9.SMR350 Questions

The purpose of a Steering Committee in a JIT The correct answer is D)
implementation is to:
The purpose of the Steering Committee in a JIT
I. Approve and recommend projects implementation includes all of the answers plus others,
II. Ensure resources are available such as appointing cross-functional teams and reviewing
1-1 III. Revise priorities progress. (Wantuck, Just-In-Time for America, Chapter 14).
IV. Be primary "cheerleaders"
A) I and II B) I, II, and IV

C) I, III, and IV D) I, II, III, and IV
Having a multi-functional work force provides which of The correct answer is D)

the following benefits?
Multi-functional workers provide all of the benefits
I. Flexibility in manufacture mentioned. In addition, quality is generally higher because
II. More challenge in the job, less boredom workers can vary their routine. This in turn reduces
1-2 III. Better solutions to problems boredom on the job. Most workers like to have some
control over their environment and participate in the
A) I and II B) I and III solutions to the problems affecting them.
C) II and III D) I, II, and III
Which of the following order-winning criteria typically lie The correct answer is A)
within the jurisdiction of the manufacturing function?
I. Delivery reliability
II. Product design leadership
1-3
III. Quality conformance
IV. Aftermarket service
A) I and III only B) I and IV only

C) II and III only D) I, II, III, and IV
The purpose of product profiling is to determine the fit The correct answer is B)
of
A) Customer requirements and product features.

B) Product volume and variety and deployment
1-4 choices.
C) Product lines and expected volumes.
D) Product volumes and variety.
Which of the following is best suited to solving major The correct answer is B)
business process problems ?
A) Quality circle.
B) Cross-functional teams.
1-5 C) Ad hoc teams.
D) Self-directed work teams.
- 1 -
Cross-trained workers are an important part of a JIT The correct answer is A)
factory for which of the following reasons?
The team concept is better supported by cross-trained
I. All skills necessary to run a cell reside in the cell employees. The answer of circumventing the union is
II. Cross-trained workers can create productive teams contrary to the level of trust necessary to implement JIT.
2-1 III. Union rules can be circumvented If a union is involved, get them involved at the beginning
to develop the trust necessary to ensure successful teams.
A) I and II B) I and III (Wantuck, Just-In-Time foir America, Chapter 4).
A written quality policy should be developed to The correct answer is B)

communicate to employees. This policy should include
which of the following: A quality policy is a way to communicate to employees
what "quality" is, so everyone understands. A penalty of
I. A definition of quality non-conformance should not be included; however, a
2-2 II. A standard of performance system for achieving quality should be.
III. A measurement method
IV. A penalty for non-conformance
A) I, II, and IV B) I, II, and III

C) II, III, and IV D) I, II, III, and IV
Questions 2-3 and 4 are based on the following information.

An organization has one product line entering the maturity stage of its product life cycle. The sales
volume is steady, but the firm's market share is moderate. The product line is manufactured to stock in
a single facility using general-purpose workstations that are organized in a functional layout. The production facility is
shared with three other product lines. Each of the product lines places approximately the same demands on the
production facility. The organization is considering the following actions.
Which of the actions is LEAST consistent with the The correct answer is D)
stage of the product line life cycle and the
organization's market share ?
A) Discounting the product line.

2-3 B) Establishing dedicated capability for the line within the
current facility.
C) Adding a large number of options to the product line.
D) Acquiring a distributor of the line to increase
market share.
The largest risk of establishing a dedicated capability The correct answer is D)

for the product line is that
A) Product costs will be too high for the market.
B) New production technologies will be required.
C) Product mix flexibility will be too low for the market.
2-4 D) The market will decline before the investment is
recovered.
- 2 -
In a factory, the most under-utilized resource generally The correct answer is C)
is/are the:
Generally, the human potential is the most under-utilized
A) Machinery resource which makes the results of empowerment so
B) Building dramatic.
3-1 C) Workers
D) Materials
Which of the following statements are true regarding The correct answer is C)
corporate strategy?
I. A business needs to complete the strategy Corporate strategy must change with the business because
development once internal and external forces constantly cause the company
II. It is a dynamic, ongoing process which changes with to change. As part of the overall strategy, objectives are
3-2 the business developed by major function to support the overall strategy.
III. Corporate objectives are developed by functional
area in the company
A) I and II B) I and III

The "voice of the customer" refers to identifying customer The correct answer is C)
wants through which two of the following mechanisms?
I. Working to resolve customer complaints.

II. Listening to requests from potential customers.
3-3
III. Producing reliable products consistently.
IV. Conducting in-depth qualitative customer interviews.
A) I and II B) II and III

C) II and IV D) III and IV
Which of the following performance measurements is likely The correct answer is D)

to be the most important to Zapper's managers of the
desktop/room product line?
A) Capacity utilization
3-4 B) Standard error of the forecast
C) Number of schedule changes
D) Time to market
Design for manufacturability is supposed to result in which The correct answer is A)

of the following ?
A) Improve product quality.

B) Reduced training needs.
3-5
C) Reduced product features.
D) Delayed market introductions.
- 3 -
Questions 4-1, 4-2, 4-3 are based on the following information. The XYZ Company, a producer of hand tools, has focused
on supplying the building industry but has recently gained a 25 percent share in the higher margin consumer market. Its
plan is to expand sales volume in the consumer market by becoming a major supplier of hand tools for the growing
"do-it-yourself" market. Critical to this market are delivery speed (ship three days from receipt of order), delivery reliability,
product quality, and custom packaging for retail outlets. For the building industry, product quality has been an order winner
for many years and is expected to remain so. Marketing will be adding additional SKUs to support store-brand labels and
custom packaging. The company has one manufacturing facility and one finished goods inventory facility that ships directly
from stock to the customer. Finished product is currently planned, scheduled, and inventoried at the packaged level. The
average manufacturing lead time for all products is 30 days. For packaging operations, assembly lead time is 2 days and
material lead time is 5 weeks. Manufacturing's performance is evaluated on product cost measures and recent
improvements in production processes have proven very efficient in this area. Management feels, however, that cost
measures are too imprecise because of the methods used to allocate a large percentage of overhead charges.
Which of the following is the most appropriate method for The correct answer is C)
evaluating the cost of XYZ's products?
A) Process costing.
4-1 B) Average actual costing.
C) Activity-based costing.
D) Standard costing.
Which of the following measures of manufacturing would The correct answer is D)

be most appropriate for XYZ's environment?
A) Cost per unit.

4-2 B) Direct labor efficiency.
C) Machine utilization.
D) Master schedule compliance
At which of the following levels should XYZ's inventory be The correct answer is C)
held to better serve the consumer market?
A) Raw/component parts.
4-3 B) Work in process.
C) Fully assembled tools.
D) Packaged finished goods.
Which of the following statements are true regarding The correct answer is D)
JIT?
JIT is a philosophy which encompass all functions of a
I. JIT and Kanban are the same company - "If it doesn't add value, it is waste: eliminate
II. JIT is for delivering raw materials only it". Kanban is a pull production technique and is not
4-4 synonymous with JIT. (Wantuck, Just-In-Time for America,
III. JIT is the same as CIM
Chapter 1).
A) I and II B) II and III
C) I, II, and III D) None of the above
- 4 -
Which of the following reasons support the use of a The correct answer is D)
consultant from outside the Company?
All are reasons to use a consultant. They help provide a
I. He/she provides credible expertise in Just-in-Time "road map" through the implementation. They are
II. He/she is independent of the organization and can independent of political problems in the organization and
5-1 direct top management can provide the experience of previous implementations.
III. He/she has been through the pitfalls and can guide
you as to how to avoid them

The acronym "QFD" stands for: The correct answer is B)
A) Quality, Function, and Design QFD, or Quality Function Deployment, is a process

B) Quality Function Deployment whereby the wants and needs of the customer are carried
C) Quantitative Functional Display throughout the organization using cross functional teams.
5-2 D) None of the above The customer wants are matched to the company
strategies/manufacturing strategies to meet those wants.
In order to effectively support Manufacturing, Purchasing The correct answer is D)

must have software systems which integrate to the
manufacturing planning and control system. Some of With material costs in many industries exceeding 80% of a
the elements of this system should include: product's costs, purchasing provides the greatest
opportunity to reduce costs if given the "tools", plus
5-3 I. Purchases of components or raw materials based on transportation information, long-range cost forecasting, and
supplier scheduling other support information. (Wantuck, Just-In-time for
II. Information for the buyer America, Chapter 12).
III. Performance measures for analysis
IV. Simulation capability
A) I, II, and IV
B) I, III, and IV
C) II, III, and IV
D) I, II, III, and IV
A "focused factory" concept consists of which of the The correct answer is D)

following?
A focused factory can be a stand alone factory or an area
I. A focus on a small group or family of products within the larger factory which focuses on producing the
II. Responsibility for the complete product is in the complete product. Employees have ownership in the
5-4 complete product so their focus is on quality to the
"focused factory"
III. Employees have "ownership" of the focused factory customer. (Wantuck, Just-In-Time for America, Chapter 6).

- 5 -
In formulating manufacturing strategy, which of the The correct answer is D)
following would be most important?
All of the above three answers are important parts of the
A) On-time delivery commitment manufacturing strategy, and the most important objective
B) Low cost manufacturer would depend on the industry, the competitive pressures,
6-1 C) Flexibility and the marketplace.
D) All of the above
Which of the following positions would be the best The correct answer is D)
ERP project champion to ensure the highest probability
of success? An ERP project champion should be the most senior
executive at the site. This person must be the one who
A) Outside consultant with years of experience continuously supports the project, ensures resources are
6-2 B) An experienced general manager available, and eliminates barriers when the project hits
C) A senior manufacturing vice president them. This senior executive also ensures that the other
D) A full-time project manager executives rally around the project to maintain support.
All of the following are functional strategies which are The correct answer is B)
needed to support the corporate strategy except:
The four major types of strategies are:
A) Financial strategy Financial strategy, Product development strategy, Operations
B) Quality strategy strategy, Marketing strategy. The quality strategy would be
6-3 C) Product development strategy in support of several major strategies.
D) Operation strategy
Which of the following is not a organizational design The correct answer is D)

form?
The five design forms in organizational design are:
A) Simple - Simple: generally less than four levels
B) Functional - Functional: more formal design for larger complex
6-4 C) Divisional organizations
D) Vertical - Divisional: often called business units, they have all the
functional staff necessary to conduct operations
- Conglomerate: like divisional designs, there is little task
dependency among the groups
- Hybrid: often referred to as a matrix design.
This is usually required when several functional
areas must be integrated.
- 6 -
In order to support Small Group Improvement Activities, The correct answer is C)
which of the following management attitudes must
prevail? Management must change the attitude of "we think, they
work" which is devisive. Instead, an environment of trust
I. We think, they work and openness will support the SGIA.
II. Respect for people, regardless of what organization
7-1
they work in or what job they perform
III. Open communication about the business

Full absorption accounting is best suited for which of The correct answer is B)
the following situations?
Full absorption is an accounting method whereby all fixed
A) Internal management decisions costs are applied (absorbed) by the product. It is required
B) External reporting to the financial for external reporting to shareholders, banks, etc.
7-2 community
C) For measuring manufacturing performance
D) For valuing the WIP
Which of the following best describes the concept, The correct answer is B)
Total Cost of Ownership, of the supply system?
The Total Cost of Ownership of the supply system is the
A) Total of all acquisition costs total of all the costs associated with every activity of the
B) Total of all costs in a supply chain supply stream. The acquisition costs tend to be a small
7-3 C) Total cost of all assets in the supply chain portion of the total cost. Some of the indirect costs include
D) Total cost of the delivery from suppliers inspection, handling, warehousing, insurance, etc. (Riggs
and Robbins, The Executive's Guide to Supply Chain
Management).
Reduction of which of the following is an element of The correct answer is B)

the Just-in-Time approach ?
A) Inventory level.
B) Queue times.
7-4 C) Quality prevention costs.
D) Product mix flexibility.
Which of the following is an infrastructure choice ? The correct answer is C)

A) Process technology employed.
B) Number and location of plants.
C) Organizational design.
D) Capacity strategy employed.
7-5
- 7 -
The most significant impact of electronic business on The correct answer is C)
supply chain management is
A) Reduction of paper-based communications.

B) Reduction of data capture costs.
8-1 C) Coordination of information.
D) Ease of global sourcing.
Questions 8-2 and 8-3 are based on the following network diagram and estimate of duration for each activity.
The critical path through the network is The correct answer is C)

A) A, H, I, J, K
B) A, B, C, F, G, K
C) A, D, E, F, G, K
D) A, H, G, K
8-2
If activity I completes three days late, the expected The correct answer is C)
completion date for the project will
A) Not change.
B) Slip one day.
8-3 C) Slip two days.
D) Slip three days.
- 8 -
Which of the following is most likely to indicate that a The correct answer is C)
process should be reengineered or redesigned rather
than incrementally improve ?
A) A stable competitive environment.
B) An expansion of the scope of the process.
9-1 C) A large gap between customer requirements
and performance.
D) A hierarchical and central organization structure.
Job or task-level changes are most appropriately The correct answer is C)

defined by
A) Functional management.
B) Cross-functional teams.
C) Workteams.
9-2 D) Quality circles.
Which of the following are actions management can The correct answer is B)
take to demonstrate support for the quality improvement
process? Quality improvement support needs to be gained by
leadership, encouragement, and recognition, not by
I. Recognize and publicize quality achievements "carrying a big stick".
9-3 II. Lay off those who don't cooperate
III. Provide leadership in the process
IV. Encourage defect prevention
A) I, II, and IV B) I, III, and IV

Flexibility in manufacturing is not often considered when The correct answer is B)
measuring the effectiveness of the factory. Which of
the following would explain this? Flexibility in manufacturing is very important but is a
I. Measurement of flexibility is not well defined like relatively new concept in which measures have not evolved
other measures or been accepted.
9-4 II. Flexibility is not as important as other measures in
contribution to effectiveness
III. Flexibility is a recently identified concept

A critical element in a flexible manufacturing system is: The correct answer is A)
A) Software Software enables the integration of all of the equipment in

B) Hardware the factory, which results in a flexible manufacturing
C) People system. It provides the base to operate as one system.
9-5 D) None of the above
- 9 -
Group technology is installed most frequently in:
The correct answer is C)
A) Flow shops
Job shops offer the greatest potential for improvement from
B) Repetitive manufacturers
group technology because of the shorter cycle times and
C) Job shops
improved set up times which result.
D) None of the above
10-1
Which of the following statements are true regarding The correct answer is D)
ERP systems?
All of the statements are true. A properly implemented
I. Education and training should be the most important ERP system will provide the operation with integrated
aspect of an implementation project systems, and communication to compete with the outside
10-2 II. Inventory reduction should be a major objective world, not inside.
III. Integrated systems and subsequent communication
should result

According to the volume-variety matrix, companies The correct answer is D)
which have low variety and high volume are best
suited to which of the following manufacturing The volume-variety matrix shows the relationship between
environments? the variety of products and the volume of products.
Companies which have a low variety and a high volume
10-3 A) Job shop would have a continuous manufacturing process.
B) Batch Companies which have this type of manufacturing would
C) Line be oil refiners or chemical processors. These companies
D) Continuous operate a continuous process around the clock.
In order to implement the various changes necessary The correct answer is C)

to compete in the global marketplace, employee
behavior must change. The best way to begin changing Employee behavior will change when the performance
employee behavior is to: measurement and reward system changes. People will
respond differently to different measures. If the performance
10-4 A) Threaten them to change (Do it this way or
measures only measure output, then people will only be
else) concerned with output. If the performance measure is
B) Flatten the organization; remove supervision changed to include skills and quality, not just quantity, then
C) Change the performance and reward system employees will be responsive to that. Reward systems
D) Increase the training budget must also change to be more team based and bonus
based so employees receive a fair amount of the benefit
from ideas and increased sklills.
- 10 -
Which of the following is most likely to be the order The correct answer is B)
winner in the early stages of a product's life cycle?
A) Quality
B) Design
11-1 C) Support
D) Price
A company is considering the adoption of a highly form of The correct answer is C)

manufacturing technology that will have a major impact on
its production process. Which of the following situations
will most likely cause the longest delay in the of this new
technology?
11-2
A) The necessary support and maintenance systems do
not currently exist and must be developed.
B) The proposed changes will cause a mismatch between
products and processes.
C) This technology conflicts with the company's
capabilities and culture.
D) The company has too few skilled technicians and
experienced implementers of this type of new
technology.
All of the following are requirements for a successful The correct answer is B)
employee involvement (EI) program EXCEPT
A) Common understanding of the employee's role in
achieving the plant's strategy.
B) Management clearly identifying and defining the
11-3
problems to be solved.
C) Providing the EI teams with authority to change work
processes.
D) Developing intrinsic and extrinsic rewards to recognize
jobs done well.
The primary difference between the program evaluation The correct answer is A)
and review technique (PERT) and the critical path method
(CPM) is that
A) PERT can incorporate variances in the duration of
an activity.
11-4
B) The duration of each activity is easier to determine
using PERT.
C) PERT provides the ability to assess schedule-crashing
opportunities.
D) PERT is better suited for progress reporting.
- 11 -
Enhanced productivity of the workforce results from which The correct answer is A)
of the following?
I. Elimination of complex process flows
II. Reorganization of people and equipment to match
product flow
12-1 III. Specialization of worker assignments
A) I and II only B) I and III only

C) II and III only D) I, II, and III
A focused factory is usually characterized by which two of The correct answer is B)

the following?
I. Restricted product variety
II. Decreased attention to detail
III. Layout by function
12-2
IV. Logical flow patterns
A) I and III B) I and IV

C) II and III D) II and IV
Often times, companies which implement JIT The correct answer is C)

successfully "flatten their organization". This means:
Management layers are usually less because direct
A) The organization borders on bankruptcy communication builds trust and improves worker
B) The organization growth slows involvement. Additionally, with greater responsibility and
12-3 authority placed at the lower levels of the organization,
C) Layers are removed between top managers and
workers layers of middle management are not needed. (Wantuck,
D) They install a fitness center in the excess Just-In-Time for America, Chapter 4).
space
Which of the following are benefits of a cross-trained The correct answer is A)

work force?
While flexibility is a benefit, job class changes can create
I. Each employee shares responsibility for goals in the problems particularly in union environments. Trust must be
work area generated with unions well before the program begins.
12-4 II. Ideas are generated with more frequency due to (Wantuck, Just-In-Time for America, Chapter 4).
cross-training knowledge
III. Flexibility improves which changes job classifications

In Quality Function Deployment, the process has which The correct answer is C)
of the following as the focal point?
The customer's needs and wants drive the process. QFD
A) Design is a structured process for focusing on the customer so
B) Process development the product definition is enhanced.
12-5 C) Customer needs and wants
- 12 -
The business plan should provide which of the The correct answer is D)
following?
The business plan will define the sales and profit
I. Sales objectives objectives as well as the capital necessary to achieve the
II. Profit objectives objectives.
13-1 III. Capital requirements

Which of the following statements are true regarding The correct answer is B)
computer integrated manufacturing?
ERP systems compliment CIM projects because it is the
I. Data inaccuracy must be corrected prior to information base which feeds the automation with data.
implementing CIM However, data inaccuracies cannot be tolerated with
13-2 II. ERP systems become obsolete with CIM projects automation because humans no longer filter the bad data.
III. Communication with the ERP system can be very
complicated due to hardware and software constraints

What is the most critical factor if a company is going The correct answer is A)
to achieve manufacturing excellence?
Manufacturing excellence cannot be achieved without
A) Quality improvement constant, consistent efforts at quality improvement. This
B) Cost reductions for the customer would require a goal of six sigma quality which can only
13-3 C) 100% on time delivery be attained through quality improvement.
D) Ability to increase/decrease volume at will
In any large systems implementation project, The correct answer is D)

cross-functional project teams are necessary for a
successful project. Which of the following are true Project teams are a group of people working together to
regarding these teams? reach a common goal. Teams should consist of highly
motivated individuals from various functions. To work as a
13-4 I. The team works best with a shared vision team takes time and training to understand how teams
II. They should consist of highly motivated people work.
III. The team should receive training in group dynamics

Which of the following are true statements regarding The correct answer is D)
JIT?
The most important and difficult issues in implementing JIT
I. Direct labor work force makes tactical decisions is the new attitude with which direct labor must be viewed.
II. Communication between functions is very important In many companies, overcoming the "we think, you work"
13-5 III. Management and labor conflicts must be overcome attitude will be impossible to overcome. (Wantuck,
Just-In-Time for America, Chapter 14).
- 13 -
Questions 14-1, 14-2, 14-3 are based on the following information. Zapper, Inc., manufactures air cleaners. It has four
major product lines, all of which are produced in a single plant using common equipment and personnel. The first product
line is a standard household air cleaner that is distributed through wholesalers to homebuilders for installation in forced
hot-air furnaces. This established, high-volume product line faces numerous large competitors in a mature industry. The
second product line is relatively new and consists of three models of small desktop and room air cleaners. More models
are expected in the next several years. Product designs are short-lived because they are subject to consumer fads. This
line is sold through a large retail distribution chain. Currently, this line dominates the marketplace and is sold at a premium.
The final two lines of air cleaners are for special purposes and include custom-engineered units for industrial usage and
special military units designed for use in large naval vessels and submarines. All units in these final two lines are
engineered to order, are produced in quantities rarely exceeding 10 units, and rarely experience repeat orders. Some parts
(such as filter assemblies and motors) are common to all product lines. Experience has shown that the demand for these
common parts is somewhat seasonal but highly predictable. Senior management has just approved a recommendation to
modify its production systems by implementing Just-in-Time and new approaches to plant operations.
Which of the following is likely to be the most important The correct answer is D)
order winner for Zapper's industrial and military product
lines?
A) Price/cost
B) Delivery speed
14-1 C) Image
D) Design capability
The introduction of work cells for the production of The correct answer is C)
household and desktop/room air cleaners is most likely to
lead to which of the following?
A) Increased in-process inventory.

B) A less focused, unstable workforce.
14-2 C) Reduced manufacturing lead times.
D) Reduced excess capacity
Measures of manufacturing cost are likely to be most The correct answer is A)

important to Zapper's product managers of which of
the following product lines?
A) Household
B) Desktop/room
14-3 C) Industrial
D) Military
- 14 -
In moving a manufacturing organization towards flexible
The correct answer is A)
manufacturing systems or computer integrated
manufacturing, the most important obstacle to overcome
People issues are the most important to resolve in
is:
successfully implementing a CIM strategy. Technical
problems can usually be overcome; however the people
A) Personnel issues which arise from change
15-1 B) issues usually need a different skillset to resolve. (Wantuck,
Hardware compatibility across platforms
C) Software language barriers
D) Networking capability of the organization
The majority of companies tend to be technological The correct answer is A)

followers, choosing to wait for tested technologies
which they then exploit to their advantage. Which of Technological followers wait for the technological leaders to
the following statements describes technological finish testing the new advances. This strategy has minimal
followers? risk: however, the technological leaders could cause the
15-2 existing technology to become obsolete.
I. They achieve slow steady improvement in technology
II. They avoid risk by using technologies which have
been time-tested
III. They try to use obsolete existing technology
A) I and II
B) I and III
C) II and III
D) I, II, and III
Which of the following can the manufacturing function The correct answer is B)
control?
Manufacturing can control the on-time delivery through the
A) State of the art design management of the schedule and producing quality parts to
B) On-time delivery the customer due dates. The other items fall outside the
15-3 C) Field service issues domain of manufacturing.
D) Forecast targets
Quality has two major components. The first is quality The correct answer is B)
of conformance. The other is:
There are two major components of quality:
A) Quality improvement 1. Quality of conformance - quality is defined as the
B) Quality of design absence of defects.
15-4 C) Quality control 2. Quality of design - quality is measured by the degree
D) Quality assurance of customer satisfaction with a product's characteristics
and features.
- 15 -
Questions 16-1, 16-2, 16-3 are based on the following information. Bradley Power Supply Company was formed six years
ago to manufacture and sell power supply assemblies to OEM manufacturers in the fast-growing consumer electronics
market. The development of two models that performed at a very high level of capability in power output and stability
greatly enhanced their reputation. Sales volumes grew rapidly, and the firm installed a very efficient high-volume production
line that consisted of automatic insertion equipment, in-line printed circuit board assembling and soldering, and automatic
testing equipment. With diligent work, the quality of manufactured products was raised to a very high level, and the cost of
products was drastically reduced. During the last two years, the market seemed to reach maturity; in response, designers
increased the variety of features and options available on their basic products. In this period, sales have remained constant,
but the number of end product configurations has increased significantly. Recently, job-cost accounting information indicated
that product costs had risen dramatically. In addition, the firm noted an increase in complaints about the quality of the
shipped products. Management has decided to further increase the number of features and options in an attempt to
increase sales in a declining market. They have also decided to change their job-cost accounting system and to integrate a
pull production system that complements their current MRP II approach.
Which of the following is the most likely cost impact of The correct answer is A)
Bradley's decision to increase the number of features and
options available to its customers?
A) The total cost per unit will rise.

16-1
B) The total cost per unit will remain the same.
C) The material cost per unit will rise.
D) The labor cost will remain the same.
Which of the following actions should Bradley's design The correct answer is A)
engineering staff take to improve product performance and
quality?
A) Standardize major component parts for the new

16-2 options.
B) Purchase the new options as complete modules.
C) Implement leading-edge manufacturing process
technology.
D) Establish detailed process specifications.
Which of the following planning techniques is likely to be The correct answer is A)

most useful to Bradley's production and inventory
management in this environment?
A) Rough-cut capacity planning.

16-3
B) Program evaluation review technique (PERT).
C) Capacity requirements planning.
D) Distribution requirements planning.
Which of the following is most likely to help an The correct answer is D)

individual move from denying the need for change to
accepting the change ?
A) Telling him or her that the change is necessary.

16-4 B) Identifying potential problems resulting from the
changes.
C) Training him or her on the new procedures.
D) Explaining the change and its effects.
- 16 -
Which of the following measures is most likely to The correct answer is A)
encourage behavior that improves delivery reliability in
an organization that produces to customer order ?
A) Master schedule conformance.

B) Quoted lead times.
17-1
C) Inventory levels.
D) Total factor productivity.
Question 17-2, 17-3, 17-4 are based on the following situation.

An organization converted its order entry process from a linear flow with each operation performed by a specialist to
a team operation. Each individual is responsible for the order from receipt through customer acknowledgement. A
small team of specialists processes orders requiring special handling. The change was implemented to increase
customer responsiveness and reduce the order-processing cycle time. The department personnel and other employees
that would interface with the new process were trained on the new procedures and the department was physically
rearranged to support the new procedures. New measures of cycle time for routine orders and for those requiring
special handling were implemented. The changed procedures have been in use for 90 days. The order entry
supervisor was an active supporter of the change, but expressed disappointment in the results because the average
number of orders processed by each operator each day is lower than it was before the change.
Continuing application of the measure of average The correct answer is B)

orders per operator per day indicates that the order
entry supervisor is in which stage of change ?
A) Denial. B) Resistance.
17-2 C) Exploration. D) Commitment.
The correct answer is D)

Which of the following management actions would be
most appropriate to guide the order entry supervisor
forward ?
A) Instruct him or her to stop using the performance
measure.
17-3
B) Change his or her title to order entry team leader.
C) Promote him or her to a position in supply chain
management.
D) Explain the inconsistency between the measure
and the change.
The actions of the order entry supervisor indicate that The correct answer is C)
the change team did not adequately
A) Identify the future state.
B) Identify the transition states.
C) Communicate the goals and objectives.
17-4 D) Communicate the effects of the change.
- 17 -
All of the following must be assessed in defining the The correct answer is C)
future state of an organization EXCEPT
A) Current state of the organization.

B) Customer's requirements.
18-1 C) Likely competitive response.
D) Steps to reach that state.
In training adults, the best approach is: The correct answer is B)
A) To use off-the-shelf modules from which Adults learn better when the training is customized to the
they can learn workplace. When they can relate what they have learned
B) To customize training to their workplace to how they work, benefits from the training will accrue.
18-2 C) To send them to a seminar
Bringing the "voice of the customer" into the company The correct answer is D)
can be achieved through which of the following?
The voice of the customer is a methodology for taking
A) Resolving customer complaints quickly what the customer wants and translating their wants into
B) Producing high quality products consistently products or services. This is done through in-depth
18-3 C) Creating quality systems which include interviews and an interview log which keeps breaking down
customer problems the customers' wants into actionable items. The other way
D) Conducting in-depth interviews with customers to develop products and services that satisfy the customer
is to listen to potential customers wants and break them
into actionable items. (Hayes and Wheelwright, Restoring
Our Competitive Edge, Chapter 13).
All of the following are major categories of The correct answer is A)
infrastructure except:
Infrastructure decisions are centered around three major
A) Capacity plans categories:
B) Workforce involvement - Workforce involvement: number and types of people,
18-4 C) Organizational design skill set, and level of empowerment
D) Major systems - Organizational design: number of levels, centralized or
decentralized, matrix or not
- Major organizational systems: quality, information and
manufacturing planning and control systems
All of the following show management support for The correct answer is C)
SGIA's EXCEPT:
Rewards and focus should be based on team results, not
A) Commitment to quality at all times individual results. Teambuilding requires the organization to
B) Shared responsibility and authority which change its focus of rewards and give recognition to the
18-5 encourages ownership team and to the results achieved. Many companies are still
C) Rewards for individual results focused on the longevity of the individual.
D) Training and development commitment
- 18 -
The abbreviation "EDI" stands for which of the The correct answer is B)
following?
Electronic Data Interchange is the exchange of data
A) Electrical Deficiency Interchange electronically without paperwork. An example would be the
B) Electronic Data Interchange processing of a purchase order from the customer's
19-1 C) Electronically Determined Inefficiency computer to the supplier's computer.
D) None of the Above
Which of the following would be useful in activity based The correct answer is C)
cost accounting?
Overhead absorption is useful in absorption accounting. In
I. Overhead absorption activity based accounting, cost drivers are used to track
II. Track activity costs activity costs to cost objects. For example, "purchase
19-2 III. Identify cost drivers orders generated" would relate the cost of purchase orders
directly to those products/activities requiring purchase
A) I and II B) I and III orders.
A company is going to design their products for The correct answer is C)

manufacturability. This will result in:
Designing for manufacturability is defined as the
A) Faster market introductions "simplification of parts, products, and processes to improve
B) Reduced product options and features quality and reduce manufacturing costs." (APICS Dictionary,
19-3 C) Improved product quality Ninth Edition).
D) Increased capacity available
Which of the following best describes the measure of a The correct answer is A)
"good design?"
A good design must provide value for customers or the
A) Creates value for the customer design has no value. This value can be created by having
B) Engineers approve of the design a low cost, provide a competitive advantage for the
19-4 C) Time from concept to market is short customer, or offer a unique feature which makes it difficult
D) Cost of the product to compete against.
The primary use of environmental scanning is to The correct answer is A)
A) Identify threats and opportunities.

B) Identify strengths and weaknesses.
C) Understand competitor's strategies.
19-5 D) Understand current markets.
- 19 -
A process-focused layout would be most appropriate The correct answer is A)
for the manufacture of
A) Custom window coverings.

B) Personal computers.
C) Office furniture.
20-1
D) Telephones.
Question 20-2, 20-3, 20-4 are based on the following scenario.

An organization produces a wide line of mechanical assemblies to customer order. Its reputation is built on a history
of high quality and responsiveness to the customers' needs. The production processes consist of sheet and tubing
fabrication, subassembly, final assembly, mechanical testing, and packaging. The operations planning and control
system includes material requirements planning that is driven by customer orders and capacity requirements planning.
Production orders are used to track progress and collect costs by operation.
The organization is considering an opportunity to perform high-volume contract manufacturing of a few standard
subassemblies of a current customer. This opportunity would require the same manufacturing capabilities as the
current product lines. The organization is considering creating a plant within the plant, employing a line layout to serve
this opportunity.
Which of the following current processes is LEAST The correct answer is A)

appropriate for the new opportunity ?
A) Master scheduling.
B) Material planning.
20-2 C) Customer order processing.
D) Purchasing.

Which of the following is most likely to be an
order-winning criteria for the contract manufacturing
opportunity ?
20-3 A) Quality.
B) Product design.
C) Delivery reliability.
D) Product mix flexibility.
Which of the following processes will most likely need The correct answer is D)
to be altered to support the plant within a plant for the
contract manufacturing ?
A) Aggregate planning.
20-4 B) Material requirement planning.
C) Capacity requirement planning.
D) Production Tracking.
- 20 -
Collaboration among organizations in a supply chain The correct answer is C)
can reduce the total inventory by
A) Shifting the inventory to supplires.

B) Reducing the variability of end-user demand.
21-1 C) Reducing the resupply time.
D) Increasing the speed of communications.
Which of the following has contributed most towards The correct answer is A)
making global sourcing and marketing practical for
most industry segments ?
A) Advances in transportational and communications.

21-2 B) Rapid adoption of global standards.
C) Consistent legal treatment of business.
D) Elimination of non-tariff barriers.
Which of the following is most likely to be used to The correct answer is B)

measure the success of a product design project in
an organization that employs sequential development
steps ?
21-3 A) The time from concepts approval to general

availability in the market.
B) The project performance to budget.
C) The number of engineering changes after the
product is released.
D) The cost to manufacture the product.
Which of the following terms are associated with bar The correct answer is D)
coding technology?
Laser scanners, whether hand held or fixed, "read" and
I. Hand laser scanners decipher the code. Interleave two of five and three of nine
II. Interleave two of five are types of bar codes.
21-4 III. Three of nine

Which of the following can manufacturing control to The correct answer is B)

ensure customer satisfaction?
Manufacturing is responsible for manufacturing parts to the
A) Product design customers' specification. While the design issues may
B) Conformance to customer specification hamper manufacturing from achieving this, they are
21-5 C) Field service issues responsible for the quality of the manufactured part.
D) Supplier reliability
- 21 -
When measuring an organization's flexibility, which of The correct answer is B)
the following would be used?
The measure of flexibility is directly related to the number
A) Number of setups under ten minutes of different jobs employees can perform. This allows the
B) Number of skills per employee company to do more with the existing workforce.
C) Number of different models produced
22-1
D) Percent of sales from new products
Process costing should be used for which of the The correct answer is B)
following manufacturing environments?
Process costing is appropriate for manufacturing companies
A) Low volume job shop with different parts which make large volumes of similar parts. Process costing
B) High volume of similar parts accumulates costs by time period (month) and averages
22-2 C) Assemble to order manufacturing the costs over the total units produced. It can be used
D) Engineered jobs and standard jobs with actual or standard costs.
The measurement, machine utilization, is a poor The correct answer is C)

measure because it causes all of the following
EXCEPT: Machine utilization is an old measure which was used in
traditional manufacturing. The thought was that the
A) Increased finished goods inventory utilization of the asset would be important to keeping the
22-3 B) Increased work-in-process inventory cost of parts low. The problem is that the measure
C) Improved quality promotes bad behavior; that is, inventory is required to
D) Increased raw materials inventory keep the machine utilized and there is no time allowed for
quality improvement since the machine needs to keep
running to maintain the measure.
A company has decided to dramatically increase the The correct answer is C)

number of features and options in its products. The
impact on the cost of the products will be that the: Generally, when Marketing increases the features and
options of the products, the total unit cost will rise. This is
A) Total cost per unit will decline because the features and options add cost to the product
22-4 B) Material cost per unit will rise unless the products are completely redesigned.
C) Total cost per unit will increase
D) Labor cost will remain the same
Which of the following are not part of the product life

cycle?
The product life cycle has four phases and their strategies:
A) Introduction
B) Growth
1) Introduction- Quality, features, and flexibility
22-5 C) Leveling
2) Growth- Delivery, reliability, and flexibility
D) Decline
3) Maturity- Price and cost
4) Decline- Flexibility through added features
- 22 -
Global sourcing and selling has become practical for The correct answer is D)
most companies. This has been primarily caused by:
The expansion of global sourcing and selling has been
A) ISO9000 standards made possible by the advances in transportation and
B) Global laws and treaties communication. The internet has provided the means to
C) Elimination of many tariffs quickly communicate globally and the transportaion
23-1
D) Advances in transportation and communication companies have added services to support the movement
of goods, quickly, anywhere in the world.
In the broadest sense, Just-in-Time can be considered The correct answer is B)

all of the following EXCEPT:
Just-in-Time encompasses the entire company's operation.
A) A philosophy of continuous improvement It is not just a shop floor control system. In fact, many of
B) A shop floor control system the benefits of JIT are the result of waste elimination in
23-2 C) A way to achieve excellence by continually the administrative areas. (Wantuck, Just-In-Time for
eliminating waste America, Chapter 1).
D) An on-going way of life
In beginning to implement automation in the factory, The correct answer is C)

which of the following would generally be the best
place to start? Rather than implementing narrow scope cells or machine
centers, companies should start with an overall plan with
A) One cell in a pilot area equipment installation according to the plan. This ensures
23-3 B) One machining center that the installation of cell, machine centers, or larger
C) An overall automation master plan to guide scope projects (software/hardware) follow a plan.
implementation of the various software/hardware
installations
Which of the following aspects of an ERP system are The correct answer is C)
most important?
Educated, trained people are the key component to
A) Type of computer hardware successful systems. Without them, the best software and
B) Software to fit your business hardware will not perform at the highest level.
23-4 C) Educated, trained people
D) Data accuracy
In the early stages of developing the employee The correct answer is D)

involvement process, a consultant should be used for
which of the following reasons? A consultant's role should be to guide the organization,
provide education and training, and make sure pitfalls are
I. To provide guidance on getting started avoided based on his/her experience.
23-5 II. To provide education/training to management
personnel
III. To help in avoiding pitfalls

- 23 -
Which of the following is most important for a The correct answer is A)
successful ERP project?
The successful ERP project always has at least a full time
A) Full-time project manager project manager. The effort is significant and costly and
B) State-of-the-art client server software must be managed carefully. While having a project scope
24-1 C) Project charter providing the scope of defined, without a full time project manager, the project will
responsibility most likely fail.
D) Software company consulting support
Which of the following is the best way to begin changing The correct answer is C)
employee behavior?
A) Simplify and flatten the organizational structure.

B) Implement a human resource information system.
24-2 C) Change the performance measurement and reward
system.
D) Provide more timely and explicit management
directives.
Which of the following is the most important consideration The correct answer is C)
when designing an information system to control shop
floor operations?
A) Supporting differentiation between functional areas and

production operations.
24-3 B) Providing staff specialists with the information needed
to control production operations.
C) Allowing factory personnel to manage their own
D) Encouraging users to operate independently with a
minimal amount of training.
Which of the following best describes the traditional The correct answer is C)
(command and control) approach to managing plant
operations?
A) It increases the role of line personnel in making

24-4 management decisions and decreases the importance
of staff positions.
B) It evaluates performance based on contribution toward
the success of the business rather than adhering to
procedures.
C) It relies on the use of standard operating
procedures rather than allowing flexible responses
to problems as they occur.
D) It emphasizes worker skills and problem-solving
capabilities rather than making processes independent
of worker abilities.
- 24 -
In a JIT environment, marketing may discuss with The correct answer is A)
customers all of the following benefits EXCEPT
A) Incentives for large-lot deliveries.

B) Improved on-time delivery.
25-1 C) Improved quality.
D) Reduced customer hedge inventory.
Long-term agreements with suppliers may include which The correct answer is D)
of the following types of special arrangements?
I. Simplified paperwork systems

II. Returnable containers
25-2
III. Specially designed containers
IV. Effective personal contacts at each site
A) IV only B) II and III only

C) I, II, and III only D) I, II, III, and IV
Which of the following are true statements regarding The correct answer is A)
the Kanban system?
Kanban systems use authorization cards and conveyance
I. It works best with a stable schedule cards to produce. The facility is controlled through the use
II. Quality must be high throughout the facility of the cards which authorize the next operation to produce
25-3 III. Each work center produces at its own rate only when necessary. Quality must be high because poor
quality parts shut the whole line down. (Wantuck,
A) I and II B) I and III Just-In-Time for America, Chapter 11).
DRP systems help to: The correct answer is B)
A) Manage the factory floor DRP systems (Distribution Requirement Planning) provide
B) Manage finished goods in a distribution network MRP logic to the management of finished goods inventory
C) Maintain flexibility in the manufacturing process in a distribution network.
In infinite Capacity Planning Systems, the systems The correct answer is A)

focus on:
Infinite Capacity Systems identify when capacity required
A) How much capacity is required to meet the exceeds capacity available. No further analysis is done by
schedule the system. People must do the analysis.
25-5 B) How to identify where to obtain more capacity
C) The interface with automation equipment
- 25 -
Which of the following statements is true regarding The correct answer is A)
linear programming?
Variations in the values are not handled well by linear
I. It assumes the relationship of the variables is linear programming, as it works from averages. The fact that all
II. Every variable must be identified and a value variables must have values to function well tends to make
attached linear programming not very useful for the "real world".
26-1
III. Variations in the values assigned are handled well
in linear programming

All of the following are considerations in the adoption of a The correct answer is C)
process focus EXCEPT the
A) Complexity of the manufacturing process.

B) Capital intensity of the manufacturing process.
26-2 C) Book value of current production assets.
D) Type of technology used in the manufacturing process
Which of the following best measures the production The correct answer is B)
operation's contribution to delivery reliability?
A) Cycle time per part.

B) Hours of expedite time.
26-3 C) On-time supplier delivery performance.
D) Direct labor hours per product.
Which of the following techniques can be used to The correct answer is C)

evaluate the predictability of a project's anticipated return?
A) Internal rate of return.

B) Discounted cash flow.
26-4 C) Monte Carlo simulation.
D) Total factor productivity.
Which of the following will have the greatest influence on The correct answer is D)
an employee's evaluations and promotions?
A) Product output.
B) Setup time.
26-5 C) Performance to standard.
D) Problem-solving skills.
- 26 -
The main purpose of an AS/RS system is: The correct answer is B)
A) To provide manufacturing planning and control in a AS/RS (Automated Storage/Retrieval Systems) provides for
mini-computer the automated storage and retrieval of inventory. These
B) To provide automated storage and retrieval of can be large warehouse systems or specific application
27-1 inventory carousel systems.
C) To be able to machine multiple parts quickly
Carousels are automated storage and retrieval systems The correct answer is D)
which offer which of the following benefits?
All are benefits of a carousel type AS/RS. Because the
I. Relatively low maintenance costs investment is lower than large scale AS/RS systems, the
II. Flexibility in expansion return on investment is usually higher. Because they are
III. Relatively high return on investment less complicated than large AS/RS systems, maintenance
27-2 is lower.
A) I and II
B) I and III
C) II and III
D) I, II, and III
Manufacturing planning and control systems for The correct answer is C)

repetitive manufacturers should include which of the
following features? In repetitive manufacturing, production occurs according to
a schedule, not shop order. Backflushing (issuing inventory
I. Schedule generation when the product is completed) and point of use stocking
II. Backflushing are important features.
27-3 III. Point of use stocking
A) I and II
B) I and III
C) II and III
D) I, II, and III
When a flexible manufacturing system is implemented, The correct answer is D)

workers' skill levels can be raised by training in
different skills. The advantages of doing this are: By raising workers' skill levels, the workforce will have
greater interest in the job, will be willing to "embrace" the
I. The worker will assume responsibility to be sure the FMS, and extend the capabilities of the system through
27-4 FMS functions well experimentation.
II. Workers will become more enthusiastic about their
job
III. Workers will try to strengthen the system to
maximize its capabilities
A) I and II
B) I and III
C) II and III
D) I, II, and III
- 27 -
The coding and classification of parts in a group
The correct answer is A)
technology project provides which of the following
benefits in addition to the manufacturing benefits?
With proper coding and classification of parts and
machines, new product designers can use the information
A) New product designs begin to use existing parts
to use existing parts and machines to create new products.
more frequently
28-1 B) Accounting personnel can identify parts easier This keeps new parts to a minimum, thereby reducing
costs and complexity over time.
C) Parts look up on-line can be easier
Any large scale project which uses cross-functional The correct answer is B)
teams must use consensus decision making to move
forward. All of the following are part of consensus Consensus management does not require that everyone in
decision making except: the group agree with the group decision. It does require
that everyone understand the decision, can live with the
28-2 A) Everyone must understand the group decision decision, and it is ethical and moral to everyone.
B) Everyone must agree with the decision
C) Everyone can live with the decision
D) The decision does not violate the individuals ethical
or moral attitude
Which of the following actions will most likely ensure The correct answer is C)
end-user support for a new computerized information
management system?
A) Providing high-quality training materials and detailed

operating procedures for the end users.
B) Verifying that the system design is complete and
28-3 capable of providing all features and capabilities
identified by management.
C) Involving system users and stakeholders in
reviews and approvals throughout the design and
implementation process.
D) Communicating the strategic objectives of the new
system and asking all personnel to support its
implementation
Measurements that focus on plant and/or machine The correct answer is D)
utilization promote which of the following?
I. Buying excessive amounts of raw material

28-4 II. Building finished goods inventories
III. Delaying preventive maintenance
A) III only B) I and II only

C) II and III only D) I, II, and III
Which of the following performance measures is most The correct answer is B)
appropriate for determining the overall improvement of JIT
manufacturing operations?
28-5
A) Direct labor efficiency.
B) Inventory turns.
C) Equipment utilization.
D) Overhead variances.
- 28 -
Which of the following company functions should be The correct answer is D)
included in the planning for JIT implementation?
I. Maintenance
II. Order entry
29-1 III. Engineering
IV. Purchasing
A) I and III only. B) II and IV only.

C) III and IV only. D) I, II, III, and IV.
Throughput accounting assigns which of the following to The correct answer is D)

products?
A) Actual costs incurred.

B) Fully absorbed costs.
29-2 C) Fixed production costs.
D) Total variable costs.
Which of the following types of action is most likely to The correct answer is A)
increase the residual income of an organization?
A) Use less capital to produce the same level of

income.
29-3 B) Spend more money to increase revenue.
C) Reduce the geographical markets served.
D) Invest only in projects that produce a required rate of
return.
Which of the following will provide competitive The correct answer is B)

advantage for manufacturers?
Generally, having excess capacity to produce would
I. Shorter leadtimes than the competition produce extra costs not necessary to compete. Having
II. Greater capacity to produce than others greater capacity does not mean greater flexibility to
29-4 III. Products with the best quality compete, which would be an advantage.
IV. Highest delivery reliability

In a company with poor manufacturing systems, the The correct answer is C)

majority of a purchasing agent's day is spent:
Typically, much of a buyer's day would be spent rushing
A) Negotiating parts into the factory. Where good systems exist, the
B) Identifying and pursuing cost reductions buyer can spend time in those areas with the greatest
29-5 C) Expediting impact on the company.
D) Discussing new products with vendors
- 29 -
Often times, organizations try to improve their The correct answer is D)
operations by concentrating their efforts on labor
productivity. Which of the following are reasons their Raising direct labor productivity generally will have a small
efforts may be misdirected? impact on manufacturing costs since overhead and
materials are much larger costs. The American
manufacturing culture is based on keeping direct labor
30-1 I. Labor costs are generally the smallest component of
product cost workers busy at all times even if they are making products
II. Efficiency of factory workers doesn't necessarily which are not needed.
relate to benefits for the company
III. Worker idle time could be used for learning,
cleaning, maintenance, etc.
A) I and II
B) I and III
C) II and III
D) I, II, and III
Which of the following describes the phrase "market The correct answer is A)
driven manufacturing"?
Being market driven means delivering the product features,
I. A competitive advantage created by manufacturing quality, and delivery requirements which the customer
capabilities wants at a competitive price. Many manufacturers try to
30-2 II. Delivering products which the customer wants compete strictly on price without consideration of other
III. Lowest cost products on the market requirements.

Which of the following is most likely to be an The correct answer is C)

order-winning criterion for a commodity product ?
A) Organization image.
B) Product design.
30-3 C) Delivery speed.
D) Product quality.
Which of the following is most likely to deter new The correct answer is D)
entrants in an industry with very short product life
cycles ?
A) Low profit margins.

30-4 B) A large number of customers.
C) Short delivery requirements.
D) Large capital investments requirements.
- 30 -
Quality function deployment(QFD) is a tool to improve The correct answer is A)
the
A) Quality of designs.
B) Process capabilities.
C) Product conformance.
31-1 D) Process controls.
Which of the following has contributed most towards The correct answer is A)
making global sourcing and marketing practical for most
industry segments ?
A) Advances in transportational and

31-2 communications.
B) Rapid adoption of global standards.
C) Consistent legal treatment of business.
D) Elimination of non-tariff barriers.
Which of the following is most likely to cause an The correct answer is C)

organization to establish production operations in an
economic bloc ?
A) Cultural differences.
31-3 B) Legal requirements.
C) Not-tariff barriers.
D) Transportation and customer costs.
Which of the following actions is most likely to reduce The correct answer is C)
the total cost of a new generation product design and
development project ?
A) Create a cross-functional project team.

31-4 B) Use les experienced designs and analysis.
C) Reduce the project duration by overlapping
activities.
D) Defer service considerations until late in the project.
The primary objective of project management is to The correct answer is D)
A) Meet the target date.

B) Measure and report progress.
C) Balance performance, time, and cost.
31-5 D) Ensure that all activities are completed.
- 31 -
Which of the following is best aligned with an effort to The correct answer is C)
improve product mix flexibility ?
A) Surge capacity.
B) Rapid process improvement.
C) Standardized processes.
32-1
D) High level of automation.
The focus of process-level change typically is to The correct answer is C)
A) Align choices with strategies.

B) Employ continuous improvement to reduce waste.
C) Exploit opportunities to meet customer needs.
32-2 D) Understand the current state of the business.
Which of the following are reasons FMS projects do The correct answer is B)
not reach their potential benefits?
If the FMS is not flexible enough or if it is not integrated
I. It is not flexible enough nor is it an integrated as one system, it will not reach its potential. Additionally,
system if product demand is poor for the products produced on
32-3 II. People do not want the system the FMS, the cost to produce those units will be high.
III. Products produced on the FMS do not provide a Further FMS development will be questioned.
good return on capital used

A company strategy generally begins with a mission The correct answer is C)
statement which is:
A mission statement provides a broad statement regarding
A) A statement of financial condition what business the firm is in. The broad statement
B) A statement regarding the marketing strategy of the provides great latitude regarding the company's business.
32-4 firm
C) A broad statement about what business the firm is
in
The term "Artificial Intelligence" refers to which of the The correct answer is B)
following:
With Artificial Intelligence, the computer has human-like
I. The ability of a computer to have human-like capabilities, such as voice and visual recognition, decision
capabilities making ability, and problem solving skills.
32-5 II. The planning used to develop corporate strategy
III. Using specific software, the computer can have the
ability to make decisions

- 32 -
The time increments of a business plan are usually: The correct answer is C)
A) Months A business plan is usually developed in terms of years.

B) Quarters
C) Years
Which of the following organizational changes should The correct answer is B)

be developed in order to compete as a world-class
manufacturer? Job categories must be made broader to allow for
increased worker flexibility. Essentially, the conventional
I. Layers of management should be removed manufacturing organization must be changed.
II. Narrow job categories should be developed
III. Information-sharing across functions should be
33-2 enlarged
A) I and II
B) I and III
C) II and III
D) I, II, and III
Much research has been done regarding employee The correct answer is B)
motivation. Which of the following is generally
considered to be a better motivator? Recognition by peers for a job well done provides more
positive stimulus than money or gifts. For employee
A) Money paid involvement, celebration of success can be very positive,
33-3 B) Recognition by one's peers creating more participation and involvement. The success
C) A gift from the company should be recognized quickly and sincerely.
A company's ERP project is running significantly behind The correct answer is C)

schedule because key resources continue to be taken
from the project to work on a technical problem with When a system project is significantly behind because
the company's product. The steering committee should resources are taken from the project, the steering
do which of the following to bring the project back on committee needs to reschedule the project with the
33-4 track? reduced resources. If the project then takes too long to
complete, the steering committee needs to make some
A) Cancel the project because of the lack of critical decisions regarding the project. Some of these
resources decisions would be to resource the project, accept the long
B) Bring in an outside system integrator to implementation, or bring in outside help. Generally
finish the project resourcing the project properly is the best solution with the
C) Reschedule the project based on the reduced highest payback. (Hayes and Wheelwright, Restoring Our
resources Competitive Edge, Chapter 6).
D) Get a new project manager who can handle
the project
- 33 -
When implementing a total quality management The correct answer is D)
program, which of the following groups should receive
education first? As with any new program which is started, senior
managers need to understand the changes which must
A) Production workers occur if the program is successful. Otherwise, many senior
B) Production supervision managers will become barriers to success, rather than
34-1
C) Middle Management helping the organization succeed.
D) Senior management
Quality Function Deployment is used primarily to: The correct answer is C)
A) Improve the product quality function The APICS Dictionary defines Quality Function Deployment
B) Ensure customer deliveries improve (QFD) as "the methodology designed to ensure that all
C) Ensure customer requirements are designed major requirements of the customer are identified and
34-2 into products subsequently met or exceeded through the product design
D) Record and identify customer complaints process and operator design of the supporting production
management system."
Worker idle time should be an accepted part of any The correct answer is B)
work improvement process because:
In order for the continuous improvement process to work,
A) Workers will need to rest workers need time to work on improvements in their work
B) Workers should spend time on work problems areas.
34-3 implementing improvements
C) Work will eventually run out at times
D) Workers should always be producing
Top management generally sets the strategic direction The correct answer is A)
for the company. Which of the following would be
included in the strategic planning? The strategic plan would include business objectives and
long-term resource needs; however, specific activities would
I. Business objectives be more tactical in nature and not a top management
34-4 II. Long term resource needs to meet company function.
objectives
III. Activities specifically needed to meet the plan

Environmental scanning is used to: The correct answer is B)
A) Identify strengths and weaknesses Environmental scanning is used to identify external forces
B) Identify threats and opportunities which can be threatening to the company or providing
C) Understand the competitors strengths and opportunities. Strengths and weaknesses are an internal
34-5 weaknesses assessment and would not be part of environmental
D) Understand the current marketplace scanning.
- 34 -
A lead capacity strategy is best used by a company The correct answer is C)
which pursues which of the following competitive
advantages? A firm which pursues the lead capacity strategy adds
capacity before it is needed. This ensures that extra
A) Price capacity will be available. While this will add additional cost
35-1 B) Quality to the operation, it also adds flexibility and delivery speed.
C) Delivery speed This is especially important during growth periods when the
D) Product design firm can take market share.
Which of the following are usually order winners when The correct answer is B)
a product is in the maturity stage?
In the mature stage of a product's life cycle, price and
A) Large number of options consistent delivery are usually order winners. Not only does
B) Price and consistent delivery delivery need to be consistent, but speed will also aid in
35-2 C) Product mix flexibility winning orders.
D) Extensive distribution channels

The industrial organization has been replaced by the:
According to Stonebraker in the book Operations Strategy,

A) Vertical organization
the information organization has replaced the industrial
B) Horizontal organization
organization. The affects on the organization are dramatic.
C) Concentric organization
35-3 D) Because information can be disseminated simultaneously to
Information organization
many people, decision making can be accomplished on a
collaborative basis, rather than decisions being made by a
single individual, as in the past. This requires a better
trained and educated worker than in the past.
All of the following are common elements in Quality of The correct answer is C)
Worklife (QWL) programs except:
Quality of Worklife (QWL) programs can be defined as
A) Participative management "processes by which an organization attempts to unlock
the creative potential of its people by involving them in
35-4 B) Innovative rewards
C) Senior manager decision making discussions affecting their work lives." (Guest, 1979).
D) Enhanced workplace democracy The three common elements are:
- Participative Management: employees participate in the

problem solving and decision making aspects of their job
- Innovative Reward Systems: contributions to improvement
are measured and the team or individual is rewarded
- Enhanced Workplace Democracy: empowered workplace,
self management, and company ownership all contribute
to a sharing of power
- 35 -
In a horizontal organization, the focus of senior The correct answer is C)
managers should be:
In a horizontal organization, decision making is spread out
A) Making operations decisions to the local operating units. As such, operating decisions
B) Ensuring consistent policies across units are made at the local level. In this type of organization,
C) Removing obstacles to improvement fast decisions and flexibility are necessary in order to
36-1
D) Approving lower level decisions remain competitive. In this type of organization, senior
managers must focus on removing the obstacles which
impede decision making and ensure that decisions are
made with the speed and flexibility required.
Which of the following statements are true? The correct answer is C)
I. Inspection adds value to the product in a JIT In a JIT environment, inspection is a waste of money.
environment Quality should be designed and manufactured into the
II. Inspection adds no value to an operation and should product while SPC can identify process variations for
36-2 be eliminated correction. (Wantuck, Just-In-Time for America, Chapter 3).
III. Inspection can be eliminated through statistical
process control

What is the reason for the 5 "W's" in Japan? The correct answer is C)
A) It teaches the work ethic for which they are famous The 5 "Why's" is a concept whereby Japanese managers
ask why 5 times to identify a root cause of a problem.
B) It forms the basis of the Japanese kieretsu
By the fifth why, they believe they will find the actual
C) It helps find the root cause of a problem
36-3 D) cause of a problem which they can then solve.
It allows fishbone diagrams to be complete
Direct costing (variable costing) is best for which of the The correct answer is A)
following situations?
Direct costing applies only the variable cost to products.
A) Internal management decisions They are then reviewed for their margin contribution
B) External reporting to the financial community towards the fixed costs. As an internal management tool,
36-4 C) For measuring company performance with other it is better than full absorption accounting.
companies
D) For valuing WIP
Which of the following groups should be educated The correct answer is D)

about JIT?
All levels of personnel must be educated, as JIT
I. Top management requires a major change in mindset and attitude. Only
II. Manufacturing management through understanding can that change occur. (Wantuck,
36-5 III. Financial personnel Just-In-Time for America, Chapter 14).
IV. Machine operators
A) I, II, and III B) I, II, and IV

- 36 -
Successful employee involvement programs have which The correct answer is A)
of the following attributes?
The most successful employee involvement programs have
I. The focus is on making the company more recognition and work place improvement as rewards, not
competitive large amounts of money.
II. Employees must understand how it can improve
37-1 their work place
III. The monetary rewards are high

Small group improvement activity teams are successful The correct answer is C)
only if certain assumptions are understood by all
involved parties. Which of the following assumptions Group dynamics outweigh the requirement for the smartest
are important to the team's success? people to participate. People want to control their
37-2 environment and receive recognition for achievement.
I. The smartest employees are involved in the
teams
II. People want to be involved in controlling
their work place environment
III. People want recognition for their
achievements
A) I and II
B) I and III
C) II and III
D) I, II, and III
CAD systems are used primarily for: The correct answer is B)
A) Guiding robotic arms Computer Aided Design systems are used for integrated
B) Engineering and storing designs engineering drawings and storing designs. The programs
C) Determining the quantity of components complete the layout, projection, rotation, and cross-sectional
37-3 needed over time view of a part and the relation to other parts (APICS
D) Planning production on the shop floor Dictionary, Seventh Edition).
Some of the greatest savings to be achieved from a The correct answer is D)

just-in-time process can be found in "white-collar"
areas. Which of the following would offer savings All of the answers offer savings potential. In order to
potential? compete in the global economy, we will need to be
quicker, more flexible, and have accurate information
37-4 I. Transaction processing available quickly. (Wantuck, Just-In-Time for America,
II. Management layer reduction Chapter 1).
III. Increased information technology

- 37 -
In a JIT environment, which of the following activities The correct answer is A)
would be considered productive time for direct labor?
Activities which, in traditional manufacturing, would be
I. Training and development considered non-productive are productive in JIT factories
II. Discussion of quality problems with a vendor because the workers learn and take ownership. Training
III. Making parts not needed for two days so utilization and development and quality are only two of the activities.
38-1
targets are exceeded (Wantuck, Just-In-Time for America, Chapter 4).

Which of the following management structures will be The correct answer is C)

needed in the future in order to globally compete?
The "flat" organization will have a reduced number of
A) Hierarchical management layers and will place responsibility at the
B) Hybrid lower levels of the organization. Decision making will be
38-2 C) Flat quicker, as will customer response.
D) Military
In a Just-in-Time company, which of the following The correct answer is C)

would have the greatest influence on an employees'
performance appraisal? In a JIT company, employees must be able to do many
different jobs and be able to problem solve. The problem
A) Quantity produced solving skill is the most important skill because teams must
38-3 B) Actual versus standard labor be able to solve problems as they arise without a
C) Problem solving skills supervisory level decision. (Perotin, Just-In-Time Is
D) Buffer stock reduction Just-A-People System, APICS Reprints).
Which of the following production environments will not The correct answer is C)
lend themselves to a JIT system?
Certain production environments do not lend themselves to
I. Demand pattern is stable a JIT process. These include manufacturing where the
II. Product needs custom engineering product is custom engineered, the demand pattern is
38-4 III. Quality is unpredictable unstable, quality is unpredictable, and where volumes are
low and occur infrequently. Remember, JIT likes smooth
A) I and II B) I and III demand at predictable rates. Anything which disrupts this
C) II and III D) I, II, and III "drumbeat" causes the JIT operation more difficulty.
Flow manufacturing methods are usually very cost The correct answer is B)
effective because:
Flow manufacturing is very cost effective for a number of
A) Costs can be allocated differently reasons. First, work in process inventory is low, allowing
B) Manufacturing leadtimes are short leadtimes to be short. Second, machinery and tooling can
38-5 C) Flow lines are very flexible be specialized because work stations are designed to
D) Machinery and tooling is general purpose produce a limited number of similar products. Third, flow
lines are, by design, inflexible. They are designed to
produce a large quantity of similar products. This makes
them highly efficient.
- 38 -
With regards to purchasing, which of the following The correct answer is C)
should be done as the JIT implementation begins?
The Purchasing department needs to begin to reduce the
A) Redesign the purchase order supplier base and ensure that a quality single source is
B) Make the requisition electronic supplying the key components for the company's products.
C) Evaluate a reduction in the number of (Wantuck, Just-In-Time for America, Chapter 12).
39-1
suppliers
D) Hire a supplier quality representative
Functional classes of inventory include which of the The correct answer is B)

following?
Physical inventories are done to ensure that the financial
I. Lot size inventory records accurately reflect the inventory value of the
II. Physical inventory company. It is not a functional class of inventory.
39-2 III. Transportation inventory

Some factories have incompatible islands of automation The correct answer is D)

caused by:
A strategic automation plan should be a critical part of the
A) Hardware which cannot be integrated strategic business plan. The automation plan should
B) Software which can be integrated only with ensure hardware and software compatibility and address
39-3 significant expenditure the people issues. (Wantuck, Just-In-time for America,
C) The lack of a strategic CIM plan Chapter 8).
D) All of the above
In CIM converted manufacturing plants, the largest The correct answer is C)

productivity gains come from:
Computer integrated manufacturing still requires people
A) Reductions in overhead (usually with a higher level of skills) so reduced labor costs
B) Reduced labor force would come from attrition or additional business. Layoffs
39-4 C) Improved quality would negatively impact the CIM conversion plan.
D) Reduced inventory Overhead costs will be higher with new technology, so
most gains will come from quality improvement. (Wantuck,
With the advance of technology in the factory, cost The correct answer is D)
accounting systems traditional approaches are outdated
because: In a plant of "high-tech" equipment, labor could have little
direct contribution to production. Basing overhead on this
I. Overhead is absorbed based on labor base would be irrelevant. Overproduction can provide
39-5 II. Important costs, such as quality defects are not transient profits by inflating ending inventory and
adequately tracked "absorbing" costs incorrectly.
III. Overproduction is rewarded

- 39 -
By absorbing overhead costs based on labor in the The correct answer is D)
traditional cost accounting method, which of the
following could occur? All of the answers could occur as overhead is allocated
I. Poor management decisions can be made based on across products on a false basis, labor.
inaccurate cost data
II. Products could be deleted from a product line
40-1
incorrectly
III. The product could be priced high causing it to be
non-competitive in the market

Target costs can be best defined by which of the The correct answer is B)
following?
Target costs are costs which need to be achieved to
I. The final costed bill of material reach certain market share levels. While products may be
II. The product cost objective necessary to achieve a introduced at one price level, cost reductions will allow
40-2 targeted market share products to be priced more competitively to gain market
III. They are usually less than the standard cost share while maintaining margins.

While flexible manufacturing systems provide the The correct answer is D)

flexibility of job shops yet high efficiency of a flow
shop, many companies have not embraced fully the Companies are reluctant to make large investments to
flexible manufacturing system. Which of the following completely revamp or build new facilities with FMS due to
would be a reason for this? the high cost and complex integration. They would, instead,
40-3 I. High cost prefer to gradually move toward FMS.
II. Complex systems integration
III. Investment in existing facilities

The primary types of manufacturing flexibility are: The correct answer is A)
I. Volume flexibility Volume flexibility refers to the ability to change quantities

II. Product-mix flexibility quickly while product mix flexibility is the ability to change
III. Statistical flexibility the product mix quickly to respond to market changes.
40-4
Which of the following would contribute favorably to The correct answer is D)

manufacturing flexibility?
All of the answers would contribute to a rigid factory.
I. Long set up time Long set ups, single purpose equipment, large lot sizes,
II. High number of job classifications and restrictive job classes are all examples of traditional
40-5 III. Single purpose equipment manufacturing.
IV. Large lot sizes

C) II, III, and IV D) None of the above
- 40 -
A new work team established in your factory starts The correct answer is C)
working on a project which you, as management,
believe is of little consequence to your business. You New work teams will work on seemingly frivolous projects
should: to learn the process. These projects are important to the
team and management may not be in touch with the
A) Redirect their activities to more useful endeavors business. As the process develops, the team will be more
41-1
B) Encourage them through incentives to redirect their comfortable with bigger projects.
efforts
C) Let them work on their project
All of the following could be considered internal The correct answer is C)

obstacles to achieving progress EXCEPT:
Market demands would be considered external obstacles.
A) Management policies Management policies which exist for certain business
B) Procedures which control authority conditions can be an obstacle when the business changes.
41-2 C) Market demands Physical capacity could constrain the business, while often
D) Physical capacity times, procedures which over control (3 signatures to buy
something) can be an obstacle to progress.
In a business which has begun a team process, The correct answer is A)

measurements must be developed to chart progress.
Which of the following are important criteria for these Team performance should be measured, not individual
measures? performance. The team objectives should be consistent
with the company's objectives. Measurement should be
41-3 I. The measures should be consistent with company consistent with the objectives.
objectives
II. They should measure the team improvement
process, but be consistent with company
objectives
III. They should chart the individual progress of each
member of the team
A) I and II
B) I and III
C) II and III
D) I, II, and III
The payback of an improvement project results from: The correct answer is B)
A) The degree of technology involved Payback from an improvement project comes not from the
B) The ability to improve the profitability level of technology but from the increased profitability.
of the company Often times, simplicity can improve the business without
41-4 C) The number of automation cells implemented sophisticated technology.
- 41 -
Group technology offers several benefits. These The correct answer is D)
include:
Group technology allows shorter manufacturing time, less
I. Shorter manufacturing lead times work in process inventory, improved process and product
II. Introduction of new technology design, and the introduction of new technology into the
III. Less work in process inventory factory. Keep in mind, however, that without people
42-1
supporting it, benefits will not be derived from technology
A) I and II alone. (Wantuck, Just-In-Time for America, Chapter 7).
B) I and III
C) II and III
D) I, II, and III
Radio frequency data terminals provide which of the The correct answer is A)
following advantages over conventional terminals?
The real advantage of radio frequency occurs where
A) Allows real-time updates for areas where cabling cannot be used (e.g., on fork trucks in the
cabling is not feasible warehouse). This allows real-time updates as the operation
42-2 B) Allows bar coding to be used in the warehouse occurs.
C) Allows fork trucks to operate more
efficiently
The system of linking final retail sales with production The correct answer is C)
and shipping schedules going back through the supply
chain is called: Quick response programs are used by retailers to link all
the suppliers in the supply chain to the point-of-sale
A) Vendor managed inventory system at the retailer. It employs point of sale scanning
42-3 B) Virtual corporation and electronic data interchange. Additionally, it may involve
C) Quick response program direct shipments from the factory rather than through the
D) Point-of-use inventory distribution network.
Which of the following is the best reason to establish The correct answer is D)
an alliance with another company in the supply chain?
If the alliance is to be successful, it has to be beneficial
A) Leverage the tangible assets for both companies. Both companies should expect their
B) Use the alliance to penetrate markets performance to improve by helping each other.
42-4 C) Reduce the cost of material acquisition
D) Improve the performance of both companies
Which of the following is most critical to the success of The correct answer is A)
supply chain alliances?
The most difficult part of making alliances work are the
A) Interpersonal relationships interpersonal relationships, especially trust. Because many
B) Contract wording supplier relationships have been adversarial, it is difficult to
42-5 C) Information flow develop trust between the parties involved. This takes
D) Transportation costs significant time and effort. Just because you form an
alliance, it does not mean trust immediately begins.
- 42 -
Which of the following contributes the most to a The correct answer is C)
Purchasing department's ability to improve supplier
reliability? Long term contracts with suppliers will contribute greatly to
ensuring the supplier delivers reliably. Long term contracts
A) Electronic data interchange provide significant benefit to the suppliers by allowing them
to plan for raw materials, labor, capacity, etc.
43-1 B) Automated purchase requisitions
C) Long term supply contracts
D) Buyer/planner organization
Which of the following manufacturing technology choices The correct answer is B)

would most likely provide the greatest benefit to a
company whose order winners are delivery speed and
flexibility?
43-2 A) Transfer line.

B) Cellular manufacturing system.
C) Automated material handling.
D) Quality function deployment.
Analyzing capital investments by estimating future cash The correct answer is D)

flows and translating them into equivalent amounts in
today's terms is called
A) Average return on investment analysis.

43-3 B) Payback analysis.
C) Internal rate of return analysis.
D) Discounted cash flow analysis.
The process of a supplier placing goods at a customer The correct answer is B)

location without receiving payment until the goods are
sold or used is called: Consignment is the "process of a supplier placing goods
at a customer location without receiving payment until after
A) Vendor managed inventory the goods are used or sold." (APICS Dictionary, Ninth
43-4 B) Consignment Edition) Sometimes, in vendor managed inventory
C) Quick response programs, consignment will be used. However, companies
D) Outsourcing can have vendor managed inventory programs without
consigning inventory. This is especially true with the
availability of the internet where the suppliers can manage
the inventory remotely.
Which of the following will most likely reduce the cost The correct answer is C)
of new product development?
During a development project, many activities can be done
A) Hire younger, less costly engineers by overlapping the activities. This eliminates the need to
B) Use a cross functional team wait until one sequence of steps are done before moving
43-5 C) Overlap activities to reduce project time to the next sequence of steps. This cuts the waiting time.
D) Source cheaper materials Cross functional teams can sometimes move faster than
traditional projects; however, the consensus process of
teams usually will take longer to make decisions.
- 43 -
In the broadest sense, Just-in-Time can be considered The correct answer is B)
all of the following EXCEPT:
Just-in-Time encompasses the entire company's operation.
A) A philosophy of continuous improvement It is not just a shop floor control system. In fact, many of
B) A shop floor control system the benefits of JIT are the result of waste elimination in
C) A way to achieve excellence by continually the administrative areas. (Wantuck, Just-In-Time for
44-1
eliminating waste America, Chapter 1).
D) An on-going way of life
When implementing Just-in-Time, the pilot project The correct answer is C)

should be:
The pilot project for a JIT implementation needs to be well
A) Completed just before the fiscal year ends planned to ensure success. It should also be very visible
B) Kept isolated from the rest of the company to the rest of the organization. The pilot project is very
44-2 C) Selected to ensure an early success important to the overall success of JIT in a company
D) Done at the same time as the ERP system because if the pilot fails, chances are good the rest of the
implementation project will not succeed. (Wantuck, Just-In-Time for
America, Chapter 14).
Despite the significant gains to be generated from the The correct answer is A)
implementation of systems (whether FMS, ERP,
CAD/CADD) the process of acceptance usually takes Systems implementation generally will take longer without
longer than expected. Which of the following could strong management commitment. Education and training
cause this? are necessary for workers to understand why the system
44-3 is needed and what it will do for the company.
I. Lack of management commitment
II. Lack of education and training for workers
III. Workers don't care today
A) I and II
B) I and III
C) II and III
D) I, II, and III
New systems and changes in organizations often The correct answer is A)

create or need change to succeed. People fear
change and can create obstacles to minimize the The fear of change can be reduced through education and
change. Which of the following are reasons why training to increase understanding, and through
people fear change? empowerment. This provides control to people who have
to make the change.
I. Fear is caused by a lack of understanding
II. Lack of control over the change process
44-4 III. People are obstinate
A) I and II
B) I and III
C) II and III
D) I, II, and III
- 44 -
In the early stages of developing the employee The correct answer is D)
involvement process, a consultant should be used for
which of the following reasons? A consultant's role should be to guide the organization,
provide education and training, and make sure pitfalls are
I. To provide guidance on getting started avoided based on his/her experience.
II. To provide education/training to management
45-1
personnel
III. To help in avoiding pitfalls

Which of the following is a true statement regarding The correct answer is B)

factory automation?
Factory automation is an ongoing improvement process,
A) Factory automation should be used to replace and while it may replace workers, the primary focus should
workers be improved quality and flexibility. Simplifying the work
45-2 B) Factory automation is an ongoing process, not a process first makes the automation process easier.
project
C) A company should automate rather than simplify the
work process
In a continuous flow manufacturer, manufacturing The correct answer is B)

planning and control systems must be able to
accommodate which of the following operations? Manufacturing planning and control systems need to handle
operations unique to the continuous flow manufacturer,
I. Handling of by-products such as by-products which occur and salvage materials
45-3 II. Assembly operations which can be processed further or sold to others.
III. Salvage materials which must be re-processed

In implementing group technology, one of the most The correct answer is B)

difficult problems to resolve is: Grouping the parts and machines in the most optimum
manner can be very difficult, particularly in complex
A) What type of machines to purchase environments with namy parts and machines.
B) How to group products and machines (Wantuck, Just-In-Time for America, Chapter 7).
45-4 C) How the material handling will occur between
the groups
Which of the following are true statements regarding The correct answer is A)
the Kanban system?
Kanban systems use authorization cards and conveyance
I. It works best with a stable schedule cards to produce. The facility is controlled through the use
II. Quality must be high throughout the facility of the cards which authorize the next operation to produce
45-5 III. Each work center produces at its own rate only when necessary. Quality must be high because poor
quality parts shut the whole line down. (Wantuck,
A) I and II B) I and III Just-In-Time for America, Chapter 11).
- 45 -
Which of the following statements are true regarding The correct answer is A)
technology projects?
While state-of-the-art equipment might be best for some
I. Develop a solution based on a business problem projects, it serves little purpose if it does not serve a
II. Extensive, time consuming education and training business function to save money, increase market share,
must be completed reduce overhead, etc. As always with change,
46-1
III. "State-of-the-art" technology is best education/training is the key.

Mathematical models can often be used to help solve The correct answer is D)
various operational problems. The widespread use of
models, however, has been hampered due to which of Mathematical models can be used successfully in a variety
the following? of applications. However, the lack of understanding, the
I. Lack of understanding regarding the use of models resistance to change, and overly complex models have led
46-2 II. Overly complex models, created by a systems to underuse of models to support operating decisions.
person, which do not work
III. Resistance to change caused by human nature

All of the following are good JIT performance The correct answer is B)
measurers except:
Labor efficiency can be kept high by producing products
A) Throughput time which are not needed - creating inventory which is
B) Labor efficiency contrary to JIT goals. (Wantuck, Just-In-Time for America,
46-3 C) Vendor delivery performance Chapter 15).
D) Space requirement
In a world class manufacturer, world class information The correct answer is C)

technology must exist to benefit the whole organization.
Which of the following would you find in a world class The world class manufacturer will have information systems
manufacturer? that are on-line and integrated, with access to all who
need the information to compete with the outside
46-4 I. Department specific information which is protected competitors. The computer will provide decision support
II. Interactive, on-line integrated systems with up-to-date accuracy and timelines. In the future,
III. Organizational access for support information will separate the competition.

In infinite Capacity Planning Systems, the systems The correct answer is A)
focus on:
Infinite Capacity Systems identify when capacity required
A) How much capacity is required to meet the exceeds capacity available. No further analysis is done by
schedule the system. People must do the analysis.
46-5 B) How to identify where to obtain more
capacity
C) The interface with automation equipment
- 46 -
When a flexible manufacturing system is implemented, The correct answer is B)
workers' skill levels can be reduced. The perceived
advantages of doing this are: Where workers' skill levels are lowered, perceived
advantages are lower labor expense and a weaker union.
I. Less expense for low skill workers However, workers will not feel responsible in factories
II. Workers will feel responsible for ensuring the system where their skills have been replaced by FMS.
47-1
functions well
III. The work force will shrink causing the union to lose
power

All of the following are considerations in the adoption of a The correct answer is B)
process focus EXCEPT the
A) Complexity of the manufacturing process.

B) Capital intensity of the manufacturing process.
47-2 C) Book value of current production assets.
D) Type of technology used in the manufacturing process
Which of the following best measures the production The correct answer is B)
operation's contribution to delivery reliability?
A) Cycle time per part.

B) Hours of expedite time.
47-3 C) On-time supplier delivery performance.
D) Direct labor hours per product.
The most important activities in a company's value The correct answer is B)

chain are those which:
Companies need to focus on activities which provide value
A) Best leverage the company's assets for the customer. The customer is only willing to pay for
B) Add value to the customer those activities which add value to its business. (Riggs and
47-4 C) Improve performance throughout the chain Robbins, The Executive's Guide to Supply Management
D) Reflect the values of the organization Strategies).
All of the following are functions of supply chain The correct answer is D)
management except:
Ensuring product designs meet customer criteria is a
A) Focus suppliers on improvements function of engineering using a Quality Function
B) Use supplier resources to create new products Deployment (QFD) methodology. Answers A), B), and C)
47-5 C) Manage all materials and reduce costs are functions of supply management. (Riggs and Robbins,
D) Ensure product designs meet customer criteria Executive's Guide to Supply Management Strategies).
- 47 -
A company is going to design their products for The correct answer is C)
manufacturability. This will result in:
Designing for manufacturability is defined as the
A) Faster market introductions "simplification of parts, products, and processes to improve
B) Reduced product options and features quality and reduce manufacturing costs." (APICS Dictionary,
48-1 C) Improved product quality Ninth Edition).
D) Increased capacity available
Which of the following is one of the most effective The correct answer is A)
ways to increase productivity?
According to Robert Hall, plants with the best labor
A) Employee empowerment productivity gains are involved in a combination of quality
B) New machinery improvement, lead-time reduction, and employee
48-2 C) Enhanced computer system involvement. These are formalized programs to cut costs,
D) Improved layout improve quality, increase process flexibility, and reduce
delivery times. Empowerment recognizes the value of the
employee and the need to hire and train the right people
who are then developed for future reponsibilities. It
stimulates people to think about ways to continually
improve a process while applying the talents of those
people closest to the process.
Which of the following is best suited to solving complex The correct answer is D)
business problems?
Cross functional teams are generally best suited to solving
A) Quality circles complex business problems because complex problems
B) Small ad hoc teams usually cut across functional boundaries. Quality circles, ad
48-3 C) Self directed work teams hoc teams, and self directed work teams will usually work
D) Cross functional teams on departmental problems. These tend to be simpler to
solve.
Reducing which of the following is an element of the The correct answer is C)

JIT approach?
Reducing queue times is an element in the Just-in-Time
A) Inventory approach. This improves cycle times and reduces inventory
B) Quality costs levels as product is not sitting in a queue. Reduction in
48-4 C) Queue times inventory levels is a result, not an element of the JIT
D) Order times approach. A Total Quality Management approach would
include reducing defects and quality costs.
- 48 -
For a commodity product, which of the following would The correct answer is A)
be an order winning criteria?
A commodity product is one which can be easily found
A) Price from a number of sources. As such, price usually becomes
B) Delivery speed the order winning criteria. From there, delivery speed
becomes the second most important factor. If price is
49-1 C) Product design
D) Product quality similar between two sources then the deciding factor
becomes who can deliver fastest.
The use of measurements to meet the competitive The correct answer is D)

challenge must be carefully planned because the wrong
use could cause a result which is contrary to the All of the answers could be used to measure quality, as
company's goals. Which of the following could be well as others. The measures chosen must be compatible
used to measure quality? with the overall objectives. (Wantuck, Just-In-Time for
49-2 America, Chapter 15).
I. Defects per million (DPM)
II. Number of training hours per employee related to
quality
III. Number of errors in the bill of materials
IV. Number of products received without reject
A) I, II, and IV
B) I, III, and IV
C) II, III, and IV
D) I, II, III, and IV
Which of the following measures could be used to The correct answer is D)

judge performance of delivery reliability?
All of the answers could be measures of delivery reliability
I. Percent of deliveries made on promise date to the as well as others. Whatever measures are chosen, they
customer must be compatible with the company goals.
II. Percent of orders delivered with perfect counts
III. Number of times customer was called to change
49-3 delivery
A) I and II
B) I and III
C) II and III
D) I, II, and III
Which of the following, if decreased, will increase The correct answer is D)

factory flexibility?
All of the answers, if decreased, will increase factory
I. Set up times flexibility. Set up time reduction allows smaller lots of
II. Work in process inventory different products to be run without "spreading" set up
III. Lot sizes costs over large lots. All contribute to reducing the cycle
49-4 time.
A) I and II
B) I and III
C) II and III
D) I, II, and III
- 49 -
With the full absorption method of accounting, which of The correct answer is C)
the following could occur?
Under the full absorption method, a rate is established at
I. Manufacturing could produce inventory and show which a unit of production absorbs burden (overhead). If
good performance the plan rate of sale is 5 and manufacturing produces 5
II. Manufacturing could show poor performance by then the overhead will be absorbed. If, however, only 2
50-1 producing only what is sold are sold and only 2 are manufactured, then manufacturing
will only absorb 40% of the standard rate.
A) I
B) II
C) Both I and II
D) Neither I nor II
Your company is in the early stages of team The correct answer is C)

development and one of the teams makes a mistake
that costs the company money. You should: As in any new process, people will make mistakes
because they are trying new ideas and ways of working.
A) Penalize the team for the mistake They need to learn from their mistakes. Re-directing them
50-2 B) Re-direct their activities or penalizing them will thwart the process and significant
C) Let them learn from their mistakes improvement will not be achieved.
Which of the following would be useful in activity based The correct answer is C)
cost accounting?
Overhead absorption is useful in absorption accounting. In
I. Overhead absorption activity based accounting, cost drivers are used to track
II. Track activity costs activity costs to cost objects. For example, "purchase
III. Identify cost drivers orders generated" would relate the cost of purchase orders
50-3 directly to those products/activities requiring purchase
A) I and II orders.
B) I and III
C) II and III
D) I, II, and III
Which of the following are true statements regarding The correct answer is C)
FMS?
Workers should be involved from the start of the
I. FMS can be implemented successfully without worker implementation. This allows workers to debug the system.
involvement By re-training workers, they will become more adaptable to
50-4 change in the future. Laying off displaced workers will
II. Workers should be re-educated and re-trained as to
the importance of FMS inhibit future projects.
III. Training programs for workers with obsolete skills
fosters loyalty and flexibility
A) I and II
B) I and III
C) II and III
D) I, II, and III
- 50 -
Which of the following terms are associated with bar The correct answer is D)
coding technology?
Laser scanners, whether hand held or fixed, "read" and
I. Hand laser scanners decipher the code. Interleave two of five and three of nine
II. Interleave two of five are types of bar codes.
51-1
III. Three of nine

Applications for bar code technology include which of The correct answer is D)
the following?
The applications for bar code technology is only limited by
I. Inventory tracking the imagination. There are thousands of existing
51-2 II. Accurate shipping applications.
III. Shop order paperwork

In selecting a consultant to guide an ERP project, The correct answer is B)
which of the following are important considerations?
The consultant need not have programming experience, as
I. Experience; the project should not be his/her first an ERP project should not be considered an MIS project.
II. Programming experience
51-3
III. Credibility with employees at all levels of the
organization

Some companies use technology to lead their The correct answer is B)
industries. Their approach to technology differs from
technology followers. Which of the following would Technological leaders tend to try to advance technology,
describe technology leaders? thus causing current technology to be obsolete, providing
them with an advantage.
I. They try to gain technology advances to provide
maximum advantage
51-4 II. They attempt to maximize use of existing
technologies
III. They look beyond short-term results

Which of the following can manufacturing control to The correct answer is B)

ensure customer satisfaction?
Manufacturing is responsible for manufacturing parts to the
A) Product design customers' specification. While the design issues may
B) Conformance to customer specification hamper manufacturing from achieving this, they are
51-5 C) Field service issues responsible for the quality of the manufactured part.
D) Supplier reliability
- 51 -
When measuring an organization's flexibility, which of The correct answer is B)
the following would be used?
The measure of flexibility is directly related to the number
A) Number of setups under ten minutes of different jobs employees can perform. This allows the
B) Number of skills per employee company to do more with the existing workforce.
52-1 C) Number of different models produced
D) Percent of sales from new products
Shop floor control systems often create more work than The correct answer is B)
is necessary to be able to track data to the fourth
decimal. Which of the following should be the most The shop floor control system should be designed so the
important consideration when designing a shop floor factory personnel can manage their own day-to-day
control system? operations. They should be trained so they understand the
52-2 information which the system will produce and can use the
A) Cost Accounting's ability to report costs information to improve their operations. The factory
B) Ensuring the factory people can manage their own personnel should be able to report their own costs without
operations relying on a cost accountant. (Vollmann, Berry and
C) Simplification so little training is necessary Whybark, Manufacturing Planning and Control Sytems,
D) Making sure the screens are easy to read Chapter 5).
The term "forward integration" can be best described The correct answer is C)
as:
Forward integration is defined as "the process of buying or
A) Automation of the downstream operations owning elements of the production cycle and the channel
B) Automation of the shipping functions of distribution forward toward the final customer." (APICS
52-3 C) Owning elements of the production cycle Dictionary) Often times, it is beneficial to own a part of the
towards the final customer distribution channel to compete more effectively or to
D) Implementation of all modules of an ERP system control the entire chain for quality purposes.
Process costing should be used for which of the The correct answer is B)
following manufacturing environments?
Process costing is appropriate for manufacturing companies
A) Low volume job shop with different parts which make large volumes of similar parts. Process costing
B) High volume of similar parts accumulates costs by time period (month) and averages
52-4 C) Assemble to order manufacturing the costs over the total units produced. It can be used
D) Engineered jobs and standard jobs with actual or standard costs.
Activity based costing (ABC) is different from other The correct answer is B)
costing methods because it:
Under ABC costing, costs are accumulated based on the
A) Fully absorbs costs over the volume activities performed and then it uses cost drivers to
B) Tries to allocate overhead based on the allocate the overhead to products, customers, markets, etc.
52-5 drivers of those costs Activity Based Costing really tries to allocate overhead
C) Allocates overhead based on the based on something more realistic than labor or machine
machine/labor method hours.
D) Ignores the allocation of overhead and
just calculates variable costs
- 52 -
Which of the following technologies is most appropriate The correct answer is B)
for a high volume, beverage bottling line?
Automated transfer lines provide the rapid transfer of parts
A) Flexible manufacturing system to each manufacturing operation in a fixed sequence.
B) Automated transfer lines Automated storage and retrieval might be better suited to
the warehouse shipping operation after the beverage has
53-1 C) Automated guided vehicles
D) Automatic storage and retrieval system been bottled.
If a company is going to adopt a new technology for a The correct answer is D)

production line, what can they expect to take the
greatest amount of time during the implementation? By far, the most difficult part of a technology
A) Hiring the new skills necessary to operate implementation will be the conflicts which arise between
the technology the existing culture ("we've always done it this way") and
53-2 B) Finding maintenance people to work on the a new culture which must be created to support the new
new technology technology. This conflict can be overcome through
C) Acceptance by senior managers of the new extensive education and consistent messages around the
technology new technology.
D) Conflicts which arise between the new
technology and the company culture
If a company produces a few, high volume products, The correct answer is B)
their manufacturing process will most likely be:
A company with a few, high volume products would
A) Batch oriented process them on a high speed, fixed line. This would allow
B) Fixed line the production to occur inexpensively. Additionally, the line
53-3 C) Project based could accomodate a high level of automation minimizing
D) Job oriented the labor cost associated with the production.
A company has just implemented Just-in-time The correct answer is C)

techniques throughout manufacturing. Which of the
following processes are no longer needed? After implementing JIT in the manufacturing area, capacity
requirements planning is no longer needed because the
A) Production planning process has been simplified. The demand is planned
53-4 B) Demand planning based on the line rate available to produce. Each work
C) Capacity requirements planning center does not need to be planned. (Vollmann, Berry and
D) Rough cut capacity planning Whybark, Manufacturing Planning and Control Systems,
Chapter 3).
All of the following are typical EDI transactions The correct answer is C)
EXCEPT:
Capacity availability is not a standard transaction for EDI.
A) Purchase order quantity and date The others have standard transmission formats and are
B) Advanced shipping notices very common.
53-5 C) Capacity availability
D) Invoice transactions
- 53 -
If a purchasing department is going to attempt to The correct answer is B)
improve the delivery reliability of the supplier base,
which of the following techniques could be used? Providing long-term contracts to suppliers, especially if they
are single sourced, will provide the suppliers with
A) Electronic Data Interchange confidence in the company's commitment to them. This will
B) Long term contracts with suppliers make them more responsive to the needs of the company.
54-1
C) Improved supplier relations While EDI, MRP reports, and improved relations will help,
D) Easy to read MRP reports nothing compares to the commitment of a long term
contract.
Which of the following is the most important consideration The correct answer is C)
when designing an information system to control shop
floor operations?
A) Supporting differentiation between functional areas and
54-2 B) Providing staff specialists with the information needed
to control production operations.
C) Allowing factory personnel to manage their own
D) Encouraging users to operate independently with a
minimal amount of training.
Companies that produce a narrow range of high-volume The correct answer is D)
products will most likely choose which of the following
processes?
A) Project
54-3 B) Jobbing
C) Batch
D) Line
The measurement, machine utilization, is a poor The correct answer is C)

measure because it causes all of the following
EXCEPT: Machine utilization is an old measure which was used in
traditional manufacturing. The thought was that the
A) Increased finished goods inventory utilization of the asset would be important to keeping the
54-4 B) Increased work-in-process inventory cost of parts low. The problem is that the measure
C) Improved quality promotes bad behavior; that is, inventory is required to
D) Increased raw materials inventory keep the machine utilized and there is no time allowed for
quality improvement since the machine needs to keep
running to maintain the measure.
Which of the following are important factors if change The correct answer is C)
is to be successful?
Whether or not an ERP system exists is not important as
I. Employee ownership of the change to whether change can be successful. Change can occur
II. Education in an organization without an ERP system. However,
54-5 III. Top management commitment chances are the organization has been through change
IV. ERP System successfully if an ERP system exists.
A) I and II B) II and IV
C) I, II, and III D) I, II, III, and IV
- 54 -
A company has decided to dramatically increase the The correct answer is C)
number of features and options in its products. The
impact on the cost of the products will be that the: Generally, when Marketing increases the features and
options of the products, the total unit cost will rise. This is
A) Total cost per unit will decline because the features and options add cost to the product
B) Material cost per unit will rise unless the products are completely redesigned.
55-1
C) Total cost per unit will increase
D) Labor cost will remain the same
Any implementation of automation requires a significant The correct answer is C)

investment in capital. Which of the following should be
done prior to automating? Prior to automating, the best approach is to simplify the
operation first. This ensures that the automation will be
A) Re-layout the facility for the new automation necessary and that the process has been improved. You
55-2 B) Warn the employees of impending downsizing have to be sure not to automate a bad process.
C) Simplify the operation
D) Be sure to have enough inventory for start-up
When implementing a Statistical Process Control The correct answer is D)

system, which of the following is critical for success?
In order for SPC to be successful, the operators need to
A) The type of software to gather data understand what to do when variations from the norm
B) Understanding the mathematics begin to appear. They do not need to know the
55-3 C) Making sure the charts are colored for the mathematics behind the chart, as software can be used.
limits
D) Ensuring the operators understand the steps
for correction
Which of the following best describes transcendant The correct answer is A)

quality?
Transcendant quality is an ideal or condition of excellence.
A) Condition of excellence For example, Rolls Royce has gained an excellent
B) Fitness for use reputation for quality.
55-4 C) Product based quality
D) Excellence at an acceptable price
If a company wants to improve flexibility and delivery The correct answer is D)

consistency, it should:
Reducing waste in processes will improve cycle time in the
A) Hire and develop specialists process and reduce variability as well. This will in turn
B) Retain a large specialty consulting firm improve flexibility and delivery consistency by ensuring the
55-5 C) Increase product variety process is completed correctly every time.
D) Reduce waste in the processes
- 55 -
Implementing JIT in a manufacturing company requires The correct answer is B)
the ongoing commitment of many people. In order to
maintain motivation, which of the following will help? Ongoing motivation takes hard work, frequent
communication, ongoing cheerleading, recognition, pay for
I. Communicate frequently regarding progress creativity, and training to maintain the improvement
56-1 II. "Encourage" excess labor to leave the company process. (Wantuck, Just-In-Time for America, Chapter 14).
III. Cheer the success and recognize achievement
IV. Encourage training of workers
A) I, II and IV B) I, III and IV

C) II, III and IV D) I, II, III, and IV
Customer-oriented manufacturing performance measures The correct answer is B)
include all of the following EXCEPT
A) Service parts availability.

B) Cost variances.
56-2 C) Product quality.
D) Delivery responsiveness.
In a JIT environment, incentive programs should be based The correct answer is D)

on which of the following?
I. Quality output
II. Group performance
56-3 III. Output in excess of daily quotas
IV. Attainment of daily quotas
A) I and III only B) II and IV only

C) I, II, and III only D) I, II, and IV only
Increased producibility is best achieved by doing which of The correct answer is C)

the following?
A) Implementing flexible manufacturing systems.

B) Using expert systems.
56-4 C) Simplifying design.
D) Using computer-aided design.
Which of the following is most important for a The correct answer is A)

successful ERP project?
The successful ERP project always has at least a full time
A) Full-time project manager project manager. The effort is significant and costly and
B) State-of-the-art client server software must be managed carefully. While having a project scope
56-5 C) Project charter providing the scope of defined, without a full time project manager, the project will
responsibility most likely fail.
D) Software company consulting support
- 56 -
Which of the following contributes the most to a The correct answer is D)
purchasing department's ability to improve supplier delivery
reliability?
A) A computerized purchase requisition system.

57-1 B) Use of electronic data interchange (EDI).
C) Improved relations between expediters and suppliers.
D) Long-term contacts with suppliers
The customers of a company that implements The correct answer is B)

Just-in-Time will most likely benefit from which of the
following?
A) Increased delivery lead time.

57-2 B) Improved quality of products shipped.
C) Small lot sizes.
D) Reduced freight costs.
Which of the following will have the greatest influence on The correct answer is D)
an employee's evaluations and promotions?
A) Product output.
B) Setup time.
57-3 C) Performance to standard.
D) Problem-solving skills.
Long-term agreements with suppliers may include which The correct answer is A)
of the following types of special arrangements?
I. Simplified paperwork systems

II. Returnable containers
57-4 III. Specially designed containers
IV. Effective personal contacts at each site
A) IV only B) II and III only

C) I, II, and III only D) I, II, III, and IV
JIT training should increase capabilities of operations The correct answer is C)

supervisors to do all of the following EXCEPT
A) Balance work load in cells.

B) Plan area production.
57-5 C) Keep the workforce running its machines.
D) Coordinate preventive maintenance.
- 57 -
When a strategy for continuous improvement is initiated, The correct answer is C)
policies on which of the following areas are usually
established first?
A) Cost reduction.
58-1 B) Delivery dependability.
C) Quality improvement.
D) Flexibility
Basic JIT approaches to managing people include the The correct answer is D)
establishment of all of the following EXCEPT
A) A strong corporate philosophy.

B) Consensus decision-making.
58-2 C) Long-range planning
D) Specialized career paths for employees.
Benefits of implementing Just-in-Time include which of the The correct answer is D)

following?
I. Reduced frequency of material movements
II. Reduced costs of quality
III. Increased machine tool utilization
58-3 IV. Increased customer service
A) I and III B) I and IV

C) II and III D) II and IV
All of the following elements are required for a successful The correct answer is C)
change to the JIT approach EXCEPT
A) Organization wide awareness of a need for

improvement.
58-4 B) People who are willing to take risks.
C) A past history of excellence in manufacturing.
D) Commitment for continued improvement.
All of the following is true of a product in the decline The correct answer is C)
portion of the product life cycle EXCEPT
A) New feature are usually introduced

B) Volume per unit end item decrease
58-5 C) Overall volume often increase
D) The market moves away from price competition
- 58 -
All of the following are most likely to be market niches The correct answer is B)
EXCEPT
A) Buyers of red cars

B) Emergency health care customers
C) Purchase of children's toys
59-1
D) Student buyers of work-processing software
The recommended sequence of the actions below to The correct answer is D)

create product grouping is
Ⅰ. Determine order winners and qualifiers
Ⅱ. Determine current and expected volumes and
varieties
59-2 Ⅲ. Consider market niches served
Ⅳ. List the product currently being sold
A) Ⅰ, Ⅱ, Ⅲ, Ⅳ B) Ⅲ, Ⅳ, Ⅰ, Ⅱ
C) Ⅱ, Ⅰ, Ⅳ, Ⅲ D) Ⅳ, Ⅲ, Ⅱ, Ⅰ
Which of the following pairs of strategic advantages The correct answer is C)

would be most difficult to achieve simultaneously ?
A) Low cost-Quality
B) Delivery speed-Delivery reliability
59-3 C) Flexibility-Low cost
D) Delivery speed-Flexibility
All of the following matches between volume/variety The correct answer is D)

and positions on the product life cycle are appropriate
EXCEPT
A) Introduction-Job ship
59-4 B) Growth-Batch
C) Maturity-Repetitive
D) Decline-Continuous
The same manufacturing strategy can be used The correct answer is D)
A) For all products with the competitive advantage in

all phases of the product life cycle
B) For all products in each market niche with the
59-5 same volumes and varieties
C) For all competitive advantages of products in the
same market niche
D) For all products with the same volume/variety
and same competitive advantages in the same
market niche
- 59 -
Which of the following would most likely be produced The correct answer is C)
by a process-focused organization ?
A) Steel I Beams
B) Personal computers
C) Office furniture
60-1
D) Telephones
A decision to implement group technology would most The correct answer is C)

likely support which types of production ?
A) Batch
B) Process
60-2 C) Repetitive
D) Continuous
A large furniture manufacturer that uses primarily The correct answer is A)

cherry, cedar, mahogany and pine to manufacture
custom made furniture for the up-scale furniture market
would most likely locate close to
60-3 A) A source of the wood types used in

manufacturing
B) Retail purchasers of the furniture
C) Cheap transportation
D) An abundant supply of skilled labor
A product focused plant is likely to have all of the The correct answer is D)
following characteristics EXCEPT
A) Corporate purchasing
B) Decentralized organization structure
60-4 C) Its own master schedule
D) A separate cost-accounting system
The adoption of a flexible manufacturing system(FMS) The correct answer is D)

will least affect which of the following data elements of
the manufacturing planning and control system ?
A) The bill of material structure

60-5 B) MRP records
C) Shop floor control procedures
D) The production plan
- 60 -
When a firm decides to switch to a plant within a plant The correct answer is C)
concept, which of the following changes are most likely
to occur in the P&IM personnel ?
Ⅰ. More P&IM personnel will be added to the firm
Ⅱ. Purchasing personnel will reduce their span of
61-1 control
Ⅲ. Shop floor personnel will have a wider span of
control
A) Ⅰ, Ⅱ B) Ⅰ, Ⅲ
C) Ⅱ, Ⅲ D) Ⅰ, Ⅱ, Ⅲ
At what stage of the design process should the P&IM The correct answer is B)
professional participate in the make or buy decisions
for new components and parts ?
A) Engineering breadboard
61-2 B) Engineering prototype
C) Manufacturing prototype
D) Pilot run
Which of the following can be considered internal The correct answer is C)

customers to the purchasing activity ?
Ⅰ. The supplier salesperson

Ⅱ. The production control expeditor
61-3 Ⅲ. The purchasing expeditor
Ⅳ. The materials manager
A) Ⅰ, Ⅱ, Ⅲ B) Ⅰ, Ⅱ, Ⅳ
C) Ⅱ, Ⅲ, Ⅳ D) Ⅲ, Ⅳ
QFD is related to product design in all the following The correct answer is C)
ways EXCEPT
A) QFD ensures that customer needs are the starting
point for design
B) QFD links all design activities through to process
61-4
design and control
C) QFD puts product designers in direct contact
with customers
D) QFD drives the choice for a planning and control
system
Resource requirements planning The correct answer is B)
A) Sets the rate of production

B) Helps asses the need for new facilities
C) Is concerned with bottlenecks only
61-5 D) Provides direct input to the rough cut capacity plan
- 61 -
All of the following are acceptable methods to listen to The correct answer is B)
the voice of the customer EXCEPT
A) Analysis of warranty data

B) Input from design engineering
C) Phone interviews
62-1
D) Focus groups
Supplier linkages are especially important when a firm The correct answer is A)
is
Ⅰ. Competing on delivery speed
Ⅱ. Using synchronous scheduling
Ⅲ. Producing a commodity product
62-2 Ⅳ. Operating in position 1 of the volume/variety matrix
C) Ⅱ, Ⅲ D) Ⅱ, Ⅳ
Corporate culture is best defined by which two of the The correct answer is B)
following statements :
Ⅰ. Management influences the way people operate.
Ⅱ. Values are about what is important
Ⅲ. Important assumptions are shared by members
62-3 Ⅳ. Values impart little about how a company works
A) Ⅰ, Ⅱ B) Ⅱ, Ⅲ
C) Ⅲ, Ⅳ D) Ⅰ, Ⅲ
Successful employee involvement programs are The correct answer is C)

characterized by all of the following EXCEPT
A) Group select business problems that need to be

addressed
62-4 B) Extensive education and training programs are
offered
C) Job descriptions are adjusted for very specific
task responsibility
D) Management communicates market realities and
strategic plans
When the technical specifications for a new system are The correct answer is D)
being developed which two of the following
requirements must be in place ?
Ⅰ. Well-specified business objectives
Ⅱ. Continuous education and training
62-5 Ⅲ. Total employee involvement programs
Ⅳ. Cross-functional team of stakesholders
A) Ⅰ, Ⅲ B) Ⅰ, Ⅳ
- 62 -
When implementing a major system, which of the The correct answer is A)
following employee groups requires the most
extensive education and training ?
A) Top management
B) Operational managers
63-1
C) Project team members
D) First-line supervisors
The majority of systems and technology The correct answer is C)

implementations are characterized by which of the
following statements ?
Ⅰ. Process improvements
Ⅱ. Focus on change
63-2 Ⅲ. Change of customer
Ⅳ. Cross-functional participation
A) Ⅰ, Ⅱ B) Ⅱ, Ⅲ
C) Ⅰ, Ⅱ, Ⅳ D) Ⅱ, Ⅲ, Ⅳ
A firm using focused factories wants to implement The correct answer is C)

manufacturing cells and an MRP Ⅱ system with
distributed data processing. All of the following topics
are being discussed for implementation. When is the
most appropriate next step ?
63-3
A) Enforcing strict chain-of-command policies
B) Centralizing the purchasing function at headquarters
C) Providing education and training in team
development
D) Hiring a consultant to develop cell layouts
Which of the following information is considered to be The correct answer is B)
part of the shop floor reporting system ?
A) MRP priorities
B) Work-center profiles
63-4 C) Bottleneck capacity
D) Shop-order bar codes
Which of the following actions are most likely to support The correct answer is C)
the adoption of a tracking of capacity strategy ?
Ⅰ. Maintaining excess capacity
Ⅱ. Having cross-trained workers
Ⅲ. Maintaining a list of key subcontractors
63-5
C) Ⅱ, Ⅲ D) Ⅰ, Ⅱ, Ⅲ
- 63 -
Which of the following capacity strategies is most likely The correct answer is C)
to be used by a golf equipment manuafacturer to
maximize product available ?
A) Lead
B) Tracking
64-1
C) Lag
D) Level
Feasibility of a design is usually tested in which of the The correct answer is D)

following phases of product design ?
A) Pilot run
B) Manufacturing prototype
64-2 C) Engineering prototype
D) Engineering breadboard
The purpose of the relationship matrix used in the master The correct answer is B)
house of quality is to show the relationship between
A) Each of the technical requirements

B) Customer requirements and technical
64-3 requirements
C) Technical requirements and target values
D) Technical requirements and parts designs
As product variety increase The correct answer is A)
A) Delivery reliability is more difficult to achieve

B) Product volumes also increase
C) The need for flexibility decreases
64-4 D) Quality becomes a qualifier
Which of the following is the correct sequence for The correct answer is B)
P&IM system configuration ?
Ⅰ. Determine volumes and varieties of product
Ⅱ. Determine information needs to support P&IM
Ⅲ. Determine order qualifiers
64-5 Ⅳ. Determine order winners
A) Ⅰ, Ⅱ, Ⅲ, Ⅳ B) Ⅳ, Ⅲ, Ⅱ, Ⅰ
C) Ⅲ, Ⅳ, Ⅰ, Ⅱ D) Ⅳ, Ⅲ, Ⅰ, Ⅱ
- 64 -
Which of the following must a manufacturer do before The correct answer is C)
process improvement can begin ?
Ⅰ. Analyze the existing process

Ⅱ. Remove assignable cause of error
Ⅲ. Measure process outputs
65-1
A)Ⅰ B) Ⅰ, Ⅱ
C)Ⅰ, Ⅲ D) Ⅱ, Ⅲ
MRPⅡ(manufacturing resource planning) can be The correct answer is B)

considered to be
Ⅰ. A planning and control system

Ⅱ. A total business system
65-2 Ⅲ. An information system
C) Ⅱ, Ⅲ D) Ⅰ, Ⅱ, Ⅲ
Master scheduling performance has a major impact on The correct answer is B)

the firm's capabilities in which of the following strategic
advantages ?
A) Quality conformance
65-3 B) Delivery speed
C) Product design
D) Image
The job-cost system The correct answer is C)
A) Uses a backflush technique

B) Employs activity-based information
C) Accumulates information by shop orders
65-4 D) Focuses only on shipments
A decision to decentralize the functions of production The correct answer is C)

scheduling. purchasing, and inventory control from
corporate headquarters to the plant would support all of
the following competitive initiatives EXCEPT
65-5 A). Delivery speed

B) Lowest cost
C) Quality
D) Delivery reliability
- 65 -
The process of change creates discomfort and resistance The correct answer is D)
both for organizations and for the individuals within them.
Resistance can be reduced with all of the following
tactics EXCEPT
A) Appropriate planning
66-1
B) Effective communication
C) Specified business objectives
D) Additional technology
A project plan includes which of the following elements The correct answer is C)
?
Ⅰ. All personnel requirements
Ⅱ. A timetable for each activity
Ⅲ. A strategic learning plan
66-2 Ⅳ. Clearly identified deliverables
A) Ⅰ, Ⅱ B) Ⅲ, Ⅳ
C) Ⅰ, Ⅱ, Ⅳ D) Ⅰ, Ⅲ, Ⅳ

Project team members are selected for which of the
following traits ?
Ⅰ. Prior success in related projects
Ⅱ. Creative problem solving skills
Ⅲ. Respected reputation withing the firm
66-3 Ⅳ. Demonstrated independence
A) Ⅰ B) Ⅰ, Ⅲ
C) Ⅰ, Ⅱ, Ⅲ D) Ⅰ, Ⅱ, Ⅲ, Ⅳ
When a firm is involved in change its culture, the first The correct answer is B)
changes must
A) people's attitude
B) people's beliefs
66-4 C) what people think
D) what people do
Which of the following would be considered a special The correct answer is D)

(or assignable) cause of error in a process ?
A) Lack of operator training

B) Variation in machine tolerance capability
66-5 C) An assembler's inability to position precisely
D) Variation in a machine's cutting capability
- 66 -
Top management of a firm is responsible for all of the The correct answer is D)
following activities related to the implementation of new
technologies EXCEPT
A) Align and monitor all business strategies

B) Provide vision of future organization
67-1
C) Understand the nature of change
D) Assign project evaluation to staff specialists
Which of the following are typical causes of project The correct answer is D)
implementation problems ?
Ⅰ. Project and department priorities are conflicting

Ⅱ. Steering committee meetings have been canceled
67-2 Ⅲ. High level of focus on team development activities
Ⅳ. Insufficient time for team communication
A) Ⅰ, Ⅲ B) Ⅱ, Ⅳ
C) Ⅰ, Ⅱ, Ⅲ D) Ⅰ, Ⅱ, Ⅳ
The following data should be used to answer questions 67-3 and 67-4
Output for the firm in one period was 100 units of product. Each unit has a factory cost of $5.00 and sells for
$10.00. The material cost to produce the total output cost was $300 and the labor cost was $0.50 per unit produced.
Machine time for the total amount was 50 hours. Each of machine time is valued at $ 2.25.
The material productivity for the firm for this period was The correct answer is B)
A) 1.67
B) 3.33
C) 10
67-3 D) 20
The total factor productivity for the firm for this periods The correct answer is B)
with
A) 1.74
B) 1.03
67-4 C) 0.87
D) 0.63
- 67 -
A firm where the foreman is being measured on the The correct answer is C)
labor productivity of his or her area and the plant
manager is being measured on inventory reduction is
an example of
A) Measures that are not aligned to strategies

68-1
B) Process measures that are being confused with
people measures
C) Measures that are not coordinated with one
another
D) Measures with poor target values
Cycle times are a good measure for The correct answer is A)
A) New product design

B) Flexibility
C) Internal failure costs
68-2 D) Product quality conformance
The correct answer is B)

Quality measures for the sales function of the firm
include
Ⅰ. Order-entry errors
Ⅱ. Master schedule performance
Ⅲ. Number of changes requested
68-3
Ⅳ. Quotation errors
A) Ⅰ, Ⅱ B) Ⅰ, Ⅳ
Production plan performance is a good measure to The correct answer is A)

support
A) Delivery speed
B) Delivery reliability
68-4 C) Flexibility
D) Price
All of the following are measures of cycle time The correct answer is D)
EXCEPT
A) New product development time

B) On-time delivery to customer promise
68-5 C) Machine change over time
D) Delay in returning customer calls
- 68 -
Inventory turnover is especially important as a measure The correct answer is A)
for
Ⅰ. Delivery speed
Ⅱ. Flexibility
Ⅲ. Product design
Ⅳ. Quality conformance
69-1
C) Ⅰ, Ⅳ D) Ⅰ, Ⅱ, Ⅲ
The cost of lost business due to quality problems at The correct answer is B)
the customer is considered to be
A) A internal failure cost

B) An external failure cost
69-2 C) A prevention cost
D) An appraisal cost
All of the following are example of variety flexibility The correct answer is A)
EXCEPT
A) Cycle times for production

B) Number of cross-trained workers
69-3 C) Supplier lead times
D) Product complexity
The primary use of environmental scanning is to The correct answer is A)
A) Identify threats and opportunities.

B) Identify strengths and weaknesses.
C) Understand competitor's strategies.
69-4 D) Understand current markets.
A lead capacity strategy would be most appropriate for The correct answer is D)
an organization that pursues which of the following as
a competitive advantage ?
A) Price.
69-5 B) Quality
C) Delivery speed.
D) Product image.
- 69 -
Which of the following is an example of The correct answer is D)
cross-functional participation in a design and
development project ?
A) Establishing communications links between the firm's

computer-aided design system and those of its key
70-1 suppliers.
B) Starting the process design activities before the
release of the final product design documents.
C) Considering the ease of manufacturing and support
as requirements of the product design activities.
D) Involving key customers in major concept and
detailed design reviews.
Which of the following cost management methods is The correct answer is B)
widely accepted for external reporting ?
A) Activity-based costing.
B) Full absorption accounting.
70-2 C) Throughput accounting.
D) Variable costing.
Which of the following actions is most likely to The correct answer is D)

concurrently improve product quality and reduce product
cost ?
A) Increasing the level of final inspection.

70-3 B) Reducing indirect labor.
C) Improving the planning systems.
D) Increasing component standardization.
The house of quality is used in the quality function The correct answer is A)
deployment processes to
A) Translate what is required into how the

requirement can be met.
70-4 B) Capture the wants, needs, and demands of the
customer.
C) Reduce the need for cross-functional teams.
D) Defer technical decisions until the required data is
available.
Which of the following would most likely be the focus The correct answer is B)
of production activity control for a firm that
manufactures high volumes of a narrow range of
products ?
70-5 A) Responding to changing priorities.

B) Ensuring smooth flow of product.
C) Ensuring that order dates are met.
D) Increasing production efficiency.
- 70 -

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The purpose of a Steering Committee in a JIT The correct answer is D)

A) I and II B) I, II, and IV

Having a multi-functional work force provides which of The correct answer is D)

A) I and III only B) I and IV only

A) Customer requirements and product features.

A written quality policy should be developed to The correct answer is B)

A) I, II, and IV B) I, II, and III

Questions 2-3 and 4 are based on the following information.

A) Discounting the product line.

The largest risk of establishing a dedicated capability The correct answer is D)

A) I and II B) I and III

I. Working to resolve customer complaints.

A) I and II B) II and III

Which of the following performance measurements is likely The correct answer is D)

Design for manufacturability is supposed to result in which The correct answer is A)

A) Improve product quality.

Which of the following measures of manufacturing would The correct answer is D)

A) Cost per unit.

A) I and II B) I and III

The acronym "QFD" stands for: The correct answer is B)

A) Quality, Function, and Design QFD, or Quality Function Deployment, is a process

In order to effectively support Manufacturing, Purchasing The correct answer is D)

A "focused factory" concept consists of which of the The correct answer is D)

A) I and II B) I and III

Which of the following is not a organizational design The correct answer is D)

A) I and II B) I and III

Reduction of which of the following is an element of The correct answer is B)

Which of the following is an infrastructure choice ? The correct answer is C)

A) Reduction of paper-based communications.

The critical path through the network is The correct answer is C)

Job or task-level changes are most appropriately The correct answer is C)

A) I, II, and IV B) I, III, and IV

A) I and II B) I and III

A) Software Software enables the integration of all of the equipment in

A) I and II B) I and III

In order to implement the various changes necessary The correct answer is C)

A company is considering the adoption of a highly form of The correct answer is C)

A) I and II only B) I and III only

A focused factory is usually characterized by which two of The correct answer is B)

A) I and III B) I and IV

Often times, companies which implement JIT The correct answer is C)

Which of the following are benefits of a cross-trained The correct answer is A)

A) I and II B) I and III

A) I and II B) I and III

A) I and II B) I and III

In any large systems implementation project, The correct answer is D)

A) I and II B) I and III

A) Increased in-process inventory.

Measures of manufacturing cost are likely to be most The correct answer is A)

The majority of companies tend to be technological The correct answer is A)

A) The total cost per unit will rise.

A) Standardize major component parts for the new

Which of the following planning techniques is likely to be The correct answer is A)

A) Rough-cut capacity planning.

Which of the following is most likely to help an The correct answer is D)

A) Telling him or her that the change is necessary.

A) Master schedule conformance.

Question 17-2, 17-3, 17-4 are based on the following situation.

Continuing application of the measure of average The correct answer is B)

The correct answer is D)

A) Current state of the organization.

In training adults, the best approach is: The correct answer is B)

A company is going to design their products for The correct answer is C)