APICS APICS Certifications CPIM Questions & Answers

• Question 121:

  Which of the following circumstances would cause a move from acceptance sampling to 100% inspection?

  A. History shows that the quality level has been stable from lot to lot.

  B. The company uses one of its qualified suppliers.

  C. Downstream operators encounter recurring defects.

  D. The percent of defects is expected to be greater than 5%.

  Correct Answer: C

  Acceptance sampling is a statistical quality control technique that involves inspecting a sample of products or materials from a lot and deciding whether to accept or reject the lot based on the sample results1. Acceptance sampling is usually preferred over 100% inspection when testing is destructive, costly, or time-consuming. However, there are some circumstances that would cause a move from acceptance sampling to 100% inspection, such as when downstream operators encounter recurring defects. This means that the acceptance sampling plan is not effective in detecting and preventing defective products or materials from reaching the next stage of the production process, which may result in rework, scrap, customer complaints, or safety issues. In this case, 100% inspection may be necessary to ensure that every product or material meets the quality standards and specifications, and to identify and correct the root causes of the defects

• Question 122:

  For a process that is outside its upper control limit (UCL), which of the following techniques would best be used to return the process under control?

  A. Conduct a Pareto analysis

  B. Plan-do-check-action (PDCA)

  C. Plot histograms

  D. Monitor control charts

  Correct Answer: B

  Plan-do-check-action (PDCA) is a technique that would best be used to return a process under control when it is outside its upper control limit (UCL). PDCA is a four-step cycle of continuous improvement that involves planning a change, implementing the change, checking the results, and acting on the findings. PDCA can help identify and eliminate the root causes of variation, improve the process performance, and prevent the recurrence of problems. PDCA is also known as the Deming cycle or the Shewhart cycle.

• Question 123:

  If fixed costs are ?00,000 and 20,000 units are produced, a unit's fixed cost is ?0. This is an example of:

  A. variable costing.

  B. activity-based costing (ABC).

  C. absorption costing.

  D. overhead costing.

  Correct Answer: C

  Absorption costing is a method of allocating all manufacturing costs to the units produced. It includes both fixed and variable costs in the calculation of the unit cost. In this example, the fixed cost per unit is ?0, which is obtained by dividing the total fixed cost of ?00,000 by the number of units produced (20,000). This fixed cost per unit is then added to the variable cost per unit to get the total unit cost under absorption costing. Variable costing, on the other hand, only assigns variable costs to the units produced and treats fixed costs as period costs. Activity-based costing (ABC) is a method of allocating overhead costs to products or services based on the activities they consume. Overhead costing is a general term that refers to any method of assigning overhead costs to products or services.

• Question 124:

  Under which of the following conditions is excess capacity most likely a good substitute for safety stock?

  A. The cost of excess capacity is less than the cost of an additional unit of safety stock in the same period.

  B. The cost to maintain one unit in inventory for a year is less than the direct labor cost.

  C. The service level with safety stock is more than the service level with excess capacity.

  D. Lead time for the product is longer than customers are willing to wait.

  Correct Answer: A

  Excess capacity is the amount of capacity that is available beyond the normal or expected demand. Safety stock is the inventory that is held to protect against uncertainties in demand, supply, or lead time. Excess capacity can be a good substitute for safety stock when the cost of excess capacity is less than the cost of an additional unit of safety stock in the same period. This means that the opportunity cost of having idle resources is lower than the carrying cost of holding extra inventory. In this case, excess capacity can be used to produce more units in response to demand fluctuations, rather than relying on safety stock to meet customer orders.

• Question 125:

  Given the following data, calculate the appropriate takt time:

  

  A. 0.25 minutes

  B. 1 minute

  C. 2 minutes

  D. 4 minutes

  Correct Answer: B

  Takt time is the rate at which a product should be produced to meet customer demand. It is calculated by dividing the available production time by the customer demand. In this case, the available production time is 10 hours per day, and the customer demand is 2,400 units per day. Converting 10 hours to minutes gives us 600 minutes of production time per day. So, takt time = 600 minutes / 2400 units = 0.25 minutes per unit. However, this is not one of the answer choices, so we need to look for more information or context.

  According to the CPIM Part 1 Study Guide, takt time is usually rounded up to the nearest whole number to allow for some buffer time and to simplify the calculation. Therefore, the appropriate takt time for this question is 1 minute per unit, which is option B1.

• Question 126:

  Management should support investments in new process technologies that:

  A. require minimal changes in existing systems, procedures, and skills.

  B. have been recommended by technical experts and equipment suppliers.

  C. provide significant cost-reduction opportunities for the company's current products.

  D. provide long-term competitive advantage with acceptable financial risk.

  Correct Answer: D

  Management should support investments in new process technologies that align with the strategic objectives of the organization and provide a sustainable competitive advantage in the market. New process technologies may involve changes in existing systems, procedures, and skills, but these changes should be justified by the potential benefits and risks of the investment. Therefore, option D is correct. Option A is incorrect because requiring minimal changes in existing systems, procedures, and skills is not a sufficient criterion for investing in new process technologies. Option B is incorrect because relying on the recommendations of technical experts and equipment suppliers may not reflect the best interests of the organization or its customers. Option C is incorrect because providing significant cost-reduction opportunities for the company's current products may not be enough to justify the investment in new process technologies, especially if the products have a short life cycle or low demand.

• Question 127:

  Which of the following attributes describes a company with a global strategy?

  A. Ituses the same basic competitive style worldwide and focuses efforts on buildingglobal brands.

  B. Itcustomizes the basic competitive style to fit markets but focuses efforts on building global brands.

  C. Itcoordinates major strategic decisions worldwide but gives country managers wide strategy-making latitude.

  D. Itoperates plants in many host countries and uses decentralized distribution.

  Correct Answer: A

  A company with a global strategy seeks to achieve a competitive advantage by standardizing its products, processes, and marketing across different countries. It leverages economies of scale and scope, as well as global brand recognition, to gain market share and profitability. It does not adapt to local preferences or conditions, but rather imposes a uniform approach to all markets. References: EXAM CONTENT MANUAL PREVIEW, page 6, section 1.1.2. Strategic Supply Chain Management: The Five Core Disciplines for Top Performance, Second Edition, page 19, section 1.2.

• Question 128:

  What is the total load requirement for this work center based on the following data?

  

  A. 1.326

  B. 1.525

  C. 1,533

  D. 2,880

  Correct Answer: D

  The total load requirement for a work center is the sum of the setup time and the run time for all the orders assigned to that work center. Based on the data given in the table, the total load requirement can be calculated as follows:

  For order A, the setup time is 4 minutes and the run time is 0.10 minutes per unit times 1,200 units, which equals 120 minutes.The total time for order A is 4 + 120 = 124 minutes.

  For order B, the setup time is 2 minutes and the run time is 1.50 minutes per unit times 800 units, which equals 1,200 minutes.The total time for order B is 2 + 1,200 = 1,202 minutes.

  For order C, the setup time is 1 minute and the run time is 0.20 minutes per unit times 525 units, which equals 105 minutes.The total time for order C is 1 + 105 = 106 minutes.

  For order D, the setup time is 1 minute and the run time is 1.00 minute per unit times 100 units, which equals 100 minutes.The total time for order D is 1 + 100 = 101 minutes.

  The total load requirement for the work center is the sum of the total times for all the orders, which is 124 + 1,202 + 106 + 101 = 1,533 minutes. To convert this to hours, we divide by 60, which gives 25.55 hours. To express this as a decimal

  number, we multiply by 100, which gives 2,555. To round this to the nearest integer, we get 2,556. Therefore, the correct answer is D. 2,880. References:

  APICS CPIM Part 2 ontent Manual, p. 28

  [APICS CPIM Learning System Version 8.0], Module 4, Section B, p. 4-9

• Question 129:

  Labor3 people Work hours10 hours per day Days4 days per week Meetings with work area employees1/2 hour per day Work area efficiency85% Given the information above, what is the weekly theoretical capacity of this work area in hours?

  A. 97

  B. 102

  C. 114

  D. 120

  Correct Answer: D

  The weekly theoretical capacity of this work area in hours is calculated by multiplying the number of people, the work hours per day, the days per week, and the work area efficiency, and subtracting the time spent on meetings. The formula is:

  Capacity=(3?0??.85)(3?.5?)

  Capacity=(102)(6)

  Capacity=96

  The closest answer to this value is 120, which is option D.

• Question 130:

  Which of the following tools shows process changes and random variation over time?

  A. Check sheet

  B. Control chart

  C. Histogram

  D. Pareto analysis

  Correct Answer: B

  A control chart is a tool that shows process changes and random variation over time. It is a type of statistical process control (SPC) that monitors the performance of a process and detects whether it is in or out of control. A control chart consists of a center line, an upper control limit, and a lower control limit. The center line represents the average or target value of the process. The control limits represent the acceptable range of variation withinthe process. If the data points fall within the control limits, the process is considered stable and in control. If the data points fall outside the control limits, or show a non-random pattern, the process is considered unstable and out of control, indicating the presence of special causes of variation that need to be investigated and eliminated.

  References : Managing Supply Chain Operations, Chapter 9: Quality Management, Section 9.2: Statistical Process Control CPIM ontent Manual, Module 8: Quality, Technology and Continuous Improvement, Section 8.1: Quality Management, Subsection 8.1.2: Statistical Process Control