CPIM EXAM 1 CHALLENGING EXAM QUESTIONS WITH CORRECT
ANSWERS 2022
Explain the significance of the United Nations Global Compact - ANS IS A strategic
policy initiative for businesses interested in social justice and sustainable development
Alignment of business operations with principles in 4 areas
Human rights
Labor practices
Environment
Anti-corruption
10 Principles Of the UN Global Compact - ANS IS 1: Support and protect internationally
proclaimed human rights
2: Ensure non-complicity in human rights abuses
3: Uphold freedom of association and right to collective bargaining
4: forced and compulsory labor
5: Abolish child labor
6: eliminate discrimination in employment and occupation
7: Support a cautionary approach to environmental challenges
8: promote greater environmental responsibility
9: encourage the development and diffusion of environmentally friendly technologies
10: work against corruption in all its forms including extortion and bribery
UN Global Compact Management Model - ANS IS Commit: leadership publicly signals
it's support of the Compact and agrees to make the 10 principles part of the culture,
day-to-day operations, strategy, and oversight provided by the highest governing body
Assess: the company assess its risks and opportunities both financially and extra-
financially on an on-going basis to develop and refine its goals and objectives
Define: Develop goals and metrics to meet objects and create a road map to carry out
the program
Implement: The company ensures on-going adjustments to core processes, engages
and educates employees, builds capacity and resources and works with supply chain
partners to implement its strategy
Measure: monitors performance against its goals and adjusts improve performance
Communicate: establishes a communication process to communicate progress and
interact with key stakeholders to continually improve
UN Global Compact Management Model Commit: - ANS IS leadership publicly signals
it's support of the Compact and agrees to make the 10 principles part of the culture,
day-to-day operations, strategy, and oversight provided by the highest governing body
,UN Global Compact Management Model Assess: - ANS IS the company assess its risks
and opportunities both financially and extra-financially on an on-going basis to develop
and refine its goals and objectives
UN Global Compact Management Model Define: - ANS IS Develop goals and metrics to
meet objects and create a road map to carry out the program
UN Global Compact Management Model Implement: - ANS IS The company ensures
on-going adjustments to core processes, engages and educates employees, builds
capacity and resources and works with supply chain partners to implement its strategy
UN Global Compact Management Model Measure: - ANS IS monitors performance
against its goals and adjusts improve performance
UN Global Compact Management Model Communicate: - ANS IS establishes a
communication process to communicate progress and interact with key stakeholders to
continually improve
Describe the components of the manufacturing business model - ANS IS Defining
products and customers
Designing products and processes
Managing material flow
Providing customer service and support
Defining products and customers - ANS IS Products: product positioning (quality vs
price), breadth of product line, price, quality, brand name or generic, design, packaging,
returns allowed?
Customer: type of customer (industrial, consumer, institutional, govt), market segments,
sales and distribution channels, market share and profitability
Definition of products and customers will influence choice of Mfg environment and Mfg
process
Designing products and processes - ANS IS Meet customer needs
Cost effectiveness
Quality
Accommodate planning parameters
Efficiency
Managing material flow - ANS IS Material acquisition
Manufacturing
Distribution
Providing customer service and support; - ANS IS Understanding and meeting customer
wants and needs
Two-way communication
,Working with customers to solve problems
Describe the impact of four significant aspects of the business environment on
manufacturing - ANS IS Global Competition: businesses must complete with global
companies and companies all over the globe
Economic, government, and regulatory influences: government bodies can enact rules
that influence the global supply chain
Customer Expectations: companies must provide value to the customer such as: cost,
quality, speed (in terms of order lead time), dependability (pre- or post-sales service),
flexibility (in terms of product and volume)
Corporate social responsibility: UN Global compact's 4 areas human rights, labor
practices, environment, and anti-corruption
Explain the differences among the three process choices Intermittent, Flow, Project -
ANS IS Intermittent: lot or batch (PROCESS LAYOUT)
Jobs pass through functional departments in lots or batches
Work stations aren't dedicated to 1 type of product
Used when production volume is not high enough to justify using an assembly line
Flow: repetitive or line, also continuous flow (PRODUCT LAYOUT)
Workstations are aligned in the order needed to make the product
Works at a nearly constant rate
Very little WIP inventory
Project: fixed position
Used for large, complex projects
Intermittent process flow: - ANS IS lot or batch (PROCESS LAYOUT)
Jobs pass through functional departments in lots or batches
Work stations aren't dedicated to 1 type of product
Used when production volume is not high enough to justify using an assembly line
Flow work flow - ANS IS repetitive or line, also continuous flow (PRODUCT LAYOUT)
Workstations are aligned in the order needed to make the product
Works at a nearly constant rate
Very little WIP inventory
Project Work Flow - ANS IS fixed position
Used for large, complex projects
Explain the role of materials management - ANS IS MPC- materials management is the
function responsible for the coordination and facilitation of MPC
, Physical Supply and distribution - materials management is responsible for managing
the purchasing and control of production materials, controlling WIP and controlling the
storage and distribution of the finished product
Identify five objectives of manufacturing - ANS IS The right products
Of the right quality
In the right quantities
At the right time
At the right cost
Describe the concepts of priority and capacity - ANS IS Priority: relates to demand, what
product or component is needed? How much? And When?
Capacity: relates to supply, how much production capacity and other resources are
needed to meet priorities
Priority: - ANS IS relates to demand, what product or component is needed? How
much? And When?
Capacity: - ANS IS relates to supply, how much production capacity and other
resources are needed to meet priorities
Manufacturing planning and control hierarchy - ANS IS Strategic and business planning
Sales and Ops planning - Resource planning (long term)
Master Scheduling - Rough-cut capacity planning (mid to long term)
Material Requirements planning - capacity requirements planning (short to midterm)
Production Activity Control - input/output control and order sequencing (short term)
Describe the four steps in the evolution of material requirements planning (MRP) to
enterprise resource planning (ERP) - ANS IS MRP: MRP Processor
MRP Closed Loop: MRP Processor and closed loop feedback
Links production plan to more detailed PMS in the early stages of the MPC
Links the production planning, master scheduling, and MRP to capacity planning and
management
Supports the closed loop to give feedback on orders already released to enable
changes and adjustments to priority plans and production schedules
Assists with reporting of cost data for cost and financial accounting purposes
MRP II: MRP Processor and closed loop feedback, best practice processes, Common
database, Sales and Ops planning
Supported by more IT infrastructure and more emphasis on cross-functional
coordination of supply chain related business processes
Coordination of production, finance, and marketing in developing production plans
during a sales and operations planning process
Collaboration between marketing and production to deal with the impact of changes in
demand on the MPS
ANSWERS 2022
Explain the significance of the United Nations Global Compact - ANS IS A strategic
policy initiative for businesses interested in social justice and sustainable development
Alignment of business operations with principles in 4 areas
Human rights
Labor practices
Environment
Anti-corruption
10 Principles Of the UN Global Compact - ANS IS 1: Support and protect internationally
proclaimed human rights
2: Ensure non-complicity in human rights abuses
3: Uphold freedom of association and right to collective bargaining
4: forced and compulsory labor
5: Abolish child labor
6: eliminate discrimination in employment and occupation
7: Support a cautionary approach to environmental challenges
8: promote greater environmental responsibility
9: encourage the development and diffusion of environmentally friendly technologies
10: work against corruption in all its forms including extortion and bribery
UN Global Compact Management Model - ANS IS Commit: leadership publicly signals
it's support of the Compact and agrees to make the 10 principles part of the culture,
day-to-day operations, strategy, and oversight provided by the highest governing body
Assess: the company assess its risks and opportunities both financially and extra-
financially on an on-going basis to develop and refine its goals and objectives
Define: Develop goals and metrics to meet objects and create a road map to carry out
the program
Implement: The company ensures on-going adjustments to core processes, engages
and educates employees, builds capacity and resources and works with supply chain
partners to implement its strategy
Measure: monitors performance against its goals and adjusts improve performance
Communicate: establishes a communication process to communicate progress and
interact with key stakeholders to continually improve
UN Global Compact Management Model Commit: - ANS IS leadership publicly signals
it's support of the Compact and agrees to make the 10 principles part of the culture,
day-to-day operations, strategy, and oversight provided by the highest governing body
,UN Global Compact Management Model Assess: - ANS IS the company assess its risks
and opportunities both financially and extra-financially on an on-going basis to develop
and refine its goals and objectives
UN Global Compact Management Model Define: - ANS IS Develop goals and metrics to
meet objects and create a road map to carry out the program
UN Global Compact Management Model Implement: - ANS IS The company ensures
on-going adjustments to core processes, engages and educates employees, builds
capacity and resources and works with supply chain partners to implement its strategy
UN Global Compact Management Model Measure: - ANS IS monitors performance
against its goals and adjusts improve performance
UN Global Compact Management Model Communicate: - ANS IS establishes a
communication process to communicate progress and interact with key stakeholders to
continually improve
Describe the components of the manufacturing business model - ANS IS Defining
products and customers
Designing products and processes
Managing material flow
Providing customer service and support
Defining products and customers - ANS IS Products: product positioning (quality vs
price), breadth of product line, price, quality, brand name or generic, design, packaging,
returns allowed?
Customer: type of customer (industrial, consumer, institutional, govt), market segments,
sales and distribution channels, market share and profitability
Definition of products and customers will influence choice of Mfg environment and Mfg
process
Designing products and processes - ANS IS Meet customer needs
Cost effectiveness
Quality
Accommodate planning parameters
Efficiency
Managing material flow - ANS IS Material acquisition
Manufacturing
Distribution
Providing customer service and support; - ANS IS Understanding and meeting customer
wants and needs
Two-way communication
,Working with customers to solve problems
Describe the impact of four significant aspects of the business environment on
manufacturing - ANS IS Global Competition: businesses must complete with global
companies and companies all over the globe
Economic, government, and regulatory influences: government bodies can enact rules
that influence the global supply chain
Customer Expectations: companies must provide value to the customer such as: cost,
quality, speed (in terms of order lead time), dependability (pre- or post-sales service),
flexibility (in terms of product and volume)
Corporate social responsibility: UN Global compact's 4 areas human rights, labor
practices, environment, and anti-corruption
Explain the differences among the three process choices Intermittent, Flow, Project -
ANS IS Intermittent: lot or batch (PROCESS LAYOUT)
Jobs pass through functional departments in lots or batches
Work stations aren't dedicated to 1 type of product
Used when production volume is not high enough to justify using an assembly line
Flow: repetitive or line, also continuous flow (PRODUCT LAYOUT)
Workstations are aligned in the order needed to make the product
Works at a nearly constant rate
Very little WIP inventory
Project: fixed position
Used for large, complex projects
Intermittent process flow: - ANS IS lot or batch (PROCESS LAYOUT)
Jobs pass through functional departments in lots or batches
Work stations aren't dedicated to 1 type of product
Used when production volume is not high enough to justify using an assembly line
Flow work flow - ANS IS repetitive or line, also continuous flow (PRODUCT LAYOUT)
Workstations are aligned in the order needed to make the product
Works at a nearly constant rate
Very little WIP inventory
Project Work Flow - ANS IS fixed position
Used for large, complex projects
Explain the role of materials management - ANS IS MPC- materials management is the
function responsible for the coordination and facilitation of MPC
, Physical Supply and distribution - materials management is responsible for managing
the purchasing and control of production materials, controlling WIP and controlling the
storage and distribution of the finished product
Identify five objectives of manufacturing - ANS IS The right products
Of the right quality
In the right quantities
At the right time
At the right cost
Describe the concepts of priority and capacity - ANS IS Priority: relates to demand, what
product or component is needed? How much? And When?
Capacity: relates to supply, how much production capacity and other resources are
needed to meet priorities
Priority: - ANS IS relates to demand, what product or component is needed? How
much? And When?
Capacity: - ANS IS relates to supply, how much production capacity and other
resources are needed to meet priorities
Manufacturing planning and control hierarchy - ANS IS Strategic and business planning
Sales and Ops planning - Resource planning (long term)
Master Scheduling - Rough-cut capacity planning (mid to long term)
Material Requirements planning - capacity requirements planning (short to midterm)
Production Activity Control - input/output control and order sequencing (short term)
Describe the four steps in the evolution of material requirements planning (MRP) to
enterprise resource planning (ERP) - ANS IS MRP: MRP Processor
MRP Closed Loop: MRP Processor and closed loop feedback
Links production plan to more detailed PMS in the early stages of the MPC
Links the production planning, master scheduling, and MRP to capacity planning and
management
Supports the closed loop to give feedback on orders already released to enable
changes and adjustments to priority plans and production schedules
Assists with reporting of cost data for cost and financial accounting purposes
MRP II: MRP Processor and closed loop feedback, best practice processes, Common
database, Sales and Ops planning
Supported by more IT infrastructure and more emphasis on cross-functional
coordination of supply chain related business processes
Coordination of production, finance, and marketing in developing production plans
during a sales and operations planning process
Collaboration between marketing and production to deal with the impact of changes in
demand on the MPS
