CPIM Part 1 Exam with Accurate
Solutions
Forecasters, and users of forecasts, utilize information on forecast accuracy to
understand the reliability and relevance of the data as it is used to determine demand
characteristics, variation, and stability. - correct Answer-Forecasters
Flow manufacturing produces high-volume standard products, so work centers are
dedicated to producing similar products.
Flow manufacturing is concerned with the production of a small number of high-volume
standard products produced repetitively or in a continuous manufacturing environment. -
correct Answer-Flow manufacturing
Resource planning addresses capacity planning conducted at the business plan level.
Resource planning can add value to the strategic plan by, for example, validating the
need and timing of capacity requirements and by recommending whether to expand
capacity in advance of need all at once, expand capacity incrementally in steps, or to
lag behind the need. - correct Answer-Resource planning
Three critical functions within demand management include marketing management,
customer relationship management, and demand planning.
Demand management is the overall function of recognizing all demands for goods and
services to support the marketplace. Forecasting is an aspect of demand management
that is assumed in the correct answer. - correct Answer-Demand management
In every system there is one weakest link - the constraint that limits the system from
achieving higher levels of its goal.
In the theory of constraints (TOC) philosophy, the term the weakest link is used to
describe the resource with the least throughput in the system. - correct Answer-
Weakest link
Distribution inventory includes all finished goods inventory at any point in the distribution
system. Distribution inventories create a time value by placing the product close to the
customer.
Distribution inventory typically includes spare parts and finished goods, located in the
distribution system (e.g., in warehouses, in-transit between warehouses and the
consumer).
,The term used to describe inventory in a network of warehouse, in-transit between
warehouses and the consumer is called distribution inventory.
This is the value of all finished goods at any point in the physical distribution channel(s).
It is often the second largest part of distribution costs. - correct Answer-Distribution
inventories
Jidoka is the Japanese term for the practice of stopping the production line when a
defect occurs. - correct Answer-Jidoka
The chase production method seeks to keep inventory levels stable while varying
production levels based on demand. This method typically has higher costs associated
with varying staffing and overtime. - correct Answer-Chase production method
Customers purchase finished goods in a make-to-stock environment. Raw materials
and component inventories are used to make finished goods and are not normally sold.
Work-in-process inventory refers to items in the process of being converted into finished
goods.
In a make-to-stock environment, the delivery lead time would be from the time the order
is received to the time the product reaches the customer; no design, manufacturing or
assembly would be required.
If the design, purchase, inventory, manufacturing, assembly and ship time are the
same, the delivery lead time is least in a make-to-stock environment. - correct Answer-
Make-to-stock
An organization's vision describes the organization as it would appear in a future
successful state.
The shared perception of the organization's future, or what the organization will achieve,
is known as its vision. - correct Answer-Vision
In a zoned inventory storage location system, goods are stored in a designated area of
the warehouse assigned based on their physical characteristics or frequency of use.
A manufacturer stocks flammable goods in a designated area. - correct Answer-Zoned
inventory storage
Seasonality is a repetitive pattern of demand from year to year (or other repeating time
interval) with some periods considerably higher than others. - correct Answer-
Seasonality
Data governance is a set of processes that ensures that important data assets are
formally managed throughout the enterprise.
,The overall management of the accessibility, usability, reliability, and security of data
used to ensure data record accuracy. - correct Answer-Data governance
A space buffer is located immediately downstream of the constraint and protects against
downtime downstream from the constraint. The size allowed should be enough to
protect against any reasonably foreseeable downtime. Usually this buffer is empty. -
correct Answer-Space buffer
Exceptional events might include customer stockpiling product based on an anticipated
strike, customer plant shutdowns or equipment failures, or severe weather keeping
customers at home. Events such as these need to be recorded in the forecast notes, to
differentiate them from potential changes in a trend.
In the middle of April, an unusually large order comes in from a customer, at odds with
forecast data. In May, the customer's orders are more in line with forecasts. This could
be the result of an exceptional event. - correct Answer-Exceptional events
Input/output control is a technique in which actual input and output of a work center is
compared with the planned input and output developed by CRP.
A technique for capacity control where planned and actual inputs and planned and
actual outputs of a work center are monitored. Planned inputs and outputs for each
work center are developed by capacity requirements planning and approved by
manufacturing management. Actual input is compared to planned input to identify when
work center output might vary from the plan because work is not available at the work
center. Actual output is also compared to planned output to identify problems within the
work center. - correct Answer-Input/output control
Demand planning is the process of combining statistical forecasting techniques and
judgment to construct demand estimates for products or services across the supply
chain from the suppliers' raw materials to the consumer's needs. - correct Answer-
Demand planning
A customer contacts a manufacturer's salesman and wants to purchase all production
supply and capacity for a given item. Capable-to-promise is what the salesman need to
obtain from his company to respond to his customer?
The process of committing orders against available capacity as well as inventory. This
process may involve multiple manufacturing or distribution sites. Used to determine
when a new or unscheduled customer order can be delivered. Employs a finite-
scheduling model of the manufacturing system to determine when an item can be
delivered. Includes any constraints that might restrict the production, such as availability
of resources, lead times for raw materials or purchased parts, and requirements for
lower-level components or subassemblies. The resulting delivery date takes into
, consideration production capacity, the current manufacturing environment, and future
order commitments. The objective is to re - correct Answer-Capable-to-promise
Value chain analysis is an examination of all links a company uses to produce and
deliver its products and services starting from the origination point and continuing
through delivery to the final customer.
A company losing market share due to price competition should incorporate value
stream analysis. - correct Answer-Value chain analysis
A form of manufacturing organization in which machines and operators handle a
standard, usually uninterrupted, material flow. The operators generally perform the
same operations for each production run. A flow shop is often referred to as a mass
production shop or is said to have a continuous manufacturing layout. The plant layout
(arrangement of machines, benches, assembly lines, etc.) is designed to facilitate a
product "flow." Some process industries (chemicals, oil, paint, etc.) are extreme
examples of flow shops. Each product, though variable in material specifications, uses
the same flow pattern through the shop. Production is set at a given rate, and the
products are generally manufactured in bulk.
In a flow shop the machines and operators process a standard, uninterrupted material
flow. The same operations are performed for each production run. The layout is
designed to facilitate a product flow.
A mass pro - correct Answer-Flow shop
Although it is not a customer order, interplant demand is usually handled by the master
production scheduling system in a similar manner.
The master production schedule (MPS) handles several types of demand. In addition to
customer orders, the MPS might also handle Interplant orders. - correct Answer-
Interplant orders
Capacity requirements planning (CRP) refers to the process of determining in detail the
amount of labor and machine resources required to accomplish the tasks of production.
Capacity requirements planning is most appropriately used to test the feasibility of the
plans generated by material requirements planning.
CRP uses planned and firm planned orders from MRP to calculate requirements.
At the material requirements planning level, the preliminary material requirements plan
is sent to capacity requirements planning in the form of planned and open orders. These
are translated into load on specific work centers, which is compared to their available
capacity.
Solutions
Forecasters, and users of forecasts, utilize information on forecast accuracy to
understand the reliability and relevance of the data as it is used to determine demand
characteristics, variation, and stability. - correct Answer-Forecasters
Flow manufacturing produces high-volume standard products, so work centers are
dedicated to producing similar products.
Flow manufacturing is concerned with the production of a small number of high-volume
standard products produced repetitively or in a continuous manufacturing environment. -
correct Answer-Flow manufacturing
Resource planning addresses capacity planning conducted at the business plan level.
Resource planning can add value to the strategic plan by, for example, validating the
need and timing of capacity requirements and by recommending whether to expand
capacity in advance of need all at once, expand capacity incrementally in steps, or to
lag behind the need. - correct Answer-Resource planning
Three critical functions within demand management include marketing management,
customer relationship management, and demand planning.
Demand management is the overall function of recognizing all demands for goods and
services to support the marketplace. Forecasting is an aspect of demand management
that is assumed in the correct answer. - correct Answer-Demand management
In every system there is one weakest link - the constraint that limits the system from
achieving higher levels of its goal.
In the theory of constraints (TOC) philosophy, the term the weakest link is used to
describe the resource with the least throughput in the system. - correct Answer-
Weakest link
Distribution inventory includes all finished goods inventory at any point in the distribution
system. Distribution inventories create a time value by placing the product close to the
customer.
Distribution inventory typically includes spare parts and finished goods, located in the
distribution system (e.g., in warehouses, in-transit between warehouses and the
consumer).
,The term used to describe inventory in a network of warehouse, in-transit between
warehouses and the consumer is called distribution inventory.
This is the value of all finished goods at any point in the physical distribution channel(s).
It is often the second largest part of distribution costs. - correct Answer-Distribution
inventories
Jidoka is the Japanese term for the practice of stopping the production line when a
defect occurs. - correct Answer-Jidoka
The chase production method seeks to keep inventory levels stable while varying
production levels based on demand. This method typically has higher costs associated
with varying staffing and overtime. - correct Answer-Chase production method
Customers purchase finished goods in a make-to-stock environment. Raw materials
and component inventories are used to make finished goods and are not normally sold.
Work-in-process inventory refers to items in the process of being converted into finished
goods.
In a make-to-stock environment, the delivery lead time would be from the time the order
is received to the time the product reaches the customer; no design, manufacturing or
assembly would be required.
If the design, purchase, inventory, manufacturing, assembly and ship time are the
same, the delivery lead time is least in a make-to-stock environment. - correct Answer-
Make-to-stock
An organization's vision describes the organization as it would appear in a future
successful state.
The shared perception of the organization's future, or what the organization will achieve,
is known as its vision. - correct Answer-Vision
In a zoned inventory storage location system, goods are stored in a designated area of
the warehouse assigned based on their physical characteristics or frequency of use.
A manufacturer stocks flammable goods in a designated area. - correct Answer-Zoned
inventory storage
Seasonality is a repetitive pattern of demand from year to year (or other repeating time
interval) with some periods considerably higher than others. - correct Answer-
Seasonality
Data governance is a set of processes that ensures that important data assets are
formally managed throughout the enterprise.
,The overall management of the accessibility, usability, reliability, and security of data
used to ensure data record accuracy. - correct Answer-Data governance
A space buffer is located immediately downstream of the constraint and protects against
downtime downstream from the constraint. The size allowed should be enough to
protect against any reasonably foreseeable downtime. Usually this buffer is empty. -
correct Answer-Space buffer
Exceptional events might include customer stockpiling product based on an anticipated
strike, customer plant shutdowns or equipment failures, or severe weather keeping
customers at home. Events such as these need to be recorded in the forecast notes, to
differentiate them from potential changes in a trend.
In the middle of April, an unusually large order comes in from a customer, at odds with
forecast data. In May, the customer's orders are more in line with forecasts. This could
be the result of an exceptional event. - correct Answer-Exceptional events
Input/output control is a technique in which actual input and output of a work center is
compared with the planned input and output developed by CRP.
A technique for capacity control where planned and actual inputs and planned and
actual outputs of a work center are monitored. Planned inputs and outputs for each
work center are developed by capacity requirements planning and approved by
manufacturing management. Actual input is compared to planned input to identify when
work center output might vary from the plan because work is not available at the work
center. Actual output is also compared to planned output to identify problems within the
work center. - correct Answer-Input/output control
Demand planning is the process of combining statistical forecasting techniques and
judgment to construct demand estimates for products or services across the supply
chain from the suppliers' raw materials to the consumer's needs. - correct Answer-
Demand planning
A customer contacts a manufacturer's salesman and wants to purchase all production
supply and capacity for a given item. Capable-to-promise is what the salesman need to
obtain from his company to respond to his customer?
The process of committing orders against available capacity as well as inventory. This
process may involve multiple manufacturing or distribution sites. Used to determine
when a new or unscheduled customer order can be delivered. Employs a finite-
scheduling model of the manufacturing system to determine when an item can be
delivered. Includes any constraints that might restrict the production, such as availability
of resources, lead times for raw materials or purchased parts, and requirements for
lower-level components or subassemblies. The resulting delivery date takes into
, consideration production capacity, the current manufacturing environment, and future
order commitments. The objective is to re - correct Answer-Capable-to-promise
Value chain analysis is an examination of all links a company uses to produce and
deliver its products and services starting from the origination point and continuing
through delivery to the final customer.
A company losing market share due to price competition should incorporate value
stream analysis. - correct Answer-Value chain analysis
A form of manufacturing organization in which machines and operators handle a
standard, usually uninterrupted, material flow. The operators generally perform the
same operations for each production run. A flow shop is often referred to as a mass
production shop or is said to have a continuous manufacturing layout. The plant layout
(arrangement of machines, benches, assembly lines, etc.) is designed to facilitate a
product "flow." Some process industries (chemicals, oil, paint, etc.) are extreme
examples of flow shops. Each product, though variable in material specifications, uses
the same flow pattern through the shop. Production is set at a given rate, and the
products are generally manufactured in bulk.
In a flow shop the machines and operators process a standard, uninterrupted material
flow. The same operations are performed for each production run. The layout is
designed to facilitate a product flow.
A mass pro - correct Answer-Flow shop
Although it is not a customer order, interplant demand is usually handled by the master
production scheduling system in a similar manner.
The master production schedule (MPS) handles several types of demand. In addition to
customer orders, the MPS might also handle Interplant orders. - correct Answer-
Interplant orders
Capacity requirements planning (CRP) refers to the process of determining in detail the
amount of labor and machine resources required to accomplish the tasks of production.
Capacity requirements planning is most appropriately used to test the feasibility of the
plans generated by material requirements planning.
CRP uses planned and firm planned orders from MRP to calculate requirements.
At the material requirements planning level, the preliminary material requirements plan
is sent to capacity requirements planning in the form of planned and open orders. These
are translated into load on specific work centers, which is compared to their available
capacity.
