©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
CISM Chapter 10 Study Guide with Complete Solutions
Production Process Overview - Answer✔️✔️-The production process includes the
tasks/activities used by an organization to transform inputs (raw materials and/or
components) into outputs (products and services) that are valued by customers.
It is more complex than procurement and fulfillment processes and it is integrated
with both procurement and fulfillment in well-run businesses.
Because the production process creates (produces) goods/services that are valued
by customers, it is a core business process.
The production process is best understood within the context of operations in
Porter's Value Chain model.
Manufacturing - Answer✔️✔️-Manufacturing can be defined as the process of
converting raw materials, components, or parts into finished goods that are valued
by customers or meet customer expectations or specifications.
Manufacturing is undertaken to produce goods that customers will buy.
1
,©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
There are numerous types of manufacturing including assembly, discrete, process,
and repetitive manufacturing.
Assembly - Answer✔️✔️-Assembling involves putting components together to
produce a finished product.
Assembly lines have traditionally been common in automobile manufacturing (see
Figure 10-1).
The components used in assembling are often semi-finished goods produced and
supplied by other organizations.
A semi-finished good is an input used in the production of another good, including
a finished good.
Companies that make semi-finished goods may make them and then use them in
their production process or they may make them and then sell them to other
companies for use in their production processes.
Some companies buy (procure) all the semi-finished goods used to produce their
finished goods from other companies.
Discrete Manufacturing - Answer✔️✔️-Discrete manufacturing involves the
production of distinct, countable items.
2
,©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
Because individual items are produced by discrete manufacturing, a serial number
or unique identifier can be assigned or affixed to each item that is produced.
Automobiles, televisions, smart phones, appliances, and furniture are examples of
items produced by discrete manufacturing.
Process Manufacturing - Answer✔️✔️-Process manufacturing is the
manufacturing/production of finished goods by combining supplies and ingredients
according to formulas or recipes.
Examples of process manufacturing goods include food, beverages, gasoline,
pharmaceuticals, plastics, and chemicals.
Breweries, chemical plants, and oil refineries are examples of process
manufacturing facilities.
Repetitive Manufacturing - Answer✔️✔️-Repetitive manufacturing is a type of mass
production that makes high numbers of identical units in a continuous flow.
This is used to manufacture products that have a continuous and steady demand,
such as food products and medical supplies.
3
, ©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
A company may use repetitive manufacturing to produce its own products or to
produce products for other companies.
When producers are confident that their products will always be in demand, they
can invest in manufacturing equipment that is very fast and highly efficient.
Figure 10-4 illustrates repetitive manufacturing in a commercial brewery.
Manufacturing Strategy - Answer✔️✔️-An organization's manufacturing strategy
consists of the objectives and action plans implemented by its manufacturing
function to ensure medium- to long-term sustainable advantage its competitors.
Manufacturing strategy is a response to competitive forces in the external
environment, especially the operating and industry components of the external
environment.
The production and fulfillment processes are closely coupled in producer
organizations and their strategies share names.
Four common production/manufacturing strategies are make-to-stock (MTS),
make-to-order (MTO), assemble-to-order (ATO), and engineer-to-order (ETO).
MTS Production - Answer✔️✔️-The make-to-stock (MTS) production strategy is
driven by finished goods inventory levels.
4
CISM Chapter 10 Study Guide with Complete Solutions
Production Process Overview - Answer✔️✔️-The production process includes the
tasks/activities used by an organization to transform inputs (raw materials and/or
components) into outputs (products and services) that are valued by customers.
It is more complex than procurement and fulfillment processes and it is integrated
with both procurement and fulfillment in well-run businesses.
Because the production process creates (produces) goods/services that are valued
by customers, it is a core business process.
The production process is best understood within the context of operations in
Porter's Value Chain model.
Manufacturing - Answer✔️✔️-Manufacturing can be defined as the process of
converting raw materials, components, or parts into finished goods that are valued
by customers or meet customer expectations or specifications.
Manufacturing is undertaken to produce goods that customers will buy.
1
,©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
There are numerous types of manufacturing including assembly, discrete, process,
and repetitive manufacturing.
Assembly - Answer✔️✔️-Assembling involves putting components together to
produce a finished product.
Assembly lines have traditionally been common in automobile manufacturing (see
Figure 10-1).
The components used in assembling are often semi-finished goods produced and
supplied by other organizations.
A semi-finished good is an input used in the production of another good, including
a finished good.
Companies that make semi-finished goods may make them and then use them in
their production process or they may make them and then sell them to other
companies for use in their production processes.
Some companies buy (procure) all the semi-finished goods used to produce their
finished goods from other companies.
Discrete Manufacturing - Answer✔️✔️-Discrete manufacturing involves the
production of distinct, countable items.
2
,©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
Because individual items are produced by discrete manufacturing, a serial number
or unique identifier can be assigned or affixed to each item that is produced.
Automobiles, televisions, smart phones, appliances, and furniture are examples of
items produced by discrete manufacturing.
Process Manufacturing - Answer✔️✔️-Process manufacturing is the
manufacturing/production of finished goods by combining supplies and ingredients
according to formulas or recipes.
Examples of process manufacturing goods include food, beverages, gasoline,
pharmaceuticals, plastics, and chemicals.
Breweries, chemical plants, and oil refineries are examples of process
manufacturing facilities.
Repetitive Manufacturing - Answer✔️✔️-Repetitive manufacturing is a type of mass
production that makes high numbers of identical units in a continuous flow.
This is used to manufacture products that have a continuous and steady demand,
such as food products and medical supplies.
3
, ©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM
A company may use repetitive manufacturing to produce its own products or to
produce products for other companies.
When producers are confident that their products will always be in demand, they
can invest in manufacturing equipment that is very fast and highly efficient.
Figure 10-4 illustrates repetitive manufacturing in a commercial brewery.
Manufacturing Strategy - Answer✔️✔️-An organization's manufacturing strategy
consists of the objectives and action plans implemented by its manufacturing
function to ensure medium- to long-term sustainable advantage its competitors.
Manufacturing strategy is a response to competitive forces in the external
environment, especially the operating and industry components of the external
environment.
The production and fulfillment processes are closely coupled in producer
organizations and their strategies share names.
Four common production/manufacturing strategies are make-to-stock (MTS),
make-to-order (MTO), assemble-to-order (ATO), and engineer-to-order (ETO).
MTS Production - Answer✔️✔️-The make-to-stock (MTS) production strategy is
driven by finished goods inventory levels.
4
