Exam: CPIM Title :Certified in Production and Inventory Management

Exam A QUESTION 1 Operations management works in a complex environment affected by many factors. Among the most important are: A. B. C. D. Government regulation the economy and competition Customer expectations and quality all of these

Answer: D

QUESTION 2 Government regulations majorly apply to areas as: A. B. C. D. Environment and taxation Product liability and safety Population growth 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. B. C. D. Government changes in the marketplace Business decisions customer expectations

Answer: B

QUESTION 4 Some of the characteristics customers expect when they buy products are all of the following EXCEPT: A. B. C. D. A fair price with higher quality products and services Delivery lead time Presale services better than after sale services 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. B. C. D. Order takers Order achievers Order winners Order credentials

Answer: C

QUESTION 7 Order winning characteristics are defined primarily from: A. B. C. D. Competition customer needs Business sector 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. B. C. D. Strive to provide at least minimum level of acceptance for each of the order qualifiers Should try to be the best in the market for the order winners. Should keep in mind the pace of change 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. B. C. D. Product life cycle Economic changes Government regulation Market needs

Answer: A

QUESTION 10 Quality and delivery factor of products tend to have increased importance during: A. B. C. D. Maturity phase Growth phase Introduction phase Decline phase

Answer: B

QUESTION 11 Life cycle approach for identifying order winners and qualifiers is complicated in that: A. B. C. D. The duration of life cycle will be very different for different products. Customer needs change work frequently Life cycle phase are difficult to understand 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. B. C. D. Engineer-to-order Assemble-to-order Make-to-stock 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. B. C. D. Mutual analysis for cost reduction Mutual product design Need for rapid delivery 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. B. C. D. Explosive growth in computer capability applications as ERP. Large growth in global competition growth in the technological capabilities for product and processes 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. B. C. D. Flow of material Flow of information and sharing of information, mostly through the internet Fund transfers All of these

Answer: D

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. B. C. D. Maintain high inventories to goods are always available for the customers Interrupt production runs so that a non-inventoried item can be manufactured quickly Create an extensive and costly distribution system so good can be shipped to the customer rapidly All of these

Answer: D

QUESTION 22 All of the following are ways to achieve financial objectives EXCEPT: A. B. C. D. Reduce inventory so inventory investment is at a minimum level Decrease the number of plants and warehouses Extensive distributions system 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

QUESTION 24

The Question mark represents: A. B. C. D. Inventories Payables Cost of goods solved None of these

Answer: A

QUESTION 25 Important way to resolve conflicting objective is: A. B. C. D. To provide close coordination of the supply, production and distribution functions. Balance conflicting objectives to minimize the total of all costs involved Integrated materials management or logistics organization 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. B. C. D. 5% 6% 7% 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. B. C. D. Decrease by 3% Increase by 4% Decrease by 4% 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. B. C. D. 19% 18% 17% 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. B. C. D. $4, 32,000 $423,000 $4, 33,000 $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. B. C. D. $50,000 $500,400 $504,000 None of these

Answer: C

QUESTION 32 Production planning includes; A. B. C. D. Forecasting Master planning Material Requirement planning and capacity planning All of these

Answer: D

QUESTION 33 Production activity control activities in manufacturing planning and control may also be called: A. B. C. D. Shop-floor control Capacity planning Master planning Material Requirement planning

Answer: A

QUESTION 34 Inventories are part of planning process and provide buffer against: A. B. C. D. Demand rates Production rates Differences in demand and production rates 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. B. C. D. Product Description and process specifications Customized Design Time needed to perform operations Available facilities and quantities required

Answer: B

QUESTION 36 Engineering drawings and specifications and bill of material are the methods of: A. B. C. D. Product Description Process specifications Quantities required None of these

Answer: A

QUESTION 37 As used in material management, bill of material: A. B. C. D. Describes the components used to make the product Describes the subassemblies at various stages of manufacture. Both of these None 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. B. C. D. A route sheet A Routing file Process sheet 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. B. C. D. Operations required making the product Sequence of operations Equipment and accessories required 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. B. C. D. Load the plant Make delivery promises And cost the product 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. B. C. D. Forecasts and material Requirement plan Customer orders Orders to replace finished-goods inventory Sequence of operations

Answer: D

QUESTION 42 Transportation

Distribution inventory Warehousing Packaging Material handling Order Entry These are the activities of: A. B. C. D. physical supply Distribution system Virtual supply and distribution system Distribution details None of these

Answer: A

QUESTION 43 Metrics give us: A. B. C. D. Control by supervisors Reporting of data to supers and external description Product description Process specification

Answer: AB

QUESTION 44 Metrics: A. B. C. D. Communicate expectations and motivate people Identify problems Direct a course of action 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. B. C. D. Customer that are never satisfied A supply chain that is large and must be manage A product life cycle that is getting shorter and shorter 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. B. C. D. Rate on improvement in quality Cost and cost Reliability, innovation, effectiveness and productivity 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. B. C. D. 100% 70% 50% 10%

Answer: A

QUESTION 50 Considering the above question how much would sales have to increase in profits? A. B. C. D. 50% 25% 20% 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. B. C. D. 1,000,000 1,000,500 1,500,000 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. B. C. D. $ 80,000 $ 70,000 $ 90,000 $ 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. B. C. D. Strategic business plan Production plan Master production schedule 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. B. C. D. For different time span Responsible for satisfying market demand For different purposes Both A and C

Answer: D

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. B. C. D. During material resource planning During priority planning At each level of MCP During capacity planning

Answer: C

QUESTION 56 Strategic business plans are usually reviewed A. B. C. D. After each quarter Every six months to a year After five years Both A and B

Answer: B

QUESTION 57 The level of detail in strategic business plan is: A. B. C. D. Not so high Concerned with general market and production requirements Both of these 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: A. There must be a balance between priority and capacity

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. B. C. D. 8-12 months, each month 5-8 months, each quarter 6-8 months, each month or quarter None of these

Answer: C

QUESTION 61 Which one of the following is NOT an input to master production schedule (MPS)? A. B. C. D. Forecasts for individual end items Sales orders Inventories and existing capacity Bill of materials

Answer: D

QUESTION 62 For master production schedule planning horizon usually extends from: A. B. C. D. 3-18 months 6-18 months 9-18 months None of these

Answer: A

QUESTION 63 In MPS, plans are reviewed and changed: A. B. C. D. Weekly Quarterly Weekly or Monthly Monthly

Answer: C

QUESTION 64

____________shows the quantities needed and when manufacturing intends to make use or use them. A. B. C. D. MPS Production plan Purchasing and production activity control Material Requirement Plan

Answer: D

QUESTION 65 Purchasing and production activity control: A. B. C. D. is very short, perhaps from a day to month the level of detail is high since it is concerned with individual components, workstations and ordered Plans are reviewed and revised daily 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

QUESTION 67

This figure is a true representation of: A. B. C. D. MRP II MPS Production Plan 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. B. C. D. MRP II ERP MPS 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. B. C. D. Similarity of manufacturing process Difference in manufacturing processes of different product lines Similarities of processes in manufacturing of same product line items 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. B. C. D. A time horizon of 12 months is used, with periodic updating perhaps every month or quarter Production demand consists of one or a few product families or common units Demand is rarely fluctuating 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. B. C. D. Chase strategy Production leveling strategy Subcontracting 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. B. C. D. 118.8 units 188.7 units 189.7 units 180.00 units

Answer: B

QUESTION 75 The advantage/s of production leveling is/are: A. B. C. D. It results in smooth level off operation that avoids the costs of changing production levels. Firms do not need to have excess capacity to meet peak demand Firms do not need to hire and train workers and lay them off in slack periods All of these

Answer: D

QUESTION 76 Which of the following results in inventory build ups in low-demand periods? A. B. C. D. Production leveling strategy Chase strategy Hybrid strategy 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. B. C. D. Subcontracting Resource Planning Chase strategy 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. B. C. D. for developing a level production to forecast capacity requirements to meet demand To identify the production gaps All of these

Answer: A

QUESTION 79 The information needed to make a production plan is: A. B. C. D. Forecast by period for the planning horizon Opening inventory and desired ending inventory Any past-due customer orders. These are orders that are late for delivery and are sometimes back orders. All of these

Answer: D

QUESTION 80 With reference to the above example; how much should be produced each period? A. B. C. D. 120 cases 116 cases 122 cases 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. B. C. D. 102 cases 107 cases 110 cases 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. B. C. D. $2900 $2300 $2200 $3000

Answer: B

QUESTION 83 Generally, firms make-to-order when: A. B. C. D. Goods are produced to customer specifications The customer is willing to wait while the order is being made The product is expensive to make and to store and several product options are offered 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. B. C. D.

Forecasts by period for the planning horizon Opening backlogs of customer orders Desired ending backlog 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. B. C. D. Resource requirement planning MPS MRP II 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. B. C. D. 400 units 200 units 300 units 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. B. C. D. 8.3 units 88.8 units 8.9 units 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 production plan. The opening inventory is 200 units, and the desired ending inventory is 300 units.

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. B. C. D. 400 units 500 units 600 units 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. B. C. D. The production plan Forecasts for individual end items Actual orders received from customers and for stock replenishment 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 D. None 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. B. C. D. MRP MPR II MPS Production plan

Answer: C

QUESTION 93 The step for preparing MPS is/are: A. B. C. D. Develop a preliminary MPS Check the preliminary MPS against available capacity Resolve differences between the preliminary MPS and capacity availability All of these

Answer: D

QUESTION 94 Which of the following criteria is used to judge MPS? A. B. C. D. Resource use Customer service Cost 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. B. C. D. The longest cumulative or end-t-end lead time (LT) The shortest lead time The difference between the productions of two different batches None of these

Answer: A

QUESTION 97 _______________ and ________________ uncouples the sales forecast from manufacturing by establishing a manufacturing plan A. B. C. D. Production plan, MPS MRP and production plan MPS and chase strategy 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. B. C. D. Suitability (would it work?) Feasibility (can it be made to work?) Acceptability (will they work it?) All of these

Answer: D

QUESTION 99 Which of the following is generally a function of the physical distribution system? A. B. C. D. Production activity control Production planning packaging bill of material

Answer: C

QUESTION 100 A forecast is typically more accurate for: A. groups of items rather than for individual items

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. B. C. D. regression time series decomposition filtering smoothing

Answer: C

QUESTION 102 Which of the following is used to convert the master production schedule into detail requirements? A. B. C. D. production planning rough-cut capacity planning production activity control material requirements planning

Answer: D

QUESTION 103 End-of-line inspection often fails to improve quality for which of the following reasons? A. B. C. D. It requires extensive personnel. It lacks source accountability. It excludes quality circles. Its costs are significant

Answer: B

QUESTION 104 Materials should be moved from point of manufacture to point of use when: A. B. C. D. production is completed at point of manufacture the materials are needed at point of use material handling equipment is available material at point of use is zero

Answer: B

QUESTION 105 Which of the following would be manufactured in a continuous-production process? A. B. C. D. combines clothing vitamins gasoline

Answer: D

QUESTION 106 Which of the following statements is true about obtaining a high level of accuracy for inventory records? A. B. C. D. It would usually lead to a reduction of inventory levels. It is not necessary to achieve because of safety stocks and safety lead time. It would result in savings that are likely to be small and difficult to determine. 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. B. C. D. delivery reliability quality improvement cost reduction 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. B. C. D. Quality Design support 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 III. Reduce the number of processes to be controlled

B. C. D. E.

I only III only I and II only 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. B. C. D. Average return on investment analysis payback analysis internal rate of return analysis 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. B. C. D. Supporting differentiation between functional areas and production operations Providing staff specialists with the information needed to control production operations Allowing factory personnel to manage their own production operations 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. B. C. D. Common understanding of the employee's role in achieving the plant's strategy Management clearly identifying and defining the problems to be solved Providing the EI teams with authority to change work processes 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. B. C. D. Project Jobbing Batch 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. B. C. D. Business Planning Sales & operations Planning materials requirements planning Distribution Requirements Planning

Answer: D

QUESTION 115 Which of the following best describes JIT? A. B. C. D. The continuous elimination of inventory The continual reduction of lead-times The elimination of value-adding activities The continuous elimination of waste

Answer: D

QUESTION 116 Which of the following is an advantage of VMI? A. B. C. D. Suppliers can leverage better information to reduce inventory levels. The customer can usually force additional concessions from the VMI supplier Lead-times are increased 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. B. C. D. chase production strategy, freight consolidation, and kaizan teams level production strategy,freight consolidation, and SPC level production strategy, LTL transport, and incoming inspection 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. B. C. D.

Innovation Price/Cost Delivery Reliability 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. B. C. D. Hire additional inspectors tighten tolerances adopt a quality first slogan 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. B. C. D. Establishing a physical area close to the operations that utilize the supplies Determining the reorder point level for supplies Establishing ASN notification with the supplier Agreeing on consignment rules.

Answer: A

QUESTION 121 Which of the following strategies is most likely to produce the shortest delivery lead- time? A. B. C. D. Make-to-order Assemble-to-order Make-to-stock 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 C. Least Squares

D. Combination Answer: D

QUESTION 123 A planned order receipt is generated by MRP when: A. B. C. D. Net requirements are greater than zero Gross requirements are greater than zero Projected available balance is above zero 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. B. C. D. A buffer of inventory should always be maintained after the bottleneck. Constraints always exist in a factory Work centers feeding bottlenecks should operate at peak utilization to ensure WIP availability at all times. 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. B. C. D. 70 65 60 50

Answer: A

QUESTION 126 Each of the following actions would reduce safety stock levels EXCEPT: A. B. C. D. reduce forecast error increase lead times reduce the customer service target adopt a make-to-order strategy

Answer: B

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. B. C. D. biased Random Error Efficient Naive

Answer: A

QUESTION 128 Planned order receipt is generated by MRP when: A. B. C. D. net requirements are greater than zero gross requirements are greater than zero projected available balance is above zero forecasted demand is less than planned supply

Answer: A

QUESTION 129 Each of the following actions would reduce safety stock levels EXCEPT: A. B. C. D. Reduce forecast error Increase lead times Reduce the customer service target Adopt a make-to-order strategy

Answer: B

QUESTION 130 Which tactic would successfully reduce cycle stock? A. B. C. D. Increase annual usage of an item Reduce ordering costs Reduce carrying costs 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. B. C. D. 800 1,000 1,100 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. B. C. D. Turns will Turns will Turns will Turns will double remain constant be cut in half increase by the square root of 2

Answer: A

QUESTION 133 Which of the following best describes sole sourcing? A. B. C. D. Multiple potential suppliers, one is chosen to be the only supplier for an organization Multiple potential suppliers, 2-3 are chosen to be the only suppliers for an organization One supplier exists and is utilized One supplier exists, but is not utilized

Answer: C

QUESTION 134

Using non-cumulative methods, what is the ATP in period 1? A. B. C. D. 88 100 261 300

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. B. C. D. 80 96 100 104

Answer: B

QUESTION 136 A distributor has decided to implement push replenishment throughout its network. Which action is most consistent with this decision? A. B. C. D. establishing double order points establishing a bill of distribution establishing safety stocks 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. B. C. D. RCCP S&OP MPS Business Planning

Answer: C

QUESTION 138 Which combination of business processes is accurate? A. B. C. D. MRP, rough-cut capacity S&OP, CRP MPS, rough cut capacity DRP, CRP

Answer: C

QUESTION 139 Which forecast performance measure detects bias? A. B. C. D. tracking signal MAPE standard deviation 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. B. C. D. D, A, B, C C, D, B, A A, B, C, 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. B. C. D. Does it make economic sense? Would the organization obtain economies of scale, economies of scope or experience economy? Would it be suitable in terms of environment and capabilities? All of these

Answer: D

QUESTION 143 Which one of the following tools that cannot be used to evaluate feasibility of a strategy? A. B. C. D. Cash flow analysis and forecasting Break-Even analysis Resource deployment analysis None of these

Answer: D

QUESTION 144 Order quantity is 1000 units and safety stock is 300 units. What is the average inventory? A. B. C. D. 800 units 900 units 890 units 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. B. C. D. $500 $550 $450 $400

Answer: A

QUESTION 147 Physical distribution contributes to: A. B. C. D. Creating demand Prompt delivery Product availability and accurate order filling 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. B. C. D. Product Design Production Plan Marketing mix 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 supplychain 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. B. C. D. Supply Chain Network Design Method: MIP Optimization Modeling: Heuristic Methods: 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. B. C. D. Time to market is reduced Cost is reduced Better quality and lower total system cost 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. B. C. D. Can produce for less cost than a supplier Uses specialized expertise of suppliers Provides known and competitive prices 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. B. C. D. Requires less capital investment Uses specialized expertise of suppliers Allows the firm to concentrate on its own areas of specialization 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. B. C. D. Select the process to be studied Record the existing method to collect the necessary data in a useful form Bottlenecks Analyze the recorded data to generate alternatives improved methods

Answer: C

QUESTION 158

Pareto analysis can be used: A. B. C. D. to select problems with the greatest economic impact to identify process bottleneck To manage excessive overtime 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. B. C. D. $250.00 $200.00 $340.00 $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. B. C. D. Total Total Total Total Cost: $1450.00 & Unit cost: Cost: $1400.00 & Unit cost: Cost: $1455.00 & Unit cost: Cost: $1440.00 & Unit cost: $2.90 $2.80 $2.90 $2.60

Answer: A

QUESTION 161 If the range and variety of product are large: A. B. C. D. Production runs will be short Machines must be changed over frequently Little opportunity to use the specialized machinery and fixtures 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. B. C. D. Use color-coded parts Put a template over an assembled component to show operators where specific parts go Both of these None of these

Answer: C

QUESTION 164 Basic concepts in TQM: A. B. C. D. A committed and involved management Focus on the customer Involvement of the total workforce 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. B. C. D. Suppliers Customers All the supply chain agents Sub-contractors

Answer: A

QUESTION 166 ?Pareto charts ?Check sheets ?Process flowcharts ?Sactterplots ?Cause and effect diagram These are the:

A. B. C. D.

Quality control tools Control charts demand measurements None of these

Answer: D

QUESTION 167 There are following reasons of using sample inspections: A. B. C. D. Testing the product is destructive There is not enough to give 100% inspection to a batch of product It is too expensive to test the entire batch and human errors is to be estimated as high as 20% All of these

Answer: D

QUESTION 168 A 100% inspection means: A. B. C. D. Testing every unit in the lot Appropriate when the cost of inspection is less than the cost of any loss resulting from failure of the parts Both of these None of these

Answer: C

QUESTION 169 Benchmarking includes the following steps: A. B. C. D. Select the process to benchmark Identify an organization that is in best class Study the benchmarked organizations 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. B. C. D. $ 1.25 and $0.85 $ 1.25 and $0.83 $ 1.29 and $0.80 $ $ 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. B. C. D. $0.126, $0.125 and $30.00 $0.127, $0.124 and $30.00 $0.125, $0.125 and $30.00 $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. B. C. D. Value Density Perishability 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. B. C. D. Rail: $990 and Truck: Rail: $900 and Truck: Rail: $970 and Truck: Rail: $980 and Truck: $ 840 $ 890 $ 870 $ 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. B. C. D. $4 $5 $8 $10

Answer: B

QUESTION 175 The planning horizon is usually longer for several reasons e.g.: A. B. C. D. The longer the horizon, the greater the "visibility" The longer the horizon, the better management's ability to avoid future problems The longer the horizon, the better the management's ability to take advantage of special circumstances. All of these

Answer: D

QUESTION 176 MPS is meant to be: A. B. C. D. Rigid Flexible Depends on situation 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. B. C. D. Available to promise Available to produce Safety stock None of these

Answer: A

QUESTION 178 A scheduled receipt is an order that has been issued: A. B. C. D. To manufacturing To supplier Either to manufacturing or to supplier 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. B. C. D. Projected available balance Demand time fence Scheduled receipt 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. B. C. D. Capacity availability Capacity utilized Capacity required 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 Answer: D

QUESTION 184 Frozen zone, slushy zone and liquid zone are the part of A. B. C. D. MPS Planning time fence Projected available balance 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. B. C. D. Slushy Zone Frozen Zone Liquid Zone 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. B. C. D. Customer Expectations Customer orders MPS MRP

Answer: B

QUESTION 187 _________ is a rate of doing work, not the quantity of work done. A. B. C. D. Capacity Capacity Planning Capacity Control 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. B. C. D.

Capacity available Target capacity Load Output

Answer: C

QUESTION 189 Capacity planning links the various production priority schedules to : A. B. C. D. Manufacturing plans Manufacturing resources MRP 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. B. C. D. Capacity control Capacity planning Capacity required 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. B. C. D. Capacity planning Capacity control Capacity management 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 D. None of these

Answer: D

QUESTION 193 The capacity planning process occurs at each level in the priority planning process, varying only in: A. B. C. D. The level of detail The time spans involved The level of detail and the time spans involved Capacity requirements

Answer: C

QUESTION 194 Resource planning includes changes in all of the following EXCEPT: A. B. C. D. Staffing Capital equipment Product design or other facilities 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. B. C. D. Resource planning Rough-out capacity planning Capacity requirement planning None of these

Answer: B

QUESTION 196 The purpose/s of rough-out capacity planning is /are: A. B. C. D. to check the feasibility of the MPS provide warnings of any bottlenecks Ensure utilization of work centers and advice vendors of capacity requirements 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

QUESTION 198

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. B. C. D. MRP MRPII MPS Both A&C

Answer: A

QUESTION 200 In considering open shop orders, capacity requirement planning account for: A. B. C. D. Work already done on a shop order Order requirements Order lot size Lead time

Answer: A

QUESTION 201 ___________ is the most detailed, complete and accurate of the capacity planning techniques. A. B. C. D. Capacity requirements planning Resource planning capacity requirements planning (CRP) Capacity control

Answer: C

QUESTION 202 CRP inputs are all of the following EXCEPT: A. B. C. D. Open shop orders and leads times Planned order releases and work center capacities Routings and time standards None of these

Answer: D

QUESTION 203 The information for the CRP inputs can be obtained from: A. B. C. D. Open order fie MRP Routing and work center file All of these

Answer: D

QUESTION 204 An open order appears as a/an _____________ on the MRP. A. B. C. D. Open order file Scheduled receipt Order releases None of these

Answer: B

QUESTION 205 A routing file should contain the following information EXCEPT: A. B. C. D. Operations to be performed Sequence of operations Work centers to be used Priority plan

Answer: D

QUESTION 206 ______________ is the sum of queue, setup, run, wait and move times at work center. A. B. C. D. Work center times Production times Lead time Order to delivery time

Answer: C

QUESTION 207 Following is an example of:

A. B. C. D.

Wait time schedule Lead time schedule Shop calendar Routing file

Answer: C

QUESTION 208 Which one of the following affects capacity available? A. B. C. D. Product specifications Product Mix Plant and equipment and work effort All of these

Answer: D

QUESTION 209 __________ and ____________ depends on the design of the product and the mix of the products made. A. B. C. D. Product Product Product Product specification and product mix specification and product quality quality and product line 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. B. C. D. Work effort Standard time Lead time Move time

Answer: B

QUESTION 211 Capacity needs to be measured on following levels EXCEPT: A. B. C. D. Machine or individual Work center Plant, which can be considered as a group of different work centers None of these

Answer: D

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. B. C. D. Demonstrated, calculated capacity Measured, rated capacity Both A and B are same 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. B. C. D. 40 hours 35 hours as lunch timings 45 hours 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. B. C. D. 100 hours per week 80 hours per week 90 hours per week 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. B. C. D. 84.3% 84% 83.3% 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. B. C. D. 120% 20% 100% 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. B. C. D. 150 standard hours 149.6 standard hours 180.5 standard hours 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. B. C. D. Production records Available inventory Utilization 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. B. C. D. 135 standard hours 139 standard hours 140 standard hours 130 standard hours

Answer: A

QUESTION 221 Demonstrated capacity is: A. B. C. D. Minimum output Average Output Maximum output 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. B. C. D. 75%, 110% 75%, 112.9% 76%, 112.95% 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. B. C. D. Load Capacity required Available capacity 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. B. C. D. 31.5 standard hours 30 standard hours 29.5 standard hours 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%?

A. B. C. D.

38 hours 38.2 hours 32.8 hours 32 hours

Answer: C

QUESTION 226 1. Determine the standard hours of operation time for each planned and released order for each work center by time period. 2. Add all the standard hours together for each work center in each period. These are the steps of calculating: A. B. C. D. load Capacity required Available capacity None of these

Answer: AB

QUESTION 227 ___________________ is a usual process to start with the due date and using find lead time, to work back to operations? A. B. C. D. Efficiency Utilization Back Scheduling Capacity management

Answer: C

QUESTION 228 For back scheduling we need to know? A. B. C. D. Quantity and due date Sequence of operations and Work centers needed Setup and run time for each operation All of these

Answer: D

QUESTION 229 In back scheduling, Sequence of operation, Work centers needed setup time, and runtime are included in a/ an? A. Order file B. Work Center file C. Route file

D. Load Sheet Answer: C

QUESTION 230 Alter the load or the change the capacity awareness. These are the two ways of: A. B. C. D. Balancing capacity Balancing capacity required Balancing capacity available All of these

Answer: C

QUESTION 231 Altering the load in balancing capacity available means? A. B. C. D. Shifting orders ahead Shifting orders back Shifting orders ahead or back Rescheduling of load sheet

Answer: C

QUESTION 232 Changing the load may not de the preferred course of action. In short run, capacity can be adjusted. Some ways that this may be done are as follows EXCEPT? A. B. C. D. Schedule overtime or under time Adjust the level of work force by hiring or laying off workers. Shift work force from under loaded to overloaded work centers None of These

Answer: D

QUESTION 233 Which one of the following should be the result of capacity requirements planning? A. A detailed workable plan that meets the priority objectives and provides the capacity to do so. B. Ideally it will satisfy the MRP and allow for adequate utilization of the work force machinery, and equipment. C. Both of these D. none of these Answer: C

QUESTION 234 MRP and CRP should form part of a/an?

A. B. C. D.

Open system Closed-loop system Balanced system Workable plan that meets the priority objectives

Answer: B

QUESTION 235 A work center consists of 4 machines each working a 16-hour day for 5 days a week. What is the weekly available time? A. B. C. D. 230 hours per week 300 hours per week 350 hours per week 320 hours per week

Answer: D

QUESTION 236 If the efficiency of the work center in the above question is 115%. What is the rated capacity of the work center? A. B. C. D. 287 Standard hours per week 276 Standard hours per week 279 Standard hours per week None of these

Answer: B

QUESTION 237 Over a period of 4 weeks, a work center produced 50, 45, 40, and standard house of work. What is the demonstrated capacity of the work center? A. B. C. D. 47.8 47.5 48 49.5

Answer: A

QUESTION 238 In 1 week, a work center produces 85 standard hours of work. The hours scheduled are 80, and 75 hours are actually worked. Calculate the utilization and efficiency of the work center. A. 93.75% and 113.33% B. 97.75% and 113.33% C. 93.75% and 110.33%

D. None of the above Answer: A

QUESTION 239 How many standard hours are needed to run an order of 200 pieces if the setup time is 1.3 hours and the run time 0.3 hours per piece? How many actual hours are needed at the work center if the efficiency.130% and the utilization is 70%? A. B. C. D. 51.3 standard hours; 67.4 actual hours 62 standard hours; 60.4 actual hours 61.3 standard hours; 67.4 actual hours 61.3 standard hours; 60.4 actual hours

Answer: C

QUESTION 240 Production activity control is responsible for executing the: A. B. C. D. Production Schedule MRP Both of these Capacity control

Answer: C

QUESTION 241 The material requirement plan authorizes production activity control (PAC): A. B. C. D. To work orders to the shop for manufacturing To take control of work orders and make sure they are completed on time To manage day-to-day activity and provide the necessary support All of these

Answer: D

QUESTION 242 The flow of work centers must be planned to meet delivery dates which means production activity control must do the following: A. Ensure that the required materials, tooling, personnel and information are available to manufacture the components when needed. B. Schedule start and completion dates for each shop order at each work center so the scheduled completion date of the order can be met. This sill involves a planner in developing a load profile for the work centers. C. Both of these D. None of these Answer: C

QUESTION 243 Gather the information needed by the shop floor to make the product. Release orders to the shop floor as authorized by the material equipment plan. This is called dispatching. Production activity control will do such things in: A. B. C. D. Planning phase Implementation phase Control phase Both A & B

Answer: B

QUESTION 244

This is a true representation A. B. C. D. MRP Capacity Control PAC MRP II

Answer: C

QUESTION 245 Which one of the following is NOT done by PAC in control phase? A. B. C. D. Monitor and control work-in-process, lead times, and work center queues. Report work center efficiency, operation times, order quantities and scrap. Track the actual performance of work orders and compare it to planned schedules. Ensure that required materials, tooling, personnel and information are available.

Answer: D

QUESTION 246 Manufacturing process can be conveniently organized into following categories EXCEPT: A. B. C. D. Flow Manufacturing Intermittent Manufacturing Project Manufacturing Work Center Manufacturing

Answer: D

QUESTION 247 Repetitive Manufacturing and continuous manufacturing are types of: A. B. C. D. Flow Manufacturing Intermittent Manufacturing Project Manufacturing None of these

Answer: A

QUESTION 248 Which of the following is/are the major characteristic/s to flow manufacturing? A. B. C. D. Routing are fixed and work centers are arranged according to the routing. Work centers are dedicated to producing a limited range of similar products. Material flows from one workstation to another. All of these

Answer: D

QUESTION 249 ______________________is characterized by many variations in product design, process requirements and order quantities. A. B. C. D. Flow manufacturing Project manufacturing Intermittent manufacturing None of these

Answer: C

QUESTION 250 1. Flow of work through the shop is varied and depends on the design of a particular product. As orders are processed, they will take more time at once workstation than at another. Thus, the work flow is not balanced. 2. Machinery and workers must be flexible enough to do the variety of work. Machinery and work centers are usually grouped according to the function they perform (e.g. all lathes in one department). 3. Throughput times are generally long. Scheduling work to arrive just when needed is difficult, the time taken by an order at each work center varies, and work queues before work centers, causing long delays in processing. Work-in-process inventory is often large. 4. The capacity required depends on the particular mix of products being built and is difficult to predict. These are the characteristics of: A. B. C. D. Flow manufacturing Project manufacturing Intermittent manufacturing All of these

Answer: B

QUESTION 251 Production activity control in intermittent manufacturing is complex Because of: A. B. C. D. The number of products made The variety of routing Scheduling problems All of the above

Answer: D

QUESTION 252 To plan the processing of materials through manufacturing PAC must have the following information EXCEPT: A. B. C. D. What and how much to produce When parts are needed so the completion date can be met. What are scheduled receipts for various orders What the available capacities of various work centers are

Answer: C

QUESTION 253 Planning file/s needed for the production activity control is/are: A. B. C. D. Item master file Product structure file Routing and work center master file. All of these

Answer: D

QUESTION 254 The product structure file: A. B. C. D. Contains a list of single-level components and quantities needed to assemble Forms a basis fro a parent pick list. Both of these None of these

Answer: C

QUESTION 255 For each product _______________ contains a step by step set of instructions describing how the product is made. A. B. C. D. Routing file Work-center master file Control file Shop-order master file

Answer: A

QUESTION 256 Operation number Setup hours, planned and actual Quantity reported complete at the operation Quantity reported scrapped at that operation Due date or lead time remaining These are the components of ______________ related to each operation. A. B. C. D. Shop order master file Work-center master file Shop-order detail file None of these

Answer: C

QUESTION 257 Material Requirements Planning (MRP) is: A. B. C. D. The system used to provide available inventory The system used to avoid missing parts. A schedule establish for the production agenda All of the above

Answer: B

QUESTION 258 A schedule (priority plan) that establishes to show the components required at each level of the assembly and based on lead time, calculates the time when these component will be needed called: A. B. C. D. Material Requirements Planning Master Production Schedule Inventory control Planning B&C

Answer: A

QUESTION 259 How many types of demand are in Material Requirements planning? A. B. C. D. Three Four Two Seven

Answer: C

QUESTION 260 If a company makes wooden tables, the demand for the tables is called A. B. C. D. Independent Demand Dependent Demand Both A & B None of the above

Answer: A

QUESTION 261 Independent demand is: A. B. C. D. Directly related to the demand for any other products or assemblies Not related to the demand for any other products or assemblies Calculated A&C

Answer: B

QUESTION 262 Independent demand must be A. B. C. D. Forecast Calculated Show the required quantity of each component Dependent demand items

Answer: A

QUESTION 263 Dependency in MRP can be A. B. C. D. Horizontal Vertical None of the above Both A & B

Answer: D

QUESTION 264 Which of the following are the major objectives of Material Requirement Planning? A. B. C. D. Determine requirements and keep priorities current. Determine requirements and support production activities Control and monitoring material demands Control the performance of the order

Answer: A

QUESTION 265 A priority plan for the components needed to make the products in the Master production schedule (MPS) is called: A. B. C. D. Production Activity control (PAC) Material Requirements planning (MRP) Capacity Requirement planning All of the above

Answer: B

QUESTION 266 The plan must be checked against available capacity when needed to make the components is called the process of

A. B. C. D.

Capacity Requirement planning Material Requirements planning (MRP) Production Activity control (PAC) A&C

Answer: A

QUESTION 267 The computer software program that organizes and maintains the bills of material structures and their linkage is called: A. B. C. D. Inventory record Purchasing record Bills of material processor Procurement of material and supplies

Answer: C

QUESTION 268 Master production schedule, inventory records and bills of material are three major inputs to A. B. C. D. Material Requirements planning (MRP) System Production activity Control Manufacturing Planning and Control (MPC) Function Capacity Requirements planning (CRP)

Answer: A

QUESTION 269 Master Production schedule: A. A statement of which end items are to be produced, the quantity of each, and the dates they are to be completed B. Drives the MRP system by providing the initial input for the items needed C. Both A & B D. None of the above is true Answer: C

QUESTION 270 Inventory Record is one of the major input to the A. B. C. D. Capacity Requirements planning (CRP) Material Requirements planning (MRP) System Manufacturing Planning and Control (MPC) Function Production activity Control

Answer: B

QUESTION 271 Inventory records data are maintained in: A. B. C. D. Inventory record file Part master file Item master file All of the above

Answer: D

QUESTION 272 When a calculation is made to find out how many are needed, the quantities available must be considered in: A. B. C. D. Maintaining the bills of material structures Linkage between manufacturing planning and control system Inventory records Both A & C

Answer: C

QUESTION 273 The bill of material shows A. B. C. D. The components that go into making the parent The steps or process used to make the parent or the components Both A & B None of the above

Answer: A

QUESTION 274 A convenient way to think about bills of material is through: A. B. C. D. Product Tree Dependent demand Inventory record All of the above

Answer: A

QUESTION 275 Which of the following points are related to bills of material? A. The bill of material shows all the parts required to make one of the items B. Each part or item has only one part number

C. A part is defined by its form, fit or function. if any of these changes , then it is not the same part and it must have a different part number D. All of the above Answer: D

QUESTION 276 Multilevel bills are formed as: A. B. C. D. Logical grouping of parts into subassemblies based on the way the product is assembled. Overall design for the arrangements of bills To make identification of the part absolute Both A & B

Answer: A

QUESTION 277 What the following figure shows:

A. B. C. D.

The parent omponent relationship Quantity and parts relationship Identification of the parts None of the above

Answer: A

QUESTION 278 A bill is used when companies usually make more than one product and the same components are often used in several products A. Single-level bill B. Multiple bill C. Multilevel bill

D. Indented bill Answer: B

QUESTION 279 Which of the following are the advantages to use single-level bills? A. Duplication of records is avoided B. The numbers of records and, in computer systems, the file size are reduced by avoiding duplication of records. C. Maintaining bills of material is simplified D. All of the above Answer: D

QUESTION 280 By using following product tree, how many Ks are needed to make 200Xs and 150 Ys?

A. B. C. D.

1900 Ks 900 Ks 2100 Ks 800 Ks

Answer: A

QUESTION 281 A multilevel bill of material can shown as A. B. C. D. Indented bill Summarized parts list Single-level bill Planning bills

Answer: A

QUESTION 282 In bills of Material structure; Summarized parts list: A. B. C. D. The lists of all the parts needed to make one complete assembly Does not contain any information about the way the product is made or assembled It's the list of comments are linked to their parents by listing them immediately below the parents Both A & B

Answer: D

QUESTION 283 Which of the following is an artificial grouping of components for planning purposes? A. B. C. D. Indented bill Summarized parts list Single-level bill Planning bill

Answer: D

QUESTION 284 Planning bills are used to: A. B. C. D. Simplify forecasting Master production scheduling Material requirements planning All of the above

Answer: D

QUESTION 285 Planning bill does not represent A. B. C. D. Buildable products Average product Product structure looks None of the above

Answer: A

QUESTION 286 Where-used reports give information about A. B. C. D. The parents for a component Independent and dependent demand Both A & B None of the above

Answer: A

QUESTION 287 A listing of all the parents in which a component is used is called A. B. C. D. Pegging report Where-used report Planning bill Both A & B

Answer: B

QUESTION 288 A pegging report: A. Similar to a where-used report B. Shows only those parents for which there is an existing requirement C. Shows the parents creating the demand for the components, the quantities needed , and when they are needed D. All of the above Answer: D

QUESTION 289 Product design engineers sometimes change the design of a product and the components used. These changes must be recorded and controlled. The bill provides the method for doing so is called A. Engineering change control B. Production change control C. Demand change control

D. Both A & B Answer: A

QUESTION 290 Following figure shows: (draw here figure 4.10) with out mentioning names) A. B. C. D. Pegged requirement Where-used reports Production requirements Summarized part lists

Answer: A

QUESTION 291 Which of the following defines what materials have to be scheduled to make the end products? A. B. C. D. Bills of material Master production schedule Engineering change control bill All of the Above

Answer: A

QUESTION 292 Which of the following are the purposes of material requirement planning so items in the master production schedule are made on time? A. B. C. D. To determine the components needed To determine the quantities To determine the due dates All of the above

Answer: D

QUESTION 293 Exploding is the process of multiplying the requirements by: A. B. C. D. The usage quantity By recording the appropriate requirements throughout the product tress Both A & B None of the above

Answer: C

QUESTION 294 The process of placing the exploded requirements in their proper periods based on lead time is called

A. B. C. D.

Offsetting Exploding the equipments Production plan Where-used reports

Answer: A

QUESTION 295 If there are 20 as in stock, only 30 needs to be made, then the requirements for components parts would be: A. B. C. D. Reduced accordingly Increased accordingly Added accordingly Both B & C

Answer: A

QUESTION 296 Which of the following is the right calculation for obtaining the net requirements? A. B. C. D. Gross Requirement - Available inventory Gross Requirement x Available inventory Gross Requirement / Available inventory None of the above is true

Answer: A

QUESTION 297 The objective of the MRP is to have: A. B. C. D. Material available when it is needed and not before Orders for material should not be released until the planned order release date arrived Order should not normally released until the planned order is in the current week All of the above

Answer: D

QUESTION 298 Scheduled receipts shows: A. B. C. D. The quantities ordered When quantities ordered are expected to be completed When quantities ordered are expected to be available All of the Above

Answer: D

QUESTION 299 The immediate or most current period is called A. B. C. D. Action bucket Planning horizon Time buckets Both a & B

Answer: A

QUESTION 300 Planning horizon means A. B. C. D. The number of periods in the record The most current period in the record The quantity of the records None of the above

Answer: A

QUESTION 301 At the MRP planning level, the process of priority plans must be checked against available capacity is called A. B. C. D. Master Production schedule (MPS) Capacity Requirements planning (CRP) Production activity control (PAC) Manufacturing Planning and control function (MPC)

Answer: B

QUESTION 302 Which of the following details are true about time buckets EXCEPT: A. B. C. D. These are often a week Can be any length of time convenient to the company Companies can move to daily time buckets Needs to avoid future problems

Answer: D

QUESTION 303 The process of colleting the gross requirements and netting can be simplified by using A. B. C. D. Low-level codes Planning horizon Time buckets Action buckets

Answer: A

QUESTION 304 The material planner works with the type of orders A. B. C. D. Four Three Seven Two

Answer: B

QUESTION 305 The orders are automatically scheduled and controlled by the computer are the orders called: A. B. C. D. Planned orders Computer generated order Firms planned order All of the Above

Answer: A

QUESTION 306 Which of the following situation that will leads or generates Exception messages? A. B. C. D. Components for which planned orders are in the action bucket and which should be considered for release Open orders for which the timing or quantity of scheduled receipts does not satisfy the plan. Situations in which the standard lead times will result in late delivery of a Zero-level part All of the above

Answer: D

QUESTION 307 A good MRP system generates exception messages: A. B. C. D. To advise the planner when some event needs attention When the manufacturing process is under control When there are problems that need the attention of the planner Both A & C

Answer: D

QUESTION 308 The message in which the planner must tell the MRP software of all actions taken that will influence the MRP records called A. Exception messages

B. Transaction messages C. Bottom-up re-planning D. None of the above Answer: B

QUESTION 309 Which of the following are three important factors must consider in managing the material requirements plan? A. B. C. D. Priority, Bottom-up Replanning and reducing system nervousness Planned orders, released orders and firm planned orders Priority, Exception message and transaction message None of the above is true

Answer: A

QUESTION 310 Which of the following one is the method of reducing system nervousness? A. B. C. D. Firm's planned orders Releases orders Exception message Transaction message

Answer: A

QUESTION 311 Every operation producing a product or service is a series of linked processes and each process has a specific capacity to produce the given defined output for the operation, this is called: A. B. C. D. Theory of constraints Managing constraints Drum-Buffer-Rope Scheduling Bottlenecks

Answer: A

QUESTION 312 Find methods to maximize the utilization of the constraint toward productive throughput is called: A. B. C. D. Utilize constraint Manage constraint Exploit constraint None of the above

Answer: C

QUESTION 313 Means to find ways to increase the available hours of the constraint, including more of it is referred to as: A. B. C. D. Elevate constraint Subordinate constraint Identify constraint All of the above

Answer: A

QUESTION 314 What represents the master schedule for the operation, which is focused around the pace of throughput as defined by the constraint? A. B. C. D. Drum Buffer Rope None of the above

Answer: A

QUESTION 315 Which four primary plant types are defined, and they are used to specify the flow of materials through a production process? A. B. C. D. I-plant, A-plant, B-plant, G-Plant I-plant, A-plant, V-plant, T-Plant C-plant, K-plant, B-plant, S-Plant A-plant, D-plant, B-plant, F-Plant

Answer: B

QUESTION 316 Which of the following plant is used in the production process, where few raw materials can be made into several end products? A. B. C. D. I-plant A-plant V-plant G-plant

Answer: C

QUESTION 317 What is a problem for manufacturing, but it can be attained by overtime or under-time, shifting workers, and so forth? A. Input/Output rate

B. Working center control C. Risk disbursement D. Capacity change Answer: D

QUESTION 318 ________________ is difference between the total planned for a given period and the actual total for that period. A. B. C. D. Increasing rate Cumulative variance Collective concern Total control rate

Answer: B

QUESTION 319 ___________ is the same as queue and expresses the work to be done in hours. A. B. C. D. Backlog Cumulative variance Capacity per period Output rate

Answer: A

QUESTION 320 The formula for the planned backlog for period 1 is calculated as: A. B. C. D. Planned backlog for period 1 = Planed backlog + previous input ?planned output Planned backlog for period 1 = Planed backlog + previous output ?planned output Planned backlog for period 1 = Previous backlog + planned input ?planned output Planned backlog for period 1 = Actual backlog + planned input ?actual output

Answer: C

QUESTION 321 The ranking of jobs for the dispatch list is created through the application of which of the following priority rule? A. B. C. D. First come, first served Earliest operation due date Shortest process time All of the above

Answer: D

QUESTION 322 The function of selecting and sequencing available jobs to be run at individual work centers is known as: A. B. C. D. Sequencing Decentralization Dispatching Devolution

Answer: C

QUESTION 323 An index of the relative priority of an order to other orders at a work center is referred to as: A. B. C. D. Aspect ratio Critical ratio Priority ratio Schedule ratio

Answer: B

QUESTION 324 What is responsible for establishing the flow of materials into the firm, following up with the supplier, and expediting delivery? A. B. C. D. Scheduling Follow-up procedure Purchasing Sales procedure

Answer: C

QUESTION 325 ____________________ are concerned with the end use of the item and what the item is expected to do. A. B. C. D. Functional specifications Price requirements Quality assurance Performance requisition

Answer: A

QUESTION 326 What must decide the market segment to be served, the product features and quality level expected by that market, the price, and the expected sales volume? A. Product design B. Product planning

C. Product manufacturing D. Product quality Answer: B

QUESTION 327 The systematic use of techniques that identify a required function, establish a value for that function, and finally provide that function at the lowest overall cost, is known as: A. B. C. D. Functional analysis Specification analysis Quality analysis Value analysis

Answer: D

QUESTION 328 Functional specification can be described by a combination of: A. B. C. D. Brand Engineering drawings Miscellaneous All of the above

Answer: D

QUESTION 329 Which of the following are the two sources of specifications? A. B. C. D. Seller specification & Standard specification Buyer specification & Buyer specification Buyer specification & Standard specification Standard specification & Engineering specification

Answer: C

QUESTION 330 Which of the following are the types of sourcing? A. B. C. D. Sole, multiple, single Multiple, single Group, multiple, single Sole, Group

Answer: A

QUESTION 331

A planned decision by the organization to select one supplier for an item when several sources are available is called: A. B. C. D. single sourcing sole sourcing singular sourcing unique sourcing

Answer: A

QUESTION 332 Buyers in which environment need suppliers who value their new relationship, working in partnership to remove waste from the system? A. B. C. D. After-sales service Just-in-time capabilities Manufacturing capabilities Supplier technical ability

Answer: B

QUESTION 333 A price that is competitive, gives the seller a profit, and allows the buyer ultimately to sell at a profit is known as: A. B. C. D. Actual price Fair price Impartial price Average price

Answer: B

QUESTION 334 The costs those directly associated with the amount produced or sold are called: A. B. C. D. Fixed cost Variable cost Total cost Average cost

Answer: B

QUESTION 335 What includes the functions of establishing specifications, selecting suppliers, price determination, and negotiation? A. Supplier scheduling B. Competitive follow-up

C. Procurement D. None of the above Answer: C

QUESTION 336 _____________ ensures suppliers a given amount of business and commits them to allocating that amount of their capacity to the customer. A. B. C. D. Contract buying Developing schedules Supplier flexibility Business responsiveness

Answer: A

QUESTION 337 Electric data interchange enables customers and suppliers to electromagnetically exchange transaction information. A. True B. False Answer: B

QUESTION 338 When a supplier maintains an inventory of certain items in the customer's facility, this approach is known as: A. B. C. D. Supply managed procedure Product scheduling Supply-chain management Vendor-managed inventory

Answer: D

QUESTION 339 ___________ is an internal net that is normally used within the boundaries of a company. A. B. C. D. Internet Intranet Intra-vagrant net Mini-net spot

Answer: D

QUESTION 340 Extranet is an internet shared by two or more companies.

A. True B. False Answer: B

QUESTION 341 When there is uncertainty in the supply chain based on the use of forecasts, and that uncertainty is then exaggerated by lead-time effects and differences in lot sizes as material moves through the supply chain, this is called: A. B. C. D. Bullwhip effect Anticipatory effect Bull ship effect None of the above

Answer: A

QUESTION 342 What is needed for items and is associated with master production scheduling? A. B. C. D. Chain management Demand management Product management Supply management

Answer: B

QUESTION 343 Which of the following is the activity of Demand management? A. B. C. D. Forecasting Order processing Interfacing All of the above

Answer: D

QUESTION 344 The purpose _____________ is to provide time to plan for those things that take long to change. A. B. C. D. Strategic business plan Scheduling plan Change management plan Production plan

Answer: A

QUESTION 345 Which scheduling is concerned with production activity from the present to a few months ahead? A. B. C. D. Later production Early production Master production Small Production

Answer: C

QUESTION 346 The demand pattern varies from period o period, and which of the following is the reason for this: A. B. C. D. Trend Seasonality Random variation All of the above

Answer: D

QUESTION 347 What can affect the trend, seasonality, or randomness of the actual demand? A. B. C. D. Static changes Dynamic changes Random changes Planned changes

Answer: B

QUESTION 348 Forecasts are more accurate for larger groups of items than for individual items in a group? A. True B. False Answer: A

QUESTION 349 Which of the following is NOT the method of forecasting? A. B. C. D. qualitative quantitative intrinsic extrinsic

Answer: B

QUESTION 350 A systematic, formal, and conscious procedure for testing to determine customer opinion or intention is called: A. B. C. D. Forecasting procedure Record customer group Market research None of the above

Answer: C

QUESTION 351 What is based on a comparative analysis of the introduction and growth of similar products in the hope that the new product behaves in a similar fashion? A. B. C. D. Forecasting analogy Estimated analogy Future analogy Historical analogy

Answer: D

QUESTION 352 Which technique is based on the assumption that what happened in the past will happen in the future? A. B. C. D. Intrinsic Forecasting Extrinsic Forecasting Average demand Forecasting Quantitative Forecasting

Answer: A

QUESTION 353 _____________ are best used for forecasting products with stable demand where there is little trend or seasonality. A. B. C. D. Demand averages Estimated calculations Moving averages None of the above

Answer: C

QUESTION 354 Providing a routine method for regularly updating item forecasts is known as: A. Regular smoothing B. Exponential smoothing

C. Steady smoothing D. Stable trend smoothing Answer: B

QUESTION 355 Exponential smoothing gives the same results as a moving average but without the need to retain as much data and with easier calculations. A. True B. False Answer: A

QUESTION 356 Qualitative techniques are productions based on judgment, intuition, and informed opinions. A. True B. False Answer: A

QUESTION 357 The formula for the seasonal demand is: A. B. C. D. Seasonal demand = (seasonal Seasonal demand = (seasonal Seasonal demand = (seasonal Seasonal demand = (seasonal index) + (seasonalized demand) index) - (deseasonalized demand) index) * (deseasonalized demand) index) / (deseasonalized demand)

Answer: C

QUESTION 358 What is the rule for forecasting with seasonality? A. B. C. D. Only use deseasonalized data to forecast. Forecast deseasonalized demand, not seasonal demand Calculate the seasonal forecast by applying the seasonal index to the base forecast. All of the above

Answer: D

QUESTION 359 _______ exists when the cumulative actual demand varies from the cumulative forecast. A. Bias B. seasonal index C. Actual forecast

D. Stable demand Answer: A

QUESTION 360 When in a given period, actual demand will vary about the average demand, this is called: A. B. C. D. Fixed variation Forecast variation Random variation Possible average variation

Answer: C

QUESTION 361 The formula to calculate the Mean Absolute Deviation (MAD) is: A. B. C. D. MAD = (sum MAD = (sum MAD = (sum MAD = (sum of of of of mean deviations / number of facts) absolute deviations / number of observations) random deviations / number of average observations) absolute deviations / number of average forecasts)

Answer: B

QUESTION 362 A graph of the number of times (frequency) actual demand is of a particular value produces a bell-shaped curve, this distribution is called: A. B. C. D. Normal distribution Bell-shaped distribution U-shaped distribution Abnormal distribution

Answer: A

QUESTION 363 A tracking signal can be used to monitor the quality of forecast. A. True B. False Answer: A

QUESTION 364 The tracking signal can be calculated as: A. Tracking signal = cumulative sum of forecast errors + MAD B. Tracking signal = algebraic sum of forecast orders / MAD

C. Tracking signal = cumulative sum of forecast errors * MAD D. Tracking signal = algebraic sum of forecast errors / MAD where MAD = Mean Absolute Deviation Answer: D

QUESTION 365 What are purchased items received that have not entered the production process? A. B. C. D. Raw materials Untreated materials Basic stuff Synthetic materials

Answer: A

QUESTION 366 Raw materials that have entered the manufacturing process and are being worked on or waiting to be worked on, are: A. B. C. D. Waiting-process Work-in-process Coming up-process Future-process

Answer: B

QUESTION 367 _________________ is held to cover random unpredictable variations in supply and demand or lead time. A. B. C. D. Safety stock Variant stock Anticipatory change inventory Random contemporary stock

Answer: A

QUESTION 368 If demand or lead time is greater than forecast, then what will occur? A. B. C. D. Invaluable stock Unpredictable stock Stockout Vulnerable stock

Answer: C

QUESTION 369

Items purchased or manufactured in quantities greater than needed immediately create _____________. A. B. C. D. bulk-size inventories massive-size inventories lion's share inventories lot-size inventories

Answer: D

QUESTION 370 What exist because of the time needed to move goods from one location to another such as from a plant to a distribution center or a customer? A. B. C. D. Stable inventories Operating inventories Pipeline inventories Cyclic inventories

Answer: C

QUESTION 371 Inventory investment can be balanced with: A. B. C. D. Customer service Costs associated with changing production levels Cost of placing orders All of the above

Answer: D

QUESTION 372 All expenses incurred by the firm because of the volume of inventory accepted will fall in: A. B. C. D. Carrying costs Changing costs Distributed costs All of the above

Answer: A

QUESTION 373 Carrying can be broken down into which of the following three categories? A. B. C. D. Capital costs, storage costs, risk costs Training costs, storage costs, risk costs Capital costs, ordering costs, risk costs Item costs, transit costs, storage costs

Answer: B

QUESTION 374 Which cost would be the interest lost by not investing the money at the prevailing interest rate, and it may be much higher depending on investment opportunities for the firm? A. B. C. D. Capital cost Investment cost Minimum cost Capacity-associated cost

Answer: C

QUESTION 375 What may vary depending upon the interest rates, the credit rating of the firm, and the opportunities the firm may have for investment? A. B. C. D. Capital cost Inventory cost Normal cost Item cost

Answer: A

QUESTION 376 The carrying cost is usually defined as a percentage of the dollar value of inventory per unit of time. A. True B. False Answer: A

QUESTION 377 The annual cost and effort expended in ______________ depends on the number of orders placed, not on the quantity ordered. A. B. C. D. Capacity control Production control Purchase order cost Set-up control

Answer: B

QUESTION 378 Which costs can be avoided by leveling production, that is, by producing items in slack periods for sale in peak periods?

A. B. C. D.

Capacity-associated control Production cost Purchase order cost Stock-out cost

Answer: A

QUESTION 379 Something that has value and is expected to benefit the future operation of the business is known as: A. B. C. D. Revenues Business Plan Asset Sales

Answer: C

QUESTION 380 Owner's equity is: A. B. C. D. Difference between revenues and expenses Difference between expenses and liabilities Difference between assets and revenues Difference between assets and liabilities

Answer: D

QUESTION 381 The formula to calculate the Inventory turns is: A. B. C. D. Inventory turns = average cost of goods sold / annual inventory in dollars Inventory turns = annual cost of goods purchased / average financial measures in dollars Inventory turns = annual cost of goods sold / average inventory in dollars Inventory turns = annual cost of goods sold * average inventory in dollars

Answer: C

QUESTION 382 Which of the following is NOT the method accounting use to cost inventory? A. B. C. D. First in first out Last in first out Average cost Analysis cost

Answer: D

QUESTION 383 What uses cost determined before production begins? A. B. C. D. Standard cost Cost of quality Average cost Analysis cost

Answer: A

QUESTION 384 When a small number of items often dominate the results achieved in any situation, this is called: A. B. C. D. Standard law Recessive Act Pareto's law Petite Act

Answer: C

QUESTION 385 As applied to inventories, it is usually found that the relationship between the percentage of items and the percentage of annual dollar usage follows a pattern in which three groups can be defined: Group A About 50 % of the items account for about 5 % of the dollar usage Group B About 20 % of the items account for about 80 % of the dollar usage Group C About 30 % of the items account for about 15 % of the dollar usage A. True B. False Answer: B

QUESTION 386 Control is exercised through individual items in a particular inventory, this is called: A. B. C. D. Inventory element Stock-keeping units Stock entity Inventory corps

Answer: B

QUESTION 387 To order exactly what is needed, no more, no less, this rule is called: A. lot-for-lot B. Fixed-order quantity C. Permanent lot

D. Rigid-order rule Answer: A

QUESTION 388 Annual cost of pacing orders and annual cost of carrying inventory, together forms: A. B. C. D. Annual cost Determined cost Permanent cost Relevant cost

Answer: D

QUESTION 389 What occurs when the cost of ordering equals the cost of carrying? A. B. C. D. Exact-order completeness Predetermined carrying cost Economic-order quantity Ordering cost quantity

Answer: C

QUESTION 390 The Economic-order quantity will increase as the annual demand and the cost of ordering decrease, and it will decrease as the cost of carrying inventory and the unit cost increase. A. True B. False Answer: B

QUESTION 391 The purchase cost of the stock-keeping units or the cost of manufacturing the item is called: A. B. C. D. Unit cost Key cost Economic cost Elementary cost

Answer: A

QUESTION 392 ________________ uses the economic-order-quantity formula to calculate an economic time between orders. A. production-order quantity B. period-order quantity

C. inventory-carrying-order quantity D. All of the above Answer: B

QUESTION 393 The formula to calculate the period-order quantity is: A. B. C. D. Period-order quantity = Period-order quantity = Period-order quantity = Period-order quantity = EOQ / average yearly usage EOQ / average monthly usage EOQ * average monthly usage EOQ / average weekly usage Where EOQ is Economic-Order- Quantity

Answer: D

QUESTION 394 A full load costs more per ton to ship than a part load A. True B. False Answer: B

QUESTION 395 When the quantity of an item on hand in inventory falls to a predetermined level called: A. B. C. D. Demand point Lead level Order point None of the above

Answer: C

QUESTION 396 A calculated extra amount of stock carried and is generally used to protect against quantity uncertainty in known as: A. B. C. D. Safety stock Average stock Secure stock All of the above

Answer: A

QUESTION 397 ______________ is used to protect against timing uncertainty by planning order releases and order receipts earlier than required.

A. B. C. D.

Fast order release Safety lead time Direct release Lead command

Answer: B

QUESTION 398 The safety stock required depends on which of the following: A. B. C. D. Variability of demand during the lead time Frequency of reorder Service level desired All of the above

Answer: D

QUESTION 399 What have most of the values clustered near a central point with progressively fewer results occurring away from the cluster? A. B. C. D. Normal distribution Frequent distribution Average distribution Relevant distribution

Answer: A

QUESTION 400 _____________ of actual demands about the average refers to how closely the individual values cluster around the mean or average. A. B. C. D. distribution disbursement dispersion deviation

Answer: C

QUESTION 401 A statistical value that measures how closely the individual values cluster about the average is called: A. B. C. D. Mean value Standard deviation Sigma valuation Order point

Answer: B

QUESTION 402 The service level is directly related to the number of standard deviations provided as safety stock and is usually called: A. B. C. D. safety value safety factor secure level secure stockout

Answer: B

QUESTION 403 Stockout cost money for which of the following reason? A. B. C. D. Back-order costs Lost costs Lost customers All of the above

Answer: D

QUESTION 404 When a quantity of an item equal to the order point quantity is set aside and not touched until all the main stock is used up, this strategy is called: A. B. C. D. Two-bin system Dual system Two-fold system Wait-for-next strategy

Answer: A

QUESTION 405 A simple system that signals the need for more products is known as: A. B. C. D. Lot-for-more system Kanban system Manifesto system Demanding system

Answer: B

QUESTION 406 A continual account of inventory transactions as they occur and at any instant, it holds an up-to-date record of transaction is called: A. Advanced inventory record

B. state-of-the-art record C. Perpetual inventory record D. All of the above Answer: C

QUESTION 407 Using the _____________, the quantity on hand of a particular item is determined at specified, fixed-time intervals and an order is placed. A. B. C. D. Walkthroughs Formal technical reviews Periodic review system Quality control

Answer: C

QUESTION 408 The quantity on hand plus the quantity ordered must equal the sum of the demand during the lead time plus the demand during the review period plus safety stock. A. True B. False Answer: A

QUESTION 409 The quantity equal to the demand during the lead time plus the demand during the review period plus safety stock id called: A. B. C. D. Target value Demand value Review process value All of the above

Answer: A

QUESTION 410 The formula to calculate the Target value is: A. B. C. D. T = D (R + L) + SS T = D (R + L) * SS T = D (R -L) + SS T = D (R -) / SS Where T = target level, D = demand pr unit of time, lead-time duration, R = review- period duration, SS = safety stock

Answer: A

QUESTION 411 To provide the required level customer service, to minimize the costs of transportation and handling, and to be able to interact with the factory to minimize the scheduling problems are all objectives of: A. B. C. D. Central supply management Order completeness management Distribution inventory management None of the above

Answer: C

QUESTION 412 Each distribution center first determines what it needs and when, and then places orders in central supply, in: A. B. C. D. Decentralized system Competency system Advancements system Demand ordering system

Answer: A

QUESTION 413 A system that forecasts when the various demands will be made by the system on central supply is known as: A. B. C. D. Anticipated centralized system Predictive central system Distribution requirements planning Conjecture supply planning

Answer: C

QUESTION 414 Which of the following are those of space and materials handling equipment? A. B. C. D. Capital costs Material costs Variance costs Equipment costs

Answer: A

QUESTION 415 When items required from stock must be selected from storage and brought to a marshalling area, this activity is called: A. Collect goods B. Accept goods

C. Select goods D. Pick goods Answer: D

QUESTION 416 Goods making up a single order are brought together and checked for omissions or errors, this is known as: A. B. C. D. Dispatch shipment Marshal the shipment Operate the shipment Receive the shipment

Answer: B

QUESTION 417 Which factor influence effective use of warehouses? A. B. C. D. Cube utilization and accessibility Stock location Packaging All of the above

Answer: D

QUESTION 418 Which is the basic system used for locating stock? A. B. C. D. Group functionally related items together Group fast-moving items Group physically similar items together All of the above

Answer: D

QUESTION 419 Stock, from which withdrawals are made, can be located close to the marshalling and shipping area is referred to as: A. B. C. D. Active stock Marshalling stock Working stock Withdrawal stock

Answer: C

QUESTION 420

The order picker circulates throughout the warehouse selecting the items on the order through: A. B. C. D. Area system Pick and choose system Managing system Zone system

Answer: A

QUESTION 421 The amount or permissible variation between an inventory record and a physical count is called: A. B. C. D. Charity Tolerance Variable Charity Common Fluctuation

Answer: B

QUESTION 422 To satisfy the financial auditors that the inventory records represent the value of the inventory, this is the purpose of: A. B. C. D. Evolutionary inventory Functional inventory Physical inventory Periodic inventory

Answer: D

QUESTION 423 Which of the three factors are involved in good preparation of the physical inventory? A. B. C. D. Tolerance, identification and training Housekeeping, Inventory and production Housekeeping, identification and training Workforce, Physical control and security

Answer: C

QUESTION 424 Inventory must be sorted and the same parts collected together so they can easily be counted, this is called: A. B. C. D. Housekeeping Recordkeeping Bookkeeping Recording

Answer: A

QUESTION 425 A difference between the physical count and inventory dollars for the inventory records is called: A. B. C. D. Accuracy Resolution Reconciliation Provocation

Answer: C

QUESTION 426 The number of time an item is counted in a year is called its count frequency. A. True B. False Answer: A

QUESTION 427 The movement and storage of goods from suppliers to manufacturing is known as: A. B. C. D. Physical supply Distribution Goods Flow Trading

Answer: A

QUESTION 428 The movement and storage of finished goods from end of production to the customer is called: A. B. C. D. Physical Physical Physical Physical supply distribution associate channel

Answer: B

QUESTION 429 If company uses other companies or individuals to distribute some or all of its products to the final consumer, these companies or individuals are called: A. Intermediaries B. Mediums C. Channel

D. Supply chain Answer: A

QUESTION 430 What is concerned with the transfer of ownership and its function is to negotiate, sell, and contract? A. B. C. D. Business channel Distribution channel Contracted channel Transaction channel

Answer: D

QUESTION 431 The specific way in which materials move depends upon which of the following factor? A. B. C. D. The channels of distribution that the firm is using The types of markets served The characteristics of the product All of the above

Answer: D

QUESTION 432 In s distribution system, which activity affects customer service and the cost of providing it? A. B. C. D. Distribution inventory Warehouses Order processing and communication All of the above

Answer: D

QUESTION 433 To provide the required level of customer service at the least total system cost, is the objective of: A. B. C. D. Distribution inventory Distribution management Process management Management maintenance

Answer: B

QUESTION 434 The places where carriers load and unload goods to and from vehicles and make connections between local pickup and delivery service and line-haul service are called:

A. B. C. D.

Terminals Mortals Workstations None of the above

Answer: A

QUESTION 435 Economic regulation has centered on which of the following areas? A. B. C. D. Regulations of rates Control of routes and service levels Control of market entry and exit All of the above

Answer: D

QUESTION 436 What haul only for those with whom they have a specific formal contract or service, not the general public? A. B. C. D. Contract service Contract carriers Contract capability Commodity contract

Answer: B

QUESTION 437 Which of the following is NOT the basic cost element in transportation? A. B. C. D. Line haul Pickup and delivery Terminal handling Consignee collection

Answer: D

QUESTION 438 The total line-haul cost varies with: A. B. C. D. cost per mile the distance moved weight moved Only A and B

Answer: D

QUESTION 439 If shippers want to reduce transportation cost, they should: A. B. C. D. increase the weight shipped maximize density Both A and B Neither A nor B

Answer: C

QUESTION 440 Which method influences the risk of damage and breakage? A. B. C. D. value density Perishability Packaging

Answer: D

QUESTION 441 The place where goods are stored for long periods and where the prime purpose is to protect goods until they are needed id called A. B. C. D. General warehouse Distribution warehouse Store house Go-down

Answer: A

QUESTION 442 Which of the following is NOT the role that warehouses serve? A. B. C. D. Transportation consolidation Cubic space Product mixing Service

Answer: B

QUESTION 443 _______________ is the delivered cost of a product to a particular geographic point. A. B. C. D. Delivery cost Laid-down cost Deteriorate cost Service cost

Answer: B

QUESTION 444 The line between two or more supply sources where the laid-down cost is the same is known as: A. B. C. D. Inventory line Market boundary Production boundary Cost line

Answer: B

QUESTION 445 What serves as a means of identifying the product in a way not possible from its outward appearance? A. B. C. D. Package Boundary Frontier Container

Answer: A

QUESTION 446 The consolidation of several units into large units, called unit loads, so there is less handling, this is referred to as: A. B. C. D. Exclusiveness Itemization Unitization Solitary

Answer: C

QUESTION 447 A load made up of a number of items or bulky material, arranged or constrained so the mass can be picked up or moved as a single unit too large for manual handling in called: A. B. C. D. Unit load Contemporary load Package load Pallet load

Answer: A

QUESTION 448 The devices that move material (or people) horizontally or vertically between two fixed points are usually known as:

A. B. C. D.

Industrial trucks Conveyors Cranes Hoists

Answer: B

QUESTION 449 Price competition is often severe and profits start to decline, in which phase of the life cycle of a product? A. B. C. D. Introduction phase Growth phase Maturity phase Decline phase

Answer: C

QUESTION 450 The needs of sales and the economics of production must be balanced, and this balance is usually obtained with: A. B. C. D. Product simplication Product Standardization Product Specialization All of the above

Answer: D

QUESTION 451 In a product design, a ____________ is carefully established specification covering the product's material, configuration, measurement, and so on. A. B. C. D. Standard Technique Machinery Routine of process

Answer: A

QUESTION 452 What uses standardization parts for flexibility and variety? A. B. C. D. Manufacturing Modularization Specialization All of the above

Answer: B

QUESTION 453 What can be based on characteristics such as customer grouping, demand characteristics, or degree of customization? A. B. C. D. Process focus Focused factory Functional focus Product and market focus

Answer: D

QUESTION 454 To design products for low-cost manufacture requires close coordination between product design and process design, which is called: A. B. C. D. Product engineering Low-cost engineering Simultaneous engineering Marketplace engineering

Answer: C

QUESTION 455 The group works together to develop the product design so it meets the needs of the customer and can be made and delivered to the customer at low cost in a process called: A. B. C. D. Workgroup engineering Concurrent engineering Manufactured engineering Time-to-market engineering

Answer: B

QUESTION 456 Who is responsible for producing the products and services the customer wants, when wanted, with required quality, at minimum cost and maximum effectiveness and productivity? A. B. C. D. Operations management Marketing management Production management Product-review management

Answer: A

QUESTION 457 ___________are the means by which operations management reaches their desired objectives.

A. B. C. D.

Products Processes People Projects

Answer: B

QUESTION 458 Based on material flow, processes can be organized in which way? A. B. C. D. Flow Intermittent Project All of the above

Answer: D

QUESTION 459 What determines the basic processes needed to convert the raw materials and components into the finished product? A. B. C. D. Product's design Product's manufacturing Process development All of the above

Answer: A

QUESTION 460 If the units are discrete, such as automobiles, flow manufacturing is called: A. B. C. D. Continuous manufacturing Fixed manufacturing Repetitive manufacturing None of the above

Answer: C

QUESTION 461 Intermittent process layout is sometimes called product layout because the system is set up for a limited range of similar products. A. True B. False Answer: B

QUESTION 462 Because of the flow system and the low work-in-process inventory, A. B. C. D. machinery and tooling can be specialized little build-up of work-in-process inventory lead times are short labor into routine tasks

Answer: C

QUESTION 463 Goods are not made continuously as in a flow system but are made at intervals in lots or batches in: A. B. C. D. Fixed manufacturing Intermittent manufacturing Discrete manufacturing Inflexible manufacturing

Answer: B

QUESTION 464 Knowing the quantity beyond which the cost of using method B becomes less than for method A enables us to decide easily which process to use to minimize the total cost, this quantity is called: A. B. C. D. cost of quantity point total cost production fixed cost projected point cost equalization point

Answer: D

QUESTION 465 If the volume is greater than the cost equalization point, the method with the greater variable cost will cost less. A. True B. False Answer: B

QUESTION 466 If the volume of manufactured components can be increased, then the unit cost of the components, and the final product, will be reduced. A. True B. False Answer: A

QUESTION 467 What is concerned with removing work content, not with spending money on better and faster machines? A. B. C. D. Increasing volume Improving productivity Continuous process improvement Continuous project improvement

Answer: C

QUESTION 468 Identify the problem, generate ideas about main causes of problem, brainstorm all possible causes for each main cause and try to identify the most likely root cause are all the steps of: A. B. C. D. Pareto diagram Cause-and-effect diagram Component diagram Schematic of a process

Answer: B

QUESTION 469 Which of the following is NOT the possible root cause in generating some ideas about the main causes of the problem? A. B. C. D. Processes Materials Machines Environment

Answer: A

QUESTION 470 The resources used in changing inputs to outputs are usually known as: A. B. C. D. Processes Decisions Measurements Components

Answer: D

QUESTION 471 Which of the following is NOT the class of activity? A. Operation B. Inspection

C. Storage D. Environment Answer: D

QUESTION 472 What record in sequence only the main operation and inspection and are useful; for preliminary investigation and give a bird's-eye view of the process? A. B. C. D. Operations process chart Operations description chart Operations inspection chart Operations receiving chart

Answer: A

QUESTION 473 _______________ provides a picture, in the form of a diagram, of what actually happens when a product is made or a service performed. A. B. C. D. Functional chart Process flow diagram Performance flow chart Pareto chart

Answer: B

QUESTION 474 In order to develop possible solutions, which approach to take to help develop a better method? A. B. C. D. Eliminate all unnecessary work Rearrange the sequence of operations for more effective results Simplify whenever possible by making the necessary operations less complex All of the above

Answer: D

QUESTION 475 An attempt to provide more satisfying meaningful jobs and to use the worker's mental and interpersonal skills is called: A. B. C. D. Job assignment Job design Job enrichment Job accomplishment

Answer: B

QUESTION 476 When a job might be expanded to include a sequence of activities instead of only one activity, this is called A. B. C. D. Horizontal enlargement Vertical enlargement Parallel expansion Correspondence expansion

Answer: A

QUESTION 477 Over time, as the operator does the tasks repetitively, speed will increase and errors decrease, this process is known as: A. B. C. D. Maintenance Preserving curve Leaning curve Protection

Answer: C

QUESTION 478 The elimination of all waste and continuous improvement of productivity is known as: A. B. C. D. Up-gradation manufacturing Just-in-time manufacturing Work-in-progress manufacturing All of the above

Answer: B

QUESTION 479 What reduces the planning and control effort needed, the number of items required, and the inventory that has to be carried? A. B. C. D. Standardization Value-added scheme Periodic review Design and specification

Answer: A

QUESTION 480 Which of eth following is NOT the source of waste in the design of the manufacturing system? A. Process B. Methods C. Environment

D. Movement Answer: C

QUESTION 481 Which of the following is NOT the source of waste in the operation and management of the manufacturing system? A. B. C. D. Waiting time Overproduction Inventory Product defects

Answer: D

QUESTION 482 _____________ to the marketplace depends on being able to provide shorter lead times and better due date performance. A. B. C. D. Reliability Responsiveness Equivalence Productivity

Answer: B

QUESTION 483 The concept of removing faults at the first instance and making a process or product "fool proof" is known as: A. B. C. D. Poke-yoke Scrap step Statistical sole None of the above

Answer: A

QUESTION 484 Errors will always be made, but defects can be removed. A. True B. False Answer: A

QUESTION 485 What is done by individual worker who, instead of checking for defects, checks for errors that will cause defects?

A. B. C. D.

Successive check Self-check Source inspection Source correction

Answer: C

QUESTION 486 The workstations required to make the product, or family of products, are located close together and in the sequence needed to make the product is called: A. B. C. D. Productive manufacturing Repetitive manufacturing Flow manufacturing Process manufacturing

Answer: B

QUESTION 487 To achieve _______________, it often makes more sense to have two relatively inexpensive general-purpose machines than one large, expensive special-purpose piece of equipment. A. B. C. D. machine suppleness machine softness machine elasticity machine flexibility

Answer: D

QUESTION 488 People should not only be trained in their own jobs but should also be cross-trained in other skills and in problem solving techniques, in order to achieve: A. B. C. D. compound progressiveness operator flexibility machine adaptability Total quality management

Answer: B

QUESTION 489 What means doing it right the first time and, if something does go wrong, stopping the process and fixing it? A. B. C. D. Quality at the source Process balancing Quality assurance All of the above

Answer: A

QUESTION 490 Preventive maintenance plus continuing efforts to adapt, modify, and refine equipment to increase flexibility, reduce material handling, and promote continuous flow, is called: A. B. C. D. Source maintenance Pull-up system Total productive maintenance valid schedule maintenance

Answer: C

QUESTION 491 Work done at each workstation should take about the same time, this is called: A. B. C. D. Consistency planting Homogeneous system Identical point in time Uniform plant loading

Answer: D

QUESTION 492 If demand shifts between models, the assembly line can respond daily, this is called: A. B. C. D. miscellaneous scheduling Shifting scheduling mixed-model scheduling variable-model scheduling

Answer: C

QUESTION 493 The emphasis in just-in-time is on achieving the plan, no more, no less, this is called: A. B. C. D. modularity linearity consistency uniformity

Answer: B

QUESTION 494 The absence of defects both in product and non-product categories and use of a good documentation system, this is known as: A. supplier certification

B. Maintainability C. Official recognition D. Sustainability Answer: A

QUESTION 495 The major effect that just-in-time has on forecasting it's shortened, A. B. C. D. lead time test time production time design time

Answer: A

QUESTION 496 Master scheduling tries to level capacity and just-in-time tries to level the schedule based on capacity and material flow. A. True B. False Answer: A

QUESTION 497 Which function is to determine the need for labor, equipment, and material to meet the priority plans? A. B. C. D. Frequency planning Training level Capacity planning Work-in-progress planning

Answer: C

QUESTION 498 Raw materials are recorded into work-in-process, when work is completed and becomes finished goods; the work-in-process inventory is relieved by multiplying the number of units completed by the number of parts in the bill of material, in which system? A. B. C. D. post-deduct system leveling system demand pattern system Work-in-progress system

Answer: A

QUESTION 499

The concept in which to preplan and generate schedules but instead to react to the final customer order and produce only what is needed to satisfy demand and then only when it is needed, is known as: A. B. C. D. Put system Buffer system Pull system Defensive system

Answer: C

QUESTION 500 What implies understanding and correctly implementing the major enterprise-wide changes required to truly eliminate or significantly reduce waste in the system? A. B. C. D. Enterprise production Lead production Control production Command production

Answer: B

QUESTION 501 A tool to map and understand the flow of materials from supplier to customer, focusing on not only understanding the current state of process and flow but also specifying the value-added and non-value-added time of all process steps, is called ___________________. A. B. C. D. Answer:

QUESTION 502 Which event usually focuses on a fairly small part of the overall producti0on process to improve that part of the process? A. B. C. D. Allen Kaizen Fair Build

Answer: B

QUESTION 503 The rate of production that is synchronized with the rate of customer demand is known as: A. takt time

B. horizon time C. stipulate D. challenge Answer: A

QUESTION 504 A structured approach to organize the operation for more effectiveness and less waste that is the overall goal of a lean production system includes which 5S? A. B. C. D. Species, straighten, shine, standardize, sustain Sort, strong, shower, standardize, sustain Sort, straighten, shine, standardize, sustain Sort, straighten, shine, standardize, suspect

Answer: C

QUESTION 505 Goods or services satisfy the needs and expectations of the user, this refers to: A. B. C. D. Stability Quality Reliability Maintainability

Answer: B

QUESTION 506 Who is responsible for meeting the minimum specifications of the product design? A. B. C. D. Policy Scope Manufacturing Standardization

Answer: C

QUESTION 507 Establish the acceptable limits and are usually expressed as the amount of allowable variation about the desired amount is called: A. B. C. D. Tolerances Acceptability Charity Act Minority

Answer: A

QUESTION 508 If the product or service is ready for the customer's use at the time of sale, this refers to: A. B. C. D. Usability Accomplishment Implementation Performance

Answer: D

QUESTION 509 Which three dimensions to performance are important? A. B. C. D. Accessibility, durability and maintainability reliability, durability and maintainability reliability, security and maintainability reliability, Portability and Extensibility

Answer: B

QUESTION 510 What is measured by the length of time a product can be used before it fails? A. B. C. D. Reliability Durability Maintainability Efficiency

Answer: B

QUESTION 511 Total customer satisfaction based on the complete experience with an organization, not just the product is known as: A. B. C. D. Total quality Absolute quality Perceived quality Fool proof quality

Answer: C

QUESTION 512 The sum of the benefits the customer receives and can be more than the product itself is called: A. value B. price C. quality

D. workforce Answer: A

QUESTION 513 What is based on the participation of all members of an organization in improving processes, products, services, and the culture they work in is called: A. B. C. D. Continuous Process Management Workflow Management Total Quality Management All of the above

Answer: C

QUESTION 514 _______________ describes the function of the organization. A. B. C. D. Vision statement Mission statement Policy statement Service statement

Answer: B

QUESTION 515 A guide for all in the organization about how products and services should be provided is known as: A. B. C. D. Total workflow Customer focus Commitment Quality policy statement

Answer: D

QUESTION 516 Giving people the authority to make decisions and take action in their work areas without getting prior approval is called: A. B. C. D. Empowerment Dominance Intensity Entitlement

Answer: A

QUESTION 517 Which of the following basic characteristic that can be used to measure the performance of a particular

process or activity? A. B. C. D. Quantity Cost Quality All of the above

Answer: D

QUESTION 518 Which of the following is NOT the dimension to quality measurements? A. B. C. D. Function Aesthetic Production Accuracy

Answer: C

QUESTION 519 The costs of correcting problems after goods or services have been delivered to the customer are called internal failure costs. A. True B. False Answer: B

QUESTION 520 The cost of avoiding trouble by doing the job right in the first place is known as: A. B. C. D. Prevention cost Deterrence cost Production cost Anticipation cost

Answer: A

QUESTION 521 The cost associated with checking and auditing quality in the organization is called: A. B. C. D. Assessment cost Appraisal cost Testing cost Evaluation cost

Answer: B

QUESTION 522 To detect the presence of assignable causes of variation is the objective of: A. B. C. D. Analytical cost assessment Statistical process control Critical process control Frequency variation control

Answer: B

QUESTION 523 A tool may shift, a gauge may move, a machine may wear, or an operator may make a mistake, there is a specific reason for these causes of variation, which is called: A. B. C. D. Flexible variation Convertible variation Assignable variation Transferable variation

Answer: C

QUESTION 524 The capability of the process is a measure of _____________ compared to the specifications limit. A. B. C. D. Process center Mean process Process tolerance Process spread

Answer: D

QUESTION 525 Processes can produce defects in which way? A. B. C. D. having too big a spread by a shift in the mean Both A & B Neither A nor B

Answer: C

QUESTION 526 The process capability index combines: A. process spread and the tolerance into one index B. process center and the statistical control into one index C. process shape and the tolerance into one index

D. process value and the statistical control into one index Answer: A

QUESTION 527 What attempts to prevent the production of defects by showing that when the standard deviation increases there is an assignable cause for variation? A. B. C. D. Process capability Process variation Process control Process value

Answer: C

QUESTION 528 A control chart for averages and ranges tracks which critical characteristics of a frequency distribution? A. B. C. D. center and spread control and tolerance specification limit and center shape and spread

Answer: A

QUESTION 529 The charts that are merely histograms that are recognized in such a way as to show the highest bar first and all others in descending order from high to low are known as: A. B. C. D. Cause-and-effect charts Process flowcharts Scatter-plots Pareto charts

Answer: D

QUESTION 530 What consists of taking a sample of a batch of product and using it to estimate the overall quality of the batch? A. B. C. D. Acceptance sampling Statistical sampling Analytical sampling Batch sampling

Answer: A

QUESTION 531 What is the reason for using the sample inspection?

A. B. C. D.

testing the product is destructive there is not enough time to give 100% inspection to a batch of product human error is estimated to be as high as 20% when performing long-term repetitive testing All of the above

Answer: D

QUESTION 532 The probability of rejecting a good lot is called the consumer's risk. A. True B. false Answer: B

QUESTION 533 ISO does not provide the documentation but specifies generic requirements for management that are typically grouped into which of the following levels: A. B. C. D. plan, procedures, performance and proof policies, procedures, practice and environment policies, procedures, practice and proof scope, procedures, practice and quality

Answer: C

QUESTION 534 Showing the scope of the quality management system is known as: A. B. C. D. plan policy procedure practice

Answer: B

QUESTION 535 A systematic method by which organizations can compare their performance in a particular process to that of a "best in class" organization, finding out how that organization achieves those performance levels and applying them to their own organization, is called: A. B. C. D. Benchmarking Analyzing Standardization Applicability

Answer: A

QUESTION 536 From a technical perspective, Six Sigma is achieved when the process capability is equal to at least 1. A. True B. False Answer:

QUESTION 537 A methodology designed to ensure that all the major requirements of the customer are identified and subsequently met or exceed through the resulting product design process is known as: A. B. C. D. Target Quality Assurance Competitive Quality Evaluation Quality Function Deployment Quality iterations

Answer: C

QUESTION 538 The needs of the customer are gathered using various survey methods or by comparing a company's own products against the competitions, these wants are referred to as: A. B. C. D. Customer will Voice of customer Customer liquidity Customer satisfaction

Answer: B

QUESTION 539 __________ is the amount of work that can be done in a specified time period. A. B. C. D. Size Role Capacity Scope

Answer: C

QUESTION 540 Capacity is the quantity of work done and not the rate of doing work. A. True B. False Answer: B

QUESTION 541 What is the capacity of a system or resource to produce a quantity of output in a given time period? A. B. C. D. Capacity available Capacity required Capacity check Capacity on hand

Answer: A

QUESTION 542 The amount of released and planned work assigned to a facility for a particular time period is called: A. B. C. D. Assignment Load Agility Management

Answer: B

QUESTION 543 Who is responsible for determining the capacity needed to achieve the priority plans as well as providing, monitoring, and controlling that capacity so the priority plan can be met? A. B. C. D. Capacity Running Capacity Board Capacity Organization Capacity Management

Answer: D

QUESTION 544 The process of monitoring production output, comparing it with capacity plans and taking corrective action when needed is known as: A. B. C. D. Capacity Manipulation Capacity Inspection Capacity Control Capacity Management

Answer: C

QUESTION 545 What are usually stated in units of product or some standard unit of output? A. Priority plans

B. Capacity available C. Capacity plans D. None of the above Answer: A

QUESTION 546 To check the feasibility of the master Production Planning, provide warnings to any bottlenecks; ensure utilization of work centers and advice vendors of capacity requirements is the purpose of: A. B. C. D. Realistic capacity planning Expected capacity planning Rough-cut capacity planning Work-capacity planning

Answer: C

QUESTION 547 What involves long-range capacity resource requirements and is directly linked to production planning? A. B. C. D. Resource acquisition Resource planning Resource capacity Resource schedule

Answer: B

QUESTION 548 The process of determining in detail the amount of labor and machine resources needed to achieve the required production id known as: A. B. C. D. Resource Plan Material Requirement Plan Capacity Requirements Plan Production Plan

Answer: C

QUESTION 549 The inputs needed for a capacity requirement plan are open shop orders, planned order releases, routings, time standards and work center capacities, this all information can be obtained from: A. B. C. D. Open order file Material Requirements Plan Routing file All of the above

Answer: D

QUESTION 550 _______________ are determined by the computer's material requirement plan logic based upon the gross requirements for a particular part. A. B. C. D. Planned orders Open order file Operational plan None of the above

Answer: A

QUESTION 551 A routing file should exist for every component manufactured and contain which of the following information? A. B. C. D. Work centers to be used Tooling needed at each operation Standard times All of the above

Answer: D

QUESTION 552 Which file contains information on the capacity and move, wait, and queue times associated with the center? A. B. C. D. Work center Run time Routing Calendar

Answer: A

QUESTION 553 The time a job waits at a work center before being handled is called: A. B. C. D. Queue time Wait time Linger time Interval time

Answer: A

QUESTION 554 The sum of queue, setup, run, wait and move times is known as: A. Guide time B. Direct time

C. Lead time D. Principal time Answer: C

QUESTION 555 Capacity needs to be measured on at which of the following level? A. B. C. D. Machine or individual worker Work center Plant, which can be considered as a group of different work centers All of the above

Answer: D

QUESTION 556 Calculated or rated capacity is based on: A. B. C. D. finite time, recovery and production available time, utilization and efficiency available time, resources and efficiency rated capacity time, utilization and production

Answer: B

QUESTION 557 The available time depends on the number of machines, number of workers and: A. B. C. D. resource assistance Work effort hours of operation Plant and equipment

Answer: C

QUESTION 558 The percentage of time that the work center is active compared to the available time is called: A. B. C. D. Work center utilization Work center availability Work center efficiency Work center production

Answer: A

QUESTION 559 What is calculated by taking into account the work center utilization and efficiency?

A. B. C. D.

actual rate of production Rated capacity resource availability None of the above

Answer: B

QUESTION 560 The formula to calculate the rated capacity is: A. B. C. D. Rated capacity = Rated capacity = Rated capacity = Rated capacity = actual time * utilization * efficiency available time * utilization * efficiency available time * performance * efficiency expected time * number of workers * efficiency

Answer: C

QUESTION 561 Demonstrated capacity is average, not maximum, output and depends on the utilization and efficiency of work center. A. True B. False Answer: A

QUESTION 562 The run time is equal to the run time per piece multiplied by the number of pieces in the order. A. True B. False Answer: A

QUESTION 563 The usual process is to start with the due date and, using the lead times, to work back to find the start date for each operation, this process is known as: A. B. C. D. Back scheduling Front scheduling Liquidity scheduling Fixed scheduling

Answer: A

QUESTION 564 What is responsible for executing the master production schedule and the material requirements plan?

A. B. C. D.

Production activity control Production requirement plan Standard production Master production plan

Answer: A

QUESTION 565 A particular type of production control system used varies from company to company, but all should perform the preceding functions is called: A. B. C. D. Mechanizing system Developed system Manufacturing system Master system

Answer: C

QUESTION 566 Manufacturing processes can be conveniently organized into which of the following three categories? A. B. C. D. Flow manufacturing, intermittent manufacturing, and project manufacturing Material manufacturing, control manufacturing, and project manufacturing Flow manufacturing, alternating manufacturing, and control manufacturing Material manufacturing, Regular manufacturing, and project manufacturing

Answer: A

QUESTION 567 __________________ is concerned with the production of high-volume standard products. A. B. C. D. Continuous manufacturing Flow manufacturing Repetitive manufacturing None of the above

Answer: B

QUESTION 568 Which of the following is the characteristic to flow manufacturing? A. B. C. D. Routings are variable work centers are dedicated to produce a limited range of similar products Materials flows from one workstation to another using some form of realistic transfer Capacity is variable by the line

Answer: B

QUESTION 569 What is characterized by many variations in product design, process requirements and order quantities? A. B. C. D. Intermittent manufacturing process improvement Streamline manufacturing Periodic manufacturing

Answer: A

QUESTION 570 The capacity required depends on the particular mix of products being built and is difficult to predict is a characteristic of: A. B. C. D. Intermittent manufacturing process improvement Streamline manufacturing Periodic manufacturing

Answer: A

QUESTION 571 The files contained in the database are of two types which are: A. B. C. D. planning and control planning and procedural fixed and variable absolute and relative

Answer: A

QUESTION 572 Which of the following is the file that fall in planning category? A. B. C. D. master file product structure file routing file All of the above

Answer: D

QUESTION 573 Which file contains a list of the single-level components and quantities needed to assemble a parent? A. master file B. product structure file

C. routing file D. work center master file Answer: B

QUESTION 574 What consist of a series of operations required to make the item? A. B. C. D. routing builds procedures All of the above

Answer: A

QUESTION 575 Each active manufacturing order has a record in which file? A. B. C. D. work center master file work center detail file shop order master file shop order detail file

Answer: C

QUESTION 576 The time normally required to produce an item in a typical lot quantity is known as: A. B. C. D. Manufacturing load time Manufacturing conduct time Manufacturing control time Manufacturing lead time

Answer: D

QUESTION 577 Which of the following is NOT the manufacturing lead time? A. B. C. D. Queue time Setup time Run time Load time

Answer: D

QUESTION 578 What must manage both the input of orders to the production process and the availability capacity to control

queue and work-in process? A. B. C. D. Run time activity Production activity control Activity management Work center manufacturing activity

Answer: B

QUESTION 579 The length of time from when material enters a production facility until it exists, this is known as: A. B. C. D. throughput time workforce time creation time assembly time

Answer: A

QUESTION 580 What is used to calculate how long it will take to complete a task? A. B. C. D. Forward scheduling Finite scheduling Self-assured scheduling Bold scheduling

Answer: A

QUESTION 581 When the last operation is on the routing is scheduled first and is scheduled for complete at the due date, this is called: A. B. C. D. Timid scheduling Rearward scheduling Self-assistant scheduling Backward scheduling

Answer: D

QUESTION 582 Backward scheduling is used to determine when an order must be started. A. True B. False Answer: A

QUESTION 583 If the run time per piece on operation B is shorter than that on A, the first batch must be larger enough to avoid idle time on operation A. A. True B. False Answer: B

QUESTION 584 Operational splitting is practical when: A. B. C. D. setup time is low compared to run time a suitable work center is idle it is possible for an operator to run more than one machine at a time All of the above

Answer: D

QUESTION 585 The time needed to unload and load must be shorter than _____________. A. B. C. D. run time per piece planning time manufacturing time resource utilization time

Answer: A

QUESTION 586 A facility, function, department, or resource whose capacity is equal to or less than the demand placed upon it is known as: A. B. C. D. timeframe bottleneck elapsed operation none of the above

Answer: B

QUESTION 587 The operation that controls the work feeding the bottleneck and must operate at a rate equal to the output of the bottleneck so the time buffer queue is maintained is known as: A. gateway operation B. bottleneck operation C. task operation

D. Control buffer operation Answer: A