APICS CPIM Part 2 questions and answers
with solutions
14 Points - ANSWER W. Edwards Deming's 14 management practices to
help companies increase their quality and productivity
A3 Method - ANSWER A means of compactly describing a business
process
Abnormal Demand - ANSWER Demand in any period that is outside the
limits established by management policy
Absorption Costing - ANSWER An approach to inventory valuation in
which variable costs and a portion of fixed costs are assigned to each
unit production.
Acceptable Quality Level (AQL) - ANSWER When a continuing series of
lots is considered, a quality level that, for the purposes of sampling
inspection, is the limit of a satisfactory process average
Acceptance Sampling - ANSWER the process of sampling a portion of
goods for inspection rather than examining the entire lot
,Action Message - ANSWER An output of a system that identifies the need
for, and the type of action to be taken to correct, a current or potential
problem.
Activation - ANSWER Putting a resource to work
Activity-Based Cost Accounting - ANSWER A cost accounting system that
accumulates costs based on activities performed and then uses cost
drivers to allocate these costs to products or other bases such as
customers, markets, or projects. It attempts to allo cate overhead costs
on a more realistic basis than by using direct labor or machine hours
Activity-Based Management (ABM) - ANSWER The use of activity-based
costing information about cost pools and drivers, activity analysis, and
business processes to identify business strategies; improve design,
manufacturing, and distribution; and remove waste from operations
Actual Costs - ANSWER The labor, material, and associated overhead
costs that are charged against a job as it moves through the production
process
Actual Demand - ANSWER Composed of customer orders (and often
allocation of items, ingredients or raw materials to production or
distribution). Nets against or chosen over a time horizon.
Adaptive Smoothing - ANSWER A form of exponential smoothing in
which the smoothing constant is automatically adjusted as a function of
forecast error measurement
,Adjustable Capacity - ANSWER Capacity, such as labor or tools, that can
be changed in the short term
Advanced planning and scheduling (APS)/Advanced Planning Systems
(APS) - ANSWER Techniques that deal with analysis and planning of
logistics and manufacturing during short, intermediate, and long -term
time periods.
Aggregate Forecast - ANSWER An estimate of sales, often time-phrased,
for a grouping of products or product families produced by a facility or
firm. Stated in terms of units, dollars, or both, the aggregate forecast is
used for sales and production planning purposes
Aggregate Plan - ANSWER A plan that includes budgeted levels of
finished goods, inventory, production backlogs, and changes in the
workforce to support the production strategy. Aggregated information
rather than product information is used
Agility - ANSWER The ability to quickly plan, source, make, and deliver to
adapt and respond to changes in the competitive environment. It is a
SCOR performance attribute that includes product or service flexibility
(speedy introduction of new products and services), mix flexibility
(ability to quickly change products or services offered), volume flexibility
(ability to service large order quantities), and delivery flexibility (ability
to quickly change delivery dates to meet new requirements)
, Allocation - ANSWER The classification of resources or items quantities
that have been assigned to specific orders but have not yet been
released from the stockroom to production. It is an "uncashed"
stockroom requisition. 2. A process used to distribute m aterial in short
supply
Alpha Factor/Smoothing Constant - ANSWER In exponential smoothing,
the weighting factor that is applied to the most recent demand,
observation, or error
Alternate Operation - ANSWER Replacement for a normal step in the
manufacturing process
Alternate Routing - ANSWER A routing that is usually less preferred than
the primary routing but results in an identical item. Alternate routings
may be maintained in the computer or off-line via manual methods, but
the computer software must be able to accept alternate routings for
specific jobs
Analysis of Variance (ANOVA) - ANSWER A statistical analysis system that
estimates what portion of variation in a dependent variable is caused by
variation in one or more independent variables. It also produces a
number used to infer whether any or all of the independent-dependent
variable relationships have statistical significance
Andon - ANSWER A sign board with signal lights used to make workers
and management aware of a quality, quantity, or process problem
with solutions
14 Points - ANSWER W. Edwards Deming's 14 management practices to
help companies increase their quality and productivity
A3 Method - ANSWER A means of compactly describing a business
process
Abnormal Demand - ANSWER Demand in any period that is outside the
limits established by management policy
Absorption Costing - ANSWER An approach to inventory valuation in
which variable costs and a portion of fixed costs are assigned to each
unit production.
Acceptable Quality Level (AQL) - ANSWER When a continuing series of
lots is considered, a quality level that, for the purposes of sampling
inspection, is the limit of a satisfactory process average
Acceptance Sampling - ANSWER the process of sampling a portion of
goods for inspection rather than examining the entire lot
,Action Message - ANSWER An output of a system that identifies the need
for, and the type of action to be taken to correct, a current or potential
problem.
Activation - ANSWER Putting a resource to work
Activity-Based Cost Accounting - ANSWER A cost accounting system that
accumulates costs based on activities performed and then uses cost
drivers to allocate these costs to products or other bases such as
customers, markets, or projects. It attempts to allo cate overhead costs
on a more realistic basis than by using direct labor or machine hours
Activity-Based Management (ABM) - ANSWER The use of activity-based
costing information about cost pools and drivers, activity analysis, and
business processes to identify business strategies; improve design,
manufacturing, and distribution; and remove waste from operations
Actual Costs - ANSWER The labor, material, and associated overhead
costs that are charged against a job as it moves through the production
process
Actual Demand - ANSWER Composed of customer orders (and often
allocation of items, ingredients or raw materials to production or
distribution). Nets against or chosen over a time horizon.
Adaptive Smoothing - ANSWER A form of exponential smoothing in
which the smoothing constant is automatically adjusted as a function of
forecast error measurement
,Adjustable Capacity - ANSWER Capacity, such as labor or tools, that can
be changed in the short term
Advanced planning and scheduling (APS)/Advanced Planning Systems
(APS) - ANSWER Techniques that deal with analysis and planning of
logistics and manufacturing during short, intermediate, and long -term
time periods.
Aggregate Forecast - ANSWER An estimate of sales, often time-phrased,
for a grouping of products or product families produced by a facility or
firm. Stated in terms of units, dollars, or both, the aggregate forecast is
used for sales and production planning purposes
Aggregate Plan - ANSWER A plan that includes budgeted levels of
finished goods, inventory, production backlogs, and changes in the
workforce to support the production strategy. Aggregated information
rather than product information is used
Agility - ANSWER The ability to quickly plan, source, make, and deliver to
adapt and respond to changes in the competitive environment. It is a
SCOR performance attribute that includes product or service flexibility
(speedy introduction of new products and services), mix flexibility
(ability to quickly change products or services offered), volume flexibility
(ability to service large order quantities), and delivery flexibility (ability
to quickly change delivery dates to meet new requirements)
, Allocation - ANSWER The classification of resources or items quantities
that have been assigned to specific orders but have not yet been
released from the stockroom to production. It is an "uncashed"
stockroom requisition. 2. A process used to distribute m aterial in short
supply
Alpha Factor/Smoothing Constant - ANSWER In exponential smoothing,
the weighting factor that is applied to the most recent demand,
observation, or error
Alternate Operation - ANSWER Replacement for a normal step in the
manufacturing process
Alternate Routing - ANSWER A routing that is usually less preferred than
the primary routing but results in an identical item. Alternate routings
may be maintained in the computer or off-line via manual methods, but
the computer software must be able to accept alternate routings for
specific jobs
Analysis of Variance (ANOVA) - ANSWER A statistical analysis system that
estimates what portion of variation in a dependent variable is caused by
variation in one or more independent variables. It also produces a
number used to infer whether any or all of the independent-dependent
variable relationships have statistical significance
Andon - ANSWER A sign board with signal lights used to make workers
and management aware of a quality, quantity, or process problem
