NAFA MAINTENANCE
MANAGEMENT EXAM
QUESTIONS AND ANSWERS 2026 -
2027
1 Identify the advantages with just-in-time inventory. (p. 346) -
ANSWERS-are intended to keep minimal inventory in stock allowing
for smaller amounts of capital to be invested
2 Define ABC classification (p. 347) - ANSWERS-sorts items based on
the anticipated use and dollar value
3 When is it appropriate to use the Economic Order Quantity Method?
(p. 347) - ANSWERS-is to find a financial balance between the lowest
ordering cost and the carrying cost
4 Define carrying costs? (p. 347) - ANSWERS-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
5 Understand the differences with FIFO, LIFO and moving averages.
(p.348) - ANSWERS-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
6 Determine how to benchmark inventory. (p. 355) - ANSWERS-
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
7 Understand the process of Benchmarking and why it is important. (p.
362) - ANSWERS-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
8 What are the seven steps in the Benchmark Process? (p. 362) -
ANSWERS-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
9 What is the difference between Benchmarking and key performance
indicators (KPI's)? (p. 365) - ANSWERS-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
10 Understand how to tailor KPI's to your audience. (p. 366) -
ANSWERS-They provide a rational, quantifiable methodology with
which to evaluate performance and to compare that performance with
past performance and/or peer organizations
11 Understand how effectiveness is measured and ways to present the
information. (p. 368) - ANSWERS-If you aren't measuring performance,
how do you know if you (or your vendor) are doing a good job? Where
are you now, where do you want to be, and how are you going to get
there?
12 What does an exception report do? (p. 370) - ANSWERS-is a means
to leverage computing power to help with the task of monitoring data
accuracy as well as operational performance
13 What factors are fueling the maintenance outsourcing trend? ("p. 395
- ANSWERS-but ultimately is determined by what is most effective and
MANAGEMENT EXAM
QUESTIONS AND ANSWERS 2026 -
2027
1 Identify the advantages with just-in-time inventory. (p. 346) -
ANSWERS-are intended to keep minimal inventory in stock allowing
for smaller amounts of capital to be invested
2 Define ABC classification (p. 347) - ANSWERS-sorts items based on
the anticipated use and dollar value
3 When is it appropriate to use the Economic Order Quantity Method?
(p. 347) - ANSWERS-is to find a financial balance between the lowest
ordering cost and the carrying cost
4 Define carrying costs? (p. 347) - ANSWERS-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
5 Understand the differences with FIFO, LIFO and moving averages.
(p.348) - ANSWERS-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
6 Determine how to benchmark inventory. (p. 355) - ANSWERS-
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
7 Understand the process of Benchmarking and why it is important. (p.
362) - ANSWERS-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
8 What are the seven steps in the Benchmark Process? (p. 362) -
ANSWERS-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
9 What is the difference between Benchmarking and key performance
indicators (KPI's)? (p. 365) - ANSWERS-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
10 Understand how to tailor KPI's to your audience. (p. 366) -
ANSWERS-They provide a rational, quantifiable methodology with
which to evaluate performance and to compare that performance with
past performance and/or peer organizations
11 Understand how effectiveness is measured and ways to present the
information. (p. 368) - ANSWERS-If you aren't measuring performance,
how do you know if you (or your vendor) are doing a good job? Where
are you now, where do you want to be, and how are you going to get
there?
12 What does an exception report do? (p. 370) - ANSWERS-is a means
to leverage computing power to help with the task of monitoring data
accuracy as well as operational performance
13 What factors are fueling the maintenance outsourcing trend? ("p. 395
- ANSWERS-but ultimately is determined by what is most effective and
