NAFA Maintenance Management
4.1.1 Identify the advantages with just-in-time inventory. (p. 346) -
Correct Answer ✔ ✔ are intended to keep minimal inventory in
stock allowing for smaller amounts of capital to be invested
4.1.2 Define ABC classification (p. 347) - Correct Answer ✔ ✔
sorts items based on the anticipated use and dollar value
4.1.3 When is it appropriate to use the Economic Order Quantity
Method? (p. 347) - Correct Answer ✔ ✔ is to find a financial
balance between the lowest ordering cost and the carrying cost
4.1.4 Define carrying costs? (p. 347) - Correct Answer ✔ ✔ can
include such items as, personnel, insurance on inventory held, the
cost of warehousing, taxes, interest on the inventory if it is financed,
if the inventory is not financed there is anopportunity cost for
investment, the cost of utilities, depreciation of items such as racks
and bins and material handling equipment
,4.1.6 Understand the differences with FIFO, LIFO and moving
averages. (p.348) - Correct Answer ✔ ✔ Last In, First Out (LIFO) -
meaning the most recent price paid for this item would be the price
charged against the work order. First In, First Out - (FIFO) meaning the
price of the oldest part in stock is the price charged against the work
order. Moving Average - meaning the average price of those items
held as stock is charged
4.1.7 Determine how to benchmark inventory. (p. 355) - Correct
Answer ✔ ✔ Inventory Turnover, Parts Obtained on Demand,
Percentage of Line items with Zero usage over the past 12 months,
Cost per VEU, Value of Parts per Veu, Value of Parts in Inventory
Inventory Variance
5.1.1 Understand the process of Benchmarking and why it is
important. (p. 362) - Correct Answer ✔ ✔ Benchmarking can be
used to develop an understanding of fleet conditions and
, performance attributes that cannot be attained through first-hand
observation or second-hand information
5.1.2 What are the seven steps in the Benchmark Process? (p. 362) -
Correct Answer ✔ ✔ 1. Define Objectives 2. Define Performance
Measures 3. Collect Data & Measure Performance 4. Evaluate
Condition & Practice 5. Survey Peers 6. Compare Practices 7.
(Re)Engineer Processes
5.1.3 What is the difference between Benchmarking and key
performance indicators (KPI's)? (p. 365) - Correct Answer ✔ ✔
benchmarking is a process used in management to evaluate certain
aspects of processes in relation to industry best practices,
performance metrics can be defined as a system of parameters or
ways of quantitative and periodic assessment of a process that is to
be measured, as well as the system to carry out and assess such
measurements
4.1.1 Identify the advantages with just-in-time inventory. (p. 346) -
Correct Answer ✔ ✔ are intended to keep minimal inventory in
stock allowing for smaller amounts of capital to be invested
4.1.2 Define ABC classification (p. 347) - Correct Answer ✔ ✔
sorts items based on the anticipated use and dollar value
4.1.3 When is it appropriate to use the Economic Order Quantity
Method? (p. 347) - Correct Answer ✔ ✔ is to find a financial
balance between the lowest ordering cost and the carrying cost
4.1.4 Define carrying costs? (p. 347) - Correct Answer ✔ ✔ can
include such items as, personnel, insurance on inventory held, the
cost of warehousing, taxes, interest on the inventory if it is financed,
if the inventory is not financed there is anopportunity cost for
investment, the cost of utilities, depreciation of items such as racks
and bins and material handling equipment
,4.1.6 Understand the differences with FIFO, LIFO and moving
averages. (p.348) - Correct Answer ✔ ✔ Last In, First Out (LIFO) -
meaning the most recent price paid for this item would be the price
charged against the work order. First In, First Out - (FIFO) meaning the
price of the oldest part in stock is the price charged against the work
order. Moving Average - meaning the average price of those items
held as stock is charged
4.1.7 Determine how to benchmark inventory. (p. 355) - Correct
Answer ✔ ✔ Inventory Turnover, Parts Obtained on Demand,
Percentage of Line items with Zero usage over the past 12 months,
Cost per VEU, Value of Parts per Veu, Value of Parts in Inventory
Inventory Variance
5.1.1 Understand the process of Benchmarking and why it is
important. (p. 362) - Correct Answer ✔ ✔ Benchmarking can be
used to develop an understanding of fleet conditions and
, performance attributes that cannot be attained through first-hand
observation or second-hand information
5.1.2 What are the seven steps in the Benchmark Process? (p. 362) -
Correct Answer ✔ ✔ 1. Define Objectives 2. Define Performance
Measures 3. Collect Data & Measure Performance 4. Evaluate
Condition & Practice 5. Survey Peers 6. Compare Practices 7.
(Re)Engineer Processes
5.1.3 What is the difference between Benchmarking and key
performance indicators (KPI's)? (p. 365) - Correct Answer ✔ ✔
benchmarking is a process used in management to evaluate certain
aspects of processes in relation to industry best practices,
performance metrics can be defined as a system of parameters or
ways of quantitative and periodic assessment of a process that is to
be measured, as well as the system to carry out and assess such
measurements
