CPIM PART 2 PRETEST & PRACTICE EXAM 1 COMPLETE TRAIL 2022
EXAM
Which of the following tools is best for identifying quality problems in a process?
Cause-and-effect diagram
Flowchart
Gantt chart
Check sheet - CORRECT ANSWER Cause-and-effect diagram
The cause-and-effect diagram is a tool for analyzing the main causes and subcauses
leading to an effect. It is also referred to as the Ishikawa diagram.
Which of the following is the primary goal of distribution requirements planning (DRP)?
Maintaining a well-balanced inventory at all appropriate locations within the network
Accurately feeding the gross requirements into the master production schedule
Decoupling the distribution plan from the production plan
Delivering products on schedule in the quantities requested by the customer -
CORRECT ANSWER Maintaining a well-balanced inventory at all appropriate locations
within the network
The primary goal of DRP is to ensure that inventory is available in the right quantities
and in the right places in the distribution channel.
The design of a manufacturing process for high production volumes would likely
facilitate which two of the following outcomes?
High frequency of new product introduction and low level of finished goods inventory
High frequency of new product introduction and low process flexibility except for options
Low level of work-in-process inventory and low level of finished goods inventory
Low level of work-in-process inventory and low process flexibility except for options -
CORRECT ANSWER Low level of work-in-process inventory and low level of finished
goods inventory
Processes with a high volume of output will have a high degree of repeatability and
specialization and a narrow variety of finished goods. Work-in-process and finished
goods inventories will be low because of the high volume.
An error in the demand forecast trend over several years will have the greatest impact
on which of the following processes?
Business planning
Capacity requirements planning
Branch warehouse replenishment
Master production scheduling - CORRECT ANSWER Business planning
,An error in recognizing a forecast trend can impact planning on all levels. The key here
is that the trend is occurring over several years. It would therefore most affect business
planning, which looks at the long term.
Which of the following capacity planning (load) report characteristics can be attributed to
material requirements planning (MRP)?
Load is based on both planned and open orders, and load reflects valid order priorities.
Load is based on both planned and open orders, and load distribution is based on
actual lead times.
Load reflects valid order priorities, and load distribution is based on actual lead times.
Load is based on both planned and open orders, load reflects valid order priorities, and
load distribution is based on actual lead times. - CORRECT ANSWER Load is based on
both planned and open orders, and load reflects valid order priorities.
MRP provides the capacity planning system with load based on released and planned
orders. The start and due dates on the orders reflect the valid order priorities.
Which of the following inventory accounting methods would indicate the lowest
inventory value on the balance sheet in times of steadily rising prices?
Last in, first out (LIFO)
First in, first out (FIFO)
Standard cost
Average cost - CORRECT ANSWER Last in, first out (LIFO)
The LIFO method assumes that the newest (last in) item in stock is the first sold. In
times of rising prices, replacement is at the current price, and this current price is higher
than the accounted-for cost for the inventory that did not sell. In a falling price market,
existing inventory is overvalue
Which of the following factors are required for effective project control?
Automated project control system and stakeholder agreement that plan is realistic
Procedures for performance measurement and stakeholder agreement that plan is
realistic
Procedures for performance measurement and weekly progress reports to executive
steering committee
Automated project control system, procedures for performance measurement, and
weekly progress reports to executive steering committee - CORRECT ANSWER
Procedures for performance measurement and stakeholder agreement that plan is
realistic
For a project to succeed, project activities must be periodically assessed and reported
on so that progress can be effectively measured. An essential part of this process is the
,establishment of an agreed-upon set of performance measurements and progress
metrics that will show project status at any time. A critical element of project
management is attaining the commitment and participation of all stakeholders involved
in the project. If stakeholders do not feel the project is realistic, they will not provide their
full support.
A standard cost accounting system is often tied directly to the routing and dispatching
systems as well as the product structure. Which of the following cost measures are
determined from this data?
Overhead costs and job costs
Overhead costs and standard variances
Job costs and standard variances
Overhead costs, job costs, and standard variances - CORRECT ANSWER Job costs
and standard variances
When a production order is created and produced, operators will report direct labor and
materials for the order. Accounting is able to view all costs accumulated to the job and
to contrast them with costing standards to determine variances. Overheads are normally
reported indirectly as a percentage of labor reported and are not impacted by routing
and dispatching systems.
In discrete manufacturing, capacity requirements planning (CRP) receives which two of
the following items from material requirements planning (MRP)?
Due dates and order quantities
Due dates and standard hours
Order quantities and low-level codes
Standard hours and low-level codes - CORRECT ANSWER Due dates and order
quantities
For CRP to function successfully, it must receive the due dates and order quantities
from MRP.
A company has started a total quality management (TQM) program. Work-in-process
inventory will most likely:
decrease.
increase.
be unchanged.
be eliminated. - CORRECT ANSWER decrease.
A TQM program is based on the participation of all members of an organization in
improving processes, goods, services, and the culture in which they work. As waste and
redundancies are removed from processes, one of the outcomes is that inventories will
be reduced.
, Which two of the following actions within a change program will lead to improved
organizational performance?
Strengthening commitment through joint diagnosis of business problems, and
institutionalizing systems and procedures early in the change process.
Strengthening commitment through joint diagnosis of business problems, and using
measures that support continuous learning and change.
Institutionalizing systems and procedures early in the change process, and using
measures that support continuous learning and change.
Using measures that support continuous learning and change, and using a functional
team management approach to reorganize operating units. - CORRECT ANSWER
Strengthening commitment through joint diagnosis of business problems, and using
measures that support continuous learning and change.
To be successful, a change management program requires strong commitment,
participation, freedom of discussion, and a collaborative approach among team
members.
Which of the following actions is part of the pre-sales and operations planning meeting?
Ensuring that all aspects of demand are determined
Identifying spending changes for production
Reviewing business performance
Developing an updated financial view of the business - CORRECT ANSWER
Developing an updated financial view of the business
Updating the financial view of the business is an important output of the pre-sales and
operations planning process.
Some companies have created electronic scorecards to gather statistics on topics such
as inventory, sales, costs, and forecasts. This is often referred to as a:
information technology strategy.
enterprise resources planning (ERP) system.
wide area network (WAN).
decision support system (DSS). - CORRECT ANSWER decision support system (DSS).
A DSS assists managers in selecting and evaluating courses of action by providing a
logical, usually quantitative, analysis of the relevant factors.
Which of the following sequences of steps is preferred to help identify the root cause of
a production problem?
Describe the problem; establish cause categories; identify specific potential causes;
prioritize the causes.
EXAM
Which of the following tools is best for identifying quality problems in a process?
Cause-and-effect diagram
Flowchart
Gantt chart
Check sheet - CORRECT ANSWER Cause-and-effect diagram
The cause-and-effect diagram is a tool for analyzing the main causes and subcauses
leading to an effect. It is also referred to as the Ishikawa diagram.
Which of the following is the primary goal of distribution requirements planning (DRP)?
Maintaining a well-balanced inventory at all appropriate locations within the network
Accurately feeding the gross requirements into the master production schedule
Decoupling the distribution plan from the production plan
Delivering products on schedule in the quantities requested by the customer -
CORRECT ANSWER Maintaining a well-balanced inventory at all appropriate locations
within the network
The primary goal of DRP is to ensure that inventory is available in the right quantities
and in the right places in the distribution channel.
The design of a manufacturing process for high production volumes would likely
facilitate which two of the following outcomes?
High frequency of new product introduction and low level of finished goods inventory
High frequency of new product introduction and low process flexibility except for options
Low level of work-in-process inventory and low level of finished goods inventory
Low level of work-in-process inventory and low process flexibility except for options -
CORRECT ANSWER Low level of work-in-process inventory and low level of finished
goods inventory
Processes with a high volume of output will have a high degree of repeatability and
specialization and a narrow variety of finished goods. Work-in-process and finished
goods inventories will be low because of the high volume.
An error in the demand forecast trend over several years will have the greatest impact
on which of the following processes?
Business planning
Capacity requirements planning
Branch warehouse replenishment
Master production scheduling - CORRECT ANSWER Business planning
,An error in recognizing a forecast trend can impact planning on all levels. The key here
is that the trend is occurring over several years. It would therefore most affect business
planning, which looks at the long term.
Which of the following capacity planning (load) report characteristics can be attributed to
material requirements planning (MRP)?
Load is based on both planned and open orders, and load reflects valid order priorities.
Load is based on both planned and open orders, and load distribution is based on
actual lead times.
Load reflects valid order priorities, and load distribution is based on actual lead times.
Load is based on both planned and open orders, load reflects valid order priorities, and
load distribution is based on actual lead times. - CORRECT ANSWER Load is based on
both planned and open orders, and load reflects valid order priorities.
MRP provides the capacity planning system with load based on released and planned
orders. The start and due dates on the orders reflect the valid order priorities.
Which of the following inventory accounting methods would indicate the lowest
inventory value on the balance sheet in times of steadily rising prices?
Last in, first out (LIFO)
First in, first out (FIFO)
Standard cost
Average cost - CORRECT ANSWER Last in, first out (LIFO)
The LIFO method assumes that the newest (last in) item in stock is the first sold. In
times of rising prices, replacement is at the current price, and this current price is higher
than the accounted-for cost for the inventory that did not sell. In a falling price market,
existing inventory is overvalue
Which of the following factors are required for effective project control?
Automated project control system and stakeholder agreement that plan is realistic
Procedures for performance measurement and stakeholder agreement that plan is
realistic
Procedures for performance measurement and weekly progress reports to executive
steering committee
Automated project control system, procedures for performance measurement, and
weekly progress reports to executive steering committee - CORRECT ANSWER
Procedures for performance measurement and stakeholder agreement that plan is
realistic
For a project to succeed, project activities must be periodically assessed and reported
on so that progress can be effectively measured. An essential part of this process is the
,establishment of an agreed-upon set of performance measurements and progress
metrics that will show project status at any time. A critical element of project
management is attaining the commitment and participation of all stakeholders involved
in the project. If stakeholders do not feel the project is realistic, they will not provide their
full support.
A standard cost accounting system is often tied directly to the routing and dispatching
systems as well as the product structure. Which of the following cost measures are
determined from this data?
Overhead costs and job costs
Overhead costs and standard variances
Job costs and standard variances
Overhead costs, job costs, and standard variances - CORRECT ANSWER Job costs
and standard variances
When a production order is created and produced, operators will report direct labor and
materials for the order. Accounting is able to view all costs accumulated to the job and
to contrast them with costing standards to determine variances. Overheads are normally
reported indirectly as a percentage of labor reported and are not impacted by routing
and dispatching systems.
In discrete manufacturing, capacity requirements planning (CRP) receives which two of
the following items from material requirements planning (MRP)?
Due dates and order quantities
Due dates and standard hours
Order quantities and low-level codes
Standard hours and low-level codes - CORRECT ANSWER Due dates and order
quantities
For CRP to function successfully, it must receive the due dates and order quantities
from MRP.
A company has started a total quality management (TQM) program. Work-in-process
inventory will most likely:
decrease.
increase.
be unchanged.
be eliminated. - CORRECT ANSWER decrease.
A TQM program is based on the participation of all members of an organization in
improving processes, goods, services, and the culture in which they work. As waste and
redundancies are removed from processes, one of the outcomes is that inventories will
be reduced.
, Which two of the following actions within a change program will lead to improved
organizational performance?
Strengthening commitment through joint diagnosis of business problems, and
institutionalizing systems and procedures early in the change process.
Strengthening commitment through joint diagnosis of business problems, and using
measures that support continuous learning and change.
Institutionalizing systems and procedures early in the change process, and using
measures that support continuous learning and change.
Using measures that support continuous learning and change, and using a functional
team management approach to reorganize operating units. - CORRECT ANSWER
Strengthening commitment through joint diagnosis of business problems, and using
measures that support continuous learning and change.
To be successful, a change management program requires strong commitment,
participation, freedom of discussion, and a collaborative approach among team
members.
Which of the following actions is part of the pre-sales and operations planning meeting?
Ensuring that all aspects of demand are determined
Identifying spending changes for production
Reviewing business performance
Developing an updated financial view of the business - CORRECT ANSWER
Developing an updated financial view of the business
Updating the financial view of the business is an important output of the pre-sales and
operations planning process.
Some companies have created electronic scorecards to gather statistics on topics such
as inventory, sales, costs, and forecasts. This is often referred to as a:
information technology strategy.
enterprise resources planning (ERP) system.
wide area network (WAN).
decision support system (DSS). - CORRECT ANSWER decision support system (DSS).
A DSS assists managers in selecting and evaluating courses of action by providing a
logical, usually quantitative, analysis of the relevant factors.
Which of the following sequences of steps is preferred to help identify the root cause of
a production problem?
Describe the problem; establish cause categories; identify specific potential causes;
prioritize the causes.
