moving goods

  • Purchasing goods

  • Selling goods

  • Manufacturing goods

Correct answer: Moving goods

Physical supply/distribution involves all activities related to moving goods. These activities include transporting, distributing, warehousing, packaging, handling, and order entering.

The activities involved in physical supply/distribution do not include purchasing, selling, or manufacturing goods.

152.

Supply chain partners that are certified in ISO 9000 are conforming to which of the following standard?

  • Quality 

  • Environmental 

  • Purchasing 

  • Social responsibility

Correct answer: Quality 

ISO 9000 is a series of quality standards. According to the ASCM Supply Chain Dictionary, ISO 9000 is "a set of international standards for quality management and quality assurance developed to help companies effectively document the quality system elements to be implemented to maintain an efficient quality system."

Each of the other choices has their own set of standards. An example is Environmental, which has the ISO 14000 standards.

153.

Why are bills of material important to manufacturing organizations?

  • Helps minimize the complexity of managing the flow of materials in making a product

  • Defines which work centers will be used during production

  • Ensures a product's or a service's form, fit, and function will align with what the customer expects

  • Maintains a stable production rate while varying inventory levels to meet demand

Correct answer: Helps minimize the complexity of managing the flow of materials in making a product

The ASCM Supply Chain Dictionary defines a bill of material as "a listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly as well as the quantity of each item required to make an assembly. It is used in conjunction with the master production schedule to determine the items for which purchase requisitions and production orders must be released." Given the potential challenges of planning the manufacturing of products with detailed subassemblies or components, bills of material help minimize the complexity of managing the flow of materials in making a product by defining product structures and ensuring offsetting.

Defining which work centers will be used during production is the role of routing files in Production Activity Control (PAC). A functional specification ensures a product's or a service's form, fit and function will align with what the customer expects. Maintaining a stable production rate while varying inventory levels to meet demand is a level production method.

154.

Capacity Bathtub is a concept to aid tracking quantities and order progress in what capacity management approach?

  • Input/output control

  • Cycle count

  • Pegging

  • TOC

Correct answer: Input/output control

The Capacity Bathtub is an input/output control concept used to help visualize how quantity data on parts, subassemblies, or assemblies are accounted for as they reach various stages of completion. For example, when being removed from a work center or being moved between departments.

Cycle count is an inventory auditing technique where inventory is counted frequently on a cyclical basis rather than annually. A count chart is used for evaluating the stability of a process. Decoupling points are used in the supply chain to create independence between processes or entities.

Pegging is a method of tracing a material problem to affected orders.

TOC is a holistic planning process for optimizing system constraints.

155.

A work cell has five machines running five days a week at eight hours per day. During the week, they produce for 170 hours. The dispatch list has scheduled eight jobs for this same week, for a total of 210 hours. What is the LEAST likely means for a production planner to resolve the capacity overload?

  • Horizontally schedule the dispatch list

  • Seek authorization for overtime

  • Hire more workers

  • Increase the number of work centers

Correct answer: Horizontally schedule the dispatch list

Horizontal loading is a finite scheduling approach that schedules the work in the order of the highest priority. This approach does not use work centers at their highest capacity, so this technique would not be the most efficient use of capacity. 

There are several means of matching capacity to the desired load of 210 hours. One means is to obtain approval for overtime operation of the work center machines. The fact that the work center has been overloaded is an indication that either high priority or high value, opportunistic work needs to be completed within the weekly time frame. Therefore, management is likely to approve the overtime. 

One might also hire more workers if these workers were available in the short term and qualified to operate the equipment. 

If more machine centers exist, then these could be brought into production to add the desired capacity.

156.

Taiichi Ohno formalized the concepts of producing only products customers want, synching production to demand, producing products with perfect quality, and shortening lead times. These concepts are a part of:

  • Lean production

  • Six Sigma

  • Statistical Process Control (SPC)

  • Check sheets

Correct answer: Lean production

Taiichi Ohno, a Toyota engineer, formalized the fundamental concepts of lean production, including producing only products customers want, synching production to demand, producing products with perfect quality and shortening lead times. Lean production today is best known as Just-In-Time production, which fully utilizes lean concepts.

Six Sigma is a business process improvement tool with the intent of minimizing process variation and improving overall product quality. 

Statistical Process Control (SPC) is a math-based basic tool of quality using control charts and range limits to measure outputs identifying when processes are becoming out of control. 

Check sheets are quality tools but tend to focus on data collection and reporting.

157.

Which of the following is an objective of cycle counting?

  • To identify incorrect balances and the root cause of the error for correction

  • To find errors and adjust the inventory balances

  • To eliminate the physical inventory

  • To eliminate the need to count inventory

Correct answer: To identify incorrect balances and the root cause of the error for correction

While the result of a good cycle count program will be improved inventory record accuracy, if used properly, the primary objective of cycle counting is not to adjust inventory records; rather, it is to find root causes for correction.

Once discrepancies are found, corrective action can then be taken and, if managed properly, this method will produce accurate inventory balances and may eliminate physical inventories.

Given cycle counting is a form of an inventory count, eliminating the need to count inventory is not an objective.

158.

Benchmarking is a practice that is intended to achieve all these goals EXCEPT which one?

  • Justify a business' current performance

  • Differentiate a business from its competition

  • Provide insight on activities required to achieve advantaged or superior performance

  • Illuminate the size of the improvement opportunity to attain a higher level of performance

Correct answer: Justify a business' current performance

Understanding practices that currently represent Best-in-Class performance is extremely valuable for any company attempting to increase its financial performance and competitive edge in the marketplace. Any company investing in benchmarking needs to approach the exercise with an open and inclusive frame of mind and not use the exercise with the mindset to justify current performance.

159.

Which of the following statements is NOT true for a part with an order policy of lot-for-lot in an MRP environment?

  • Over time, order quantities will be equal

  • Order releases will equal net requirements

  • It will minimize excess inventory

  • Order timing is based on lead-time offsets

Correct answer: Over time, order quantities will be equal

Using lot-for-lot, order quantities will be equal from the start rather than over time.

The ASCM Supply Chain Dictionary defines lot-for-lot ordering as "a lot-sizing technique that generates planned orders in quantities equal to the net requirements in each period." Management of demand in this way will generally result in no excess inventory. Order timing is still dependent on delivery lead-times.

160.

Which of the following options BEST defines a master production schedule?

  • A statement of what a company plans to produce by date and quantity

  • A forecast of products to be shipped

  • A final assembly schedule

  • A plan that allows management to strategically direct its business

Correct answer: A statement of what a company plans to produce by date and quantity

The Master Production Schedule (MPS) is a statement of what a company plans to produce by date and quantity driving Material Requirements Planning (MRP).

A forecast of products to be shipped is an input to the MPS. A production plan, not an MPS, is a plan that allows management to strategically direct its business. A final assembly schedule is its own type of schedule.

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