APICS CPIM-8.0 Certified in Planning and Inventory Management (CPIM 8.0) Online Training

Question #41

A work center has 3 machines that are all run at the same time with a single worker. The work center has an efficiency of 75% and a utilization of 100%.

What is the work center’s capacity in standard hours for an 8-hour shift?

A . 6 hours
B . 8 hours
C . 18 hours
D . 24 hours

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Question #42

Which of the following benefits typically will be realized when switching from a functional to a cellular layout?

A . Equipment utilization will be higher.
B . Quality inspections will be reduced.
C . Capital expenditures will be reduced.
D . Products will have faster throughput.

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Correct Answer: D
D

Explanation:

A cellular layout is a workplace organization in which processes are organized by the product or product family, rather than by the type of work (function). A cellular layout consists of cells, which are groups of machines or workstations that are located close to each other and perform all the operations required for a product or product family. A cellular layout has several advantages over a functional layout, such as reduced material handling, improved quality, increased flexibility, and enhanced employee involvement. One of the main benefits of a cellular layout is that products will have faster throughput. Throughput is the rate at which products are produced and delivered to the customers. A cellular layout can increase the throughput by reducing the travel distance, the waiting time, and the setup time for the products. A cellular layout can also improve the production flow, the synchronization, and the visibility of the products. The other options are not correct, as they are not the typical benefits of switching from a functional to a cellular layout, but rather possible drawbacks or trade-offs of switching from a functional to a cellular layout:

Equipment utilization will be higher: This is unlikely to be true, as a cellular layout may result in lower equipment utilization than a functional layout. Equipment utilization is the ratio of the actual output of a machine to its maximum possible output. A cellular layout may reduce the equipment utilization by dedicating some machines to specific products or product families, which may limit the sharing of machines across different products or product families. A cellular layout may also reduce the equipment utilization by balancing the workload among the machines within a cell, which may prevent some machines from operating at their full capacity.

Quality inspections will be reduced: This may or may not be true, depending on the quality level and the quality control system of the production process. A cellular layout may reduce the quality inspections by improving the quality of the products, as the workers in a cell are more responsible, skilled, and empowered to perform the operations and to detect and correct the defects. However, a cellular layout may also increase the quality inspections by requiring more frequent and rigorous checks of the products, as the products move from one cell to another or from one stage to another.

Capital expenditures will be reduced: This is unlikely to be true, as a cellular layout may result in higher capital expenditures than a functional layout. Capital expenditures are the costs of acquiring or upgrading the fixed assets, such as machines, equipment, or facilities. A cellular layout may increase the capital expenditures by requiring more machines or equipment to create the cells, especially if the machines or equipment are specialized or customized for specific products or product families. A cellular layout may also increase the capital expenditures by requiring more space or facilities to accommodate the cells, especially if the cells are dispersed or isolated from each other.

References:

[CPIM Part 2 – Section B – Topic 4 – Sustainability]

Cellular Manufacturing: Definition, Examples & Advantages ― Katana

Cellular or Functional Layout? – IGI Global

Functional Layout – Velaction

What is cell layout? – Studybuff.com

Question #43

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

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Question #44

Which of the following statements is an assumption on which the economic order quantity (EOQ) model is based?

A . Customer demand is known but seasonal.
B . Items are purchased and/or produced continuously and not in batches.
C . Order preparation costs and inventory-carrying costs are constant and known.
D . Holding costs, as a percentage of the unit cost, are variable.

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Correct Answer: C
C

Explanation:

The economic order quantity (EOQ) model is a formula that calculates the optimal order quantity that minimizes the total inventory costs, such as ordering costs and holding costs. The EOQ model is based on several assumptions, one of which is that the order preparation costs and inventory-carrying costs are constant and known. This means that the costs of placing and receiving an order, and the costs of storing and maintaining the inventory, do not change with the order quantity or the inventory level, and that they can be estimated accurately12.

The other options are not correct because:

• A. Customer demand is known but seasonal. This is not an assumption of the EOQ model, but rather a violation of it. The EOQ model assumes that the customer demand is constant and known, and that the orders are placed at regular intervals. However, if the customer demand is seasonal, it means that it varies over time and may not be predictable. This can affect the accuracy and applicability of the EOQ model, as the optimal order quantity may change with the demand pattern12.

• B. Items are purchased and/or produced continuously and not in batches. This is not an assumption of the EOQ model, but rather a contradiction of it. The EOQ model assumes that the items are purchased and/or produced in batches, and that the inventory level decreases gradually until it reaches zero, at which point a new order is placed and received. However, if the items are purchased and/or produced continuously, it means that there is no need to place orders or maintain inventory, and the EOQ model becomes irrelevant12.

• D. Holding costs, as a percentage of the unit cost, are variable. This is not an assumption of the EOQ model, but rather a complication of it. The EOQ model assumes that the holding costs, as a percentage of the unit cost, are constant and known. This means that the cost of storing and maintaining one unit of inventory does not depend on the unit cost of the item, and that it can be estimated accurately. However, if the holding costs, as a percentage of the unit cost, are variable, it means that the cost of storing and maintaining one unit of inventory changes with the unit cost of the item, and that it may not be easy to estimate. This can affect the accuracy and applicability of the EOQ model, as the optimal order quantity may depend on the unit cost of the item12.

References:=

1 Economic Order Quantity Model in Inventory Management – Investopedia1

2 Economic Order Quantity: What Does It Mean and Who Is It Important For? – Investopedia2

Question #45

Which of the following capacity planning methods uses the master production schedule (MPS) as its primary input?

A . Resource planning
B . Rough-cut capacity planning (RCCP)
C . Finite loading
D . Input/output analysis

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Question #46

What activity is a useful element in the change process?

A . Creating short-term wins
B . Calculating a break-even point
C . Performing a SWOT analysis
D . Developing key performance indicators (KPIs)

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Question #47

The primary reason for tracing a component with scheduling problems to Its master production schedule (MPS) item is to:

A . revise the rough-cut capacity plan.
B . reschedule a related component on the shop floor.
C . check the accuracy of the bills for the MPS items.
D . determine if a customer order will be impacted.

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Correct Answer: D
D

Explanation:

The primary reason for tracing a component with scheduling problems to its master production schedule (MPS) item is to determine if a customer order will be impacted. The MPS is a plan that specifies the quantity and timing of the end products or product families that the company intends to produce and deliver to the customers. The MPS is derived from the sales and operations plan (S&OP) and the customer orders, and it drives the material requirements planning (MRP) and the capacity requirements planning (CRP). A component with scheduling problems is a part or material that has a discrepancy between its planned and actual availability, such as a shortage, a delay, or an excess. Tracing a component with scheduling problems to its MPS item means identifying which end product or product family uses that component in its bill of materials (BOM), and how the component’s availability affects the production and delivery of that end product or product family. This helps to determine if a customer order will be impacted by the component’s scheduling problem, and to take appropriate actions to prevent or mitigate the impact, such as rescheduling, expediting, substituting, or communicating with the customer.

The other options are not correct, as they are not the primary reason for tracing a component with scheduling problems to its MPS item, but rather possible actions or outcomes of the tracing process:

Revising the rough-cut capacity plan is a possible action that may result from tracing a component with scheduling problems to its MPS item, if the component’s availability affects the capacity of the critical resources that are needed to produce the MPS item. Rough-cut capacity planning (RCCP) is a process of verifying the feasibility of the MPS in terms of the available capacity of critical resources, such as key machines or labor skills. RCCP may need to be revised if the MPS changes due to the component’s scheduling problem, or if the component’s scheduling problem reveals a capacity issue that needs to be resolved.

Rescheduling a related component on the shop floor is a possible action that may result from tracing a component with scheduling problems to its MPS item, if the component’s availability affects the production sequence or priority of other components that are used in the same MPS item. Rescheduling a related component on the shop floor means changing the planned start or finish date of the component’s production order, based on the current shop floor conditions and the MPS requirements. Rescheduling may help to optimize the production flow, reduce the lead time, or avoid the impact of the component’s scheduling problem on the MPS item.

Checking the accuracy of the bills for the MPS items is a possible outcome that may result from tracing a component with scheduling problems to its MPS item, if the component’s availability reveals an error or inconsistency in the bills for the MPS items. Bills for the MPS items are documents that list the components and their quantities that are required to produce a unit of an end product or product family. Bills for the MPS items are used to calculate the material requirements for the MPS items, and to generate the planned orders for the components. Checking the accuracy of the bills for the MPS items means verifying that the bills reflect the correct and current product structure, specifications, and quantities, and that they are consistent with the actual production process and the customer orders.

References:

[CPIM Part 2 – Section A – Topic 1 – Sales and Operations Planning]

[CPIM Part 2 – Section A – Topic 2 – Capacity Planning]

Master Production Schedule (MPS)

What is a Component? | Definition, Types, & Examples

Tracing a Component to Its MPS Item

Rough Cut Capacity Planning (RCCP)

[Rescheduling]

[Bill of Materials (BOM)]

Question #48

A manufacturer has a forecasted annual demand of 1,000,000 units for a new product. They have to choose 1 of 4 new pieces of equipment to produce this product. Assume that revenue will be $10 per unit for all 4 options.

Which machine will maximize their profit if the manufacturer anticipates market demand will be steady for 3 years and there is no residual value for any of the equipment choices?

MachineFixed CostVariable Cost per UnitAnnual Capacity

AS100.000$6 00800,000 units

B$200,000$5 501.000,000 units

C$250,000$5 001,200,000 units

D$1000.000$4 501 400.000 units

A . Machine A
B . Machine B
C . Machine C
D . Machine D

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Question #49

When designing a production cell, which of the following items would be the most important consideration?

A . Theunit per hour requirement for the production cell to meet the sales forecast
B . Theflow of materials into the cell and sequencing of operations to minimize total cycle time
C . Theoutput rate for the first operation and move time after the last workstation
D . Thetakt time requirement for each operator to meet the monthly production goals of theplant

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Question #50

Forecast error typically triggers forecast revision when it is:

A . used in computing the tracking signal.
B . associated with the Introduction stage of the product life cycle.
C . continually increasing.
D . caused by random variation.

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