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Quiz Session - Attempts With Random Questions

APICS CPIM Exam Questions

Page 9 of 80

161.

If a work center produced 115, 135, 120, 130, 110, and 140 standard hours of work over the previous six weeks, what is the work center’s demonstrated capacity?

  • 125 standard hours

  • 750 standard hours

  • 600 standard hours

  • 100 standard hours

Correct answer: 125 standard hours

The ASCM Supply Chain Dictionary defines demonstrated capacity as "proven capacity calculated from actual performance data, usually expressed as the average number of items produced multiplied by the standard hours to produce the item."

To find the work center’s demonstrated capacity, you will find the average of the standard hours worked over the previous six weeks.

Demonstrated capacity = (115 + 135 + 120 + 130 + 110 + 140) ÷ 6

Demonstrated capacity = 750 ÷ 6

Demonstrated capacity = 125 standard hours

162.

Which manufacturing environment is BEST suited to postponement?

  • Assemble-to-Order (ATO)

  • Make-to-Stock (MTS)

  • Make-to-Order (MTO)

  • Engineer-to-Order (ETO)

Correct answer: Assemble-to-Order (ATO)

The ASCM Supply Chain Dictionary defines postponement as "a product design, or supply chain strategy that deliberately delays final differentiation of a product (assembly, production, packaging, tagging, etc.) until the latest possible time in the process." Assemble-to-Order (ATO) is the exact manufacturing strategy to employ postponement techniques. ATO generally uses a two-level master production schedule to identify the number of components and options of customer orders. Final production would start from existing subassemblies.

In Make-to-Stock (MTS), demand management is used to maintain finished goods inventory.

In a Make-to-Order (MTO) manufacturing environment, demand management is used to ensure enough engineering capacity is available to start production of these standard items.

In an Engineering-to-Order (ETO) environment, demand management is used to align customer product needs with design engineering.

163.

If seasonality is used to forecast demand, all EXCEPT which of the following rules must be followed?

  • Forecast seasonal demand

  • Forecast deseasonalized demand

  • Use deseasonalized data to forecast

  • Apply the seasonal index to the base forecast

Correct answer: Forecast seasonal demand

If seasonality is used to forecast demand, you should not forecast seasonal demand. Instead, the seasonality of the data set needs to be determined and smoothed or otherwise manipulated to deseasonalize the data set. This data set should be then used to create a forecast through standard forecasting techniques.

When seasonality is used to forecast demand, you should forecast deseasonalized demand, use deseasonalized data to forecast, and apply the seasonal index to the base forecast.

164.

An effective risk management plan will help create a supply chain with the ability to steady-state after experiencing a disruption. What is this characteristic called?

  • Resiliency

  • Agility

  • Diversification

  • Deviation

Correct answer: Resiliency

Resiliency is defined by the ASCM Supply Chain Dictionary as "the ability to return to a position of equilibrium after experiencing an event that causes operational results to deviate from expectations. Resilience can be improved by increasing the number of response options and/or decreasing the time to execute those options." Having the ability to bounce back from adversity and better handling of supply chain stressors have proven to be major competitive advantages.

Agility is a supply chain characteristic, where a company can quickly and efficiently change. 

Diversification (strategy) is an approach to risk management, where a company moves into new markets or products to spread risk. 

Deviation is the action of departing from an established course or accepted standard, typically associated with Six Sigma.

165.

Which of the following statements is TRUE for critical ratios?

  • Units with smallest ratios should be worked first

  • Units with largest ratios should be worked first

  • A ratio of 0.80 means there is adequate time to complete a unit

  • A ratio of 2.0 means two units can be built simultaneously

Correct answer: Units with smallest ratios should be worked first

The critical ratio measures the priority of an order to the other orders at a work center. It is based on the ratio of the time remaining to work remaining. Units with smallest ratios should be worked first.

Units with largest ratios should be worked first is incorrect because units with the smallest units should be worked first. 

A ratio of 0.80 means there is adequate time to complete a unit is incorrect because a ratio less than one means that the order is behind schedule. 

A ratio of 2.0 means two units can be built simultaneously is incorrect because a ratio greater than one means that the order is ahead of schedule.

166.

Material requirements planning (MRP) answers all EXCEPT which of the following questions?

  • Who should it be ordered from?

  • What should be ordered?

  • When should it be ordered?

  • How much should be ordered?

Correct answer: Who should it be ordered from?

Material Requirements Planning (MRP) does not address from which supplier the product should be ordered from. Who to order from is a procurement or sourcing activity.

MRP does answer What should be ordered?; When should it be ordered?; and How much should be ordered? It also answers When should delivery be scheduled? MRP is used to determine the demand’s nature and to plan how the demand will be satisfied.

167.

Which supply chain metric likely significantly impacts corporate profitability ratios (e.g., return on investment)?

  • Asset turns

  • Order fulfillment lead time

  • Fill rate by line item

  • Delivery performance

Correct answer: Asset turns

Profitability ratios measure an organization’s return on investments. An example of a profitability ratio is the net profit margin [Net profit margin = Net profit/Net sales]. The metric, asset turns, measures how many times the same assets can be used to generate revenue and profit.

The remaining metrics are customer satisfaction measurements.

168.

Which supply chain performance objective is associated with a product's maturity phase?

  • Cost

  • Speed

  • Flexibility

  • Design

Correct answer: Cost

The generic supply chain performance objectives, quality, speed, dependability, flexibility, and cost can change as the product moves through the product life cycle. For example, in the maturity phase, competition intensifies, and cost performance will be required to help compete in price. 

Product design may evolve through each phase of the product life, depending on improvements identified through customer feedback and internal continuous improvement loops such as exist in the quality function.

169.

Grouping customers by their needs or requirements is known as which of the following?

  • Customer segmentation

  • Customer service

  • Customer support

  • Voice of the Customer (VOC)

Correct answer: Customer segmentation

Customer segments help a company understand and manage to specific customer needs and requirements. An example of customer segmentation is by level of importance to the supplier, which normally includes considerations around revenue, profit, nature of the relationship (e.g., long-term, transactional), and compatibility.

Customer service and customer support are associated with the ability to understand and respond to customers needs, inquiries, and requests. Different customer segments may have different levels of customer service and customer support, depending on profitability and customer expectations.

Voice of the Customer (VOC) is a tool used in Quality Function Deployment (QFD) to help define and collect customer expectations and requirements.

170.

Which of the following terms identifies a plant that is established to focus the entire manufacturing system on a limited, concise, manageable set of products, technologies, volumes, and markets?

  • Focused factory

  • Dedicated factory

  • Sole source

  • Lean factory

Correct answer: Focused factory

A focused factory is one that works on a limited set of products, technologies, and volumes. A factory can be lean and focused, or it can be a lean factory that works on a wide variety of products, technologies, volumes, and markets. A dedicated facility might actually produce a wide range of products for a business and is dedicated by virtue of the business strategy.

171.

A cookie company produces a few types of cookies, all made from the same raw materials. Production runs are long to leverage capacity utilization and economies of scale. Which manufacturing process type is BEST for this company?

  • Continuous

  • Project

  • Line

  • Work center

Correct answer: Continuous

Continuous manufacturing is best when using few parts in a high volume, low variety, non-discrete, make-to-stock environment. This approach maximizes capacity utilization and economies of scale. Examples are fuel, chemicals, and some food products.

The batch manufacturing process type is typically used in an assemble or make to order environment with a medium number of parts, medium volumes, and low variety. Products are made in lot quantities.

The project manufacturing process type is best for unique type products with a high number of parts and very low production volumes and which are highly customized to the customer. Examples include large sports stadiums, large sea ships, or road bridges. These products may also be engineered-to-order.

The work center manufacturing process type is used in a make-to-order environment with low volume and high variety.

The line manufacturing process type is used in a make-to-stock environment where volumes are high, and variety is low. The focus is on cost reductions. Common Consumer Packaged Goods (CPG) are produced using line manufacturing.

172.

A job is scheduled to finish on day 240. Today is day 237, and there are six days of work to be done. What is the action to be taken, based on the critical ratio for this job?

  • Expedite; the order is behind schedule

  • Expedite; the order is late

  • The order is on schedule

  • The order is ahead of schedule

Correct answer: Expedite; the order is behind schedule

The critical path is calculated by dividing the time remaining until a job due date by the amount of time remaining to complete the job.

Time remaining until job due date = 240 - 237 = 3 days Amount of time remaining to complete the job = 6 days Critical ratio = 3 / 6 = 0.5

In this example, the Critical Ratio (CR) is less than 1.0, indicating the order is behind schedule.

A CR of one indicates the job is on schedule. Greater than one indicates the job is ahead of schedule, and a negative value indicates the job is past due.

173.

Regarding a limiting operation, which of the following statements is FALSE?

  • It can be duplicated using alternative routings

  • It is the operation with least capacity

  • It is the bottleneck

  • It defines the capacity of the line

Correct answer: It can be duplicated using alternative routings

A limiting operation is an operational constraint resulting from the least capacity in a process. A limiting operation cannot be avoided using alternative routings.

Bottlenecks are equivalent to a limiting operation. When a limiting operation exists on a line, the line is scheduled so capacity matches but can't exceed the operation with the least capacity.

174.

For what purpose does a planner use a capacity simulation?

  • Detect load and capacity imbalances

  • To simulate an increase in production rates

  • To simulate a change in the production management team

  • To simulate the effects of introducing an untested design into the factory

Correct answer: Detect load and capacity imbalances

During Capacity Requirements Planning (CRP), the projected load is simulated to validate there are adequate resources to support the MPS.

Production rates are fixed as an assumption in a simulation. Changes in production management are irrelevant in simulation. New designs would first have to be piloted to generate enough data to perform a simulation.

175.

Earliest due date (EDD) is the dispatching rule that performs jobs according to due dates. EDD is used in which of the following?

  • Where jobs can be performed on two machines

  • Where processing times are more important than due date

  • Where jobs are only performed on one machine

  • To reduce work-in-process inventory

Correct answer: Where jobs can be performed on two machines

Earliest Due Date (EDD), as a dispatching rule, is needed to assist in the sequencing of jobs that can be scheduled on two machines.

Where EDD is important, other factors, such as processing time and work-in-process inventory, take a back seat.  

176.

Where are MOST of the values clustered when a histogram has normal distribution?

  • Near a central point

  • In a horizontal line

  • In a vertical line

  • Near the right or left side

Correct answer: Near a central point

For a histogram to have normal distribution, most of the values need to be clustered near a central point. A histogram that has normal distribution will have a bell curve, which is symmetrical around the center and then spreads out evenly on both sides.

Normal distribution is not represented when value clusters are in a horizontal line, a vertical line, or near the right or left side.

177.

Which manufacturing process layout BEST aligns with the project manufacturing process and ETO manufacturing environment?

  • Fixed-position

  • Functional

  • Cellular

  • Product-based

Correct answer: Fixed-position

Fixed-position is when the product remains in a fixed location, and the labor, equipment, and materials are brought to the location. This is used when the product is too large or not easily moved. For example, ships and airplanes.

Functional is when similar operations are grouped in the same area, and product is moved from area (function) to area (function).

Cellular (work cells) is similar to functional layout but dedicated to specific product families.

Product-based is similar to cellular but dedicated to specific products or lines with workstations in sequential flow.

178.

What is NOT an example of an historical forecasting technique?

  • Linear regression

  • Exponential smoothing

  • Arithmetic mean

  • Calculating a moving average

Correct answer: Linear regression

Linear regression is a trend analysis that predicts outcomes based on specific independent variable inputs.

Naive forecasting techniques are used for data that exhibits no trends and include techniques such as exponential smoothing, arithmetic mean, and moving averages. 

179.

The three key problems finished goods safety stock is used to help overcome include all EXCEPT which of the following?

  • Price fluctuations

  • Demand variability

  • Replenishment time

  • Service level

Correct answer: Price fluctuations

Finished goods safety stock does not help an organization overcome price fluctuations. Price fluctuations are sometimes managed by hedge stock, sometimes referred to as pipeline safety stock, as a means of buffering price fluctuations in raw materials.

The ASCM Supply Chain Dictionary defines safety stock as “a quantity of stock planned to be in inventory to protect against fluctuations in demand or supply.” The three key problems that safety stock is used to help overcome include demand variability, replenishment time, and service level.  

180.

Which of the following is an element of the master schedule grid?

  • Available-to-promise

  • Capable-to-promise

  • Scheduled receipts

  • Planned order release

Correct answer: Available-to-promise

The basic elements of the Master Schedule (MS) grid include:

  • Forecast
  • Customer orders
  • Projected Available Balance (PAB)
  • Available-To-Promise (ATP)
  • Master Production Schedule (MPS)

Capable-to-promise can be calculated using ATP data but is not an element on an MS grid. Scheduled receipts and planned order release are elements found on a Material Requirements Planning (MRP) grid.

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