Question 1

Which of the following manufacturing systems involves the creation of one unit or a small number of units?
A) Flow manufacturing
B) Intermittent manufacturing
C) Project manufacturing
D) Continuous manufacturing

Accepted Answer

Project manufacturing involves the creation of one unit or a small number of units, specifically tailored to a customer's unique specifications. Flow manufacturing, intermittent manufacturing, and continuous manufacturing all involve the production of large quantities of standardized products.

Question 2

After a quality improvement program has been successfully implemented, the greatest cost of controlling quality typically is the cost of:
A) failure.
B) appraisal.
C) prevention.
D) inspection.

Accepted Answer

Prevention costs are typically the greatest after a quality improvement program because they involve proactive measures to maintain quality, such as training and process improvements, which are emphasized to prevent defects.

Question 3

Which of the following production environment strategies requires unique design or significant customization?
A) Make-to-order
B) Assemble-to-order
C) Make-to-stock
D) Engineer-to-order

Accepted Answer

Engineer-to-order strategy requires unique design and significant customization as products are designed and created based on specific customer requirements.

Question 4

Which of the following concepts could a firm implement to reduce defects?
A) Hansei
B) Jidoka
C) Muri
D) Heijunka

Accepted Answer

Jidoka is a concept that involves detecting defects or abnormalities as soon as possible and stopping production immediately to prevent further defects. This allows for prompt correction and prevents defective products from reaching customers.

Question 5

Which practice focuses on root cause analysis?
A) Statistical process control
B) Five whys
C) Scatter diagram
D) Pareto chart

Accepted Answer

The Five Whys technique is a root cause analysis tool that involves asking "why" questions to identify the underlying cause of a problem. It helps to identify the true root cause of a problem rather than just addressing symptoms or surface level issues. Statistical process control, scatter diagrams, and Pareto charts are all useful tools in quality management, but they do not specifically focus on root cause analysis.

Question 6

The overall objective of an integrated supply chain can best be described as the achievement of:
A) decreased lead time.
B) increased supplier partnerships.
C) an efficient flow of materials and information.
D) an efficient flow of production.

Accepted Answer

An integrated supply chain aims to create a seamless and efficient flow of materials and information from the supplier to the end customer. The ultimate goal is to provide value to the customer while reducing costs and improving efficiency throughout the supply chain. Achieving an efficient flow of materials and information is therefore the key objective of an integrated supply chain. While decreased lead time and increased supplier partnerships may be important components of an integrated supply chain, they are both secondary objectives that contribute to the overall goal of an efficient flow of materials and information. Similarly, an efficient flow of production is important but also dependent on an efficient flow of materials and information.

Question 7

The question below is based on the following cost information:  What is the carrying cost?
A) 14%
B) 16%
C) 20%
D) 25%

Accepted Answer

The answer of The question below is based on the...

Question 8

The primary purpose of enterprise resources planning is to:
A) focus on the manufacturing function within an organization.
B) integrate an approach to business management.
C) use external knowledge to seek an internal advantage.
D) provide data protection along the supply chain.

Accepted Answer

Enterprise resources planning (ERP) aims to integrate various business processes and functions, such as finance, human resources, and supply chain management, into a single, unified system. This integration helps businesses streamline operations, improve collaboration, and make better-informed decisions, ultimately leading to increased efficiency and profitability. While data protection and manufacturing may be components of an ERP system, they are not the primary purpose. There is no indication that ERP uses external knowledge to seek an internal advantage.

Question 9

A company's cost of goods sold would be found on which of the following financial documents?
A) Balance sheet
B) Income statement
C) Cash flow statement
D) Performance statement

Accepted Answer

The cost of goods sold is an expense that is reported on the income statement, which shows a company's revenue, expenses, and net income. The balance sheet shows a company's assets, liabilities, and equity at a specific point in time. The cash flow statement shows a company's inflows and outflows of cash over a specific period. The performance statement is not a commonly used financial document.

Question 10

Which of the following techniques typically eliminates common errors?
A) Practical kaizen training
B) Kaizen
C) Poka-yoke
D) Kanban

Accepted Answer

Poka-yoke is a technique that helps to prevent errors and defects by designing the process or system in such a way that common mistakes are eliminated. This can be done by using visual cues, checklists or sensors that signal when an error is about to occur. This helps to reduce the rework and scrap associated with quality issues, and results in a more efficient and reliable process.

Question 11

The theory of constraints is most effective when:
A) demand environments are unstable.
B) demand environments are stable.
C) the constraint cannot be managed easily.
D) the constraint cannot be identified easily.

Accepted Answer

The theory of constraints is most effective in stable demand environments where the focus can be on optimizing the flow of production and addressing bottlenecks without the added complexity of fluctuating demand.

Question 12

The principal objective of total quality management in manufacturing is to:
A) implement statistical process control.
B) meet the expectations of the customer.
C) reduce the costs of failure.
D) eliminate inspections.

Accepted Answer

The primary objective of total quality management in manufacturing is to meet the expectations of the customer. While statistical process control, reducing the costs of failure, and eliminating inspections are all important components of TQM, they are means to achieving the ultimate goal of customer satisfaction.

Question 13

The lean production concept works best in which of the following manufacturing environments?
A) Make-to-order
B) Intermittent
C) Project
D) Flow

Accepted Answer

The lean production concept is known for its effectiveness in flow manufacturing environments, where products are produced continuously and in a standardized manner. The focus is on reducing waste, maximizing efficiency, and improving quality. This is why choice D (Flow) is the best option for the lean production concept.

Question 14

Which of the following characteristics is most distinctive of lean manufacturing?
A) Teamwork
B) Continuous improvement
C) Qualitative measurements
D) Bottom-line results

Accepted Answer

Continuous improvement is the most distinctive characteristic of lean manufacturing. It involves a never-ending process of identifying and eliminating waste and improving efficiency in all aspects of the manufacturing process. The other options (teamwork, qualitative measurements, and bottom-line results) are important aspects of lean manufacturing, but they are not as distinctive as continuous improvement.

Question 15

Which of the following manufacturing environments presents the greatest complexity in promising completion dates for customer orders?
A) Flow
B) Repetitive
C) Continuous
D) Intermittent

Accepted Answer

Intermittent manufacturing environments involve custom orders with varying production schedules and requirements, making it more challenging to accurately predict completion dates for customer orders.

Question 16

In an assemble-to-order production environment, the master production schedule contains:
A) standard items.
B) finished items.
C) raw materials.
D) subassemblies.

Accepted Answer

In an assemble-to-order production environment, the master production schedule includes subassemblies. A master production schedule typically outlines the specific subassemblies needed to create the final product, and the quantities required in order to meet customer demand. Raw materials and standard items are typically only included in the bill of materials, which is used in the production process to ensure that all necessary components are available. Finished items are not included in the production schedule as they are already completed and ready for sale.

Question 17

Manufacturing overhead includes which of the following types of costs?
A) Interest expense
B) Supervision
C) Direct labor
D) Direct material

Accepted Answer

Manufacturing overhead includes indirect costs that are not directly traceable to a product, such as supervision, maintenance, utilities, and rent. Interest expense (A) is a financial cost, and direct labor (C) and direct material (D) are direct costs that can be specifically allocated to a particular product.

Question 18

Inventory turns is an appropriate performance measure for which of the following functions?
A) Material control
B) Activity-based costing control
C) Total quality management
D) Flexible manufacturing

Accepted Answer

Inventory turns is a performance measure commonly used in material control to evaluate the efficiency of inventory management. It indicates how many times inventory is sold and replaced in a given period. A high inventory turnover ratio indicates effective inventory management and can lead to reduced carrying costs and increased cash flow.

Question 19

In the income statement, the cost of goods sold is related to the:
A) sales dollars.
B) total inventory dollars.
C) marketing expenses.
D) manufacturing expenses.

Accepted Answer

The cost of goods sold represents the direct costs of producing the goods that were sold during a particular period, including the cost of the raw materials, direct labor, and manufacturing overhead. Therefore, it is related to the manufacturing expenses incurred during that period.

Question 20

Which of the following types of layouts is most efficient in a lean production environment?
A) Islands
B) Connected islands
C) Functional layout
D) Cells

Accepted Answer

In a lean production environment, cells are the most efficient layout option. Cells are designed to group machines or workstations together in a way that minimizes movement and transportation of goods, which is essential in a lean environment where waste reduction is key. Cells also enable greater flexibility and responsiveness to changing customer demand.

Exam 2: CPIM - Basics of Supply Chain Management

Which of the following manufacturing systems involves the creation of one unit or a small number of units?

After a quality improvement program has been successfully implemented, the greatest cost of controlling quality typically is the cost of:

Which of the following production environment strategies requires unique design or significant customization?

Which of the following concepts could a firm implement to reduce defects?

Which practice focuses on root cause analysis?

The overall objective of an integrated supply chain can best be described as the achievement of:

The question below is based on the following cost information: What is the carrying cost?

The primary purpose of enterprise resources planning is to:

A company's cost of goods sold would be found on which of the following financial documents?

Which of the following techniques typically eliminates common errors?

The theory of constraints is most effective when:

The principal objective of total quality management in manufacturing is to:

The lean production concept works best in which of the following manufacturing environments?

Which of the following characteristics is most distinctive of lean manufacturing?

Which of the following manufacturing environments presents the greatest complexity in promising completion dates for customer orders?

In an assemble-to-order production environment, the master production schedule contains:

Manufacturing overhead includes which of the following types of costs?

Inventory turns is an appropriate performance measure for which of the following functions?

In the income statement, the cost of goods sold is related to the:

Which of the following types of layouts is most efficient in a lean production environment?