CPIM Part 1 Exam Questions With Correct Answers

Supply Chain Management - Answer The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally Value Chain Analysis - Answer An examination of all links a company uses to produce and deliver its products and services, starting from the origination point and continuing through delivery to the final customer. Risk Management - Answer The identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control Operations Management - Answer The planning, scheduling, and control of the activities that transform inputs into finished goods and services Materials Management - Answer The grouping of management functions supporting the complete cycle of material flow Manufacturing Planning and Control (MPC) - Answer High-level planning, master scheduling, material requirements planning (MRP), and execution control along with the related check on available capacity Strategic Plan - Answer The plan for how to marshal and determine actions to support the mission, goals, and objectives of an organization Business Plan - Answer A statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow statement What if Analysis - Answer The process of evaluating alternate strategies by answering the consequences of changes to forecasts, manufacturing plans, inventory levels, and so forth Tactical Plan - Answer The set of functional plans (sales plan, production plan, marketing plan) synchronizing activities across functions that specify production levels, capacity levels, staffing levels, funding levels, for achieving the intermediate goals and objectives to support the organization's strategic plan Balanced Scorecard - Answer A list of financial and operational measurements used to evaluate organizational or supply chain performance Participative Design/Engineering - Answer The simultaneous participation of all the functional areas of the firm in the product design activity Manufacturing Process - Answer The series of operations performed upon material to convert it from the raw material or a semi-finished state to a state of further completion Manufacturing Philosophy - Answer The set of guiding principles, driving forces, and ingrained attitudes that helps communicate goals, plans, and policies to all employees and that is reinforced through conscious and subconscious behavior within the manufacturing organization VATI Analysis - Answer In the theory of constraints, a procedure for determining the general flow of parts and products from raw materials to finished goods Product Life Cycle - Answer The stages a new product goes through from beginning to end PLC - Introduction - Answer Sales are very low during this phase due to customers not having awareness of the product and high initial costs of production PLC - Growth - Answer Product rapidly gains market share, stress is put on manufacturing and distribution based on initial forecasts vs. actual demand. Unit costs drop because of increased production PLC - Maturity - Answer Many customers already have the product, the market is ripe with competing products. Products may be enhanced in order to keep customer's interest PLC - Decline - Answer Demand for the product is diminishing quickly. In order to profit the item must be switched to a less expensive production environment Project Management - Answer The use of skills and knowledge in coordinating the organizing, planning, scheduling, directing, controlling, monitoring, and evaluating of prescribed activities to ensure that the stated objectives of a project, manufactured good, or service are achieved Gantt Chart - Answer The earliest and best-known type of planning and control chart, especially designed to show graphically the relationship between planned performance and actual performance over time Intermittent Production - Answer A form of manufacturing in which the jobs pass through the functional departments in lots, and each lot may have a different routing Nesting - Answer The act of combining several small processes to form one larger process Product Layout or Flow Process Layout - Answer A system that is set up for a limited range of similar products Master Planning - Answer A group of business processes that includes demand management, production and resource planning, and master scheduling Advanced Planning and Scheduling - Answer Techniques that deal with analysis and planning of logistics and manufacturing during short, intermediate, and long-term time periods Enterprise Resource Planning (ERP) - Answer Framework for organizing, defining, and standardizing the business processes necessary to effectively plan and control an organization Closed loop MRP - Answer A system built around material requirements planning that includes the additional planning processes of production planning (sales and operations planning), master production scheduling, and capacity requirements planning Manufacturing Resource Planning (MRP II) - Answer A method for the effective planning of all resources of a manufacturing company. Ideally, it addresses operational planning in units and financial planning in dollars, and has a simulation capability to answer what-if questions Pull System - Answer In production, the production of items only as demanded for use or to replace those taken for use Push System - Answer In production, the production of items at times required by a given schedule planned in advance Takt Time - Answer Sets the pace of production to match the rate of customer demand and becomes the heartbeat of any lean production system Total Productive Maintenance - Answer Preventive maintenance plus continuing efforts to adapt, modify, and refine equipment to increase flexibility, reduce material handling, and promote continuous flows aggregate plan - Answer A plan that includes budgeted levels of finished goods, inventory, production backlogs, and changes in the workforce to support the production strategy anticipation inventories - Answer Additional inventory above basic pipeline stock to cover projected trends of increasing sales, planned sales promotion programs, seasonal fluctuations, plant shutdowns, and vacations assignable cause - Answer A source of variation in a process that can be isolated, especially when its significantly larger magnitude or different origin readily distinguishes it from random causes of variation available inventory - Answer The on-hand inventory balance minus allocations, reservations, backorders, and (usually) quantities held for quality problems available time - Answer The number of hours a work center can be used, based on management decisions regarding shift structure, extra shifts, regular overtime, observance of weekends and public holidays, shutdowns, and the like average inventory - Answer One-half the average lot size plus the safety stock, when demand and lot sizes are expected to be relatively uniform over time backflush - Answer A method of inventory bookkeeping where the book (computer) inventory of components is automatically reduced by the computer after completion of activity on the component's upper-level parent item based on what should have been used as specified on the bill of material and allocation records backhauling - Answer The process of a transportation vehicle returning from the original destination point to the point of origin backlog - Answer All the customer orders received but not yet shipped back scheduling - Answer The schedule is computed starting with the due date for the order and working backward to determine the required start date and/or due dates for each operation bottleneck - Answer A facility, function, department, or resource whose capacity is less than the demand placed upon it buffer - Answer In the theory of constraints, these can be time or material and support throughput and/or due date performance