[May 05, 2024] Valid CPIM-Part-2 Test Answers & APICS CPIM-Part-2 Exam PDF
Realistic CPIM-Part-2 Exam Dumps with Accurate & Updated Questions
NEW QUESTION # 12
Which of the following stock location systems would you use in a repetitive manufacturing, lean environment?
- A. Floating location
- B. Central storage N
- C. Fixed location
- D. Point-of-use storage
Answer: D
Explanation:
Explanation
Point-of-use storage is a stock location system that places inventory close to where it is needed in the production process, reducing transportation and handling costs and improving efficiency. It is often used in repetitive manufacturing, lean environment, where the demand is stable and predictable, and the inventory is replenished frequently. Fixed location and central storage are stock location systems that store inventory in a designated area, which may require more space and movement. Floating location is a stock location system that assigns inventory to any available space, which may cause confusion and inefficiency. References: CPIM Exam Content Manual Version 7.0, Domain 5: Plan and Manage Inventory, Section 5.2: Inventory Management Methods, p. 32.
NEW QUESTION # 13
The cumulative available-to-promise (ATP) method is based on an assumption that available inventory in a period can becommitted to demand in that period and:
- A. future periods beyond the DTF.
- B. any future period in the planning horizon.
- C. future periods with a planned receipt.
- D. any period before the demand time fence (DTF).
Answer: B
Explanation:
Explanation
The cumulative available-to-promise (ATP) method is based on an assumption that available inventory in a period can be committed to demand in that period and any future period in the planning horizon. The planning horizon is the time span for which plans are made and executed1. The cumulative ATP is a running total of the ATP figure in the master schedule, which shows the planned production or purchase of a product over a series of time periods2. The cumulative ATP method allows the company to account for future shortages and build up inventory for large or seasonal orders3.
The other options are not correct. The demand time fence (DTF) is a point in the near future, usually equal to the cumulative lead time, beyond which changes to the master schedule are not allowed4. The cumulative ATP method does not depend on the DTF, as it considers all future periods in the planning horizon, regardless of whether they are inside or outside the DTF. Future periods with a planned receipt are periods where there is an expected supply of inventory from production or purchase orders2. The cumulative ATP method does not only commit inventory to these periods, but also to any other periods where there is demand.
References : Available-to-Promise (ATP) - Tutorial; Planning Horizon Definition; Demand Time Fence (DTF) Definition; Cumulative Available-to-Promise | Cargoz.
NEW QUESTION # 14
Which of the following factors may be used to calculate available capacity?
- A. Load
- B. Efficiency
- C. Productivity
- D. Yield
Answer: B
Explanation:
Explanation
Available capacity is the difference between the required capacity and planned operating capacity1. It refers to how capable the resources in an organization are in formulating and implementing strategy1. To calculate available capacity, factors such as the number of machines or workers, the number of shifts, utilization, and efficiency are considered1. Efficiency, in particular, is a crucial factor as it measures how effectively resources are used to produce output. It is calculated as the ratio of actual output to standard output within a specific time period1. Therefore, efficiency directly impacts available capacity by determining how much output can be produced with the available resources and time.
The other options, while important in production and operations management, are not directly used to calculate available capacity:
Productivity measures the output per unit of input and is more about overall performance rather than available capacity.
Load refers to the amount of work assigned to a resource or facility but does not directly indicate available capacity.
Yield measures the percentage of products that meet quality standards out of total units produced but does not directly calculate available capacity.
References: Capacity planning - Wikipedia.
NEW QUESTION # 15
Which of the following actions will result in lower inventory levels?
- A. Reduce replenishment lead times.
- B. Decentralize inventory locations.
- C. Level load the master production schedule (MPS).
- D. Increase customer service level.
Answer: A
Explanation:
Explanation
Replenishment lead time is the time between placing an order and receiving the goods1. Reducing replenishment lead time will result in lower inventory levels, as it will allow the company to order less frequently and in smaller quantities, while still meeting customer demand. This will reduce the safety stock, cycle stock, and pipeline stock that the company needs to hold, and thus lower the inventory carrying costs and risks.
The other options will not result in lower inventory levels. Level loading the MPS means producing at a constant rate regardless of demand fluctuations2. This will result in higher inventory levels, as the company will need to build up inventory during periods of low demand and draw down inventory during periods of high demand. Increasing customer service level means improving the ability to meet customer expectations and requirements3. This will also result in higher inventory levels, as the company will need to hold more safety stock to avoid stockouts and ensure high fill rates. Decentralizing inventory locations means distributing inventory across multiple warehouses or facilities4. This will also result in higher inventory levels, as the company will need to maintain more safety stock at each location to account for demand variability and uncertainty.
References : What is Replenishment Lead Time?; Level Loading Definition; Customer Service Level; Centralized vs Decentralized Inventory Management.
NEW QUESTION # 16
What is the main negative effect of changing the due dates of open orders?
- A. The customer service level decreases.
- B. The schedule information becomes inaccurate.
- C. The schedule does not support demand.
- D. It leads to "nervousness" in the schedule.
Answer: D
Explanation:
Explanation
Nervousness is a term that describes the instability or variability of a production schedule due to frequent changes in demand, supply, or capacity. Nervousness can cause disruption, inefficiency, and waste in the production system, as well as lower customer service and satisfaction. Changing the due dates of open orders is a main cause of nervousness in the schedule, as it affects the priority and sequence of the production orders, and may require rescheduling or replanning of the resources and activities. Changing the due dates of open orders may be necessary to accommodate urgent or unexpected customer requests, but it also increases the complexity and uncertainty of the production process.
The other options are not the main negative effects of changing the due dates of open orders. The schedule information becomes inaccurate is not a negative effect, but a consequence of changing the due dates of open orders. The schedule information reflects the planned input/output of the production system, and it needs to be updated and communicated whenever there are changes in the due dates of open orders. The customer service level decreases is not a negative effect, but a possible outcome of changing the due dates of open orders. The customer service level measures the degree to which the production system meets or exceeds the customer expectations in terms of quality, quantity, and delivery. Changing the due dates of open orders may improve the customer service level for some customers, but it may also deteriorate it for others, depending on how the changes affect their orders. The schedule does not support demand is not a negative effect, but a potential problem of changing the due dates of open orders. The schedule should support demand by ensuring that the production system can produce or deliver what the customers want, when they want it. Changing the due dates of open orders may create a mismatch between the schedule and demand, which may result in overproduction or underproduction, stockouts or excess inventory, or late or early deliveries. References: CPIM Exam Content Manual Version 7.0, Domain 6: Plan, Manage, and Execute Detailed Schedules, Section 6.1: Detailed Scheduling Concepts, p. 36; Nervousness; Production Schedule.
NEW QUESTION # 17
Compared to traditional supplier relationships, a more strategic view of supplier relationships would require:
- A. implementing concurrent engineering.
- B. adopting electronic data interchange (EDI).
- C. maintaining communication based on trust.
- D. offering the supplier more business.
Answer: C
Explanation:
Explanation
Compared to traditional supplier relationships, a more strategic view of supplier relationships would require maintaining communication based on trust. Trust is a key factor that enables effective collaboration, information sharing, problem solving, and innovation between supply chain partners12. Trust can also reduce transaction costs, conflicts, and opportunism, and increase commitment, loyalty, and performance34.
Therefore, maintaining communication based on trust is essential for developing and sustaining strategic supplier relationships that can create value and competitive advantage for both parties.
The other options are not necessarily required for a more strategic view of supplier relationships, because they are either insufficient or irrelevant. Offering the supplier more business may increase the volume or frequency of transactions, but it does not guarantee a more strategic or long-term relationship. Adopting electronic data interchange (EDI) may improve the efficiency or accuracy of information exchange, but it does not ensure a more collaborative or innovative relationship. Implementing concurrent engineering may enhance the product design or development process, but it does not address the other aspects of a strategic relationship, such as quality, delivery, or risk management.
NEW QUESTION # 18
A company with stable demand that uses exponential smoothing to forecast demand would typically use a:
- A. low beta value.
- B. low alpha value.
- C. high alpha value.
- D. high beta value.
Answer: B
Explanation:
Explanation
Exponential smoothing is a forecasting method that assigns weights to past observations, with more recent observations having higher weights. The alpha value is the smoothing constant that determines how much weight is given to the most recent observation. A low alpha value means that the forecast is based more on the historical average, while a high alpha value means that the forecast is more responsive to the latest changes in demand. A company with stable demand would typically use a low alpha value to smooth out random fluctuations and obtain a more accurate forecast. A beta value is another smoothing constant that is used for trend-adjusted exponential smoothing, which accounts for the presence of a linear trend in the data. A low beta value means that the trend component is based more on the historical average, while a high beta value means that the trend component is more responsive to the latest changes in demand. A company with stable demand would not need to use trend-adjusted exponential smoothing, since there is no significant trend in the data. References := CPIM Part 2 Exam Content Manual, Domain 3: Plan and Manage Demand, Section C:
Forecast Demand, Subsection 2: Select appropriate forecasting technique(s) (p. 16)
NEW QUESTION # 19
In which of the following phases of the product life cycle is product price most effective in influencing demand?
- A. Maturity
- B. Introduction
- C. Growth
- D. Decline
Answer: B
Explanation:
Explanation
Product price is most effective in influencing demand in the introduction phase of the product life cycle. The product life cycle is a concept that describes the stages that a product goes through fromits development to its decline. The introduction phase is the first stage, when the product is launched into the market and consumers are made aware of its existence and benefits. In this phase, product price can have a significant impact on the demand for the product, depending on the following factors:
The degree of product innovation: If the product is highly innovative and offers a unique value proposition to customers, it may have a high price elasticity of demand, meaning that customers are willing to pay a high price for it regardless of the availability of substitutes or competitors1. This is often the case for products that create a new market or category, such as the iPhone or the Kindle2. On the other hand, if the product is not very innovative and offers a similar value proposition to existing products, it may have a low price elasticity of demand, meaning that customers are sensitive to price changes and will switch to cheaper alternatives or competitors if the price is too high1. This is often the case for products that enter an existing market or category, such as generic drugs or copycat products3.
The degree of market competition: If the product faces little or no competition in the market, it may have more pricing power and flexibility, meaning that it can charge a high price and still generate high demand4. This is often the case for products that have a strong brand image, a loyal customer base, or a patent protection5. On the other hand, if the product faces high competition in the market, it may have less pricing power and flexibility, meaning that it has to charge a low price or offer discounts and promotions to attract and retain customers4. This is often the case for products that have a weak brand image, a low customer loyalty, or a short product life cycle.
Therefore, product price can be an effective tool to influence demand in the introduction phase of the product life cycle, depending on how innovative and competitive the product is. A high price can signal quality, exclusivity, and differentiation, while a low price can signal affordability, accessibility, and penetration.
References: Price Elasticity of Demand - Definition & Formula - Corporate Finance Institute; Product Life Cycle Explained: Stage and Examples - Investopedia; Generic Drugs - Overview - Mayo Clinic; Pricing Strategies For The Product Life Cycle (Made Simple) - Tyonote; Brand Image - Definition & Examples - Marketing Tutor; [Customer Loyalty - Definition & Examples - Marketing Tutor].
NEW QUESTION # 20
Which of the following approaches should first be considered as part of process improvement?
- A. Applying stricter quality control
- B. Making better use of existing resources
- C. Hiring more skilled people to perform the job
- D. Buying better and faster equipment
Answer: B
Explanation:
Explanation
Process improvement is a method of analyzing and enhancing the production methods and techniques to increase productivity and performance. Process improvement aims to reduce costs, waste, defects, and errors, as well as to improve quality, efficiency, and customer satisfaction. When considering process improvement, the first approach that should be considered is making better use of existing resources. This means that the production system should optimize the utilization andallocation of the available resources, such as materials, labor, machines, and space. This can be achieved by implementing various techniques, such as lean manufacturing, six sigma, kaizen, or 5S. Making better use of existing resources can help to improve the process without requiring additional investment or expenditure.
The other options are not the first approaches that should be considered as part of process improvement.
Hiring more skilled people to perform the job is not the first approach, as it may increase the labor cost and require more training and supervision. Hiring more skilled people may not necessarily improve the process if the existing methods and techniques are inefficient or ineffective. Buying better and faster equipment is not the first approach, as it may involve a large capital outlay and a long payback period. Buying better and faster equipment may not necessarily improve the process if the existing resources are underutilized or misallocated.
Applying stricter quality control is not the first approach, as it may increase the inspection and testing cost and time. Applying stricter quality control may not necessarily improve the process if the existing methods and techniques are prone to errors or defects. References: CPIM Exam Content Manual Version 7.0, Domain 8:
Manage Quality, Continuous Improvement, and Technology, Section 8.2: Continuous Improvement Concepts, p. 46; Process Improvement; Process Improvement Definition.
NEW QUESTION # 21
The cost accountant has discovered a consistent overage in actual run time for one operation. This informationshould besent first to the:
- A. the engineering manager to evaluate the run time for the routing.
- B. quality manager to add a new quality measurement to the operation.
- C. product manager to increase the selling price of the product.
- D. production supervisor to review and explain the overage.
Answer: A
Explanation:
Explanation
The information about the consistent overage in actual run time for one operation should be sent first to the engineering manager to evaluate the run time for the routing. A routing is a document that specifies the sequence of operations and work centers required to produce a product or feature. A run time is the amount of time needed to perform an operation or a task at a work center. An overage in actual run time means that the actual time spent on an operation or a task is more than the planned or standard time. This can result in lower efficiency, productivity, or quality, as well as higher costs, waste, or delays.
The engineering manager is responsible for designing and maintaining the routing and the run time for each operation or task. The engineering manager can evaluate the run time for the routing by comparing the actual and planned times, identifying the causes of the overage, and taking corrective actions. For example, the engineering manager may:
Review the accuracy and validity of the planned or standard time, and update it if necessary.
Analyze the performance and capability of the machines, equipment, or labor involved in the operation or task, and improve them if needed.
Investigate the presence of any errors, defects, rework, or variability in the operation or task, and eliminate them if possible.
Implement lean production techniques, such as value stream mapping, waste reduction, or continuous improvement, to optimize the operation or task.
The other options are not appropriate for sending the information about the consistent overage in actual run time for one operation first. The product manager is not responsible for designing or maintaining the routing or the run time for each operation or task. The product manager is responsible for managing and marketing the product or feature, such as defining its specifications, features, price, or promotion. Increasing the selling price of the product is not a solution for addressing the overage in actual run time, as it may reduce customer demand or satisfaction, as well as increase competition. The quality manager is not responsible for designing or maintaining the routing or the run time for each operation or task. The quality manager is responsible for ensuring and improving the quality of the product or feature, such as setting quality standards, implementing quality control methods, or conducting quality audits. Adding a new qualitymeasurement to the operation is not a solution for addressing the overage in actual run time, as it may increase complexity or cost without improving efficiency or productivity. The production supervisor is not responsible for designing or maintaining the routing or the run time for each operation or task. The production supervisor is responsible for overseeing and coordinating the production activities at a work center, such as scheduling operations, assigning resources, monitoring performance, or resolving issues. Reviewing and explaining the overage in actual run time is not a solution for addressing it, as it does not identify or eliminate its causes.
References := [Routing - an overview | ScienceDirect Topics], [Run Time - an overview | ScienceDirect Topics], [Engineering Manager Job Description - Betterteam], [Product Manager Job Description - Betterteam], [Quality Manager Job Description - Betterteam], [Production Supervisor Job Description - Betterteam]
NEW QUESTION # 22
An order that moves into a work center on schedule following completion of a previous operation will move:
- A. into the queue when there is capacity available.
- B. to the end of the queue.
- C. into the queue in priority sequence.
- D. to the beginning of the queue.
Answer: C
Explanation:
Explanation
A queue is the number of hours that a work order sits in front of a work center before it starts. It also includes the move time required to physically move partially completed items from the previous operation to the next work center1. A queue is used to provide a buffer between the time that a component arrives at a machine or work center and when the operation actually starts2. A queue can help to neutralize delays in previous operations and to reduce the waiting time and flow time of the work orders3.
An order that moves into a work center on schedule following completion of a previous operation will move into the queue in priority sequence. This means that the order will be placed in the queue according to its priority level, which is determined by the priority control technique used for the production system. A priority control technique is a method of determining the sequence and timing of production orders in a manufacturing system4. Some examples of priority control techniques are first-come, first-served (FCFS), shortest processing time (SPT), earliest due date (EDD), and critical ratio (CR). Depending on the priority control technique, an order may move to the beginning, end, or middle of the queue.
An order will not necessarily move to the end or the beginning of the queue, as these positions depend on the priority level of the order and the other orders in the queue. An order will not move into the queue when there is capacity available, as this implies that there is no queue at all. Capacity is the amount of time or resources available for production at a work center5. Capacity can be affected by factors such as machine availability, labor skills, setup time, and maintenance. Capacity planning is a function of determining and adjusting the optimal level of resources needed to meet the demand5.
NEW QUESTION # 23
A company can easily change its workforce, but inventory carrying costs are high. Which of the followingstrategies would bemost appropriate during times of highly fluctuating demand?
- A. Produce to demand
- B. Produce to the sales forecast
- C. Produce at a constant level
- D. Produce to backorders
Answer: D
Explanation:
Explanation
Producing to backorders means that the company only produces goods when there is a confirmed customer order. This strategy is most appropriate during times of highly fluctuating demand, as it allows the company to avoid holding excess inventory that may incur high carrying costs and become obsolete. Producing to backorders also enables the company to adjust its workforce according to the actual demand, which can be easily changed as the question states. This strategy can improve customer satisfaction, as the products are tailored to the specific needs and preferences of each customer. However, producing to backorders also has some drawbacks, such as longer lead times, higher production costs, and lower economies of scale.
The other strategies are less suitable for highly fluctuating demand. Producing at a constant level means that the company produces goods at a fixed rate regardless of the demand fluctuations. This strategy can result in either excess inventory or stockouts, depending on whether the demand is lower or higher than the production level. Producing to the sales forecast means that the company produces goods based on the projected demand for a certain period. This strategy can be effective if the forecast is accurate, but it can also lead to inventory imbalances if the forecast is inaccurate or if there are unexpected changes in demand. Producing to demand means that the company produces goods based on the current demand in the market. This strategy can be responsive and flexible, but it can also be challenging to implement, as it requires high visibility, coordination, and agility in the supply chain.
References : CPIM Part 2 Exam Content Manual, Domain 4: Plan and Manage Supply, Section B: Production Planning and Control, Subsection 1: Production Strategies and Techniques, Page 19.
NEW QUESTION # 24
An outlier has been identified in the demand data for an item. The most appropriate next step would be to:
- A. increase the length of the forecast time period.
- B. advance the forecast model in time, without smoothing.
- C. set the forecast value to the outlier limit.
- D. screen the outlier for manual review.
Answer: D
Explanation:
Explanation
An outlier is a data point that falls outside of the expected range of the data, i.e., it is an unusually large or small data point1. Outliers can have a significant adverse impact on the forecasts, as they can skew the data distribution and distort the statistical analysis2. Therefore, it is important to detect and remove outliers from the demand data before generating forecasts.
One of the techniques that can be used to detect outliers is to use the standard deviation of the data, or the equivalent z-score, to determine the outlier limit3. For example, one approach is to set the lower limit to three standard deviations below the mean, and the upper limit to three standard deviations above the mean. Any data point that falls outside this range is detected as an outlier.
However, detecting outliers is not enough. The most appropriate next step would be to screen the outlier for manual review. This means that the detected outlier should be examined by a humanexpert to determine whether it is a true outlier or not, and whether it should be corrected or not4. This is because not all outliers are erroneous or irrelevant. Some outliers may be valid observations that reflect real changes in demand, such as seasonal peaks, promotional effects, or market trends. In such cases, correcting or removing the outliers may lead to inaccurate or biased forecasts.
Therefore, screening the outlier for manual review can help verify the cause and validity of the outlier, and decide on the best course of action. Some of the possible actions are:
Correcting the outlier: replacing the outlier with a more typical value based on historical data or expert judgment. This can smooth out the data and reduce the noise.
Separating the demand streams: splitting the data into two or more series based on different factors that influence demand, such as product type, customer segment, or distribution channel. This can isolate the outliers and allow different forecasting methods to be applied to each series.
Adjusting the forecasting model: modifying the parameters or assumptions of the forecasting model to account for the outliers, such as using a different smoothing factor, trend component, or error term. This can improve the fit and accuracy of the model.
References: 1: Outlier Definition 1 2: How to Forecast Data Containing Outliers 2 3: How to Detect Outliers in Machine Learning - 4 Methods for Outlier Detection 1 4: How Outlier Detection and Correction Works 4 :
How to Understand What is an Outlier in Forecasting 3
NEW QUESTION # 25
A machine is suddenly having excessive downtime. Which of the following tools would be used in a root cause correctiveaction process to determine the problem?
- A. Failure mode effects analysis (FMEA)
- B. Balance chart
- C. Standardized work analysis chart
- D. A3 method
Answer: D
Explanation:
Explanation
A3 method is a tool that can be used in a root cause corrective action process to determine the problem of a machine that is suddenly having excessive downtime. A3 method is a structured problem-solving approach that follows the Plan-Do-Check-Act (PDCA) cycle and uses a single sheet of paper (A3 size) to document the problem, analysis, countermeasures, and results1. A3 method can help identify the root cause of a problem by using tools such as the 5 Whys or the fishbone diagram, and then develop and implement effective corrective actions to prevent recurrence2. A3 method can also help communicate the problem and the solution to stakeholders, as well as monitor and evaluate the outcomes3.
The steps of the A3 method are4:
Step 1: Define the problem and its impact. Describe the current situation, the gap between the actual and the desired state, and the scope and magnitude of the problem.
Step 2: Identify the root cause of the problem. Use tools such as the 5 Whys or the fishbone diagram to analyze the factors that contribute to the problem and drill down to its root cause.
Step 3: Propose countermeasures to address the root cause. Generate possible solutions that can eliminate or reduce the root cause, and evaluate their feasibility, effectiveness, and costs.
Step 4: Implement countermeasures. Select the best solution and plan how to execute it. Define the roles, responsibilities, resources, timeline, and expected outcomes of the implementation.
Step 5: Check results and process. Measure and compare the results before and after the implementation, and verify if the problem has been solved or improved. Also check if the process has been followed correctly and document any deviations or issues.
Step 6: Standardize successful processes or identify unresolved issues. If the results are satisfactory, standardize the new process and ensure that it is sustained. If not, identify the remaining or new issues and repeat the A3 method.
Therefore, A3 method is a tool that can be used in a root cause corrective action process to determine the problem of a machine that is suddenly having excessive downtime.
References: 1: What is an A31 2: How to Use an A3 Report for Problem Solving 2 3: The A3 Problem Solving Method 4 4: The A3 Report - A Simple Tool for Complex Problems 5
NEW QUESTION # 26
Which of the following planning modules considers the longest-range planning goals?
- A. Input/output analysis
- B. Resource planning
- C. Capacity requirements planning (CRP)
- D. Rough-cut capacity planning (RCCP)
Answer: A
Explanation:
Explanation
Process improvement is a method of analyzing and enhancing the production methods and techniques to increase productivity and performance. Process improvement aims to reduce costs, waste, defects, and errors, as well as to improve quality, efficiency, and customer satisfaction. When considering process improvement, the first approach that should be considered is making better use of existing resources. This means that the production system should optimize the utilization and allocation of the available resources, such as materials, labor, machines, and space. This can be achieved by implementing various techniques, such as lean manufacturing, six sigma, kaizen, or 5S. Making better use of existing resources can help to improve the process without requiring additional investment or expenditure.
The other options are not the first approaches that should be considered as part of process improvement.
Hiring more skilled people to perform the job is not the first approach, as it may increase the labor cost and require more training and supervision. Hiring more skilled people may not necessarily improve the process if the existing methods and techniques are inefficient or ineffective. Buying better and faster equipment is not the first approach, as it may involve a large capital outlay and a long payback period. Buying better and faster equipment may not necessarily improve the process if the existing resources are underutilized or misallocated.
Applying stricter quality control is not the first approach, as it may increase the inspection and testing cost and time. Applying stricter quality control may not necessarily improve the process if the existing methods and techniques are prone to errors or defects. References: CPIM Exam Content Manual Version 7.0,Domain 8:
Manage Quality, Continuous Improvement, and Technology, Section 8.2: Continuous Improvement Concepts, p. 46; Process Improvement; Process Improvement Definition.
NEW QUESTION # 27
A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer servicelevels for customers B and C?
- A. Customer B has higher service level
- B. Customer B and C have same service level
- C. 100% service levels for B and C
- D. Customer C has higher service level
Answer: A
Explanation:
Explanation
A company that has prioritized customers A, B, and C, filling orders in that sequence, will have an impact on the customer service levels for customers B and C. Customer service level is the percentage of orders that are fulfilled on time and in full. The higher the customer service level, the more satisfied the customer is with the company's performance. When a company prioritizes customers based on their importance, value, or profitability, it means that it allocates its resources and capacity to serve the most preferred customers first, and then the less preferred customers later. This can result in different customer service levels for different customer segments. In this case, customer A is the most preferred customer, followed by customer B and then customer C. Therefore, customer A will receive the highest customer service level, as the company will fill its orders first and ensure that they are delivered on time and in full. Customer B will receive the second highest customer service level, as the company will fill its orders after customer A's orders are fulfilled. Customer B may experience some delays or shortages if the company runs out of resources or capacity after serving customer A. Customer C will receive the lowest customer service level, as the company will fill its orders last, after customer A's and B's orders are completed. Customer C may face longer delays or higher shortages if the company has exhausted its resources or capacityafter serving customer A and B. Therefore, the impact of prioritizing customers A, B, and C is that customer B has a higher service level than customer C. References
:= How to Prioritize Customer Requests - Gladly, Support Ticket Prioritization - 6 Best Practices to follow,
[Customer Service Level: Definition & Calculation]
NEW QUESTION # 28
An advantage of applying ABC classification to a firm's replenishment items is that:
- A. it allows planners to focus on critical products.
- B. it distinguishes independent demand from dependent demand.
- C. it allows the firm to utilize time-phased order point (TPOP).
- D. it provides better order quantities than the economic order quantity (EOQ]).
Answer: A
Explanation:
Explanation
ABC classification is an inventory categorization technique that divides items into three classes based on their usage value, which is the product of the number of units sold and the cost per unit. Class A items have the highest usage value and account for a large proportion of the total inventory value, but a small percentage of the number of items. Class B items have a moderate usage value and account for a moderate proportion of the total inventory value and the number of items. Class C items have the lowest usage value and account for a small proportion of the total inventory value, but a large percentage of the number of items1.
An advantage of applying ABC classification to a firm's replenishment items is that it allows planners to focus on critical products. Replenishment items are items that are regularly ordered or produced to maintain a certain level of inventory. By using ABC classification, planners can prioritize the replenishment of class A items, which have the highest impact on the firm's profitability and customer satisfaction. Planners can also apply different inventory management techniques and policies for each class of items, such as more frequent reviews, tighter controls, lower safety stocks, and higher service levels for class A items, and less frequent reviews, simpler controls, higher safetystocks, and lower service levels for class C items234. This way, ABC classification can help planners optimize the replenishment process and reduce costs, waste, and stockouts.
The other options are not advantages of applying ABC classification to a firm's replenishment items, because they are either irrelevant or incorrect. ABC classification does not distinguish independent demand from dependent demand, which are two types of demand that depend on whether the item is sold to customers or used as a component in another item5. ABC classification does not provide better order quantities than the economic order quantity (EOQ), which is a formula that calculates the optimal order quantity that minimizes the total inventory costs6. ABC classification does not allow the firm to utilize time-phased order point (TPOP), which is a method that determines when to place an order based on the projected inventory position and the lead time7.
NEW QUESTION # 29
Manufacturing flexibility can be measured by using:
- A. changeover time.
- B. labor productivity.
- C. cycle time,
- D. scrap level.
Answer: A
Explanation:
Explanation
Manufacturing flexibility can be measured by using changeover time. Changeover time is the time it takes to go from the last good part of one product run to the first good part of the next product run1. Manufacturing flexibility is the ability of a system to handle a range of products or variants with fast setups2. By using changeover time as a measure of manufacturing flexibility, we can assess how quickly and efficiently a system can switch from one product to another, and how well it can respond to changes in customer demand, product mix, quality standards, and delivery schedules3.
Some of the benefits of reducing changeover time and increasing manufacturing flexibility are4:
Lower manufacturing costs: More value-added capacity can be unlocked because the equipment is idle for less time.
Higher customer satisfaction: Customers can get their products faster and with more variety.
Greater competitive advantage: The system can adapt to market changes and offer more customized products or services.
Improved quality and productivity: The system can avoid defects, waste, and errors that may occur during long or complex changeovers.
Some of the methods or tools that can help reduce changeover time and increase manufacturing flexibility are5:
Single-minute exchange of die (SMED): A technique that aims to reduce changeover time to less than
10 minutes by converting internal setup activities (those that can only be done when the machine is stopped) to external setup activities (those that can be done while the machine is running), and streamlining both types of activities.
Total productive maintenance (TPM): A technique that involves maintaining and improving the equipment performance and reliability by involving all employees in preventive maintenance, autonomous maintenance, focused improvement, and quality management.
Quick response manufacturing (QRM): A technique that focuses on reducing lead times throughout the entire organization by applying the principles of time-based competition, cellular manufacturing, system dynamics, and enterprise-wide application.
Therefore, changeover time is a measure that can be used to evaluate the manufacturing flexibility of a system.
References: 1: What is Changeover? (Lean terminology) - Velaction 5 2: FLEXIBILITY IN MANUFACTURING | SpringerLink 3 3: How to Reduce Changeover Time - MachineMetrics 6 4: The Tradeoff Between Inventory Costs And Transportation Costs 5: Changeover [Manufacturing Definition] | Creative Safety Supply
NEW QUESTION # 30
The approved output of the distribution requirements planning (DRP) process is an input to which of the following planningprocesses?
- A. Business
- B. Final assembly
- C. Strategic
- D. Master production 0
Answer: D
Explanation:
Explanation
The approved output of the distribution requirements planning (DRP) process is an input to the master production planning (MPS) process. The DRP process determines the quantity and timing of finished goods to be delivered to each distribution center or warehouse to meet customer demand1. The output of the DRP process is a distribution schedule that specifies the planned delivery dates and quantities of products2. The distribution schedule is then used as an input to the MPS process, which determines the quantity and timing of end items to be produced at each manufacturing facility3. The MPS process balances the demand from the distribution schedule with the available capacity and resources of the production system3. The output of the MPS process is a master production schedule that specifies the planned production dates and quantities of end items3.
References: CPIM Part 2 Exam Content Manual, Domain 4: Plan and Manage Supply, Section 4.1: Supply Management Concepts and Tools, p. 33-34.
NEW QUESTION # 31
Which of the following outcomes is a benefit of mixed-model scheduling?
- A. Increased inventory
- B. Improved demand response
- C. Fewer material shortages
- D. Fewer setups
Answer: B
Explanation:
Explanation
Mixed-model scheduling is a production technique that allows for the simultaneous production of different products or features on the same production line or system. Mixed-model scheduling can help reduce lead times, inventory levels, setup times, and material shortages by increasing the flexibility and responsiveness of the production process. One of the benefits of mixed-model scheduling is improved demand response, which means the ability to meet customer demand without delay or stockout. Improved demand response can enhance customer satisfaction and loyalty, as well as reduce the need for safety stock or buffer inventory. By using mixed-model scheduling, a company can produce products or features according to the actual or forecasted customer demand, rather than producing large batches of standardized products or features. This can help avoid overproduction or underproduction, which can result in excess inventory or lost sales.
Mixed-model scheduling can also help adjust the production output quickly and easily when there are changes or fluctuations in demand, by using flexible automation, lean production techniques, or quick response methods.
The other options are not benefits of mixed-model scheduling. Increased inventory is not a benefit of mixed-model scheduling, but rather a drawback. Increased inventory can increase inventory costs, such as holding costs, transportation costs, or obsolescence costs. It can also reduce inventory visibility and control, as well as increase the risk of quality issues or spoilage. Mixed-model scheduling can help reduce inventory by producing products or features in small batches or single units that match customer demand. Fewer setups are not a benefit of mixed-model scheduling, but rather a requirement. Fewer setups mean less time and resources spent on changing or adjusting the production system to produce different products or features. Fewer setups can increase the efficiency and productivity of the production process, as well as reduce the setup costs and waste. Mixed-model scheduling requires fewer setups to enable the simultaneous production of different products or features on the same production line or system. Fewer material shortages are not a benefit of mixed-model scheduling, but rather an outcome. Fewer material shortages mean less disruption or delay in the production process due to the lack of materials or components needed for production. Fewer material shortages can improve the quality and reliability of the production process, as well as reduce the material costs and waste. Mixed-model scheduling can result in fewermaterial shortages by reducing the lead times and inventory levels of materials or components, as well as by improving the communication and coordination with suppliers.
References := Mixed Model Scheduling - Mountain Home Academy, Reduce Lot Sizes, Mixed Model Scheduling - Academic library, Introduction To Mixed Model Production ...{Strategos}
NEW QUESTION # 32
Which of the following circumstances would cause a move from acceptance sampling to 100% inspection?
- A. The company uses one of its qualified suppliers.
- B. The percent of defects is expected to be greater than 5%.
- C. History shows that the quality level has been stable fromlotto lot.
- D. Downstream operators encounter recurring defects.
Answer: D
Explanation:
Explanation
A move from acceptance sampling to 100% inspection would be caused by the circumstance of downstream operators encountering recurring defects. Acceptance sampling is a quality control technique that uses statistical sampling to determine whether to accept or reject a production lot of material. It is employed when one or several of the following hold: testing is destructive; the cost of 100% inspection is very high; and 100% inspection takes too long1. 100% inspection is a quality control technique that examines every item in a production lot for defects or nonconformities. It is employed when the cost of passing a defective item is very high; testing is nondestructive; and 100% inspection does not take too long2.
Downstream operators are the workers or machines that perform the subsequent operations or processes on the products after they have been inspected or tested. Downstream operators encountering recurring defects means that the products that have passed the acceptance sampling or testing are still found to be defective or nonconforming by the downstream operators. This can indicate that the acceptance sampling or testing is not effective or reliable in detecting or preventing defects or nonconformities. This can also result in negative consequences, such as rework, waste, delays, customer complaints, or safety issues. Therefore, this circumstance would cause a move from acceptance sampling to 100% inspection, as it would require a more thorough and rigorous quality control technique to ensure that no defective or nonconforming products are passed to the downstream operators.
The other options are not circumstances that would cause a move from acceptance sampling to 100% inspection. History shows that the quality level has been stable from lot to lot is not a circumstance that would cause a move from acceptance sampling to 100% inspection, but rather a circumstance that would support the use of acceptance sampling. Quality level is the proportion of conforming items in a production lot. Quality level being stable from lot to lot means that there is little variation or fluctuation in the quality of the products over time. This can indicate that the production process is under control and consistent in meeting the quality standards or specifications. Therefore, this circumstance would support the use of acceptance sampling, as it would reduce the risk of accepting a defective lot or rejecting a conforming lot.
The company uses one of its qualified suppliers is not a circumstance that would cause a move from acceptance sampling to 100% inspection, but rather a circumstance that would support the use of acceptance sampling. A qualified supplier is a supplier that has met certain quality, delivery, and service standards and has been approved by the company to supply goods or services without inspection or testing. A qualified supplier is expected to maintain a high level of performance and reliability, as well as to report any issues or deviations that may affect the delivery process. Therefore, this circumstance would support the use of acceptance sampling, as it would reduce the need for 100% inspection by relying on the supplier's quality assurance system.
The percent of defects is expected to be greater than 5% is not a circumstance that would cause a move from acceptance sampling to 100% inspection, but rather a circumstance that would require a change in the acceptance sampling plan. The percent of defects is the proportion of defective items in a production lot. The percent of defects being expected to be greater than 5% means that there is a high probability of finding defective items in the production lot. This can indicate that the production process is out of control or inconsistent in meeting the quality standards or specifications. Therefore, this circumstance would require a change in the acceptance sampling plan, such as reducing the acceptable quality limit (AQL), increasing the sample size, or decreasing the acceptance number, to increase the likelihood of rejecting a defective lot.
References := Acceptance Sampling - an overview | ScienceDirect Topics, What Is Acceptance Sampling?
Definition And Examples
NEW QUESTION # 33
Which of the following observations in a manufacturing plant best illustrates the poka-yoke technique of process design?
- A. A part attribute defines correct orientation.
- B. The number of types of fasteners is reduced from 25 to 5.
- C. Customized containers hold mixed sets of parts.
- D. An andon is installed.
Answer: A
Explanation:
Explanation
The poka-yoke technique of process design is a method for preventing or detecting errors and defects in the manufacturing process. Poka-yoke means "mistake-proofing" in Japanese, and it aims to eliminate human errors by creating systems that either make it impossible for a mistake to occur or make the mistake immediately obvious once it has occurred1. One way to implement poka-yoke is to use part attributes, which are physical features of a part that ensure it can only be assembled or used in the correct way2. For example, a part attribute can define the correct orientation of a part, such as a notch, a hole, a shape, or a color, so that it can only fit into the matching component. This prevents the operator from inserting the part incorrectly or using the wrong part.
The other options do not illustrate the poka-yoke technique of process design. Reducing the number of types of fasteners is an example of standardization, which is a method for simplifying and streamlining the production process by minimizing variation and complexity3. Customized containers that hold mixed sets of parts are an example of kitting, which is a method for organizing and delivering parts or materials to the point of use or consumption in the production process4. An andon is a visual or audible signal that indicates the status of a machine or process, such as normal,abnormal, or emergency5. An andon can be used to alert operators or supervisors of problems or issues, but it does not prevent or detect errors by itself.
References: Lean Six Sigma Tools: What is Poka-Yoke? - Villanova University; What is Poka-Yoke? Mistake
& Error Proofing | ASQ; What is Poka-Yoke? [Examples, Principles, Methods]; Standardization - an overview
| ScienceDirect Topics; Kitting - an overview | ScienceDirect Topics.
NEW QUESTION # 34
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