APICS APICS Certifications CPIM Questions & Answers

• Question 71:

  Check sheets can be used to:

  A. determine the frequency of a defect and the time period between occurrences.

  B. provide a quick method to identify if possible defects exist.

  C. allow improvement teams to see if action items are being completed on time.

  D. provide an indication of correlation between defects.

  Correct Answer: A

  sheets can be used to determine the frequency of a defect and the timeperiod between occurrences by counting and categorizing the number of defects that occur over a specified time interval. Check sheets can also help to identify the causes and patterns of defects, and to monitor the effectiveness of improvement actions. The other statements are not true about check sheets. Check sheets do not provide a quick method to identify if possible defects exist, as they require data collection and analysis. Check sheets do not allow improvement teams to see if action items are being completed on time, as they are not designed to track the progress of tasks. Check sheets do not provide an indication of correlation between defects, as they do not measure the relationship between variables. References: Check Sheet | APICS Dictionary Term of the Day, APICS CPIM 8 Planning and Inventory Management | ASCM

• Question 72:

  The most relevant measure of customer service performance Is:

  A. service perceived by the customer against service expected by the customer.

  B. service promised to the customer against service measured by the supplier.

  C. customer complaints received as a percentage of orders shipped.

  D. positive customer feedback as a percentage of customer feedback.

  Correct Answer: A

  Customer service performance is the degree to which a company meets or exceeds the expectations of its customers in terms of the quality, timeliness, and satisfaction of the service provided. The most relevant measure of customer service performance is the service perceived by the customer against the service expected by the customer, also known as the service quality gap. This measure captures the difference between what customers expect from a service and what they actually receive, and reflects the level of customer satisfaction or dissatisfaction. A positive service quality gap indicates that the service exceeded the expectations, while a negative service quality gap indicates that the service fell short of the expectations. The other options are not as relevant as the service quality gap because they do not account for the customer's perspective or perception of the service. Service promised to the customer against service measured by the supplier is an internal measure of service performance, but it does not reflect how the customer perceives the service. Customer complaints received as a percentage of orders shipped is a measure ofservice failure, but it does not capture the positive feedback or the silent dissatisfied customers. Positive customer feedback as a percentage of customer feedback is a measure of service satisfaction, but it does not account for the customer's expectations or the service quality dimensions. References: CPIM Part 2 ontent Manual, p. 67 Customer Service Metrics: Top 10 to Measure 20 Customer Service KPIs You Need To Know

• Question 73:

  Which of the following actions hinders the transition from a push system to a pull system?

  A. Using standardized containers

  B. Using work orders as a backup

  C. Introducing kanban cards as authorization for material movement

  D. Maintaining a constant number of kanban cards during minor changes in the level of production

  Correct Answer: B

  A push system is a production system that relies on forecasts and schedules to plan the production and distribution of goods and services. A pull system is a production system that responds to actual customer demand and signals to trigger the production and distribution of goods and services. A transition from a push system to a pull system requires a change in the mindset and the processes of the organization, as well as the adoption of new tools and techniques to enable a demand-driven production system.

  One of the tools that is commonly used in a pull system is kanban, which is a visual signal that indicates the need for replenishment of materials or products. Kanban cards are attached to standardized containers that hold a fixed amount of inventory. When a container is empty, the kanban card is sent back to the upstream process as a signal to produce more. This way, the inventory level is controlled by the actual consumption of the downstream process, and the production is synchronized with the demand13.

  One of the actions that hinders the transition from a push system to a pull system is using work orders as a backup. Work orders are documents that authorize the production of a certain quantity of a product or a service, based on a forecast or a schedule. Work orders are typical of a push system, as they are not triggered by the actual customer demand, but by the planned production. Using work orders as a backup means that the organization is not fully committed to the pull system, and still relies on the push system to ensure the availability of inventory. This can create confusion, inconsistency, and inefficiency in the production system, as well as increase the inventory holding costs and the risk of obsolescence .

  Therefore, using work orders as a backup is the correct answer, as it is an action that hinders the transition from a push system to a pull system. The other options are actions that support the transition, as they are aligned with the principles and practices of a pull system.

• Question 74:

  In which of the following situations would you use an X-bar chart?

  A. Track the number of defects that are found in each unit.

  B. Measure the difference between the largest and the smallest in a sample.

  C. Determine the average value of a group of units.

  D. Estimate a subgroup variation.

  Correct Answer: C

  An X-bar chart is a type of control chart that is used to determine the average value of a group of units. It is also known as a mean chart. It plots the sample means of subgroups of units over time and compares them with the center line and the control limits. An X-bar chart is useful for monitoring the central tendency of a process and detecting any shifts or trends in the process mean. It is often used in conjunction with an R-chart, which measures the subgroup variation. References: Managing Supply Chain Operations, Chapter 9: Quality Management, Section 9.2: Statistical Process Control, Subsection 9.2.1: Control Charts CPIM ontent Manual, Module 8: Quality, Technology and Continuous Improvement, Section 8.1: Quality Management, Subsection 8.1.2: Statistical Process Control, Subsubsection 8.1.2.1: Control Charts

• Question 75:

  Which of the following factors is used to determine safety stock?

  A. Number of customers

  B. Available capacity

  C. Forecast error distribution

  D. Time between customer orders

  Correct Answer: C

  Safety stock is the extra inventory that a company keeps to prevent stockouts or shortages due to uncertainties in demand, supply, or lead time. Safety stock acts as a buffer to protect the company from losing sales or disrupting operations. One of the factors that is used to determine safety stock is the forecast error distribution, which is the measure of how much the actual demand deviates from the forecasted demand. Forecast error distribution can be calculated by using statistical methods, such as standard deviation or mean absolute deviation, to find the average and the variability of the forecast errors. The higher the forecast error distribution, the more safety stock is needed to cover the potential demand fluctuations. Forecast error distribution is one of the components of the safety stock formula, which is:

  Safety stock = Z x LT x D

  Where:

  Z refers to the service level factor, which is the desired probability of not having a stockout.

  LT refers to the standard deviation of lead time, which is the average variability of the time it takes to replenish inventory.

  D is the average demand per unit of time.

  References := CPIM Part 2 ontent Manual, Version 8.0, ASCM, 2021, p. 24. CPIM Part 2 Learning System, Version 8.0, Module 2, Section C, Topic 3. How To Calculate Safety Stock (With Examples and FAQs). What is Safety Stock? (Definition, Formulas, Best Practices).

• Question 76:

  When the discrete available-to-promise (ATP) method is used, the master production receipt quantity is committed to:

  A. any request for shipment prior to the planning time fence.

  B. any request for shipment prior to the demand time fence (DTF).

  C. requests only for shipment before the next master production schedule (MPS) receipt.

  D. requests only for shipment in the period of the receipt.

  Correct Answer: C

  The discrete available-to-promise (ATP) method is a calculation based on the available-to-promise figure in the master schedule. For the first period, the ATP is the sum of the beginning inventory plus the MPS quantity minus backlog for all periods until the item is master scheduled again. For other periods, the quantity that is available for an item is based on the quantity available within an individual purchase. Therefore, the master production receipt quantity is committed to requests only for shipment before the next MPS receipt.

  References: APICS CPIM Part 2 ontent Manual, Version 8.0, p. 29 NetSuite Applications Suite - Available to Promise Methods

• Question 77:

  In the design and development of a manufacturing process, process engineers would most likely be responsible for decisions relating to:

  A. lead times.

  B. production capacity.

  C. product reliability.

  D. routing sequences.

  Correct Answer: D

  Process engineers are responsible for designing, implementing, controlling, and optimizing industrial processes, especially continuous ones such as the production of petrochemicals. One of the decisions that process engineers would most likely make is the routing sequence, which is the order of operations or activities that are performed on a product or material as it moves through the production process. The routing sequence affects the process performance, efficiency, quality, and cost, and it requires careful planning and analysis by the process engineers. Option A is not correct, because lead times are the time intervals between the initiation and completion of a process or a project. Lead times are influenced by many factors, such as demand, capacity, inventory, scheduling, and supply chain management, and they are not solely determined by the process engineers. Option B is not correct, because production capacity is the maximum amount of output that a process or a system can produce within a given period of time4. Production capacity depends on the availability and utilization of resources, such as materials, labor, equipment, and facilities, and it is not only decided by the process engineers. Option C is not correct, because product reliability is the probability that a product will perform its intended function without failure for a specified period of time under specified conditions5. Product reliability is affected by many aspects, such as product design, quality control, testing, maintenance, and customer feedback, and it is not the sole responsibility of the process engineers. References: Process engineering - Wikipedia 6 2 Routing (production) - Wikipedia 7 3 Lead Time: Definition, Formula, and Examples 8 4 Production Capacity: Definition, Calculation, and Examples 9 5 Product Reliability: Definition, Measurement, and Improvement

• Question 78:

  Which of the following factors typically would distort a sales forecast that is based solely on shipment history?

  A. Material shortages

  B. Labor rate changes

  C. Currency exchange rates

  D. Customer demands

  Correct Answer: D

  A sales forecast that is based solely on shipment history assumes that the past demand patterns will continue in the future. However, this assumption may not be valid if there are factors that affect the customer demand that are not captured by the shipment history. For example, customer demands may change due to seasonality, promotions, new product introductions, competitor actions, economic conditions, or other external influences. These factors may distort the sales forecast that is based solely on shipment history and cause it to be inaccurate or unreliable. The other options are not factors that typically distort a sales forecast that is based solely on shipment history, as they do not directly affect the customer demand. Material shortages, labor rate changes, and currency exchange rates may affect the supply side of the business, but they do not necessarily reflect the customer preferences or needs.

  References:

  1.

  CPIM Part 2 ontent Manual, p. 29

  2.

  Sales Forecast: Complete Guide to Sales Forecasting in [2023]

  3.

  The Complete Guide to Building a Sales Forecast | Salesforce

• Question 79:

  A disadvantage of a capacity-lagging strategy may be:

  A. lack of capacity to fully meet demand.

  B. risk of excess capacity if demand does not reach forecast.

  C. a high cost of inventories.

  D. planned capital investments occur earlier than needed.

  Correct Answer: A

  A capacity-lagging strategy is a conservative approach to capacity planning that involves adding capacity only when the firm is operating at full capacity because of an increase in demand. This strategy can help minimize costs and reduce the risk of excess capacity, but it can also lead to a disadvantage of not being able to fully meet customer demand if it rises quickly2. This can result in lost customers, revenue, and market share, as well as lower customer satisfaction and loyalty.

  References: Lag Capacity Strategy, Lag Demand Strategy - UniversalTeacher.com Capacity Planning Strategies: Types, Examples, Pros And Cons - Toggl types of capacity planning strategies (with examples) - Xola

• Question 80:

  An example of a flexibility metric for an organization Is:

  A. average batch size.

  B. scrap rate.

  C. percentageof orders delivered late.

  D. cycle time.

  Correct Answer: D

  A flexibility metric is a measure of how well an organization can adapt to changes in demand, supply, or technology. Flexibility metrics can be classified into three categories: volume flexibility, mix flexibility, and new product flexibility. Volume flexibility is the ability to adjust the output level to meet fluctuations in demand. Mix flexibility is the ability to produce different types of products or services with the same resources. New product flexibility is the ability to introduce new products or services quickly and efficiently. Cycle time is an example of a flexibility metric, as it measures the time required to complete a process or activity, from start to finish. Cycle time can indicate the responsiveness and agility of an organization, as shorter cycle times imply faster delivery, lower inventory, and higher customer satisfaction. Cycle time can also reflect the efficiency and quality of an organization, as shorter cycle times imply less waste, fewer errors, and lower costs. Therefore, cycle time is a relevant metric for assessing the flexibility of an organization. References := CPIM Part 2 ontent Manual, Version 8.0, ASCM, 2021, p. 29. CPIM Part 2 Learning System, Version 8.0, Module 3, Section A, Topic 3.