CPIM Module 1 H
What risk may occur as operations capabilities are expanded?
Product baseline costs may fall.
Product baseline costs may rise.
The market may out-demand the operation, or the operation may outperform the
market.
Quality may suffer as throughput increases. - answer The market may out-demand the
operation, or the operation may outperform the market.
What are the two different types of performance targets that should be used to achieve
organizational stretch objectives?
Operational and personal
Financial and strategic
Tactical and financial
Strategic and tactical - answer Financial and strategic
Which lead/lag strategy tends to increase cash requirements?
Lead capacity only
Lag capacity only
Both lead capacity and lag capacity when lag capacity is combined with inventory
stockpiling
Both lead capacity and lag capacity regardless of the inventory strategy - answerBoth
lead capacity and lag capacity when lag capacity is combined with inventory stockpiling
A company that chooses to implement increases in existing manufacturing capacity in
anticipation of demand is following:
a compete-with-lowest-cost strategy.
a lead capacity strategy.
a conservative fiscal strategy.
a compete-with-innovation strategy. - answera lead capacity strategy.
A market leader in systems computing fails to adapt to market trends for smaller
devices and cloud computing. This reveals a poor assessment process concerning its:
strengths, weaknesses, opportunities, and threats (SWOT) analyses.
monthly sales and operations planning (S&OP).
executive dashboard capabilities.
operations strategy. - answeroperations strategy.
Under a high volume and low variety strategy, products usually compete with:
high prices.
low prices.
manufacturing flexibility.
, skilled labor. - answerlow prices.
If suppliers and customers seek to reduce inventories and retain service, they will likely
find success with:
the use of open bid auctions.
statistically calculating product lead time.
increased customer involvement in the supplier's day-to-day planning and control.
long-term purchase agreements. - answerincreased customer involvement in the
supplier's day-to-day planning and control.
A company that chooses to see reduced revenue while postponing increases in existing
manufacturing capacity is following:
good manufacturing practices (GMP).
a revenue-neutral strategy.
a non-innovator strategy.
a lag capacity strategy. - answera lag capacity strategy.
When strategically aligning operational capabilities with market needs, caution must be
exercised so that:
employee staffing is soft enough so that a good amount of overtime will be necessary.
operations capabilities are 100% aligned with all market forecasts.
capabilities are not so tightly aligned as to offer little to no room for response flexibility.
all capital projects are completely approved and aligned with the most optimistic market
forecast. - answercapabilities are not so tightly aligned as to offer little to no room for
response flexibility.
Which of the following is true of internal initiatives that enhance existing order qualifiers?
They should be driven by the voice of the customer.
They are most appropriately prioritized using customer feedback.
They will likely increase business.
They are unlikely to provide much competitive benefit. - answerThey are unlikely to
provide much competitive benefit.
Operations strategy formulation should be:
a monthly seven-step process involving top management.
a relatively infrequent event.
an annual process with quarterly adjustments.
a five-year rolling activity updated biannually. - answera relatively infrequent event.
What do companies often use to sustain financial objectives matched with strategic
objectives?
Total market capitalization value of the company
Ratio of earnings per share and stock price
Balance sheet
Balanced scorecard - answerBalanced scorecard
What risk may occur as operations capabilities are expanded?
Product baseline costs may fall.
Product baseline costs may rise.
The market may out-demand the operation, or the operation may outperform the
market.
Quality may suffer as throughput increases. - answer The market may out-demand the
operation, or the operation may outperform the market.
What are the two different types of performance targets that should be used to achieve
organizational stretch objectives?
Operational and personal
Financial and strategic
Tactical and financial
Strategic and tactical - answer Financial and strategic
Which lead/lag strategy tends to increase cash requirements?
Lead capacity only
Lag capacity only
Both lead capacity and lag capacity when lag capacity is combined with inventory
stockpiling
Both lead capacity and lag capacity regardless of the inventory strategy - answerBoth
lead capacity and lag capacity when lag capacity is combined with inventory stockpiling
A company that chooses to implement increases in existing manufacturing capacity in
anticipation of demand is following:
a compete-with-lowest-cost strategy.
a lead capacity strategy.
a conservative fiscal strategy.
a compete-with-innovation strategy. - answera lead capacity strategy.
A market leader in systems computing fails to adapt to market trends for smaller
devices and cloud computing. This reveals a poor assessment process concerning its:
strengths, weaknesses, opportunities, and threats (SWOT) analyses.
monthly sales and operations planning (S&OP).
executive dashboard capabilities.
operations strategy. - answeroperations strategy.
Under a high volume and low variety strategy, products usually compete with:
high prices.
low prices.
manufacturing flexibility.
, skilled labor. - answerlow prices.
If suppliers and customers seek to reduce inventories and retain service, they will likely
find success with:
the use of open bid auctions.
statistically calculating product lead time.
increased customer involvement in the supplier's day-to-day planning and control.
long-term purchase agreements. - answerincreased customer involvement in the
supplier's day-to-day planning and control.
A company that chooses to see reduced revenue while postponing increases in existing
manufacturing capacity is following:
good manufacturing practices (GMP).
a revenue-neutral strategy.
a non-innovator strategy.
a lag capacity strategy. - answera lag capacity strategy.
When strategically aligning operational capabilities with market needs, caution must be
exercised so that:
employee staffing is soft enough so that a good amount of overtime will be necessary.
operations capabilities are 100% aligned with all market forecasts.
capabilities are not so tightly aligned as to offer little to no room for response flexibility.
all capital projects are completely approved and aligned with the most optimistic market
forecast. - answercapabilities are not so tightly aligned as to offer little to no room for
response flexibility.
Which of the following is true of internal initiatives that enhance existing order qualifiers?
They should be driven by the voice of the customer.
They are most appropriately prioritized using customer feedback.
They will likely increase business.
They are unlikely to provide much competitive benefit. - answerThey are unlikely to
provide much competitive benefit.
Operations strategy formulation should be:
a monthly seven-step process involving top management.
a relatively infrequent event.
an annual process with quarterly adjustments.
a five-year rolling activity updated biannually. - answera relatively infrequent event.
What do companies often use to sustain financial objectives matched with strategic
objectives?
Total market capitalization value of the company
Ratio of earnings per share and stock price
Balance sheet
Balanced scorecard - answerBalanced scorecard
