APICS CPIM MODULE 3 Exam Questions With Correct Answers

inventory investment - Answer the dollars that are in all levels of inventory semifinished goods - Answer products that have been stored in an incomplete state and are awaiting final operations that will adapt them to different uses or customer specifications MRO supplies - Answer items used in eneral support of operations and maintenance, such as maintenance suppllies, spare parts, and consumables used in the manufacturing process and support operations independent demand - Answer the demand for an item that is unrelated to the demand for other items - demand for finished goods, parts required for destructive testing, and service parts requirements are examples of independent demand dependent demand - Answer demand that is directly related to or derived from the bill or material structure for other items or end products - such demands are therefore calculated and need not and should not be forecast buffer - Answer a quantity of materials awaiting further processing - it can refer to raw materials, semifinished stores or hold points, or a working backlog that is purposely maintained behind a work center safety stock - Answer in general, a quantity of stock planned to be in inventory to protect against fluctuations in demand or supply, in the context of mastroduction scheduling, the additional inventory and capacity planned as protection against forecast errors and short-term changes in the backlog excess inventory - Answer any ventory in the system that exceeds the minimum amount necessary to achieve the desired throughput rate at the constraint or that exceeds the minimum amount necessary to achieve the desrd due date performance inactive inventory - Answer stock designated as in excess of consumption within a defined period; stocks of items that have not been used for a defined period distressed goods - Answer products that are damaged or close to their expiration date and cannot be sold at their full price obsolete inventory - Answer inventory items that have met the obsolescence criteria established by the organization shelf life - Answer the amout of time an tem may be held in inventory before it becomes unusable scrap - Answer material outside of specifications and possessing characteristics that make reqork impractical rework - Answer reprocessing to salvage a defective item or part service industry - Answer an organization that provides an intangible product or an organization not involved in farming, mining, or manufacturing ABC classification - Answer the classification of a group of items in decreasing order of annual dollar volume or some other criteria inventory policy - Answer a statement of a companys goals and approach to the management of iventories aggregate inventory management - Answer establishing the overall level (dollar value) of inventory desired and implementing controls to achieve this goal inventory accounting - Answer the branch of accounting dealing with valuing inventory - inventory may be valued or recorded using wither a perpetua or periodic system opportuity cost - Answer the return on capital that could have resulted had the capital been used for some purpose other than its present use - the rate of return investors must ear to continue to supply capital a firm shrinkage - Answer reductions of actual quantities of items in stock, in process, or in transit..caused by scrap landed cost - Answer the product cost plus the cost of logistics, such as warehousing, transportation, and handling fees joint replenishment - Answer coordinating the lot sizing and order release decision for related items and treating them as family of items - the objective is to achieve lower costs because of ordering , setup, shipping, and quantity discount economies total productive maintenance - Answer preveive maintence plus continuing efforts to adapt, modify, and refine equipment to increase flexibility service level agreement - Answer a document that represents the terms of performance for organic support standard deviation - Answer a measurement of dispersion of data or of a variable - the standard deviation is computed by finding the differences between the average and actual observations, squaring each difference, adding th squared differences, dividing by n-1 risk pooling - Answer a method often associated with the management of inventory risk - manufacturers and retailers tat experience high variability in demand for their products can pool together common inventory components associated with a broad family of products to buffer the overall burden of having to deploy inventory for each discrete product target inventory level - Answer the order point plus a variable order quantity electronic commerce (e-commerce) - Answer the use of computer and telecommunication technologies to conduct business via electronic transfer of data and document global trade identification number - Answer an identification that uniquely identifies all products and services that are sold, delivered, and invoiced at any point in the supply chain material requirements planning - Answer a set of techniques that uses bill of material data, inventory data, and the master producttion schedule to calaculate requiremes for materials phantom bill of material - Answer a bill-of-material coding and structural technique used primarily for transient (non-stocked) subassemblies - for the transient item, lad time is set to zero and the order quantity to lot for lot. parts requisition - Answer an authorization that identifies the item and quantity required to be withdrawn from an inventory action message - Answer an output of a system that identifies the need for, and the type of action to be taken to correct, a current or potential problem rescheduling - Answer the process of changing order or operation due dates, usually as a result of their being out of phase with production or customer commitments cumulative lead time - Answer the longest planned lengf time to accomplish the acitivity in question - it is found by reviewing thelead time for each bill of material path below the item - whichever path adds up to the greatest number defines cumulative lead time safety lead time - Answer an element of time added to normal lead time to protect to protect against fluctuations in lead time so that an order can be completed before its real need date capacity - Answer the capability of a worker, machine, work center, plant, or organization to produce output per time period theoretical capacity - Answer the maximum output capability, allowing no adjustments for preventative maintenance, unplanned downtime, shutdown, and so forth required capacity - Answer the capacity of a system or resource needed to produce a desired output in a particular time period budgeted capacity - Answer the volume/mix of throughput on which financial budgets were set and overhead/burden absorption rates established capacity planning - Answer the process of determining the amount of capacity required to produce in the future - this process may be performed at an aggregate or product-line level (resource requirements planning), at the master scheduling level (rough-cut capacity planning), and at the material requirements planning level (capacity requirements planning) capacity management - Answer the function of establishing, measuring, monitoring, and adjusting limits or levels of capacity in order to execute all manufacturing schedules (i.e., the production plan, master production schedule, material requirements plan, dispatch list). Capacity management is executed at four levels: resource requirements planning, rough cut capacity planning, capacity requirements planning, and input/output controls capacity control - Answer the process of measuring production output and comparing it with the capacity plan, determining if the variance exceeds pre-established limits, and taking corrective actions to get back on plan if the limits are exceeded productive capacity - Answer the maximum of the output capabilities of a resource idle capacity - Answer available capacity that exists on non constraint resources beyond the capacity required to support the constraint process manufacturing - Answer production that adds value by mixing, separating, forming, and/or performing chemical reactions process train - Answer a representation of the flow of materials through a process industry's manufacturing system that shows equipment and inventories by-product - Answer a material of value produced as a residual of or incidental to the production process co-product - Answer a product that is usually manufactured together or sequential because of product or process similarities processor-dominated scheduling - Answer schedules equipment before materials material-dominated scheduling - Answer schedules materials before processors...to facilitate the efficient use of materials forward flow scheduling - Answer a process for building process train schedules that starts with the first stage and proceeds sequentially through the process structure until the last stage is scheduled reverse-flow scheduling - Answer starts with the last stage and proceeds backward through the process structure - the schedule is built, back to front, one stage at a time mixed flow scheduling - Answer a procedure used in some process industries for building process train schedules that start at an initial stage and work toward the terminal process stages - this procedure is effective for scheduling where several bottleneck stages may exist - detailed scheduling is done at each bottleneck stage line balancing - Answer the balancing of the assignment of tasks to workstations in a manner that minimizes the total amount of idle time at all stations for a given output level - in balancing these tasks, the specified time requirement per unit of product for each task and its sequential relationship with the other tasks must be considered takt time - Answer a tool used to set the pace of production to match the rate of customer demand and becomes the heartbeat of any lean production system - it is computed as the available production time divided by the rate of customer demand unplanned repair - Answer repair and replacement requirements that are unknown until remanufacturing teardown and inspection occurence factor - Answer how often a repair is required to bring the average part to a serviceable condition - the factor is expressed at the operation level in the routing gateway work center - Answer a work center that performs the first operation of a particular routing sequence standard time - Answer the length of time that should be required to (1) set up a given machine or operation and (2) run one batch or more parts, assemblies, or end products through that operation scheduled load - Answer the standard hours of work required by scheduled receipts planned load - Answer the standard hours of work required by planned production orders machine loading - Answer focuses on the accumulation of hours at workstations, machines, or machine groups for released orders, by time period routing - Answer information detailing the method of manufacture of a particula item - it includes the operations to be perfomed, their sequence, the various work centers involved, and the standards [standard times] for set up and run work center - Answer specific production area, consisting of one or more people and/or machines with similar capabilities, that can be considered as one unit for purposes of capacity requirements planning and detailed scheduling manufacturing lead time - Answer the total time required to manufacture an item, exclusive of lower-level purchasing lead time - for make to orderproducts, it is the length time between the release of an order to the production process and shipment to the final customer - for make to stock products, it is the length of time between the release of an order to the production process and receipt into inventory machine hours - Answer the amount of time, in hours, that a machine is actually running capacity available - Answer the capability of a system or resource to produce a quantity of output in a particular time period rated capacity - Answer the expected output capability of a resource or lly calculated from such data as planned hours, efficiency, and utilization available time - Answer the number of hours a work center that can be used, based on management decisions availability - Answer the percentage of time that a worker or machine is capable oworking utilization - Answer a measre (usually expressed as a percentage) of how intensively a resource is being used to produce a good or service idle time - Answer the time when operators or resources are not producing product because of setup, maintenance, lack of material, lack of tooling, or lack of scheduling activation - Answer putting a resoure to work efficiency - Answer a measurement usually expressed as a percentage of the acutal output relative to the standard output expected demonstrated capacity - Answer proven capacity calcula fom actual performance data, usually expressed as the average number of items produced multiplied by the standard hours per item safety capacity - Answer in the theory of constraints, the planned amount by which available capacity exceeds current productive capacity load profile - Answer a display of future capacity requirements based on released and/or planned orders over a given span of time operations sequencing - Answer a technique for short-term planning of actual jobs to be run in each work center based upon capacity and priorities alternate routing - Answer usually less preferred than the primary routing but results in an identical item lot splitting - Answer dividing a lot into two or more sublots and simultaneously processing each sublot on identical facilities as seperate lots usually to compress lead time or to expedite a small quantity overlapping - Answer occurs when the completed portion of an order at one work center is processed at one or more succeeding work centers before the pieces left behind are finished at the preceding work centers project - Answer an endeavor with a specific objectives to be met with predetermined time and dollar limitations and that has been assigned for definition and execution 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 project life cycle - Answer a set of project phases project phase - Answer a set of related activities that usually go together to define a project deliverable statement of work - Answer the first project planning document that should be prepared - it describes theurpose, history, deliverables, and measurable success indicators for a project - it captures the support required from the customer and identifies the contingency plans for events thcould throw the project off course project plan - Answer a document that has been apprved by upper management for use in executing and controlling a project - it ocuments assumptions, facilitates communication, and documents the approved budget and schedule work breakdown structure - Answer hierarchical description of a project in which each lower level is more detailed program evaluation and review - Answer a network analysis technique in which each activity is assigned a pessimistic most likely, and optimistic estimate of its duration - it computes a standard deviation of the estimate of project duration critical path method - Answer a network planning technique for the analysis of a project's completion time used for planning and controlling the activities in a project - by showing each of these activities and their associated times, the critical path, which identifies those elements that actually constrain the total time for the project, can be determined 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 scope creep - Answer the informal addition of unfunded features and services responsible procurement - Answer assuring the use of ethical sources of goods and services where a firm does business to bring about a positive impact and minimize the negative impact on scoieties and environments - including reduce, reuse, and recycling of materials