CPIM Prep Exam with Complete
Solutions
Scheduling - ANS-The act of creating a schedule, such as a shipping schedule, master
production schedule, maintenance schedule, or supplier schudule
Master Schedule - ANS-Format that includes time periods (dates), forecast, customer
orders, projected available balance, available-2-promise, and MPS; takes into account
forecast, production plan, & other important considerations like backlog, material
availability, available capacity, & mgmt goals
Master Scheduling - ANS-The process where the master schedule is generated and
reviewed and adjustments are made to the master production schedule to ensure
consistency with the production plan.
Master Production Schedule (MPS) - ANS-Line on the master schedule grid that reflects
the anticipated build schedule for those items assigned to the master scheduler; master
scheduler maintains schedule, and it becomes a set of planning numbers that drives
MRP; represents what the company plans to produce expressed in specific
configurations, quantities, and dates
Master Scheduler - ANS-Often the job title of the person charged with the responsibility
of managing, establishing, reviewing, and maintaining a master schedule for select
items. Ideally, the person should have substantial product, plant, process, and market
knowledge because the consequences of this individual's actions often have a great
impact on customer service, material, and capacity planning. See: master production
schedule.
Backlog - ANS-all customer orders received, but not yet shipped. Includes backorders
Backorder - ANS-Past due customer orders or commitments. Must be replanned
Sales Plan - ANS-Time phased statement of expected customer orders anticipated to
be received for each major product family or item; represents ales & mktg's commitment
to take all reasonable steps necessary to achieve level of actual customer orders
Production Planning - ANS-A process to develop tactical plans based on setting the
overall level of manufacturing output (production plan) and other activities to best satisfy
the current planned levels of sales (sales plan or forecasts), while meeting general
business objectives of profitability, productivity, competitive customer lead times, and so
on, as expressed in the overall business plan. The sales and production capabilities are
,compared, and a business strategy that includes a sales plan, a production plan,
budgets, pro forma financial statements, and supporting plans for materials and
workforce requirements, and so on, is developed. One of its primary purposes is to
establish production rates that will achieve management's objective of satisfying
customer demand by maintaining, raising, or lowering inventories or backlogs, while
usually attempting to keep the workforce relatively stable. Because this plan affects
many company functions, it is normally prepared with information from marketing and
coordinated with the functions of manufacturing, sales, engineering, finance, materials,
and so on.
See: aggregate planning, production plan, sales and operations planning, sales plan.
Production Plan - ANS-Agreed-upon plan that comes from production planning (S&OP)
process, specifically the overall level of manufacturing output planned to be produced,
usually stated as a monthly rate for each product family; various UOM can be used to
express plan: units, tonnage, standard hours, # of workers, etc.; managements
authorization for the master scheduler to convert it into a more detailed plan
From less planning detail (longer term) to more planning detail (shorter term) What is
the planning hierarchy? - ANS-Strategic planning, business planning, demand
management, sales and operations plan, master scheduling
What does MAD stand for? - ANS-Mean Absolute Deviation
What are the 4 marketing mix P's? - ANS-Product, price, promotion, place
What are the 6 "Rights" of logistics? - ANS-Right goods and services
Right quality
Right quantity
Right time
Right place
Right cost
Participative Design/Engineering - ANS-A concept that refers to the simultaneous
participation of all the functional areas of the firm in the product design activity.
Suppliers and customers are often also included. The intent is to enhance the design
with the inputs of all the key stakeholders. Such a process should ensure that the final
design meets all the needs of the stakeholders and should ensure a product that can be
quickly brought to the marketplace while maximizing quality and minimizing costs.
Synonym: co-design, concurrent design, concurrent engineering, new product
development team, parallel engineering, simultaneous design/engineering,
simultaneous engineering, team design/ engineering.
See: early manufacturing involvement.
,takt time - ANS-cycle time needed to match the rate of production to the rate of sales or
consumption
Daily demand rate = daily production rate
Heijunka - ANS-In just-in-time philosophy, an approach to level production throughout
the supply chain to match the planned rate of end product sales.
Heijunka scheduling may use a type of kanban called a heijunka box to signal when to
shift between unit types. It does this by breaking the "box" into time slots equal to takt
time. The result is that lean will often have much smaller batch sizes, with an ideal being
a batch size of one. As fits with this one-piece flow, often master schedules will use
daily time buckets rather than weekly to better schedule an uninterrupted flow to each
workstation.
Gemba - ANS-the place where humans create value; the real workplace
Genchi Genbutsu - ANS-A Japanese phrase meaning visit the shop floor to observe
what is occurring.
Andon - ANS-A sign board with signal lights used to make workers and management
aware of a quality, quantity, or process problem.
poka-yoke - ANS-mistake-proofing methods aimed at designing fail-safe systems that
minimize human error
Jidoka - ANS-automation with human mind -- practice of stopping production when
defect occurs
Key performance indicators (KPIs) - ANS-a financial or nonfinancial measure that is
used to define and assess progress toward specific organizational goals and typically is
tied to an organizations strategy and business stakholders
Supply Chain Operations Reference (SCOR) Model - ANS-A process reference model
developed by the Supply Chain Council and endorsed by the Association for Supply
Chain Management (ASCM) as the standard cross-industry diagnostic tool for supply
chain management. The SCOR model describes the business activities associated with
satisfying a customer's demand, which plan, source, make, deliver, return, and enable.
Developed a set of metrics for supply chain performance.
Balanced Scorecard - ANS-A list of financial and operational measurements used to
evaluate organizational or supply chain performance. The dimensions of the balanced
scorecard might include customer perspective, business process perspective, financial
perspective innovation and learning perspectives.
Formally connects overall objectives, strategies, and measurements
, Bullwhip Effect - ANS-When a retailer has some minor fluctuation in demand, it might
order a little more than the average demand after a stockout or not order at all when
there is a surplus. If these orders are all the distributor has to go on and multiple
retailers are creating a wider shift between minimum and maximum orders, then the
distributor may also continue this trend of wide swings in orders. Sales promotions that
are not communicated can exacerbate this effect.
Communicating information on actual demand rather than orders as well as planned
promotions in safety stock can prevent this occurrence or lesson its effect.
Materials Management - ANS-Coordinating function that must balance the conflicting
objectives of marketing, production, and finance by managing the flow of materials
Strategic (Long term goals)
Tactical (Intermediate goals)
Operational (Daily work routines) - ANS-What are the 3 types of KPI's?
Tactical plans - ANS-The set of functional plans (e.g., production plan, sales plan,
marketing plan) synchronizing activities across functions that specify production levels,
capacity levels, staffing levels, funding levels, and so on, for achieving the intermediate
goals and objectives to support the organization's strategic plan.
See: aggregate planning, operational plan, production planning, sales and operations
planning, strategic plan, tactical planning.
Logistics - ANS--1) In a supply chain management context, it is the subset of supply
chain management that controls the forward and reverse movement, handling, and
storage of goods between origin and distribution points. 2) In an industrial context, the
art and science of obtaining, producing, and distributing material and product in the
proper place and in proper quantities. 3) In a military sense (where it has greater
usage), its meaning can also include the movement of personnel.
Risk Management - ANS-The identification, assessment, and prioritization of risks
followed by coordinated and economical application of resources to minimize, monitor,
and control the probability and/or impact of unfortunate events or to maximize the
realization of opportunities
value - ANS-The worth of an item, good or service
Operations Management - ANS-the planning, scheduling, and control of the activities
that transform inputs into finished goods and services
Solutions
Scheduling - ANS-The act of creating a schedule, such as a shipping schedule, master
production schedule, maintenance schedule, or supplier schudule
Master Schedule - ANS-Format that includes time periods (dates), forecast, customer
orders, projected available balance, available-2-promise, and MPS; takes into account
forecast, production plan, & other important considerations like backlog, material
availability, available capacity, & mgmt goals
Master Scheduling - ANS-The process where the master schedule is generated and
reviewed and adjustments are made to the master production schedule to ensure
consistency with the production plan.
Master Production Schedule (MPS) - ANS-Line on the master schedule grid that reflects
the anticipated build schedule for those items assigned to the master scheduler; master
scheduler maintains schedule, and it becomes a set of planning numbers that drives
MRP; represents what the company plans to produce expressed in specific
configurations, quantities, and dates
Master Scheduler - ANS-Often the job title of the person charged with the responsibility
of managing, establishing, reviewing, and maintaining a master schedule for select
items. Ideally, the person should have substantial product, plant, process, and market
knowledge because the consequences of this individual's actions often have a great
impact on customer service, material, and capacity planning. See: master production
schedule.
Backlog - ANS-all customer orders received, but not yet shipped. Includes backorders
Backorder - ANS-Past due customer orders or commitments. Must be replanned
Sales Plan - ANS-Time phased statement of expected customer orders anticipated to
be received for each major product family or item; represents ales & mktg's commitment
to take all reasonable steps necessary to achieve level of actual customer orders
Production Planning - ANS-A process to develop tactical plans based on setting the
overall level of manufacturing output (production plan) and other activities to best satisfy
the current planned levels of sales (sales plan or forecasts), while meeting general
business objectives of profitability, productivity, competitive customer lead times, and so
on, as expressed in the overall business plan. The sales and production capabilities are
,compared, and a business strategy that includes a sales plan, a production plan,
budgets, pro forma financial statements, and supporting plans for materials and
workforce requirements, and so on, is developed. One of its primary purposes is to
establish production rates that will achieve management's objective of satisfying
customer demand by maintaining, raising, or lowering inventories or backlogs, while
usually attempting to keep the workforce relatively stable. Because this plan affects
many company functions, it is normally prepared with information from marketing and
coordinated with the functions of manufacturing, sales, engineering, finance, materials,
and so on.
See: aggregate planning, production plan, sales and operations planning, sales plan.
Production Plan - ANS-Agreed-upon plan that comes from production planning (S&OP)
process, specifically the overall level of manufacturing output planned to be produced,
usually stated as a monthly rate for each product family; various UOM can be used to
express plan: units, tonnage, standard hours, # of workers, etc.; managements
authorization for the master scheduler to convert it into a more detailed plan
From less planning detail (longer term) to more planning detail (shorter term) What is
the planning hierarchy? - ANS-Strategic planning, business planning, demand
management, sales and operations plan, master scheduling
What does MAD stand for? - ANS-Mean Absolute Deviation
What are the 4 marketing mix P's? - ANS-Product, price, promotion, place
What are the 6 "Rights" of logistics? - ANS-Right goods and services
Right quality
Right quantity
Right time
Right place
Right cost
Participative Design/Engineering - ANS-A concept that refers to the simultaneous
participation of all the functional areas of the firm in the product design activity.
Suppliers and customers are often also included. The intent is to enhance the design
with the inputs of all the key stakeholders. Such a process should ensure that the final
design meets all the needs of the stakeholders and should ensure a product that can be
quickly brought to the marketplace while maximizing quality and minimizing costs.
Synonym: co-design, concurrent design, concurrent engineering, new product
development team, parallel engineering, simultaneous design/engineering,
simultaneous engineering, team design/ engineering.
See: early manufacturing involvement.
,takt time - ANS-cycle time needed to match the rate of production to the rate of sales or
consumption
Daily demand rate = daily production rate
Heijunka - ANS-In just-in-time philosophy, an approach to level production throughout
the supply chain to match the planned rate of end product sales.
Heijunka scheduling may use a type of kanban called a heijunka box to signal when to
shift between unit types. It does this by breaking the "box" into time slots equal to takt
time. The result is that lean will often have much smaller batch sizes, with an ideal being
a batch size of one. As fits with this one-piece flow, often master schedules will use
daily time buckets rather than weekly to better schedule an uninterrupted flow to each
workstation.
Gemba - ANS-the place where humans create value; the real workplace
Genchi Genbutsu - ANS-A Japanese phrase meaning visit the shop floor to observe
what is occurring.
Andon - ANS-A sign board with signal lights used to make workers and management
aware of a quality, quantity, or process problem.
poka-yoke - ANS-mistake-proofing methods aimed at designing fail-safe systems that
minimize human error
Jidoka - ANS-automation with human mind -- practice of stopping production when
defect occurs
Key performance indicators (KPIs) - ANS-a financial or nonfinancial measure that is
used to define and assess progress toward specific organizational goals and typically is
tied to an organizations strategy and business stakholders
Supply Chain Operations Reference (SCOR) Model - ANS-A process reference model
developed by the Supply Chain Council and endorsed by the Association for Supply
Chain Management (ASCM) as the standard cross-industry diagnostic tool for supply
chain management. The SCOR model describes the business activities associated with
satisfying a customer's demand, which plan, source, make, deliver, return, and enable.
Developed a set of metrics for supply chain performance.
Balanced Scorecard - ANS-A list of financial and operational measurements used to
evaluate organizational or supply chain performance. The dimensions of the balanced
scorecard might include customer perspective, business process perspective, financial
perspective innovation and learning perspectives.
Formally connects overall objectives, strategies, and measurements
, Bullwhip Effect - ANS-When a retailer has some minor fluctuation in demand, it might
order a little more than the average demand after a stockout or not order at all when
there is a surplus. If these orders are all the distributor has to go on and multiple
retailers are creating a wider shift between minimum and maximum orders, then the
distributor may also continue this trend of wide swings in orders. Sales promotions that
are not communicated can exacerbate this effect.
Communicating information on actual demand rather than orders as well as planned
promotions in safety stock can prevent this occurrence or lesson its effect.
Materials Management - ANS-Coordinating function that must balance the conflicting
objectives of marketing, production, and finance by managing the flow of materials
Strategic (Long term goals)
Tactical (Intermediate goals)
Operational (Daily work routines) - ANS-What are the 3 types of KPI's?
Tactical plans - ANS-The set of functional plans (e.g., production plan, sales plan,
marketing plan) synchronizing activities across functions that specify production levels,
capacity levels, staffing levels, funding levels, and so on, for achieving the intermediate
goals and objectives to support the organization's strategic plan.
See: aggregate planning, operational plan, production planning, sales and operations
planning, strategic plan, tactical planning.
Logistics - ANS--1) In a supply chain management context, it is the subset of supply
chain management that controls the forward and reverse movement, handling, and
storage of goods between origin and distribution points. 2) In an industrial context, the
art and science of obtaining, producing, and distributing material and product in the
proper place and in proper quantities. 3) In a military sense (where it has greater
usage), its meaning can also include the movement of personnel.
Risk Management - ANS-The identification, assessment, and prioritization of risks
followed by coordinated and economical application of resources to minimize, monitor,
and control the probability and/or impact of unfortunate events or to maximize the
realization of opportunities
value - ANS-The worth of an item, good or service
Operations Management - ANS-the planning, scheduling, and control of the activities
that transform inputs into finished goods and services
