CPIM Part 1 Exam Practice Exam Questions With Correct Answers

Which of the following tools is considered an important quality management tool? - Answer Control Chart. The primary use of control charts is to detect assignable causes of variation in a process. In a bill of material, the path that adds up to the greatest number of lead time periods defines the: - Answer Cumulative lead time; cumulative lead time for an items consists of the longest lead time path for a given bill of material. Delivery and demand lead times are subsets of cumulative lead time. What is the primary difference between enterprise resources planning (ERP) and manufacturing resource planning (MRP II)? - Answer ERP provides more than just manufacturing information; it integrates business functions like human resources, research and development, and logistics. MRP II and ERP are both computer-based, and both provide a balance between production, marketing, and information technology. Which of the following manufacturing strategies has the longest customer lead time? - Answer Make-to-order; make-to-order manufacturing begins when a customer order is received. The product must then be manufactured, assembled and shipped. Which of the following describes the UN Global Compact Management Model? - Answer Framework for guiding companies through the process of formally committing to, assessing, defining, implementing, measuring, ad communicating the UN Global Compact and its principles. The UN Global Compact Management Model is a practical yet comprehensive tool to help companies evolve their sustainability efforts. Which of the following is true of preparing a forecast based on historical data? - Answer The data needs to be in the same terms as needed for the forecasts. It is important that historical data match what is being forecasted. If the purpose is to forecast demand on production, data based on demand - not, for example, shipments - is needed. Which of these terms refers to activities that provide present benefit without compromising the needs of future generations? - Answer Sustainability; sustainability refers to activities that provide present benefit without compromising the needs of future generations. Given the following, what is the work center backlog? Avg Input: 100 units/week. Avg Output: 100 units/week. Current work in progress: 160 units - Answer 1.6 weeks; To calculate the load that is backlog at a work center, divide the current number of units (or hours) currently at the work center by the average output, or 160 units/100 units of output per week = 1.6 weeks of load Sales & Operations planning (S&OP) is typically performed at which of the following levels? - Answer Product family; S&OP is typically performed at the product family level. End items are typically planned at the master schedule level, while raw material and semi-finished goods are typically planned at the MRP level. Which of the following is a voluntary initiative whereby companies embrace, support, and enact, within their sphere of influence, a set of core values in the areas of human rights, labor standards, the environment, and anti-corruption? - Answer United Nations Global Compact; the UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor, the environment, and anti-corruption. Engineering seeks to have complex designs that are difficult to modify. This approach to manufacturing conflicts with which of the following concepts? - Answer Product flexibility; product flexibility is the ease with which current designs can be modified in response to changing market demands. It conflicts with rigid, complex designs. Companies typically make final purchasing decisions based on which of the following supplier characteristics? - Answer Delivery reliability; besides perfect quality, a key final purchasing decision point is delivery reliability. Ensuring that purchase deliveries arrive on time is an essential feature of supplier partnerships. Which of the following objectives often conflicts with providing the best customer service? - Answer Reducing inventory to keep inventory carrying costs at a minimum. Production's objective of keeping inventory investment to a minimum is in conflict with marketing's objective of always having goods available for the customer. A shipment of remote control components is delivered to a factory and immediately taken to a workstation ready to being assembly. What is the name of this inventory management technique? - Answer Wall-to-wall; in wall-to-wall inventory management, materials enter a plant and are processed right away, as opposed to being logged in an inventory store until a later date. Which of the following conditions is in conflict with maintaining low days of supply? - Answer Excess inventory; excess inventory increases the number of days of inventory held. In exponential smoothing, what is the term for the weighting factor that is applied to the most recent demand, observation, or error? - Answer Smoothing constant; the smoothing constant in exponential smoothing is the weighting factor that is applied to the most recent demand, observation, or error. In this case, the error is defined as the difference between actual demand and the forecast for the most recent period. Which of the following activities represents reverse logistics? - Answer Returning goods to the seller due to repair, remanufacture, or recycling activity; reverse logistics is concerned with the management of the flow of products and materials from the customer back through the supply chain to the originating source. How should a forecast for snowmobile sales for the coming year be constructed? - Answer In the same schedule as customer orders; the forecast should be constructed in the same schedule as that in which sales from customer orders are expected for the coming year. Which of these terms can be described as an estimate of future demand? - Answer Sales forecast; the sales forecast is a predicted estimate of future demand. What term is used for the set of marketing tools that direct the business offering to the customer? - Answer Four P's; the four P's are a set of marketing tools - product, price, place and promotion - that are used to direct the business offering to the customer. The economic order quantity (EOQ) for a manufactured part is the quantity at which: - Answer the ordering and carrying costs are equal; the EOQ is a type of fixed order quantity model intended to minimize the combined costs of acquiring and carrying inventory. Which of the following factors is likely to become LEAST important for a product that has moved from regular production to spare parts supply? - Answer Price; once a product has moved from regular production to intermittent spar parts supply, customer service, delivery reliability, and quality must remain high. Service parts are usually critical to the customer and must be available at all times with perfect quality. Since the item is no longer considered a 'product', its price can become elastic and can be based on what the market will bear. Information for production and purchasing primarily comes from which of the following planning cycles? - Answer Material requirements planning; information for production and purchasing is predominantly derived from the MRP cycle. When are final assembly schedules typically used? - Answer When there are many options and it is difficult to forecast which combination the customer will want. When there are many possible combinations of options, it can be impractical to store every possible configuration. Using a final assembly schedule, combinations are assembled based on customer order input. A strategy of responding to customers' needs is referred to as: - Answer Market-driven; according to the APICS Dictionary, the term 'market-driven' simply means responding to the customers' needs. Which of the following functions does the drum-buffer-rope (DBR) method perform? - Answer Schedules a constraint; the basic goal of DBR method is to recognize that all processes contain a weak link or constraint that limits the productive output of the entire system. The purpose of the DBR method is to schedule production around the constraint and not to minimize inventory. In fact, the DBR method calls for a buffer inventory to be present to ensure that a problem does not cause the constraint to go idle. Which financial document shows assets, liabilities, and owner's equity? - Answer Balance sheet; the balance sheet is a financial statement showing the resources owned, the debts owed, and the owner's share of a company at a given point in time. With which of the following modes of transportation does the carrier typically have the highest fixed costs? - Answer Rail; in contrast to variable costs, fixed costs do not change with the volume of goods carried. Railways have large fixed costs, for example, terminals and vehicles. Which of the following statements is true when production lead time is increased? - Answer Work-in-process inventory will increase; when production takes longer, the raw materials, components, and subassemblies will spend more time in work-in-process. The size of the component inventory and the necessary inventories needed in production are unaffected by an increase in production lead times. Which of the following statements is true of inventory when the final product design is continuously influenced by the customer? - Answer Buffer inventory should be held closer to the raw material stage; because the final configured item is often not determined until the actual customer order, leaving materials and components in an unfinished state significantly reduces stocked finished goods. The materials and components are then made- or assembled-to-order based on customer specifications.