[Aug 11, 2024] Fully Updated Free Actual APICS CPIM-Part-2 Exam Questions
Free CPIM-Part-2 Questions for APICS CPIM-Part-2 Exam [Aug-2024]
NEW QUESTION # 89
In which of the following situations would the use of a failure mode effect analysis (FMEA) be most appropriate?
- A. During evaluation of a new market opportunity
- B. During the define phase of asix-sigmaproject
- C. Prior to a new product introduction (NPI)
- D. After a one-time quality incident investigation
Answer: C
Explanation:
Explanation
Failure Mode and Effects Analysis (FMEA) is a systematic, proactive method for identifying and evaluating the potential causes and impacts of failures in a process, product, or service1. It aims to anticipate and prevent failures by assessing the relative effect and risk of different failure modes1.
The use of FMEA would be most appropriate prior to a new product introduction (NPI). During the NPI phase, FMEA can be used to identify potential failure modes in the design of the product and assess their potential effects on the product's performance and reliability. This allows for proactive measures to be taken to mitigate or eliminate these risks before the product is launched. FMEA is particularly useful in the early stages of design, as it helps in making informed decisions that can improve the quality and safety of the product1.
In contrast, using FMEA after a one-time quality incident investigation (A) or during evaluation of a new market opportunity may not be as effective, as these situations do not involve the design or development of a product or process. While FMEA can be used during the define phase of a Six Sigma project (B), its most impactful application is during the design phase of a new product, where it can significantly influence the final outcome.
NEW QUESTION # 90
Fishbone diagrams would help a service organization determine:
- A. the proper level of service for a customer segment.
- B. the source of aquality-of-serviceissue.
- C. differences in the performance of employees.
- D. the decomposition of customer return rates with seasonality.
Answer: B
Explanation:
Explanation
A fishbone diagram, also known as a cause-and-effect diagram or an Ishikawa diagram, is a tool for identifying and analyzing the possible causes of a problem or an effect. It is often used in quality management to find the root causes of defects or errors. A fishbone diagram has a main branch that represents the problem or effect, and several sub-branches that represent the categories of causes, such as people, processes, equipment, materials, environment, etc. Each category can have further sub-branches that represent more specific causes. A fishbone diagram would help a service organization determine the source of a quality-of-service issue by allowing them to visualize and organize the potential factors that contribute to the problem and identify the most likely cause. References: CPIM Part 2 Exam Content Manual, Domain 8:
Manage Quality, Continuous Improvement, and Technology, Section 8.1: Quality Management Concepts and Tools, p. 59-60.
NEW QUESTION # 91
When deciding what to report externally regarding sustainability performance, a company should disclose:
- A. why current regulations are too costly.
- B. results of poor performance.
- C. results of acceptable performance.
- D. past results and future strategies.
Answer: D
Explanation:
Explanation
When deciding what to report externally regarding sustainability performance, a company should disclose its past results and future strategies. This will help the company to demonstrate its progress, achievements, challenges, and commitments in relation to its environmental, social, and governance (ESG) goals. Disclosing past results and future strategies will also enhance the company's transparency, accountability, and credibility with its stakeholders, such as investors, customers, employees, regulators, and the public.
Disclosing results of poor performance or acceptable performance alone is not sufficient, as it does not provide a complete picture of the company's sustainability performance. Moreover, disclosing only poor performance may damage the company's reputation and trust, while disclosing onlyacceptable performance may raise doubts about the company's honesty and reliability. Disclosing why current regulations are too costly is irrelevant and inappropriate, as it does not reflect the company's sustainability performance or efforts. It may also imply that the company is not willing or able to comply with the regulations or improve its sustainability practices.
References : A Comprehensive Guide on How to Write a Sustainability Report; Designing Your Company's Sustainability Report; What to Include in a Sustainability Report.
NEW QUESTION # 92
Risk pooling would work best for items with:
- A. high demand uncertainty and short lead times.
- B. low demand uncertainty and long lead times.
- C. high demand uncertainty and long lead times.
- D. low demand uncertainty and short lead times.
Answer: C
Explanation:
Explanation
Risk pooling is a strategy to reduce the total safety stock by aggregating the inventory of multiple items or locations. Risk pooling works best for items with high demand uncertainty and long lead times, because these items have higher variability and require more safety stock. By pooling the inventory, the variability of the total demand is reduced, and the safety stock can be lowered without increasing the risk of stockouts. References: CPIM Part 2 Exam Content Manual, Domain 5: Plan and Manage Inventory, Section
5.3: Inventory Management Policies and Objectives, p. 28.
NEW QUESTION # 93
A product family consists of 46 items, each having 5 features available and 6 options available. At which level of the bill ofmaterial (BOM) would it be most appropriate to forecast?
- A. Subassembly level items
- B. Final assembly level items
- C. Component level items
- D. Both subassembly level and final assembly level items
Answer: B
Explanation:
Explanation
A product family is a group of products that share common characteristics, components, or functions, and that satisfy a similar customer need or market segment1. A bill of material (BOM) is a list of all the materials, components, and subassemblies required to manufacture a product2. A BOM can have different levels, depending on the complexity and structure of the product. The most common levels are:
Final assembly level: This is the highest level of the BOM, where the finished product is shown as a single item. This level contains the basic information about the product, such as its name, description, quantity, and unit of measure2.
Subassembly level: This is the intermediate level of the BOM, where the subassemblies or modules that make up the final product are shown as separate items. A subassembly is a group of components or parts that are assembled together to perform a specific function within the final product3. This level contains the information about the subassemblies, such as their names, descriptions, quantities, units of measure, and relationships to the final product2.
Component level: This is the lowest level of the BOM, where the individual components or parts that make up the subassemblies or the final product are shown as separate items. A component is a basic element or material that is used to manufacture a subassembly or a final product4. This level contains the information about the components, such as their names, descriptions, quantities, units of measure, and relationships to the subassemblies or the final product2.
The most appropriate level of the BOM to forecast for a product family depends on several factors, such as the demand variability, production lead time, inventory cost, and customer preference of each level5. However, in general, it is advisable to forecast at the highest possible level of aggregation that still meets the customer requirements and expectations5. This is because forecasting at a higher level can reduce the forecast error and uncertainty, improve the forecast accuracy and reliability, and simplify the forecasting process5.
Therefore, for a product family that consists of 46 items, each having 5 features available and 6 options available, it would be most appropriate to forecast at the final assembly level items. This is because forecasting at this level can capture the overall demand pattern and trend of the product family, without getting into too much detail or complexity. Forecasting at this level can also allow for more flexibility and responsiveness in meeting customer needs and preferences by using postponement strategies6. Postponement strategies involve delaying some aspects of production or customization until after receiving customer orders6. For example, instead of forecasting and producing each item with each feature and option in advance, which would result in
46 x 5 x 6 = 1380 different combinations, the company can forecast and produce only 46 items at the final assembly level and then add features and options later according to customer orders.
The other options are not as appropriate as forecasting at the final assembly level items. Forecasting at the subassembly level items may be too detailed and complex for a product family with many features and options available. Forecasting at this level may result in higher forecast error and uncertainty, lower forecast accuracy and reliability, and more complicated forecasting process. Forecasting at this level may also reduce flexibility and responsiveness in meeting customer needs and preferences by committing resources too early in production. Forecasting at the component level items may be even more detailed and complex than forecasting at the subassembly level items. Forecasting at this level may have all the disadvantages mentioned above, as well as increase inventory cost and risk by holding too many components in stock.
References : Product Family Definition; Bill of Materials (BOM) - An Essential Guide with Examples; Subassembly Definition; Component Definition; Forecasting for Bill of Materials Inventory - EazyStock; Postponement Strategy: Definition & Benefits.
NEW QUESTION # 94
Which of the following actions will result in lower inventory levels?
- A. Increase customer service level.
- B. Decentralize inventory locations.
- C. Reduce replenishment lead times.
- D. Level load the master production schedule (MPS).
Answer: C
Explanation:
Explanation
Replenishment lead time is the time between placing an order and receiving the goods1. Reducing replenishment lead time will result in lower inventory levels, as it will allow the company to order less frequently and in smaller quantities, while still meeting customer demand. This will reduce the safety stock, cycle stock, and pipeline stock that the company needs to hold, and thus lower the inventory carrying costs and risks.
The other options will not result in lower inventory levels. Level loading the MPS means producing at a constant rate regardless of demand fluctuations2. This will result in higher inventory levels, as the company will need to build up inventory during periods of low demand and draw down inventory during periods of high demand. Increasing customer service level means improving the ability to meet customer expectations and requirements3. This will also result in higher inventory levels, as the company will need to hold more safety stock to avoid stockouts and ensure high fill rates. Decentralizing inventory locations means distributing inventory across multiple warehouses or facilities4. This will also result in higher inventory levels, as the company will need to maintain more safety stock at each location to account for demand variability and uncertainty.
References : What is Replenishment Lead Time?; Level Loading Definition; Customer Service Level; Centralized vs Decentralized Inventory Management.
NEW QUESTION # 95
When developing a quantitative model to support sales and operations planning (S&OP), which of the following statementsis most true?
- A. Clear objectives are not necessary to begin the modeling process.
- B. A minimal level of effort is required to develop a model.
- C. Aggregation will be necessary to develop an appropriate model.
- D. It is necessary to capture all of the detail in order to create a useful model.
Answer: C
Explanation:
Explanation
A quantitative model is a mathematical representation of a real-world situation that involves numbers, variables, equations, and logic. A quantitative model can be used to support sales and operations planning (S&OP), which is a process of aligning the demand and supply plans of an organization at an aggregate level.
To develop a quantitative model for S&OP, the following statements are most true:
It is not necessary to capture all of the detail in order to create a useful model. In fact, too much detail can make the model complex, unrealistic, and difficult to solve. A useful model should capture the essential features of the situation and simplify the irrelevant or insignificant aspects1.
Aggregation will be necessary to develop an appropriate model. Aggregation is the process of combining data or information into higher-level categories or groups. For example, products can be aggregated into product families, customers can be aggregated into market segments, and time periods can be aggregated into months or quarters. Aggregation can help reduce the size and complexity of the model, as well as improve its accuracy and reliability2.
Clear objectives are necessary to begin the modeling process. Objectives are the desired outcomes or goals that the model aims to achieve or optimize. For example, an objective of S&OP could be to maximize profit, minimize cost, or balance inventory. Clear objectives can help define the scope, structure, and criteria of the model3.
A significant level of effort is required to develop a model. Developing a model involves several steps, such as defining the problem, collecting and analyzing data, formulating and testing the model, implementing and validating the solution, and evaluating and improving the results. Each step requires careful planning, execution, and evaluation4.
References: CPIM Part 2 Exam Content Manual, Domain 3: Plan and Manage Demand, Section 3.1: Demand Management Concepts and Tools, p. 27-28; Quantitative Techniques Used in Sales & Operations Planning; Sales and Operations Planning (S&OP) 101| Smartsheet; Chapter 13 - Aggregate Planning - KSU; What is Sales and Operations Planning (S&OP) | Oracle; Aggregation and Disaggregation | SAP Help Portal.
NEW QUESTION # 96
Which of the following methods most likely introduces a temporary variance betweenthe inventory balance and theinventory record?
- A. Kanban
- B. Cycle count
- C. Inventory write-off
- D. Backflushing
Answer: B
Explanation:
Explanation
Resource planning is a planning module that considers the longest-range planning goals. Resource planning is a method of determining the long-term capacity and resource requirements for a manufacturing system, based on the aggregate production plan, the sales and operations plan, and the business plan. Resource planning helps to align the production capacity and resources with the strategic objectives and goals of the organization.
Resource planning considers the longest-range planning goals, which are usually expressed in terms of years or quarters.
The other options are not planning modules that consider the longest-range planning goals. Capacity requirements planning (CRP) is a planning module that calculates the capacity and load for each work center in a manufacturing system, based on the material requirements plan, the routing file, and the open order file.
CRP helps to identify and resolve the capacity constraints and bottlenecks in the production process. CRP considers the short-range planning goals, which are usually expressed in terms of days or weeks. Input/output analysis is a planning module that compares the actual input/output of each work center in a manufacturing system with the planned input/output, based on the capacity requirements plan and the shop floor data.
Input/output analysis helps to monitor and control the performance and efficiency of each work center.
Input/output analysis considers the short-range planning goals, which are usually expressed in terms of days or weeks. Rough-cut capacity planning (RCCP) is a planning module that estimates the feasibility and adequacy of the key resources or work centers in a manufacturing system, based on the master production schedule and the bill of resources. RCCP helps to validate and adjust the master production schedule according to the available capacity and resources. RCCP considers the medium-range planning goals, which are usually expressed in terms of months or weeks. References: CPIM Exam Content Manual Version 7.0, Domain 4: Plan and Manage Supply, Section 4.2: Supply Planning Methods, p. 26; Resource Planning; Capacity Requirements Planning.
NEW QUESTION # 97
Increased use of third-party logistics (3PL) services is likely to have which of the following effects on a firm's balance sheet?
- A. Decreased fixed assets
- B. Increased accounts receivable
- C. Decreased retained earnings
- D. Increased intangible assets
Answer: A
Explanation:
Explanation
Third-party logistics (3PL) services are services that involve outsourcing some or all of the logistics functions of a firm, such as transportation, warehousing, distribution, or order fulfillment, to an external provider1. By using 3PL services, a firm can reduce its need to own and operate its own logistics assets, such as trucks, trailers, warehouses, or inventory management systems. These assets are classified as fixed assets on the balance sheet, because they are long-term and tangible assets that are used in the normal course of business2.
Therefore, increased use of 3PL services is likely to have the effect of decreasing the fixed assets on a firm's balance sheet.
The other options are not likely effects of increased use of 3PL services on a firm's balance sheet. Retained earnings are the accumulated net income of a firm that is not distributed to shareholders as dividends3.
Retained earnings are not directly affected by the use of 3PL services, unless the firm's net income changes as a result of cost savings or revenue growth from outsourcing logistics functions. Accounts receivable are the amounts owed to a firm by its customers for goods or services delivered on credit4. Accounts receivable are not directly affected by the use of 3PL services, unless the firm's sales volume or credit terms change as a result of improved customer service or delivery performance from outsourcing logistics functions. Intangible assets are non-physical assets that have value based on their intellectual or legal rights, such as patents, trademarks, goodwill, or brand names5. Intangible assets are not directly affected by the use of 3PL services, unless the firm's reputation or market position changes as a result of enhanced quality or innovation from outsourcing logistics functions. References:
What Is Third Party Logistics (3PL) ? | Definition, Types, Benefits
Fixed Asset - Definition & Examples (Assets = Liabilities + Equity)
Retained Earnings - Definition & Formula
Accounts Receivable - Overview, Examples & Importance
Intangible Asset - Definition & Examples
NEW QUESTION # 98
Reducing distribution network inventory days of supply will have which of the following impacts?
- A. Increase turnovers and increase cash-to-cash cycle time.
- B. Increase turnovers and reduce cash-to-cash cycle time.
- C. Decrease turnovers and reduce cash-to-cash cycle time.
- D. Decrease turnovers and increase cash-to-cash cycle time.
Answer: B
Explanation:
Explanation
Reducing distribution network inventory days of supply will have the impact of increasing turnovers and reducing cash-to-cash cycle time. Distribution network inventory days of supply is a measure of how long it takes for a company to sell its entire inventory in its distribution network, which includes the warehouses and transportation systems that deliver the products to the customers1. It is calculated by dividing the average inventory by the cost of sales per day1. A lower distribution network inventory days of supply indicates that the company is selling its inventory faster and more efficiently, while a higher distribution network inventory days of supply indicates that the company is holding too much inventory or having difficulty selling its products.
Turnovers, also known as inventory turnover or stock turnover, is a measure of how many times a company sells and replaces its inventory in a given period. It is calculated by dividing the cost of goods sold by the average inventory2. A higher turnover indicates that the company is selling its inventory quickly and efficiently, while a lower turnover indicates that the company is holding too much inventory or having difficulty selling its products.
Cash-to-cash cycle time, also known as cash conversion cycle or net operating cycle, is a measure of how long it takes for a company to convert its cash outflows into cash inflows. It is calculated by adding the days sales outstanding (DSO), which is the average time it takes for customers to pay for their purchases, and the distribution network inventory days of supply, and subtracting the days payable outstanding (DPO), which is the average time it takes for the company to pay its suppliers3. A shorter cash-to-cash cycle time indicates that the company is managing its cash flow more effectively, while a longer cash-to-cash cycle time indicates that the company is tying up more cash in its operations.
Therefore, reducing distribution network inventory days of supply will have the impact of increasing turnovers and reducing cash-to-cash cycle time, as it will decrease the average inventory level, increase the cost of sales per day, and decrease the distribution network inventory days of supply component in the cash-to-cash cycle time formula. This will improve the efficiency and profitability of the company's operations and reduce its working capital needs.
References : Inventory Days Of Supply | Supply Chain KPI Library | Profit.co; Inventory Turnover Ratio | Formula | Calculator (Updated 2021); Cash Conversion Cycle - CCC.
NEW QUESTION # 99
In the supplier selection process, what will be the potential advantages of multiple sourcing?
- A. Mutual trust and cooperation
- B. More supplier options and better product development
- C. Long relationship and short lead times
- D. Lower price and reduced risk
Answer: D
Explanation:
Explanation
Multiple sourcing is an outsourcing approach in which products or services are contracted to various suppliers needed to conduct the business instead of using traditional single sourcing1. One of the potential advantages of multiple sourcing is that it can lower the price of the products or services, as it creates competition among the suppliers and gives the buyer more bargaining power2. Another potential advantage of multiple sourcing is that it can reduce the risk of supply disruptions, as it diversifies the supply chain and makes the buyer less dependent on any single supplier3. If one supplier fails to deliver due to unforeseen circumstances, such as natural disasters, political instability, or quality issues, the buyer can switch to another supplier or use a combination of suppliers to meet the demand4. Therefore, multiple sourcing can provide lower price and reduced risk as potential advantages in the supplier selection process.
References: 1: Multi-Sourcing: Everything You Need To Know - SupplierGATEWAY 3 2: Dual sourcing:
Advantages and disadvantages - Hermes Supply Chain Blog 4 3: The Case for Making Multiple Suppliers Part of Your Supply Chain Strategy 5 4: Using Multi-Sourcing to Diversify the Supply Chain 6
NEW QUESTION # 100
Which of the following techniques would be most appropriate to use to develop a forecast?
- A. Exponentialsmoothing
- B. Time series decomposition
- C. Delphi method
- D. Moving average
Answer: A
Explanation:
Explanation
Exponential smoothing is a forecasting technique that uses a weighted average of past and present data to predict future values. It is suitable for time series data that have a stable or slowly changing trend and no significant seasonal variations. Exponential smoothing assigns more weight to the most recent data, giving it a higher influence on the forecast. This makes it more responsive to changes in demand patterns than other techniques, such as moving average or time series decomposition, which use fixed weights or historical data.
The Delphi method is a qualitative technique that involves a panel of experts who provide their opinions and feedback on a topic through multiple rounds of surveys. It is not based on historical data or mathematical formulas, but rather on human judgment and consensus. Therefore, it is not appropriate for developing a forecast. References: CPIM Part 2 Exam Content Manual, Version 7.0, Domain 3: Plan and Manage Demand, Section A: Demand Management, Subsection 2: Forecasting Techniques and Methods, p. 14-15.
NEW QUESTION # 101
An analysis was done on a group of parts that showed a missed delivery resulting in lost sales on other product lines manytimes greater than the value of the initial lost sale. As a result, the company launched an initiative to increase the fill rate onthese parts to 100%. Currently, they have raised the fill rate to 99%. As they continue the initiative, what effects are mostlikely expected?
- A. Operating costs will increase faster than service level.
- B. Operating costs will increase slower than service level,
- C. Operating costs and service level will both increase at the same rate.
- D. Neither operating costs nor service level will increase.
Answer: A
Explanation:
Explanation
Fill rate is the percentage of customer orders that are fulfilled without running out of inventory or placing backorders1. Fill rate is an important measure of customer service and inventory management efficiency. A high fill rate indicates that the company can meet customer demand in a timely and accurate manner, while a low fill rate suggests that the company is struggling to satisfy customer expectations.
Operating costs are the expenses associated with running a business, such as rent, utilities, wages, transportation, etc2. Operating costs are influenced by various factors, such as production volume, inventory level, technology, and quality. A high operating cost means that the company spends more money to produce and deliver its products or services, while a low operating cost means that the company spends less money to do so.
Service level is the measure of how well a company delivers its products or services to its customers, based on criteria such as availability, timeliness, quality, and satisfaction3. Service level is affected by various factors, such as demand variability, supply reliability, capacity utilization, and customer feedback. A high service level means that the company meets or exceeds customer expectations, while a low service level means that the company fails or falls short of customer expectations.
As the company continues its initiative to increase the fill rate on these parts to 100%, it is most likely that operating costs will increase faster than service level. This is because increasing the fill rate requires increasing the inventory level, which in turn increases the carrying costs, such as warehousing, insurance, taxes, and obsolescence4. Moreover, increasing the fill rate also requires reducing the variability and uncertainty in demand and supply, which may involve investing in more advanced technology, improving quality control, enhancing supplier relationships, or implementing demand management techniques5. These actions can also increase the operating costs of the company.
However, increasing the fill rate does not necessarily increase the service level at the same rate. This is because service level depends not only on fill rate, but also on other factors, such as delivery speed, order accuracy, product quality, and customer satisfaction6. Therefore, increasing the fill rate may not be enough to improve the service level significantly. In fact, there may be a point of diminishing returns, where increasing the fill rate beyond a certain level does not result in a proportional increase in service level. For example, increasing the fill rate from 95% to 99% may have a noticeable impact on service level, but increasing it from
99% to 100% may have a negligible impact on service level.
NEW QUESTION # 102
When designing a production cell, which of the following items would be the most important consideration?
- A. The taketime requirement for each operator to meet the monthly production goals of the plant
- B. The unit per hour requirement for the production cell to meet the sales forecast
- C. The flow of materials into the cell and sequencing of operations to minimize total cycle time
- D. The output rate for the first operation and move time after the last workstation
Answer: C
Explanation:
Explanation
A production cell is a group of machines or workstations that are arranged in a layout that facilitates the flow of materials and work-in-progress in a manufacturing system. A production cell is usually designed to produce a family of products or services that have similar characteristics or requirements. A production cell is often based on the principles of lean manufacturing and group technology, which aim to eliminate waste and improve quality. When designing a production cell, the most important consideration is the flow of materials into the cell and sequencing of operations to minimize total cycle time. The flow of materials into the cell refers to the movement and direction of the raw materials, components, or modules that enter the cell for processing. The sequencing of operations refers to the order and arrangement of the machines or workstations that perform the processing steps within the cell. Minimizing total cycle time refers to reducing the time it takes to complete a product or service from start to finish. By considering these factors, a production cell can achieve high efficiency, flexibility, and productivity.
The other options are not the most important considerations when designing a production cell. The unit per hour requirement for the production cell to meet the sales forecast is not the most important consideration, as it is a result of the demand planning and capacity planning functions, which are separate from the production cell design. The unit per hour requirement indicates how many units of a product or service the production cell needs to produce in an hour to meet the expected customer demand. The output rate for the first operation and move time after the last workstation are not the most important considerations, as they are only parts of the total cycle time calculation, which also includes the processing time and waiting time for each operation. The output rate for the first operation is the number of units that the first machine or workstation in the cell can produce in an hour. The move time after the last workstation is the time it takes to transport the finished product or service from the last machine or workstation in the cell to the next stage or destination. The take time requirement for each operator to meet the monthly production goals of the plant is not the most important consideration, as it is a measure of labor productivity, which is affected by factors such as skill, training, motivation, and supervision. The take time requirement for each operator is the amount of time that an operator needs to complete one unit of a product or service. References: CPIM Exam Content Manual Version
7.0, Domain 6: Plan, Manage, and Execute Detailed Schedules, Section 6.2: Detailed Scheduling Methods, p.
38; Cellular manufacturing; Production Cell.
NEW QUESTION # 103
A manufacturer wishes to decrease the time-to-market for a new product family. Which of thefollowing strategies should beused?
- A. Increase collaboration between the buyer and the supplier of new components.
- B. Decrease the purchasing lot size for the new product's components.
- C. Increase the safety stocks for the new product's components.
- D. Decrease the number of suppliers for components of the new product.
Answer: A
Explanation:
Explanation
Time-to-market (TTM) is the length of time it takes to develop a product from conception until it is released to the market and is available for sale1. Reducing TTM can provide a competitive advantage, as it can help a company to capture customer demand, respond to market changes, and increase profitability1.
One strategy to decrease TTM for a new product family is to increase collaboration between the buyer and the supplier of new components. Collaboration can involve sharing information, resources, risks, and rewards among supply chain partners to achieve mutual benefits2. By collaborating with the supplier of new components, the buyer can improve the quality, reliability, and innovation of the components, as well as reduce the costs, lead times, and uncertainties associated with them2. This can speed up the product development process and reduce the time and resources required to bring the new product family to the market.
The other options are not effective strategies to decrease TTM for a new product family. Decreasing the number of suppliers for components of the new product may reduce the complexity and variability of the supply chain, but it may also increase the dependency and vulnerability on a single or few suppliers, which may affect the availability and performance of the components3. Decreasing the purchasing lot size for the new product's components may reduce the inventory carrying costs and risks, but it may also increase the ordering costs and frequency, which may affect the efficiency and responsiveness of the supply chain4.
Increasing the safety stocks for the new product's components may reduce the risk of stockouts and delays, but it may also increase the inventory carrying costs and risks, as well as tie up cash flow and working capital.
References : Time to market: Definition and strategies to speed up TTM; Time To Market (TTM) Defined & Why It's Important | TCGen; Market Timing Tips Every Investor Should Know; Supply Chain Collaboration:
Definition & Benefits; [Supplier Consolidation: Definition & Benefits]; [Economic Order Quantity (EOQ) Model: Definition & Formula]; [Safety Stock: The Ultimate Guide].
NEW QUESTION # 104
An online retailer moves from delivering hard copy books to offering digital downloads only. This action may result in an increased possibility of:
- A. supply delays.
- B. supply disruptions.
- C. forecast inaccuracy.
- D. loss of intellectual property.
Answer: D
Explanation:
Explanation
Offering digital downloads only may result in an increased possibility of loss of intellectual property, as this exposes the online retailer to the risk of cyber theft and piracy. Digital downloads are easier to copy, distribute, and modify without authorization than hard copy books, and the online retailer may lose control over its IP rights and revenues. Cyber thieves may hack into the online retailer's network and steal its IP assets, such as the content, design, and format of the books. Pirates may also offer illegal copies of the books to consumers at lower prices or for free, undermining the online retailer's market share and profitability. According to Deloitte Insights, IP cyber theft has largely remained in the shadows compared with more familiar cybercrimes such as the theft of credit card, consumer health, and other personally identifiable information1. However, IP cyber theft can have serious consequences for a company's future, as IP is the heart of the 21st-century company, an essential motor driving innovation, competitiveness, and the growth of businesses and the economy as a whole1. The WIPO Magazine also notes that digital technology has made IP theft easier, as Bad Actors use technology to flood the online market with pirated and counterfeit goods2. The impact of IP theft on the economy can be significant, as it can result in loss of legitimate sales, reduced tax revenues, lower employment opportunities, and diminished incentives for innovation3. Therefore, an online retailer that moves from delivering hard copy books to offering digital downloads only should take appropriate measures to protect its IP from cyber theft and piracy. This may include using encryption, digital rights management, watermarking, authentication, and monitoring technologies, as well as educating consumers about the value and benefits of legal downloads
NEW QUESTION # 105
A part is sold as a service part, and it is also used as a component in another part. Which ofthe following statements aboutthe planning for this part is true?
- A. The material requirements for the part will be understated.
- B. Its low-level code is zero.
- C. The service part demand can be included in the gross requirements.
- D. It shouldn't have any safety stock.
Answer: C
Explanation:
Explanation
A part that is sold as a service part and also used as a component in another part is called a dual-sourced item.
A dual-sourced item has two sources of demand: the external demand from the customers who buy the service part, and the internal demand from the parent part that uses the component. The planning for a dual-sourced item should include both sources of demand in the gross requirements, so that the net requirements can be calculated correctly. The service part demand can be included in the gross requirements by using a planning bill of material, which is a special bill of material that shows the relationship between a parent item and its service parts. A planning bill of material allows the system to explode the service part demand to the component level and generate planned orders for both the service part and the component.
The other statements about the planning for this part are false. Its low-level code is not zero, because it is not an independent item. It has a higher low-level code than its parent item, because it is a component of another item. The material requirements for the part will not be understated, if both sources of demand are included in the gross requirements. It should have some safety stock, to protect against demand and supply uncertainties. References: CPIM Part 2 Exam Content Manual, Domain 4: Plan and Manage Supply, Section
4.2: Material Requirements Planning (MRP), p. 22-23.
NEW QUESTION # 106
Which of the following actions best supports a company's strategic focus on delivery speed to improve competitiveadvantage?
- A. Maintaininghigh-capacityutilization
- B. Developing flexible operations
- C. Implementing rapid process improvements
- D. Cross-training workers
Answer: B
Explanation:
Explanation
Developing flexible operations is the best action that supports a company's strategic focus on delivery speed to improve competitive advantage. Flexible operations are the ability to adapt to changes in customer demand, product mix, quality standards, and delivery schedules1. Flexible operations can help a company achieve faster delivery speed by enabling it to respond quickly and efficiently to fluctuations in the market, reduce lead times, optimize resource utilization, and avoid bottlenecks2. Flexible operations can also help a company gain a competitive edge by offering a wider variety of products or services, different volumes or quantities, and varying delivery dates to meet customer needs and expectations3.
Some examples of flexible operations are:
Volume flexibility: the ability to produce different quantities or volumes of output3 Delivery flexibility: the ability to change the timings or modes of delivery3 Product flexibility: the ability to produce different types or variants of products or services4 Process flexibility: the ability to use different methods or technologies to perform a process4 Resource flexibility: the ability to use different inputs or resources for a process4 Some strategies for developing flexible operations are:
Using modular design: designing products or services that consist of interchangeable components or modules that can be easily assembled or disassembled5 Implementing automation: using machines or software to perform tasks that would otherwise require human labor6 Adopting lean principles: eliminating waste and non-value-added activities from processes, such as overproduction, inventory, defects, waiting, transportation, motion, and overprocessing7 Applying agile methods: using iterative and incremental approaches to deliver products or services that meet changing customer requirements and feedback Cross-training workers: training workers to perform multiple tasks or roles within a process or organization References: 1: Operations Flexibility Definition 2 2: Why flexibility is critical when planning an operations - KPMG 4 3: Performance Objectives - What Are the 5 Business Objectives? - PeopleGoal 1 4: Competitive Priorities in Operations with Examples - StudiousGuy 5 5: Modular Design Definition 6: Automation Definition 7: Lean Principles Definition : Agile Methodology Definition : Cross-training Definition
NEW QUESTION # 107
Which of the following tools is used for monitoring a capacity plan?
- A. Demonstrated capacity
- B. Dispatch report &
- C. Resource planning
- D. Input/output control (I/O)
Answer: D
Explanation:
Explanation
Input/output control (I/O) is a type of tool that is used for monitoring a capacity plan. A capacity plan is a statement of the resources needed to meet the production plan over a medium-term horizon. A capacity plan can be stated in different units of measure depending on the type of manufacturing environment, such as hours, units, tons, or dollars. Input/output control (I/O) is a method of measuring and comparing the actual input and output of a work center or a production line against the planned input and output. Input is the amount of work that is released to the work center or the production line, and output is the amount of work that is completed by the work center or the production line. Input/output control (I/O) helps to monitor the performance and efficiency of the work center or the production line, and to identify any deviations or problems that may affect the capacity plan. Input/output control (I/O) also helps to adjust the input or output levels as necessary to maintain the balance between demand and supply, and to achieve the desired throughput.
References: CPIM Exam Content Manual Version 7.0, Domain 6: Plan, Manage, and Execute Detailed Schedules, Section 6.3: Monitor Detailed Schedules, Subsection 6.3.2: Describe how to monitor input/output control (I/O) (page 60).
NEW QUESTION # 108
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