CPIM Part 1 Test Questions With Verified Answers

4 Ps - Answer `Product, Price, Promotion, Place Competitive Priorities/Performance Objectives - Answer Cost, Quality, Time, Flexibility Which trends are easiest to forcasat - Answer Stable demand Master Scheduling forcast/horizon - Answer Physical units at end item level/3-18 months Seasonal Index - Answer Period Average Demand/Average Demand of All Periods Qualitative Techniques - Answer Based on opinion, subjective (market research/business planning/medium to long term) Quantitative extrinsic - Answer Correlation, trend changing, long term Quantitative Intrinsic - Answer Past is good for forecasting future, short/medium term, trends, seasonal index Denationalized Demand (Average demand per period) - Answer Annual forecast/number of periods Exponential Smoothing - Answer (a) (latest demand) + (1-a)(Previous Demand) Mean Absolute Deviation (MAD) - Answer Used to determine magnitude of error (Sum of absolute value of errors/number of periods) Tracking Signal Formula - Answer algebraic sum of forecast deviations/MAD Priority - Answer What product is needed, how much is needed, and when. Master scheduling and MRP. (Demand) Capacity - Answer How much production capacity and other resources are available to meet priorities (Supply) S&OP - Answer Product families (1-3 years), Translates business plan into production rates/goals, maintaining inventory levels, determining required resources. Master scheduling - Answer End items (3-18 months) MRP - Answer Components (3-18 months) S&OP Steps (5) - Answer Data gathering (Demand, supply, marketing, etc), Demand planning (Forcast), Supply Planning (Capacity), Pre S&OP meeting, executive meeting Production planning - Answer 1-2 year horizon, monthly rate (quarterly into future), verity of objectives (CS, inventory, cash flow, stable labor, 4 Production Strategies - Answer Chase, level, subcontracting, hybrid Total Production Equation - Answer Total Forecast + Ending Inventory - Opening Inventory Ending Inventory Equation MTS - Answer Opening+Production-Demand Backlog vs Backorder - Answer Backlog: all of the open orders, including back orders Back order: unfulfilled orders past the due date MTO Total Production Equation - Answer Total forecast + opening backlog-ending backlog Resource Planning - Answer A process that takes sales and operations plans and establishes and adjusts long range capacity Resource Planning Steps (6) - Answer 1. Develop Bill of Resources (Ops Plan). 2. Decide on Units of Measure. 3. Determine Planned Capacity. 4. Calculate the load of each resource. 5. Compare to Planned Capacity. 6. Take action when necessary. bill of resources - Answer shows the quantity of critical resources needed to make one average unit of each product in each family Master Production Schedule - Answer A statement of what end items a company plans to produce, by quantity and time period. It is not a sales forecast. The overall goal of MS is to set up a series of materials and capacity plans that can be executed 95% or more of the time. Link between sales and operations planning. RCCP - Rough-Cut Capacity Planning - Answer The process of converting the master production schedule into requirements for key resources, often including labor; machinery; warehouse space; suppliers' capabilities; and, in some cases, money. system nervousness - Answer small changes in the upper-level-production plan cause major changes in the lower-level production plan commonly used to describe a production environment that has become inefficient due to many last-minute changes to production. Time fences and zones are helpful with system nervousness. Demand Time Fence vs Planning time fence - Answer little changes are allowed during the DTF but canges can be made during the PTF Available to promice - Answer Available-to-promise (ATP) is the uncommitted portion of the current inventory or future planned supply Available to promise equation (3) - Answer ATP (period 1) = On-hand balance + MPS - Sum of customer (1st period only) orders before next MPS ATP = MPS - Sum of customer orders before next MPS(all future periods that contain an MPS planned receipt) When actual orders exceed the MPS, reduce the prior ATP by amount next ATP would be negative and add this to negative ATP, so now 0. capable-to-promise - Answer the quantity of items that can be produced and made available at a later date Materials Requirements Planning (MRP) - Answer A computer-based information system designed to handle ordering and scheduling of dependent demand inventories (What, When, How Much) Bill of Material (BOM) - Answer A listing of all the subassemblies, intermediates, parts and raw materials that go into a parent assembly showing the quantity of each required to make an assembly. The BOM is one of the most important documents in a manufacturing plant. Variants of the BOM include formulas for chemicals. (Indented and Multilevel) Planning Bill - Answer Plans material requirements for a family of end products for which there are several variations based on options for one or more components. Two types of planning bills are modular bills and kits. For the bicycle there are 18 different variations (3x3x2) but the planning BOM allows for just one BOM.Used for forecasting-10,000 bicycles would mean 3,000 blue; 3,000 red and 4,000 white for planning. Where-Used List - Answer Where-used list is a listing of every parent item that calls for a given component, and the respective quantity required, from a bill of materials. Pegging - Answer Defn.-In MRP and MPS, the capability to identify for a given item the sources of its gross requirements and/or allocations. Pegging can be thought of as active where-used information. Exploding - Answer Exploding (process of determining the total of each component needed for a parent) Offsetting - Answer offsetting (process of determining when a planned order release is needed in order to receive order when needed as receipt) requirements (When to release order so items come in on time. Net requirements equation - Answer Gross Requirements-Available Inventory or Gross requirements-schedules receipts-prior projected available time bucket - Answer Time bucket-a number of days of data summarized into a columnar or row-wise display. In this example, we have weekly time buckets. An item is available at the beginning of the time bucket in which it is required. (Bucket less has dates)