APICS CPIM Exam Questions

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81.

In a lean environment, quality MUST be the responsibility of whom?

  • The operator

  • The inspector

  • Upper management

  • A material handler

Correct answer: The operator

The operator must build quality into the product. Since they have the ability to monitor quality on a daily basis, the operator becomes responsible for quality.

Upper management can only support an atmosphere for quality. Inspection is considered to be a non-value added activity. A material handler delivers the raw material to the operator for production of the product.

82.

A part is produced by a company's department in four operations. Last month, the department's earnings were 1,500 standard hours by producing 1,000 parts. The department worked 1,000 hours to produce these parts. Which of the following accurately defines the department's efficiency?

  • 150%

  • 100%

  • 120%

  • 92%

Correct answer: 150%

The efficiency can be determined by dividing the standard hours earned by the actual hours worked.

Standard hours = 1500 Actual hours = 1000

1500/1000 = 1.50 or 150%

83.

A certain laptop sold off the shelf at many retail outlets has a three-level bill of materials. The intermediate subassemblies have many common and interchangeable components. What is the MOST likely MRP scheduling method used by the manufacturer for this product?

  • Lot sizing of the end product and basic components and lot-for-lot of the intermediate subassemblies

  • Lot-for-lot of the end product and basic components and lot-sizing of the intermediate subassemblies

  • Use lot-for-lot at all levels

  • Use lot-sizing at all levels

Correct answer: Lot sizing of the end product and basic components and lot-for-lot of the intermediate subassemblies

Whe dealing with complex bill of materials, it is necessary to manage the potential of cascading effects from end product down to raw materials. Lot-for-lot scheduling sizes lots per the net requirements of the planned order, whereas lot sizing adds flexibility in that the lot size can be made discretely for net requirements of the time period. 

The end result is mitigation of the cascade effect, which is why the manufacturer will develop discrete lot sizes for the end product and raw materials while being able to afford lot-for-lot scheduling of the intermediate assemblies, as these contain many interchangeable parts and thus can pull from larger lot sizes without the consequence of forcing large orders of raw materials. Should the manufacturer reverse the scheduling methods, a shortage is likely. 

Using lot-for-lot throughout the BOM would likely create excessive inventories. Using lot sizing throughout the BOM would likely lead to shortages.

84.

If the lead time is one week, the review period is one week, the average demand time is 250 units per week, and the safety stock is 100 units, what is the target or maximum inventory level?

  • 600 units

  • 500 units

  • 400 units

  • 550 units

Correct answer: 600 units

Target Level = Demand During the Lead Time (DDLT) + Demand During the Review Time + Safety Stock (SS).

Target Level = (1 week review time x 250 units/week) + (1 week lead time x 250 units per week) + 100 units of SS

Target Level = 250 + 250 + 100

Target Level = 600 units

85.

A goal of lean production is to reduce WIP inventory. Which of the following lean tools attempts to reduce idle time associated with switching production between products?

  • Setup reduction

  • Pull system

  • Value stream mapping

  • Total productive maintenance

Correct answer: Setup reduction

The ASCM Supply Chain Dictionary defines setup time as "the time required for a specific machine, resource, work center, process, or line to convert from the production of the last good piece of item A to the first good piece of item B." Setup time results in idle machines. Reducing the amount of setup will increase overall available capacity and create a more flexible production environment.

A pull system simplifies inventory management by using supermarket storage; storing inventory at or near production for easier, self-serve access. Value stream mapping is a lean production tool used to help visualize the flow of materials across the entire supply chain from supplier to customer. Total Productive Maintenance (TPM) is a proactive approach to maintaining equipment rather than responding to unplanned issues.

86.

A primary challenge with scheduling remanufacturing activities is the uncertainty associated with the returned condition and which of the following?

  • Unplanned repairs

  • Variable return delivery lead times

  • Inconsistent work instructions

  • Lack of bill of materials

Correct answer: Unplanned repairs

Unplanned repairs for remanufactured products are not evident until the product is broken down and inspected. This creates uncertainty in capacity planning.

While variable return delivery lead times, inconsistent work instructions, and lack of bill of materials could impact remanufacturing workflows, a well-planned returns and remanufacturing process should minimize the impact of these potential constraints.

87.

As a planner for a small manufacturing firm, you are faced with the challenge of delivering an expedited order for an important customer. You realize there are short-term capacity restraints that need to be considered. All EXCEPT which of the following actions are viable?

  • Hire more workers

  • Utilize overtime shifts

  • Build inventory levels

  • Outsource work

Correct answer: Hire more workers

Hiring qualified workers is not a viable option to correct short-term capacity restraints because it takes too long to hire qualified workers.

Short-term, or surge, capacity can be increased using overtime, inventory, or subcontracting.

88.

Mary is trying to figure out how to holistically schedule three separate products, each using a dozen common components. What is likely to be the MOST favorable solution for Mary?

  • APS

  • Finite loading

  • Horizontal loading

  • Infinite loading

Correct answer: APS

The ASCM Supply Chain Dictionary defines Advanced Planning and Scheduling (APS) as "techniques that deal with the analysis and planning of logistics and manufacturing during short, intermediate, and long-term time periods." APS helps to plan not just end products but their components and raw materials as well.

Finite loading schedules are based on known resource capacities rather than planning by due dates and assuming flexibility due to infinite capacity, which are the assumptions of infinite loading. 

Horizontal loading is performed within a finite loading scheme but overlays the highest priority jobs first.

89.

An optical sorting machine that detects off-specification of raw material polymer flake is an example of what lean concept?

  • Jidoka

  • Jishuken

  • Just in time (JIT)

  • Gemba

Correct answer: Jidoka

Jidoka is the Japanese term that refers to automation. Jidoka seeks to identify defects inside a production process rather than identify them on the back-end and have to trace the defects upstream to their point of origin.

Kaizen events are typically team-based improvement projects driven by volunteers, or Jishuken, meaning voluntary study groups.

Just In Time (JIT) is a lean concept focused on minimizing inventory, defects, lead times, and costs. Gemba is the practice of going to the work area to talk to the operators and better understand the operations and the issues they face.

90.

The priorities and conditions that specify the order in which jobs are processed due to scarce resources is known as which of the following?

  • Job sequencing rules

  • Job profile

  • Job shop sequencing

  • Just-in-time

Correct answer: Job sequencing rules

Job sequencing rules is a Production Activity Control (PAC) technique. Job sequencing rules are the priorities and conditions that are used to establish the flow of the job shop. 

The job profile and use of lean manufacturing plans will be considered when laying out the sequencing rules. 

Just-In-Time (JIT) production might be the overall production environment within which job sequencing rules reside.

91.

On a continuum of value-added supply relationships, which of the following would have the HIGHEST value add?

  • Strategic alliance

  • Certified suppliers

  • Partnership

  • VMI

Correct answer: Strategic alliance

Partnerships and strategic alliances are both collaborative relationships. However, a strategic alliance has the highest degree of value-added relationships, as organizations share proprietary information and participate in joint investments to the benefit of both companies.

Certified suppliers and VMI are lower-level types of supplier relationships.

92.

Priority is the term used to describe what type, how many, and when products are needed. Who establishes priorities?

  • Marketplace

  • Manufacturers

  • Suppliers

  • Transporters

Correct answer: Marketplace

The marketplace establishes priorities or market demand. This includes what type, how many, and when products are needed. While it might be tempting to suggest that business management chooses its preferred priorities through various segmentation strategies, ultimately those strategies merely reflect which markets are most accessible to the business, given its product offerings.

Priorities are not established by manufacturers, suppliers, or transporters.

93.

Of the following descriptions, which BEST describes production activity control?

  • Routing and dispatching work

  • Demand planning from customers

  • Procurement activity

  • Final assembly scheduling (FAS)

Correct answer: Routing and dispatching work

The ASCM Supply Chain Dictionary defines Production Activity Control (PAC) as "the function of routing and dispatching the work to be accomplished through the production facility and of performing supplier control." PAC is an essential part of executing the master production schedule as well as essential to meeting customer orders in a timely manner.

Demand planning, procurement, and Final Assembly Scheduling (FAS) are essential supply chain activities but are separate from PAC.

94.

A bottlenecked work cell has been utilized 222 out of 275 hours per week of available time. What is the most likely reason the all 275 hours were not fully utilized to produce the finished product? 

  • Processing time was underestimated

  • There was unplanned downtime

  • There was a shortage of raw materials

  • There was an operator shortage

Correct answer: Processing time was underestimated

Of all the events that can happen to disrupt a floor manufacturing schedule, assumptions made about the amount of processing time from product to product are fraught with error. This often leads to lost time at bottleneck work centers. 

Certainly, unplanned downtime, raw material shortages, and operators missing in action all do occur, but these events are one offs versus the systemic cause of processing time assumptions.

95.

Your organization's sales revenue for the year equals $350 million and totally variable costs equal $150 million. What is the throughput per year?

  • $200 million per year

  • $150 million per year

  • $100 million per year

  • $300 million per year

Correct answer: $200 million per year

The ASCM Supply Chain Dictionary defines throughput as "the rate at which the system generates 'goal units.'" Because throughput is a rate, it is always expressed for a given time period - such as per month, week, day, or even minute. If the goal units are money, throughput is an amount of money per time period. In that case, throughput is calculated as revenues received minus totally variable costs divided by units of the chosen time period."

If the organization's revenues are $350 million, subtract the $150 million in totally variable costs to get $200 million. Dividing this by the time period of one year equals $200 million.

96.

If the annual demand for a stock-keeping unit (SKU) is 3,150 units, and it is ordered in quantities of 210 units, what is the average inventory?

  • 105 units

  • 15 units

  • 21 units

  • 420 units

Correct answer: 105 units

To find the average inventory, use the following formula:

Average inventory = Order quantity ÷ 2

Average inventory = 210 ÷ 2

Average inventory = 105 units

97.

A company wants to reduce delivery lead times for a product with multiple options but realizes storing finished goods will result in too much inventory. They decide to build sub-assembly components in advance of the customer orders being received. What type of strategy is the company employing?

  • Postponement

  • JIT

  • Multi-echelon storage

  • VMI

Correct answer: Postponement

A postponement strategy, as defined by the ASCM Supply Chain Dictionary is "a product design or supply chain strategy that deliberately delays final differentiation of a product (assembly, production, packaging, tagging, etc.) until the latest possible time in the process." This type of strategy can be supported by an Assemble-to-Order (ATO) production environment. With this approach, raw materials are converted to semifinished goods, which can later be completed, configured, or assembled to customer-specific requirements.

JIT (Just in Time) as a lean manufacturing method seeks to minimize inventory by making a single piece at a time. Hence, the company would likely not have an inventory issue to manage. 

Multi-echelon storage of inventory utilizes central and proximity distribution centers to manage inventory complexities. 

Vendor-Managed Inventory (VMI) is utilized for raw materials.

98.

Which order fulfillment production strategy typically has the LONGEST lead time?

  • Engineer-to-Order (ETO)

  • Make-to-Order (MTO)

  • Make-to-Stock (MTS)

  • Assemble-to-Order (ATO)

Correct answer: Engineer-to-Order (ETO)

Delivery time is the time elapsed from the receipt of the customer order to the delivery of the final product to the customer. Engineer-to-Order (ETO) products will often have the longest delivery time due to the design and engineering time needed to create the product.

The ASCM Supply Chain Dictionary defines Engineer-to-Order (ETO) as "products whose customer specifications require unique engineering design, significant customization, or newly purchased materials. Each customer order results in a unique set of part numbers, bills of material, and routings."

Make-to-Order (MTO) production will make a product from existing components after an order is received, which makes its span time shorter than engineer-to-order companies. Assemble-to-Order (ATO) production has a shorter span of time than make-to-order companies, and Make-to-Stock (MTS) production has a shorter span of time than assemble-to-order production.

99.

Value stream mapping is a useful Lean tool primarily because it:

  • Looks at the entire supply chain rather than an isolated process

  • Redefines supply chain relationships

  • Is completed in one or two days

  • Is used to improve efficiency in a specific area

Correct answer: Looks at the entire supply chain rather than an isolated process

The APICS Dictionary, 17th edition, defines value stream mapping as "a lean production tool to visually understand the flow of materials from supplier to customer that includes the current process and flow as well as the value-added and non-value-added time of all the process steps." A value stream map generally includes process information of all manufacturing steps of a product to show how much time is used against total available time to give a perspective on non-value-added time. It will also show takt time to give a perspective on how the process and flow are matching demand.

Value stream mapping does not address supply chain relationships, is not time dependent, and is not restricted to specific areas.

100.

Using the information below, what is the work center's weekly available capacity rounded to the nearest whole standard hour?

Machines = 2, Operations per shift = 3, Shifts per day = 1, Days worked per week = 5, Hours worked per shift = 12, Machine utilization = 90%, Operator efficiency = 80%

  • 86

  • 92

  • 98

  • 104

Correct answer: 86

The available capacity is calculated using rated capacity = available time x utilization x efficiency.

Available time = 2 machines x 1 shift per day x 5 days x 12 hours per day

Available time = 120 hours

Utilization = 90%

Efficiency = 80%

Capacity = 120 x .9 x .8 = 86.4 or 86 hours