CPIM PART 2 MODULE 1
A new product line with many similar products is projected to experience low volumes
for the foreseeable future. What would be the appropriate manufacturing strategy for
this situation?
High involvement with people, low involvement with machines
High involvement with machines, low involvement with people
Highly scalable workforce
Significant use of outsourcing for peak capacity seasons - answer High involvement
with people, low involvement with machines
EXP: Small-scale technologies combined with highly skilled staff tend to be more
flexible.
When a company is pursuing a capacity-lagging strategy, which of the following will
likely be true?
The plants will be more expensive from a machine and labor perspective than for a
capacity-leading strategy.
Operations will typically find that achieving 90% to 100% capacity utilization is very
difficult.
The organization will be more capable of protecting its market share than if it had used
a capacity-leading strategy.
The plants should always be working at full capacity. - answerThe plants should always
be working at full capacity.
EXP: A capacity-lagging strategy should always find plants working at full capacity.
A company that chooses to implement increases in existing manufacturing capacity in
anticipation of demand is following:
a lead capacity strategy.
a conservative fiscal strategy.
a compete-with-lowest-cost strategy.
a compete-with-innovation strategy. - answera lead capacity strategy.
EXP: A lead capacity strategy is one in which capacity is added prior to the realization
of the demand.
,By using the beginning inventory and the sales forecast for a particular end item, a
master scheduler can calculate: - answerthe amount of production needed per period to
meet the anticipated customer demand.
What is the most likely reason for using safety lead time instead of safety stock -
answerSafety lead time is mostly used to deal with supplier variability.
To which of the following types of delivery can kanban methods be applied? -
answerWithin a plant, from plant to plant, and from suppliers to plants
EXP: The use of kanban methods can be applied to all three options. Kanbans are
simply demand signals that can be sent from one entity to a supplying entity, regardless
of where it is located.
Earliest job due date is an example of: - answerdispatching.
EXP: Earliest job due date is one of the dispatching rules used to determine which job
should be run first at an operation.
A company offers a bundle of products and services and allows customers to select the
set of them that best fits their needs. Which of the following attributes of the product and
service design process would typically be the most important in this situation?
Cost
Timeliness
Flexibility
Creativity - answerFlexibility
EXP: The performance of the product/service design process is measured by quality,
speed, dependability, flexibility, and cost. Flexibility is the ability of the design process to
cope with changes such as customer requirements.
How is the performance of the product/service design process measured? -
answerquality, speed, dependability, flexibility, and cost
The resource plan is typically stated in what terms? - answermachine hours, labor
hours, pounds
EXP: Resource plans deal with the planning and managing of plant capacities. Pounds
and hours are important capacity measurements.
What do Resource plans deal with? - answerthe planning and managing of plant
capacities
A retailer sells seasonal items in addition to its year-round product lines. They have
three distribution centers that service their stores around the country. They are in the
,process of ordering items for the Easter holiday. These items will not be ordered by the
stores but will instead be distributed in total based on a percentage of the business that
each store typically averages. What safety stock technique is most appropriate? -
answerFixed
EXP: Since the replenishment system being used is a push system, normally safety
stock can be kept at the central warehouse. This means that safety stock quantities
would be calculated as a fixed amount (aggregate) meant to be large enough to cover
the demand uncertainties of all downstream warehouses.
If the replenishment system being used is a push system, where would safety stock be
kept in a distribution network? - answernormally safety stock can be kept at the central
warehouse
What does fixed safety stock mean? - answerSafety stock quantities would be
calculated as a fixed amount (aggregate) meant to be large enough to cover the
demand uncertainties of all downstream warehouses.
U-shaped cells that group dissimilar machines to perform various operations on a part
result in reduction of all of what? - answerLead times, travel distances, in-process
inventory
Regardless of how machines are arranged in a work center, what can occur? -
answerMachine Downtime
How do you prevent machine downtime? - answeran effective preventive maintenance
program.
In resource planning, the bill of resources is based on what? - answerOne unit of a
typical product
The bill of resources works with what? - answerproduct families
How do you estimate how long it would take to build a product family? -
answerCalculate summary or average of how long it would take to build a typical item in
a product family
What method would be used to show each item in the income statement as a
percentage of revenue? - answerVertical analysis
EXP: Vertical analysis of a financial statement shows the relationship of each item to its
base amount. In the case of the income statement, each item is shown as a percentage
of revenue.
What does Vertical analysis of a financial statement show? - answerthe relationship of
each item to its base amount
, A company has a drilling department with 5 drill presses. The department operates 8-
hour days, 5 days a week. What is the weekly available time in hours? - answer200
The complexity of an environment has contributed to late orders and excessive work in
process. To provide a long-term solution, what step would be taken first? -
answerDocument part and assembly flows (MAP THE PROCESS)
What does Mapping the process enable improvement teams to do? - answeridentify
redundancies, process gaps, and inefficiencies
A medium-size package delivery service has a large market share in its home country. It
projects slowing growth in that country and is planning to expand into five neighboring
countries. What would be the most appropriate strategy for entering these five countries
at the same time? - answerFranchising its brand in each of the countries
What expansion technique is well suited to expansion of services and retailing
enterprises and to building a simultaneous presence in foreign markets? -
answerfranchising
Why is franchising well suited to expansion of services and retailing enterprises and to
building a simultaneous presence in foreign markets? - answerThe franchisee bears
most of the cost and risk of establishing foreign locations.
Material is staged for what reason? - answerTo minimize the impact of inventory errors
Staging inventory before put-away, use, or shipment enables inventory control to do
what? - answerinventory control to validate balance records.
Which of the following is most appropriate as a key performance indicator from the
customer's perspective in a balanced scorecard for an enterprise?
Average product manufacturing time
On-time delivery performance
Total revenue growth
Scrap cost for the period - answerOn-time delivery performance
Customers are typically most concerned with a product's: - answerprice, quality, sales
service quality, and delivery time.
Allowances for scrap/yield estimates in the manufacture of a component require
overplanning of:
parent safety stock.
component planned releases.
component planned receipts.
A new product line with many similar products is projected to experience low volumes
for the foreseeable future. What would be the appropriate manufacturing strategy for
this situation?
High involvement with people, low involvement with machines
High involvement with machines, low involvement with people
Highly scalable workforce
Significant use of outsourcing for peak capacity seasons - answer High involvement
with people, low involvement with machines
EXP: Small-scale technologies combined with highly skilled staff tend to be more
flexible.
When a company is pursuing a capacity-lagging strategy, which of the following will
likely be true?
The plants will be more expensive from a machine and labor perspective than for a
capacity-leading strategy.
Operations will typically find that achieving 90% to 100% capacity utilization is very
difficult.
The organization will be more capable of protecting its market share than if it had used
a capacity-leading strategy.
The plants should always be working at full capacity. - answerThe plants should always
be working at full capacity.
EXP: A capacity-lagging strategy should always find plants working at full capacity.
A company that chooses to implement increases in existing manufacturing capacity in
anticipation of demand is following:
a lead capacity strategy.
a conservative fiscal strategy.
a compete-with-lowest-cost strategy.
a compete-with-innovation strategy. - answera lead capacity strategy.
EXP: A lead capacity strategy is one in which capacity is added prior to the realization
of the demand.
,By using the beginning inventory and the sales forecast for a particular end item, a
master scheduler can calculate: - answerthe amount of production needed per period to
meet the anticipated customer demand.
What is the most likely reason for using safety lead time instead of safety stock -
answerSafety lead time is mostly used to deal with supplier variability.
To which of the following types of delivery can kanban methods be applied? -
answerWithin a plant, from plant to plant, and from suppliers to plants
EXP: The use of kanban methods can be applied to all three options. Kanbans are
simply demand signals that can be sent from one entity to a supplying entity, regardless
of where it is located.
Earliest job due date is an example of: - answerdispatching.
EXP: Earliest job due date is one of the dispatching rules used to determine which job
should be run first at an operation.
A company offers a bundle of products and services and allows customers to select the
set of them that best fits their needs. Which of the following attributes of the product and
service design process would typically be the most important in this situation?
Cost
Timeliness
Flexibility
Creativity - answerFlexibility
EXP: The performance of the product/service design process is measured by quality,
speed, dependability, flexibility, and cost. Flexibility is the ability of the design process to
cope with changes such as customer requirements.
How is the performance of the product/service design process measured? -
answerquality, speed, dependability, flexibility, and cost
The resource plan is typically stated in what terms? - answermachine hours, labor
hours, pounds
EXP: Resource plans deal with the planning and managing of plant capacities. Pounds
and hours are important capacity measurements.
What do Resource plans deal with? - answerthe planning and managing of plant
capacities
A retailer sells seasonal items in addition to its year-round product lines. They have
three distribution centers that service their stores around the country. They are in the
,process of ordering items for the Easter holiday. These items will not be ordered by the
stores but will instead be distributed in total based on a percentage of the business that
each store typically averages. What safety stock technique is most appropriate? -
answerFixed
EXP: Since the replenishment system being used is a push system, normally safety
stock can be kept at the central warehouse. This means that safety stock quantities
would be calculated as a fixed amount (aggregate) meant to be large enough to cover
the demand uncertainties of all downstream warehouses.
If the replenishment system being used is a push system, where would safety stock be
kept in a distribution network? - answernormally safety stock can be kept at the central
warehouse
What does fixed safety stock mean? - answerSafety stock quantities would be
calculated as a fixed amount (aggregate) meant to be large enough to cover the
demand uncertainties of all downstream warehouses.
U-shaped cells that group dissimilar machines to perform various operations on a part
result in reduction of all of what? - answerLead times, travel distances, in-process
inventory
Regardless of how machines are arranged in a work center, what can occur? -
answerMachine Downtime
How do you prevent machine downtime? - answeran effective preventive maintenance
program.
In resource planning, the bill of resources is based on what? - answerOne unit of a
typical product
The bill of resources works with what? - answerproduct families
How do you estimate how long it would take to build a product family? -
answerCalculate summary or average of how long it would take to build a typical item in
a product family
What method would be used to show each item in the income statement as a
percentage of revenue? - answerVertical analysis
EXP: Vertical analysis of a financial statement shows the relationship of each item to its
base amount. In the case of the income statement, each item is shown as a percentage
of revenue.
What does Vertical analysis of a financial statement show? - answerthe relationship of
each item to its base amount
, A company has a drilling department with 5 drill presses. The department operates 8-
hour days, 5 days a week. What is the weekly available time in hours? - answer200
The complexity of an environment has contributed to late orders and excessive work in
process. To provide a long-term solution, what step would be taken first? -
answerDocument part and assembly flows (MAP THE PROCESS)
What does Mapping the process enable improvement teams to do? - answeridentify
redundancies, process gaps, and inefficiencies
A medium-size package delivery service has a large market share in its home country. It
projects slowing growth in that country and is planning to expand into five neighboring
countries. What would be the most appropriate strategy for entering these five countries
at the same time? - answerFranchising its brand in each of the countries
What expansion technique is well suited to expansion of services and retailing
enterprises and to building a simultaneous presence in foreign markets? -
answerfranchising
Why is franchising well suited to expansion of services and retailing enterprises and to
building a simultaneous presence in foreign markets? - answerThe franchisee bears
most of the cost and risk of establishing foreign locations.
Material is staged for what reason? - answerTo minimize the impact of inventory errors
Staging inventory before put-away, use, or shipment enables inventory control to do
what? - answerinventory control to validate balance records.
Which of the following is most appropriate as a key performance indicator from the
customer's perspective in a balanced scorecard for an enterprise?
Average product manufacturing time
On-time delivery performance
Total revenue growth
Scrap cost for the period - answerOn-time delivery performance
Customers are typically most concerned with a product's: - answerprice, quality, sales
service quality, and delivery time.
Allowances for scrap/yield estimates in the manufacture of a component require
overplanning of:
parent safety stock.
component planned releases.
component planned receipts.
