Exam: CPIM
Exam A QUESTION 1
Operations management works in a complex environment affected by many factors. Among the most important are:
A. Government regulation B. the economy and competition C. Customer expectations and quality D. all of these
Answer: D
QUESTION 2
Government regulations majorly apply to areas as: A. Environment and taxation
B. Product liability and safety C. Population growth
D. All of these
Answer: AB
QUESTION 3
Shifts in the age of the population needs of ethnic groups, low population growth, freer trade between countries and increased global competition all contributes to:
A. Government
B. changes in the marketplace C. Business decisions
D. customer expectations
Answer: B
QUESTION 4
Some of the characteristics customers expect when they buy products are all of the following EXCEPT: A. A fair price with higher quality products and services
B. Delivery lead time
C. Presale services better than after sale services D. Product and volume flexibility
Answer: C
QUESTION 5
Customer requirements may be based on price, quality, delivery and so forth are called: A. Order qualifiers
B. Order prerequisites C. Order basis
D. None of these
Answer: A
QUESTION 6
For example, the price for a certain type of product must full within a range for the suppliers to be considered . but being considered does not mean winning the order. so win orders a supplier must have characteristics that encourage customers to choose its products and services over competitors. Those competitive characteristics, or combination of characteristics are called
A. Order takers B. Order achievers C. Order winners D. Order credentials Answer: C QUESTION 7
Order winning characteristics are defined primarily from: A. Competition B. customer needs C. Business sector D. Both A & B Answer: D QUESTION 8
It is virtually impossible to be the best in every dimension of competition. Firms should in general: A. Strive to provide at least minimum level of acceptance for each of the order qualifiers
B. Should try to be the best in the market for the order winners. C. Should keep in mind the pace of change
D. A & B
Answer: D
QUESTION 9
It should be recognized that order winners and qualifiers for any product market combination are not static. not only will customers change perspectives as competitors jokey for position but the order winners and qualifiers will often change based on the concepts of:
A. Product life cycle B. Economic changes C. Government regulation D. Market needs
Answer: A
QUESTION 10
Quality and delivery factor of products tend to have increased importance during: A. Maturity phase B. Growth phase C. Introduction phase D. Decline phase Answer: B QUESTION 11
Life cycle approach for identifying order winners and qualifiers is complicated in that: A. The duration of life cycle will be very different for different products.
B. Customer needs change work frequently C. Life cycle phase are difficult to understand
D. Not a single requirement applies to all these of life cycle
Answer: A
QUESTION 12
Which one of the following is a basic strategy to achieve the level of shortest lead time? A. Engineer-to-order B. Assemble-to-order C. Make-to-stock D. None of these Answer: D QUESTION 13
This is the situation of lead time strategy in case of: A. Engineer-to-order
B. Make-to-stock C. Make-to-order
D. None of these
Answer: A
QUESTION 14
Which one of following is not an important factor in supply chain?
A. The supply chain includes all activities and processes to supply a product or service to a final customer B. Any number of companies can be linked in the supply chain
C. product or services usually flow from customer to supplier and design and demand information usually flows from customer to supplier. Rarely is this not so.
D. A customer can be a supplier to another customer so the total chain can have a number of supplier customer relationships.
Answer: C
QUESTION 15
With the explosive growth in just-in-time (JIT) concepts, the supplier-customer partnership concept grew as a result many changes in their relationships came including:
A. Mutual analysis for cost reduction B. Mutual product design
C. Need for rapid delivery
D. Speed of accurate information flow
Answer: D
QUESTION 16
As 1980 gave way to the 1990 the world continued to change, forcing additional changes in supply-chain concepts. All of the following statements depict those changes EXCEPT:
A. Explosive growth in computer capability applications as ERP. B. Large growth in global competition
C. growth in the technological capabilities for product and processes D. Growth in JIT
Answer: D
QUESTION 17
To result in optimal performance for customer service and cost, it is felt that the supply chain of activities as an extension of partnership. This implies many issues, but critical one/s include/includes:
A. Flow of material
B. Flow of information and sharing of information, mostly through the internet C. Fund transfers
D. All of these
QUESTION 18
Take as an example the supply chain of organizations that represent the flow from raw silicon used to make computer chips to the delivery and disposal of the computer itself:
What is illustrated here is but one chain of a set of different component chains that represent a network of suppliers and distributors for a product to manage a supply chain one must:
A. Try of efficiently plan material and information flows along each chain to maximize cost efficiency, effectiveness, delivery and flexibility.
B. Understand the network of suppliers and customers
C. Rapid flows of accurate information and increased organizational flexibility D. All of these
Answer: D
QUESTION 19
What was/were the conflict/s in traditional system before the growth of supply chain concept?
A. Supply, production and distribution system were organized into separate functions that reported to different departments of a company.
B. Often departmental objectives were maximized without considering the effect they would have on other parts of the system.
C. Costly distribution systems were these
D. Strategy of high inventory pile up was following
Answer: AB
QUESTION 20
To get most profit, a company must have: A. Best customers service
B. Lowest production and inventory costs C. Lowest distribution costs
D. All of these
Answer: D
QUESTION 21
Which of the following help to achieve marketing objectives?
A. Maintain high inventories to goods are always available for the customers
B. Interrupt production runs so that a non-inventoried item can be manufactured quickly
C. Create an extensive and costly distribution system so good can be shipped to the customer rapidly D. All of these
Answer: D
QUESTION 22
All of the following are ways to achieve financial objectives EXCEPT: A. Reduce inventory so inventory investment is at a minimum level B. Decrease the number of plants and warehouses
C. Extensive distributions system D. Manufacture only to customer order
Answer: C
QUESTION 23
Production must keep its operating cost as low as possible this can be done in the following way/ways:
A. Make long production runs of relatively few production runs of relatively few products. Fewer Changeovers will be needed and specialized equipment can be used thus reducing the cost of making the product B. Maintain high inventories of raw materials and work-in-process so production is not disrupted by shortages. C. Manufacture only to customer order
D. Provide lowest distribution costs
Answer: AB
The Question mark represents: A. Inventories
B. Payables
C. Cost of goods solved D. None of these
Answer: A
QUESTION 25
Important way to resolve conflicting objective is:
A. To provide close coordination of the supply, production and distribution functions. B. Balance conflicting objectives to minimize the total of all costs involved
C. Integrated materials management or logistics organization D. All statements related ones.
Answer: D
QUESTION 26
An income statement of a company is as follows: Dollars Percent of sales
Revenue $1,00,000 100 (Sales) Cost of Goods $500,000 50 Sold Direct material $200,000 20 Direct Labor $200,000 20 Factory $200,000 Overhead $900,000 90 Gross Profit $100,000 10
If through a well-organized materials management department direct materials can be reduced by 10% and direct labor by 5% the improvements in profits would be:
A. 5% B. 6% C. 7% D. 4% Answer: B QUESTION 27
An income statement of a company is as follows: Dollars Percent of sales
Revenue $1,00,000 100 (Sales) Cost of Goods $500,000 50 Sold Direct material $200,000 20 Direct Labor $200,000 20 Factory $200,000 Overhead $900,000 90 Gross Profit $100,000 10
Profit has been increased by 60% to get the in profit by 600,000 by increasing revenue; sales would have to increase to 1.2 million. What will happen with CGS?
A. Decrease by 3% B. Increase by 4% C. Decrease by 4% D. Will remain same
Answer: A
QUESTION 28
If the cost of direct material is 60%, direct labor is 10%, and overhead is 25%of sales what will be the improvement in profit if direct material is reduced to 55%?
A. 5% B. 3% C. 4%
D. No improvement
Answer: A
QUESTION 29
If the cost of direct material is 60%, direct labor is 10%,and overhead is 25%of sales. How much to give the same increase in profit? (Remember overhead cost is constant)
A. 19% B. 18% C. 17% D. 13% Answer: C QUESTION 30
On the overage a company has 12week of work-in-process (WIP) inventory and annual cost of goods sold of 36$ million. Assuming the company works 50 weeks per year.
What is the dollar value of the WIP? A. $4, 32,000 B. $423,000 C. $4, 33,000 D. $4, 22,000 Answer: A QUESTION 31
On the overage a company has 12week of work-in-process (WIP) inventory and annual cost of goods sold of 36$ million. Assuming the company works 50 weeks per year. If the WIP could be reduced to 5week, and the annual cost of inventory value what would be annual savings?
A. $50,000 B. $500,400 C. $504,000 D. None of these Answer: C QUESTION 32
Production planning includes; A. Forecasting
B. Master planning
C. Material Requirement planning and capacity planning D. All of these
QUESTION 33
Production activity control activities in manufacturing planning and control may also be called: A. Shop-floor control
B. Capacity planning C. Master planning
D. Material Requirement planning
Answer: A
QUESTION 34
Inventories are part of planning process and provide buffer against: A. Demand rates
B. Production rates
C. Differences in demand and production rates D. None of these
Answer: C
QUESTION 35
Which one of the following is Not out of five basic inputs to the manufacturing planning and control system? A. Product Description and process specifications
B. Customized Design
C. Time needed to perform operations D. Available facilities and quantities required
Answer: B
QUESTION 36
Engineering drawings and specifications and bill of material are the methods of: A. Product Description B. Process specifications C. Quantities required D. None of these Answer: A QUESTION 37
As used in material management, bill of material: A. Describes the components used to make the product
B. Describes the subassemblies at various stages of manufacture. C. Both of these
Answer: C
QUESTION 38
Process specifications are step-by-step set of instructions describing how the product is made this information is usually recorded an:
A. A route sheet B. A Routing file C. Process sheet
D. Both A& B are the same
Answer: D
QUESTION 39
Route sheet or a routing file gives information in the manufacturing of a product such as: A. Operations required making the product
B. Sequence of operations
C. Equipment and accessories required D. All of these
Answer: D
QUESTION 40
The time needed to perform operation is an important input factor to the manufacturing planning and control system. It is needed to schedule work through the plans,
A. Load the plant
B. Make delivery promises C. And cost the product D. All of these
Answer: D
QUESTION 41
The information for quantities required in manufacturing, planning and control system will come from all of these EXCEPT:
A. Forecasts and material Requirement plan B. Customer orders
C. Orders to replace finished-goods inventory D. Sequence of operations
Answer: D
QUESTION 42
Distribution inventory Warehousing
Packaging Material handling Order Entry
These are the activities of:
A. physical supply Distribution system B. Virtual supply and distribution system C. Distribution details
D. None of these
Answer: A
QUESTION 43
Metrics give us:
A. Control by supervisors
B. Reporting of data to supers and external description C. Product description
D. Process specification
Answer: AB
QUESTION 44
Metrics:
A. Communicate expectations and motivate people B. Identify problems
C. Direct a course of action D. All o0f these
Answer: D
QUESTION 45
Today production control works in a demanding environment shaped by six major challenges. Which one of the following is not of those challenges?
A. Customer that are never satisfied
B. A supply chain that is large and must be manage C. A product life cycle that is getting shorter and shorter D. None of these
Answer: D
QUESTION 46
There is difference between measurement and standards, because: A. Performance standards set the goal
B. Performance measures say how close you came C. Performance measures set and measure the goals D. Standards are for market analysis
Answer: AB
QUESTION 47
The old saying "What you do not measure, you cannot control", is as valid today as it was when first stated. The necessary step/s in implementing a successful performance measurement program is/are:
A. Establish company goals and objectives B. Define performance
C. State the measurement to be used, set performance standards, educate the user and make sure the program is consistently applied
D. All of these
Answer: D
QUESTION 48
Continuous improvement does not focus on a "one-shot" improvement out on such things as:
A. Rate on improvement in quality B. Cost and cost
C. Reliability, innovation, effectiveness and productivity D. All of these
Answer: D
QUESTION 49
If the cost of manufacturing (direct material and direct labor) is 60% of sales and profit is 10% of sales ,what would be the improvement in profit if, through better planning and control, the cost of manufacturing was reduced from 60%of sales to 50%of sales?
A. 100% B. 70% C. 50% D. 10% Answer: A QUESTION 50
Considering the above question how much would sales have to increase in profits? A. 50%
B. 25% C. 20% D. 10%
Answer: B
QUESTION 51
On the average a firm has 10 weeks of work-in-process and annual cost of goods sold is $15 million. Assuming that, the company works 50 weeks a year. What is the dollar value of the work-in-process?
A. 1,000,000 B. 1,000,500 C. 1,500,000 D. None of these Answer: C QUESTION 52
In the above question, if the work-in-process could be reduced to 7 weeks and the annual cost of carrying inventory was 20% of the inventory value, what would be annual saving?
A. $ 80,000 B. $ 70,000 C. $ 90,000 D. $ 60,000 Answer: C QUESTION 53
Which of the following is/are included in five major levels in the manufacturing planning and control system? A. Strategic business plan
B. Production plan
C. Master production schedule D. All of these
Answer: D
QUESTION 54
Each level of MPC (Manufacturing planning and control) differs in the following: Purpose of the plan
Planning Horizon Level of detail Planning Cycle Since each level is: A. For different time span
B. Responsible for satisfying market demand C. For different purposes
D. Both A and C
QUESTION 55
1) What are the priorities-How much of what is to be produced and when? 2) What is available capacity-What resources do we have?
3) How can differences between priorities and capacity be resolved? These questions must be answered: A. During material resource planning
B. During priority planning C. At each level of MCP D. During capacity planning
Answer: C
QUESTION 56
Strategic business plans are usually reviewed A. After each quarter
B. Every six months to a year C. After five years
D. Both A and B
Answer: B
QUESTION 57
The level of detail in strategic business plan is: A. Not so high
B. Concerned with general market and production requirements C. Both of these
D. None of these
Answer: C
QUESTION 58
Production management is concerned with:
A. The quantities of each production group that must be produced in each period \ B. The desired inventory levels
C. The resources of equipment, labor, and material needed in each period, and the availability of the resources needed
D. All of these
Answer: D
QUESTION 59
For effective planning:
B. Priority should be given more importance than capacity C. Capacity should be given more importance than priority D. None of these
Answer: A
QUESTION 60
The planning horizon is usually _______ and is reviewed perhaps _______ . A. 8-12 months, each month
B. 5-8 months, each quarter
C. 6-8 months, each month or quarter D. None of these
Answer: C
QUESTION 61
Which one of the following is NOT an input to master production schedule (MPS)? A. Forecasts for individual end items
B. Sales orders
C. Inventories and existing capacity D. Bill of materials
Answer: D
QUESTION 62
For master production schedule planning horizon usually extends from: A. 3-18 months B. 6-18 months C. 9-18 months D. None of these Answer: A QUESTION 63
In MPS, plans are reviewed and changed: A. Weekly B. Quarterly C. Weekly or Monthly D. Monthly Answer: C QUESTION 64
____________shows the quantities needed and when manufacturing intends to make use or use them. A. MPS
B. Production plan
C. Purchasing and production activity control D. Material Requirement Plan
Answer: D
QUESTION 65
Purchasing and production activity control: A. is very short, perhaps from a day to month
B. the level of detail is high since it is concerned with individual components, workstations and ordered C. Plans are reviewed and revised daily
D. All of these
Answer: D
QUESTION 66
Which one of the following is NOT the part of sales and operations planning benefits? A. It provides a mean of updating the strategic business plan as conditions change
B. It provides a mean of managing change. Rather than reacting to changes in market conditions or the economy after they happen
C. Planning ensures the various department plans are realistic, coordinated and support the business plan D. It provides a vague plan that can achieve company objectives
Answer: D
This figure is a true representation of: A. MRP II B. MPS C. Production Plan D. None of these Answer: A QUESTION 68
"Framework of organizing, defining and standardizing the business processes necessary to effectively plan and control an organization so the organization can use its internal knowledge to seek external advantage" This is the definition of:
A. MRP II B. ERP C. MPS D. MRP Answer: B QUESTION 69 ERP systems:
A. Having large scope allows the tracking of orders and other important planning and control information throughout the entire company from procurement to ultimate customer delivery
B. Capable of allowing managers to share data between firms C. Both of these
D. None of these
Answer: C
QUESTION 70
At the production planning level, where little detail is needed, this requires identifying product groups or families of individual product groups or families of individual products based on:
A. Similarity of manufacturing process
B. Difference in manufacturing processes of different product lines C. Similarities of processes in manufacturing of same product line items D. None of these
Answer: A
QUESTION 71
Over the time span of the production plan, large changes in capacity are usually not possible. Additions or subtractions in plant and equipment are impossible or very difficult to accomplish in this period. However, some changes can be done. Which of the following are out of those variations?
A. People can be hired and laid off, overtime and short-time can be worked, and shifts can be added or removed.
B. Inventory can be built up in slack periods and sold or used in periods of high demand. C. Work can be subcontracted or extra equipment leased
D. All of these
Answer: D
QUESTION 72
Production planning problem typically has the following characteristics EXCEPT:
A. A time horizon of 12 months is used, with periodic updating perhaps every month or quarter B. Production demand consists of one or a few product families or common units
C. Demand is rarely fluctuating
D. Plant and equipment are fixed within the time horizon
Answer: C
QUESTION 73
Basic strategies that can be used in a production plan may be: A. Chase strategy
B. Production leveling strategy C. Subcontracting
D. Any one of these
Answer: D
QUESTION 74
A company wants to produce 10, 000 units of an item over the next three months at a level rate. The first month has 20 working days; the second, 21 working days; and the third, 12 working days because of an annual shutdown. On the average, how much should the company produce each day to level production?
A. 118.8 units B. 188.7 units C. 189.7 units D. 180.00 units Answer: B QUESTION 75
The advantage/s of production leveling is/are:
A. It results in smooth level off operation that avoids the costs of changing production levels. B. Firms do not need to have excess capacity to meet peak demand
C. Firms do not need to hire and train workers and lay them off in slack periods D. All of these
Answer: D
QUESTION 76
Which of the following results in inventory build ups in low-demand periods? A. Production leveling strategy
B. Chase strategy C. Hybrid strategy D. None of these
Answer: A
QUESTION 77
In some industries, _____________ is the only strategy that can be followed. Farmers, for instance, must produce in the growing season. The post office must process mail over the Christmas rush and in slack seasons. Restaurants have to serve meals when the customers want them. These industries cannot stockpile or inventory their products or services and must be capable of meeting demands as it occurs.
A. Subcontracting B. Resource Planning C. Chase strategy
D. Production leveling strategy
Answer: C
QUESTION 78
Total the forecast demand for the planning horizon. Determine the opening inventory and the desired ending inventory Calculate the total production required as follows:
Total Production = total forecast + back orders + ending inventory ?opening inventory
Calculate the production required each period by dividing the total production by the number of periods. Calculate the ending inventory for each period.
Above is the general procedure A. for developing a level production
B. to forecast capacity requirements to meet demand C. To identify the production gaps
D. All of these
Answer: A
QUESTION 79
The information needed to make a production plan is: A. Forecast by period for the planning horizon B. Opening inventory and desired ending inventory
C. Any past-due customer orders. These are orders that are late for delivery and are sometimes back orders. D. All of these
Answer: D
QUESTION 80
With reference to the above example; how much should be produced each period? A. 120 cases B. 116 cases C. 122 cases D. None of these Answer: B QUESTION 81
With reference to the above example; considering 116 cases produced during the period what is the ending inventory for each period?
A. 102 cases B. 107 cases C. 110 cases D. 106 cases Answer: A QUESTION 82
With reference to the above example; if the cost of carrying inventory is $5 per case based on ending inventory, what is the total cost of carrying inventory?
A. $2900 B. $2300 C. $2200 D. $3000 Answer: B QUESTION 83
Generally, firms make-to-order when:
A. Goods are produced to customer specifications
B. The customer is willing to wait while the order is being made
C. The product is expensive to make and to store and several product options are offered D. All of these
Answer: D
QUESTION 84
Assemble- to-order is a subset of make-to-order. Which of the following is needed to make a production plan for make-to-order products?
A. Forecasts by period for the planning horizon B. Opening backlogs of customer orders C. Desired ending backlog
D. All of these
Answer: D
QUESTION 85
Once the preliminary production plan is established, it must be compared to the existing resources of the company. This step is called ______________. Two questions must be answered:
Are the resources available to meet the production plans? If not, how will the difference be reconciled? A. Resource requirement planning
B. MPS C. MRP II D. None of these
Answer: D
QUESTION 86
If the opening inventory is 400 units, demand is 900 units, and production is 800 units, what will be the ending inventory? A. 400 units B. 200 units C. 300 units D. 350 units Answer: C QUESTION 87
A company wants to produce 500 units over the next 3 months at a level rate. The months have 19, 20 and 21 working days, respectively. On the average, how much should the company produce each day to level
productions? A. 8.3 units B. 88.8 units C. 8.9 units D. None of these Answer: A QUESTION 88
Because of its labor contracts, a company must hire enough labor for 100 units of production per week on one shift or 200 units per week on two shifts, it cannot hire, layoff, or assign overtime. During the fourth week, workers will be available from another department to work part or all of an extra shift (up to 100 units). There is a planned shutdown for maintenance in the second week, which will cut production to half. Develop a
Week 1 2 3 4 5 6 Total Forecast 120 160 240 240 160 160 Demand Planned production Planned Inventory
If the opening backlog is 500 units, forecast demand is 700 units. And production is 800 units, what will be the ending backlog? A. 400 units B. 500 units C. 600 units D. All of these Answer: A QUESTION 89
The major advantage of subcontracting is:
A. Costs associated with excess capacity are avoided, and because production is leveled, there are no costs associated with changing production levels.
B. Cost of purchasing (item cost, purchasing, and transportation and inspection costs) may be greater than if the item were made in the plant.
C. Inventories can be kept to a minimum D. No need to hire and train workers.
Answer: A
QUESTION 90
The information needed to develop an MPS is provided by: A. The production plan
B. Forecasts for individual end items
C. Actual orders received from customers and for stock replenishment D. All of these
Answer: D
QUESTION 91
The MPS is a plan for manufacturing; it reflects the needs of the marketplace and the capacity of
manufacturing and forms a priority plan for manufacturing to follows: The MPS forms a vital link between sales and production as follows:
A. It makes possible valid order promises. The MPS is a plan of what is to be produced and when. As such, it tells sales and manufacturing when goods will be available for delivery.
B. It is contract between marketing and manufacturing. It is an agreed- upon plan C. Both of these
Answer: C
QUESTION 92
To maintain the desired level of customer service by maintaining finished-goods inventory levels or by scheduling to meet customer delivery requirements.
1. To make the best use of material, labor and equipment. 2. To maintain inventory investment at the required levels. These are the objectives of:
A. MRP B. MPR II C. MPS D. Production plan Answer: C QUESTION 93
The step for preparing MPS is/are: A. Develop a preliminary MPS
B. Check the preliminary MPS against available capacity
C. Resolve differences between the preliminary MPS and capacity availability D. All of these
Answer: D
QUESTION 94
Which of the following criteria is used to judge MPS? A. Resource use B. Customer service C. Cost D. All of these Answer: D QUESTION 95
Suppose company manufactures paint from a base color and adds tints to arrive at the final color. Suppose there are 10 tints and a final color is made by mixing any three of them with the base. There are 70 possible colors (10*9*8=720). Forecasting and planning production for 720 items is a difficult task. It is much easier if: A. Production is planned at the level of the base color and the 10 tints. There are then only10 items with which
to deal: the base color and each of the 10 tints.
B. Once a customer's order is received, the base color and the required tints can be combined (assembled) according to the order
C. MPS is done at the component level D. None of these
Answer: AB
QUESTION 96
The planning horizon is the time span for which plans are made. It must cover a period at least equal to the time required to accomplish the plan. For Mater production scheduling, the minimum planning horizon is: A. The longest cumulative or end-t-end lead time (LT)
B. The shortest lead time
C. The difference between the productions of two different batches D. None of these
Answer: A
QUESTION 97
_______________ and ________________ uncouples the sales forecast from manufacturing by establishing a manufacturing plan
A. Production plan, MPS B. MRP and production plan C. MPS and chase strategy D. MRP and MRP II
Answer: A
QUESTION 98
Which of the following strategic option/s is/ are used as success criteria for a corporate strategy? A. Suitability (would it work?)
B. Feasibility (can it be made to work?) C. Acceptability (will they work it?) D. All of these
Answer: D
QUESTION 99
Which of the following is generally a function of the physical distribution system? A. Production activity control
B. Production planning C. packaging
D. bill of material
Answer: C
QUESTION 100
A forecast is typically more accurate for:
B. daily rather than monthly periods of time C. physical units rather than monetary units
D. far out in the future rather than nearer time periods
Answer: A
QUESTION 101
The removal of outliers from demand data to provide a reasonable historical base from which to forecast is called:
A. regression
B. time series decomposition C. filtering
D. smoothing
Answer: C
QUESTION 102
Which of the following is used to convert the master production schedule into detail requirements? A. production planning
B. rough-cut capacity planning C. production activity control D. material requirements planning
Answer: D
QUESTION 103
End-of-line inspection often fails to improve quality for which of the following reasons? A. It requires extensive personnel.
B. It lacks source accountability. C. It excludes quality circles. D. Its costs are significant
Answer: B
QUESTION 104
Materials should be moved from point of manufacture to point of use when: A. production is completed at point of manufacture
B. the materials are needed at point of use C. material handling equipment is available D. material at point of use is zero
QUESTION 105
Which of the following would be manufactured in a continuous-production process? A. combines B. clothing C. vitamins D. gasoline Answer: D QUESTION 106
Which of the following statements is true about obtaining a high level of accuracy for inventory records? A. It would usually lead to a reduction of inventory levels.
B. It is not necessary to achieve because of safety stocks and safety lead time. C. It would result in savings that are likely to be small and difficult to determine. D. It is probably impossible to achieve and will be costly to obtain.
Answer: A
QUESTION 107
When a company is pursuing a program to achieve manufacturing excellence, which of the following objectives should receive the highest priority?
A. delivery reliability B. quality improvement C. cost reduction D. volume flexibility Answer: B QUESTION 108
Which of the following is most likely to be the order winner in the early stages of a product's life cycle? A. Quality B. Design C. support D. price Answer: B QUESTION 109
A manufacturer's decision to extend the degree of forward integration should be influenced by its desire to do which of the following?
A. Reduce the uncertainty of demand II. Erect barriers to potential competitors
B. I only C. III only D. I and II only E. I, II, and III
Answer: C
QUESTION 110
Analyzing capital investments by estimating future cash flows and translating them into equivalent amounts in today's terms is called:
A. Average return on investment analysis B. payback analysis
C. internal rate of return analysis D. discounted cash flow analysis
Answer: D
QUESTION 111
Which of the following is the most important consideration when designing an information system to control shop floor operations?
A. Supporting differentiation between functional areas and production operations
B. Providing staff specialists with the information needed to control production operations C. Allowing factory personnel to manage their own production operations
D. Encouraging users to operate independently with a minimal amount of training
Answer: C
QUESTION 112
All of the following are requirements for a successful employee involvement (EI) program EXCEPT A. Common understanding of the employee's role in achieving the plant's strategy
B. Management clearly identifying and defining the problems to be solved C. Providing the EI teams with authority to change work processes D. Developing intrinsic and extrinsic reward to recognize jobs done well
Answer: B
QUESTION 113
Companies that produce a narrow range of high-volume products will most likely choose which of the following processes?
A. Project B. Jobbing C. Batch D. Line
Answer: D
QUESTION 114
FLY Manufacturing is an aircraft manufacturer. They produce executive jets on an Engineer-to-order basis. Which of the following MRPII processes would most likely NOT be required at FLY?
A. Business Planning
B. Sales & operations Planning C. materials requirements planning D. Distribution Requirements Planning
Answer: D
QUESTION 115
Which of the following best describes JIT? A. The continuous elimination of inventory B. The continual reduction of lead-times C. The elimination of value-adding activities D. The continuous elimination of waste
Answer: D
QUESTION 116
Which of the following is an advantage of VMI?
A. Suppliers can leverage better information to reduce inventory levels.
B. The customer can usually force additional concessions from the VMI supplier C. Lead-times are increased
D. MRP system operating costs decrease
Answer: A
QUESTION 117
Acme Chemical Company has a price order winner, which actions are consistent with this advantage? A. chase production strategy, freight consolidation, and kaizan teams
B. level production strategy,freight consolidation, and SPC
C. level production strategy, LTL transport, and incoming inspection
D. combination production strategy, freight consolidation, and incoming inspection
Answer: B
QUESTION 118
ABC Corporation has chosen three projects for implementation this year. They are increased usage of common components, implementation of safety capacity, and integration of ATP logic within customer processes. These actions are most supportive of which order winner?
A. Innovation B. Price/Cost C. Delivery Reliability D. Image Answer: C QUESTION 119
XYZ Company is pursuing improved quality levels. Which of the following actions would produce the best results for XYZ?
A. Hire additional inspectors B. tighten tolerances
C. adopt a quality first slogan D. reduce process variability
Answer: D
QUESTION 120
ABC Company has decided to implement point of use replenishment with a key supplier. Which action is consistent with this decision?
A. Establishing a physical area close to the operations that utilize the supplies B. Determining the reorder point level for supplies
C. Establishing ASN notification with the supplier D. Agreeing on consignment rules.
Answer: A
QUESTION 121
Which of the following strategies is most likely to produce the shortest delivery lead- time? A. Make-to-order B. Assemble-to-order C. Make-to-stock D. Make-to-assemble Answer: C QUESTION 122 Sales 100 100 100 100 100 100 Production 200 200 200 100 100 100 Starting Inventory = 100
The production plan shown above is an example of which production strategy? A. Chase
B. Level
D. Combination
Answer: D
QUESTION 123
A planned order receipt is generated by MRP when: A. Net requirements are greater than zero
B. Gross requirements are greater than zero C. Projected available balance is above zero D. Forecasted demand is less than planned supply
Answer: A
QUESTION 124
According to the Theory of Constraints, which of the following statements is true? A. A buffer of inventory should always be maintained after the bottleneck. B. Constraints always exist in a factory
C. Work centers feeding bottlenecks should operate at peak utilization to ensure WIP availability at all times. D. Use of Drum-Buffer-Rope includes communication from the bottleneck to the Gateway workcenter
Answer: D QUESTION 125 Planned input 30 30 20 20 20 20 Planned output 20 20 20 20 20 20 Planned backlog Actual backlog 50
The planned backlog at the end of period 6 is? A. 70 B. 65 C. 60 D. 50 Answer: A QUESTION 126
Each of the following actions would reduce safety stock levels EXCEPT: A. reduce forecast error
B. increase lead times
C. reduce the customer service target D. adopt a make-to-order strategy
QUESTION 127
Forecasted Actual Period Demand Demand 1 100 70 2 100 60 3 100 85 4 100 90 5 100 95 6 100 100 7 100 55 8 100 70 9 100 80 10 100 85
This forecast performance is best described as: A. biased B. Random Error C. Efficient D. Naive Answer: A QUESTION 128
Planned order receipt is generated by MRP when: A. net requirements are greater than zero
B. gross requirements are greater than zero C. projected available balance is above zero D. forecasted demand is less than planned supply
Answer: A
QUESTION 129
Each of the following actions would reduce safety stock levels EXCEPT: A. Reduce forecast error
B. Increase lead times
C. Reduce the customer service target D. Adopt a make-to-order strategy
Answer: B
QUESTION 130
Which tactic would successfully reduce cycle stock? A. Increase annual usage of an item
B. Reduce ordering costs C. Reduce carrying costs D. Increase setup costs
Answer: B
QUESTION 131
What is the demonstrated weekly capacity of a line based upon the following data? Efficiency = 80%, Utilization = 100%, Available weekly hours = 1,000. Last 5 weeks output (in standard hours), 1000, 1,100, 1,200, 900, 1,300 A. 800 B. 1,000 C. 1,100 D. 1,500 Answer: C QUESTION 132
What will be the impact on inventory turns if average inventory levels are cut in half and all other operating conditions remain the same?
A. Turns will double
B. Turns will remain constant C. Turns will be cut in half
D. Turns will increase by the square root of 2
Answer: A
QUESTION 133
Which of the following best describes sole sourcing?
A. Multiple potential suppliers, one is chosen to be the only supplier for an organization B. Multiple potential suppliers, 2-3 are chosen to be the only suppliers for an organization C. One supplier exists and is utilized
D. One supplier exists, but is not utilized
Answer: C
Using non-cumulative methods, what is the ATP in period 1? A. 88 B. 100 C. 261 D. 300 Answer: A QUESTION 135
What is the updated forecast, utilizing exponential smoothing, given the following data? Old Forecast = 100, actual demand = 80, alpha = 0.2, tracking signal = 0.9
A. 80 B. 96 C. 100 D. 104 Answer: B QUESTION 136
A distributor has decided to implement push replenishment throughout its network. Which action is most consistent with this decision?
A. establishing double order points B. establishing a bill of distribution C. establishing safety stocks D. establishing lead times
Answer: B
QUESTION 137
Which business process is concerned with the replenishment of items and usually occurs on a weekly basis? A. RCCP B. S&OP C. MPS D. Business Planning Answer: C QUESTION 138
Which combination of business processes is accurate? A. MRP, rough-cut capacity
B. S&OP, CRP
C. MPS, rough cut capacity D. DRP, CRP
Answer: C
QUESTION 139
Which forecast performance measure detects bias? A. tracking signal B. MAPE C. standard deviation D. MAD Answer: A QUESTION 140
The following four jobs, A-D, have critical ratios of 1.6, 1.2, 0.3, and 0.4 respectively. When this rule is utilizing for dispatching, what is the sequence of job execution?
A. D, A, B, C B. C, D, B, A C. A, B, C, D D. D, C, B, A Answer: C QUESTION 141
Which statement is best as it relates to PROTECTIVE CAPACITY? A. The capabilities of a system constraint
B. extra capacity used to protect against fluctuations in demand from the system constraint. C. the capabilities of the gateway workcenter
D. capacity that should always be utilized
Answer: B
QUESTION 142
Suitability deals with the overall rationale of the strategy. The key point to consider is whether the strategy would address the key strategic issues underlined by the organization's strategic position. For instance: A. Does it make economic sense?
B. Would the organization obtain economies of scale, economies of scope or experience economy? C. Would it be suitable in terms of environment and capabilities?
D. All of these
Answer: D
QUESTION 143
Which one of the following tools that cannot be used to evaluate feasibility of a strategy? A. Cash flow analysis and forecasting
B. Break-Even analysis
C. Resource deployment analysis D. None of these
Answer: D
QUESTION 144
Order quantity is 1000 units and safety stock is 300 units. What is the average inventory? A. 800 units B. 900 units C. 890 units D. 980 units Answer: A QUESTION 145
In terms of structure and function, the construction supply chain is characterized by the following element/s: A. It is a converging supply chain directing all materials to the construction site where the object is assembled
from incoming materials. The ?construction factory ?is set up around the single product, in contrast to manufacturing systems where multiple products pass through the factory, and are distributed to many customers.
B. It is, apart from rare exceptions, a temporary supply chain producing one-of construction projects through repeated reconfiguration of project organizations. As a result, the construction supply chain is typified by instability, fragmentation, and especially by the separation between the design and the construction of the built object.
C. It is a typical make-to-order supply chain, with every project creating a new product or prototype. There is little repetition, again with minor exceptions. The process can be very similar, however, for projects of a particular kind.
D. All of these
Answer:
QUESTION 146
An SKU costing $10 is ordered in quantities of 500 units, annual demand is 5200 units, carrying costs are 20%, and the cost of placing an order is $50. Calculate annual inventory carrying cost
A. $500 B. $550 C. $450 D. $400 Answer: A QUESTION 147
Physical distribution contributes to: A. Creating demand
B. Prompt delivery
C. Product availability and accurate order filling D. All of these
Answer: D
QUESTION 148
___________ is responsible for producing a set of specifications that manufacturing can use to make the product. Products must be designed to be:
?Functional
?Capable of low-cost processing A. Product Design B. Production Plan C. Marketing mix D. All of these Answer: A QUESTION 149
Much evidence is available that this ideal information system integration is not evolving within industry supply chains, since:
A. Manual data entry is widespread, even when machine sources are available; critical information is often manually re-entered at many points in the chain
B. Interventions from purchasing clerks, order processors, and expediters are required to maintain supply-chain information flows
C. The use of translators to convert data from one format to another is almost universal, even between systems that are nominally compliant with established protocols
D. All of these
Answer: D
QUESTION 150
Which of the following is NOT categorized modeling approaches in SCM? A. Supply Chain Network Design Method:
B. MIP Optimization Modeling: C. Heuristic Methods:
D. None of these
Answer: D
QUESTION 151
Poor product design can add cost to processing in the following ways EXCEPT:
A. the product and its components may not be designed to be made using the most economical methods impossible.
B. Parts may be designed so excessive material has to be removed C. Parts may be designed so operations are difficult
D. None of these
Answer: D
QUESTION 152
Currently, there is a trend towards more specialization in manufacturing whereby a factory specializes in a narrow product mix for a niche market. Generally, focused factories are thought to be more effectively and economically than more complex factories, the reason being that:
A. repetition and concentration in one area allow the workforce and management to gain the advantages of specialization.
B. The focused factory may be a "factory within a factory," an area in an existing factory set aside to specialize in a narrow product mix
C. specialization has the disadvantage of inflexibility D. All of these
Answer: A
QUESTION 153
Advantage/s of concurrent engineering is/are: A. Time to market is reduced
B. Cost is reduced
C. Better quality and lower total system cost D. All of these
Answer: D
QUESTION 154
A manufacturer has the alternative of making parts in-house or of buying them from an outside supplier. Reason/s to make In-house may be:
A. Can produce for less cost than a supplier B. Uses specialized expertise of suppliers C. Provides known and competitive prices D. To utilize existing equipment to fullest extent
Answer: AD
QUESTION 155
Benefit/s of supply chain simulation is/are:
A. To help understand the overall supply chain processes and characteristics by graphics/animation
B. To be able to capture system dynamics: using probability distribution, user can model unexpected events in certain areas and understand the impact of these events on the supply chain
C. To minimize the risk of changes in planning process: by what-if simulation, user can test various alternatives before changing plan.
D. All of these
Answer: D
QUESTION 156
A manufacturer has the alternative of making parts in-house or of buying them from an outside supplier. Reason/s to buy out may be:
A. Requires less capital investment B. Uses specialized expertise of suppliers
C. Allows the firm to concentrate on its own areas of specialization D. All of these
Answer: D
QUESTION 157
The CPI system is based on the scientific methods. This general method is used to solve many kinds of problems. Which of the following is NOT the out of six steps continuous improvement process?
A. Select the process to be studied
B. Record the existing method to collect the necessary data in a useful form C. Bottlenecks
D. Analyze the recorded data to generate alternatives improved methods
Answer: C
Pareto analysis can be used:
A. to select problems with the greatest economic impact B. to identify process bottleneck
C. To manage excessive overtime
D. To locate employee grievances with true assignable causes
Answer: A
QUESTION 159
A process costs $200 to set up. The run time is 5 minutes per piece and the run cost is $30 per hour. Determine the fixed cost?
A. $250.00 B. $200.00 C. $340.00 D. $300.00 Answer: B QUESTION 160
A process costs $200 to set up. The run time is 5 minutes per piece and the run cost is $30 per hour. Determine total cost and unit cost for a lot of 500.
A. Total Cost: $1450.00 & Unit cost: $2.90 B. Total Cost: $1400.00 & Unit cost: $2.80 C. Total Cost: $1455.00 & Unit cost: $2.90 D. Total Cost: $1440.00 & Unit cost: $2.60
Answer: A
QUESTION 161
If the range and variety of product are large: A. Production runs will be short
B. Machines must be changed over frequently
C. Little opportunity to use the specialized machinery and fixtures D. All of these
Answer: D
QUESTION 162
Toyota has designed seven important sources of waste in manufacturing. The first four relate to the design of the manufacturing system and the last there to the operation and management of the system. Which one of the following is NOT out of those sources of waste?
A. Overproductions B. Bottlenecks
C. Movement D. Product Defects
Answer: B
QUESTION 163
Poke-Yoke (Fail Safe) tries to change either the process or its resources, thus eliminating the need to rely on human experience and knowledge. Examples include:
A. Use color-coded parts
B. Put a template over an assembled component to show operators where specific parts go C. Both of these
D. None of these
Answer: C
QUESTION 164
Basic concepts in TQM:
A. A committed and involved management B. Focus on the customer
C. Involvement of the total workforce D. All of these
Answer: D
QUESTION 165
?High quality level
?High flexibility to change such things as volume, specifications, and delivery ?High service level ?Short lead times
?Low variability in meeting targets ?Low cost
These are general requirements of: A. Suppliers
B. Customers
C. All the supply chain agents D. Sub-contractors Answer: A QUESTION 166 ?Pareto charts ?Check sheets ?Process flowcharts ?Sactterplots
?Cause and effect diagram These are the:
A. Quality control tools B. Control charts C. demand measurements D. None of these Answer: D QUESTION 167
There are following reasons of using sample inspections: A. Testing the product is destructive
B. There is not enough to give 100% inspection to a batch of product
C. It is too expensive to test the entire batch and human errors is to be estimated as high as 20% D. All of these
Answer: D
QUESTION 168
A 100% inspection means: A. Testing every unit in the lot
B. Appropriate when the cost of inspection is less than the cost of any loss resulting from failure of the parts C. Both of these
D. None of these
Answer: C
QUESTION 169
Benchmarking includes the following steps: A. Select the process to benchmark
B. Identify an organization that is in best class C. Study the benchmarked organizations D. All of these
Answer: D
QUESTION 170
For a particular commodity, the line-haul cost is $2.50 per mile. For a trip of 500 miles and a shipment of 600 cwt., what is the cost of shipping cwt.? If this shipment is increased to 1000 cwt., what is the saving in cost per cwt.? A. $ 1.25 and $0.85 B. $ 1.25 and $0.83 C. $ 1.29 and $0.80 D. $ $ 1.27 and $0.90 Answer: B
QUESTION 171
A company ships barbecues fully assembled. The average line-haul cost per shipment is $12.50 per mile, and the truck carries 100 assembled barbecues. The company decides to ship the barbecues unassembled and figures it can ship barbecues in a truck. Calculate the line-haul cost per barbecue assembled and
unassembled. If the average trip is 300 miles, calculate the saving per barbecue? A. $0.126, $0.125 and $30.00 B. $0.127, $0.124 and $30.00 C. $0.125, $0.125 and $30.00 D. $0.125, $0.125 and $30.00 Answer: A QUESTION 172
The art charged by a carrier will also vary with the commodity shipped and will depend upon the following: A. Value B. Density C. Perishability D. All of these Answer: D QUESTION 173
A company normally ships to a customer by rail at a cost of $500 per load. The transit time is fourteen days. The goods can be shipped by truck for $700 per load and transit time of four day. If transit inventory cost is $35 per day, what does it cost to ship each way?
A. Rail: $990 and Truck: $ 840 B. Rail: $900 and Truck: $ 890 C. Rail: $970 and Truck: $ 870 D. Rail: $980 and Truck: $ 880
Answer: A
QUESTION 174
A company ships a particular product to a market located 1000 miles from the plant at a cost of $4 per mile. Normally it ships 500 units at a time. If the company can ship the units unassembled, it can ship 800 units in a truck. What is the line-haul cost per unit now?
A. $4 B. $5 C. $8 D. $10
QUESTION 175
The planning horizon is usually longer for several reasons e.g.: A. The longer the horizon, the greater the "visibility"
B. The longer the horizon, the better management's ability to avoid future problems
C. The longer the horizon, the better the management's ability to take advantage of special circumstances. D. All of these Answer: D QUESTION 176 MPS is meant to be: A. Rigid B. Flexible C. Depends on situation D. cyclic Answer: B QUESTION 177
____________________ is that portion of firm's inventory and planned production that is not already committed and is available to the customer.
A. Available to promise B. Available to produce C. Safety stock D. None of these Answer: A QUESTION 178
A scheduled receipt is an order that has been issued: A. To manufacturing
B. To supplier
C. Either to manufacturing or to supplier D. It depends on situation
Answer: C
QUESTION 179
If the beginning projected available balance is 100 units, the forecast is 40 units, and customer orders are 50 units, the ending projected available balance is:
A. 60 B. 50 C. 40
D. 30
Answer: B
QUESTION 180
_____________________ is the number of periods 1, in which changes are not expected due to excessive cost caused by schedule disruption.
A. Projected available balance B. Demand time fence
C. Scheduled receipt
D. ATP (available o promise)
Answer: B
QUESTION 181
Checking _____________ is a two step process. First the order must be scheduled to see when the capacity is needed, and second, the load on work centers must be checked in that period.
A. Capacity availability B. Capacity utilized C. Capacity required D. None of these Answer: A QUESTION 182
Projected available balance is calculated in which one of the following ways? A. PAB=prior period PAB or on-hand balance + MPS ?customer orders B. PAB=prior period PAB + MPS ?greater of customer orders or forecast
C. Both of these depending on whether the period is before or after the period is before or after the demand time fence
D. None of these
Answer: C
QUESTION 183
A company wants to minimize the cost of manufacture and also be flexible enough to adapt to changing needs. Changes to production schedules can result in the following EXCEPT:
A. Cost increases due to rerouting, rescheduling, extra setups, expediting, and buildup of work-in-process inventory
B. Decreased customer service. A change in quantity of delivery can disrupt the schedule of other orders C. Loss of credibility for the MPS and the planning process
D. Process create more scraps than needed than needed
QUESTION 184
Frozen zone, slushy zone and liquid zone are the part of A. MPS
B. Planning time fence
C. Projected available balance D. Scheduled receipts
Answer: B
QUESTION 185
Any changes can be made to the MPS as long as it is within the limits set by the production plan. Changes are routine and are often made by the computer program.
This is the scenario in zone of time fence. A. Slushy Zone B. Frozen Zone C. Liquid Zone D. None of these Answer: C QUESTION 186
1. Wrong product or specification 2. Wrong amount (too little or too much) 3. Wrong shipping date (too early or too late)
These are common errors in ______ that occur all the time and require constant attention. A. Customer Expectations B. Customer orders C. MPS D. MRP Answer: B QUESTION 187
_________ is a rate of doing work, not the quantity of work done. A. Capacity B. Capacity Planning C. Capacity Control D. Capacity required Answer: A QUESTION 188
A term closely related to capacity required is ________. This is the amount of released and planned work assigned to a facility for a par.
A. Capacity available B. Target capacity C. Load D. Output Answer: C QUESTION 189
Capacity planning links the various production priority schedules to : A. Manufacturing plans B. Manufacturing resources C. MRP D. All of these Answer: B QUESTION 190
__________ is the process of monitoring production output, comparing it with capacity plans, and taking corrective action when needed.
A. Capacity control B. Capacity planning C. Capacity required D. Capacity management Answer: A QUESTION 191
"The function of establishing, measuring, monitoring and adjusting limits or levels of capacity in order to execute all manufacturing schedules". This definition is related to:
A. Capacity planning B. Capacity control C. Capacity management D. None of these Answer: C QUESTION 192
Which of the following steps is NOT included in capacity planning?
A. Determine the capacity available at each work center in each time period. B. Determine the load at each work center in each time period
C. Resolve differences between available capacity to match the load. Otherwise, the priority plans must be changed to match the available capacity
Answer: D
QUESTION 193
The capacity planning process occurs at each level in the priority planning process, varying only in: A. The level of detail
B. The time spans involved
C. The level of detail and the time spans involved D. Capacity requirements
Answer: C
QUESTION 194
Resource planning includes changes in all of the following EXCEPT: A. Staffing
B. Capital equipment
C. Product design or other facilities D. Factory premises
Answer: D
QUESTION 195
It takes capacity planning to the next level of detail .The master production schedule is the primary information source. What is it?
A. Resource planning
B. Rough-out capacity planning C. Capacity requirement planning D. None of these
Answer: B
QUESTION 196
The purpose/s of rough-out capacity planning is /are: A. to check the feasibility of the MPS
B. provide warnings of any bottlenecks
C. Ensure utilization of work centers and advice vendors of capacity requirements D. All of these
Answer: D
QUESTION 197
Which one of the following statements is about capacity requirements planning? A. It is directly liked to the material requirements plan
B. This type of planning focuses on components parts, grater detail is involved than in rough- cut capacity planning.
C. Involves translating monthly, quarterly or annual product priorities from the production plan into some total measure of capacity, such as gross labor house.
D. Both A&B
Answer: D
This figure shows that:
A. The upper levels of the priority planning are input to lower levels
B. The various capacity plans relate only to their levels in the priority plan not to subsequent capacity planning levels
C. Both of these D. None of these
Answer: C
QUESTION 199
The capacity requirements plan occurs at the level of: A. MRP B. MRPII C. MPS D. Both A&C Answer: A QUESTION 200
In considering open shop orders, capacity requirement planning account for: A. Work already done on a shop order
B. Order requirements C. Order lot size D. Lead time
Answer: A
QUESTION 201
___________ is the most detailed, complete and accurate of the capacity planning techniques. A. Capacity requirements planning
B. Resource planning
C. capacity requirements planning (CRP) D. Capacity control
Answer: C
QUESTION 202
CRP inputs are all of the following EXCEPT: A. Open shop orders and leads times
B. Planned order releases and work center capacities C. Routings and time standards
Answer: D
QUESTION 203
The information for the CRP inputs can be obtained from: A. Open order fie
B. MRP
C. Routing and work center file D. All of these
Answer: D
QUESTION 204
An open order appears as a/an _____________ on the MRP. A. Open order file
B. Scheduled receipt C. Order releases D. None of these
Answer: B
QUESTION 205
A routing file should contain the following information EXCEPT: A. Operations to be performed
B. Sequence of operations C. Work centers to be used D. Priority plan
Answer: D
QUESTION 206
______________ is the sum of queue, setup, run, wait and move times at work center. A. Work center times
B. Production times C. Lead time
D. Order to delivery time
Answer: C
QUESTION 207
A. Wait time schedule B. Lead time schedule C. Shop calendar D. Routing file
Answer: C
QUESTION 208
Which one of the following affects capacity available? A. Product specifications
B. Product Mix
C. Plant and equipment and work effort D. All of these
Answer: D
QUESTION 209
__________ and ____________ depends on the design of the product and the mix of the products made. A. Product specification and product mix
B. Product specification and product quality C. Product quality and product line
D. Product demand and ordered quantity
Answer: A
QUESTION 210
It provides a yard stick for measuring work content and unit for stating capacity. What is it? A. Work effort B. Standard time C. Lead time D. Move time Answer: B QUESTION 211
Capacity needs to be measured on following levels EXCEPT: A. Machine or individual
B. Work center
C. Plant, which can be considered as a group of different work centers D. None of these
QUESTION 212
There are two ways to determining the capacity available; out of which ________is figured from historical data and _______ is based on available time, utilization and efficiency.
A. Demonstrated, calculated capacity B. Measured, rated capacity
C. Both A and B are same
D. Measured, demonstrated capacity
Answer: C
QUESTION 213
A work center working one 8 hour shift for 5 days a week is available _____________ hours a week is available A. 40 hours
B. 35 hours as lunch timings C. 45 hours
D. 30 hours
Answer: A
QUESTION 214
A work center has 3 machines and is operated for 8 hours a day and 5 days a week. What is the available time?
A. 100 hours per week B. 80 hours per week C. 90 hours per week D. 120 hours per week
Answer: D
QUESTION 215
A work center is available 120 hours but actually produced goods for 100 hours. What is the utilization of the work center? A. 84.3% B. 84% C. 83.3% D. 83.5% Answer: C QUESTION 216
Utilization can be determined from: A. Historical records
B. Work sampling study C. Efficiency
D. Both A And B
Answer: D
QUESTION 217
A work center produces 120 units in a shift. The standard for that item is units a shift. What is 100 the efficiency of work center?
A. 120% B. 20% C. 100% D. 80% Answer: A QUESTION 218
A work center consists of four machines and is operated 8 hours per day for 5 days a week. Historically, the utilization has been 85% and the efficiency 110%.what is the rated capacity?
A. 150 standard hours B. 149.6 standard hours C. 180.5 standard hours D. 160.9 standard hours Answer: B QUESTION 219
One way to find out the capacity of a work center is to examine the ________ and to use that information as the available capacity of the work center.
A. Production records B. Available inventory C. Utilization D. Efficiency Answer: A QUESTION 220
Over the previous four weeks, a work center produced 120, 130, 150,140 standard hours of work. What is the demonstrated capacity of the work center?
A. 135 standard hours B. 139 standard hours C. 140 standard hours D. 130 standard hours
Answer: A
QUESTION 221
Demonstrated capacity is: A. Minimum output B. Average Output C. Maximum output D. None of these Answer: B QUESTION 222
Over a 4-week period a work center produced 540 standard hours of work was available for 640 hours, and actually worked 480 hours. Calculate the utilization and the efficiency of the work center.
A. 75%, 110% B. 75%, 112.9% C. 76%, 112.95% D. 75%, 110% Answer: B QUESTION 223
____________ is a two-step process. First determine the time needed for each order at each order at each work center. Then sum up the capacity required for individual orders.
A. Load
B. Capacity required C. Available capacity D. Both A and B are same
Answer: D
QUESTION 224
A work center is to process 150 units of gear shaft SG 123 on work order 333.the setup time is 1.5 hours, and the run time is 0.2 hours per piece. What is the standard time needed or run the order?
A. 31.5 standard hours B. 30 standard hours C. 29.5 standard hours D. 28 standard hours Answer: A QUESTION 225
In the previous problem how much actual time will be needed to run the order if the work center has an efficiency of 120% and a utilization of 80%?
