CPIM SMR Sample Test

CPIM(Certified In Production & Inventory Management)

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SMR Question Problems.

1. Which of the following is the MOST important consideration when designing an information system to control shop floor operations ? A. Supporting differentiation between functional areas and production operations. B. Providing staff specialists with the information needed to control production operations. C. Allowing factory personnel to manage their own production operations. D. Encouraging users to operate independently with a minimal amount of training.

2. A company is considering the adoption of a highly form of manufacturing technology that will have a major impact on its production process. Which of the following situations will MOST likely cause the longest delay in the of this new technology ? A. The necessary support and maintenance systems do not currently exist and must be developed. B. The proposed changes will cause a mismatch between products and processes. C. This technology conflicts with the company's capabilities and culture. D. The company has too few skilled technicians and experienced implementers of this type of new technology.

3. All of the following are requirements for a successful employee involvement (EI) program EXCEPT A. Common understanding of the employee's role in achieving the plant's strategy. B. Management clearly identifying and defining the problems to be solved. C. Providing the EI teams with authority to change work processes. D. Developing intrinsic and extrinsic rewards to recognize jobs done well.

SMR : Question Problems.

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4. Which of the following is internal rate of return project justification analysis ? A. Strategy. B. Discounted cash flow. C. Subjective. D. ABC analysis.

5. Enhanced productivity of the workforce results from which of the following ? Ⅰ. Elimination of complex process flows Ⅱ. Reorganization of people and equipment to match product flow Ⅲ. Specialization of worker assignments

A. I and II only B. I and III only C. II and III only D. I, II, and III

6. Which of the following manufacturing environment is the MOST expensive to increase capacity ? A. Job shop. B. Project. C. Batch. D. Continuous.

7. A focused factory is usually characterized by which two of the following ? Ⅰ. Restricted product variety. Ⅱ. Decreased attention to detail. Ⅲ. Layout by function. Ⅳ. Logical flow patterns.

A. I and III B. I and IV C. II and III D. II and IV


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8. Often times, companies which implement JIT successfully "flatten their organization". This means : A. The organization borders on bankruptcy. B. The organization growth slows. C. Layers are removed between top managers and workers. D. They install a fitness center in the excess space.

9. Which of the following strategy is the MOST appropriate order winner, when manufacturing lead time is longer than delivery lead time ? A. Volume flexibility. B. Delivery speed. C. Delivery reliability. D. Variety flexibility.

10. Companies that produce a narrow range of high-volume products will MOST likely choose which of the following processes ? A. Project. B. Jobbing. C. Batch. D. Line.

11. Which of the following are benefits of a cross-trained work force ? Ⅰ. Each employee shares responsibility for goals in the work area. Ⅱ. Ideas are generated with more frequency due to cross-training knowledge. Ⅲ. Flexibility improves which changes job classifications.

A. I and II B. I and III C. II and III D. I, II, and III


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12. Which of the following is typically the MOST important element in make-to-buy decision ? A. HOQ(House of Quality). B. Breakeven Analysis. C. ABC classification. D. COQ(Cost of Quality).

13. The business plan should provide which of the following ? Ⅰ. Sales objectives. Ⅱ. Profit objectives. Ⅲ. Capital requirements.


14. Design for manufacturability is supposed to result in which of the following ? A. Improve product quality. B. Reduced training needs. C. Reduced product features. D. Delayed market introductions.

15. What is the MOST critical factor if a company is going to achieve manufacturing excellence ? A. Quality improvement. B. Cost reductions for the customer. C. 100% on time delivery. D. Ability to increase/decrease volume at will.


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16. In any large systems implementation project, cross-functional project teams are necessary for a successful project. Which of the following are TRUE regarding these teams ? Ⅰ. The team works best with a shared vision. Ⅱ. They should consist of highly motivated people. Ⅲ. The team should receive training in group dynamics.


17. When a company change production strategy form standard product to customization product, which of the following is generally MOST considered to implement ? A. Change to batch production. B. Change to line production. C. Change to project control. D. Change to job shop.

18. Which of the following actions will MOST likely ensure end-user support for a new computerized information management system ? A. Providing high-quality training materials and detailed operating procedures for the end users. B. Verifying that the system design is complete and capable of providing all features and capabilities identified by management. C. Involving system users and stakeholders in reviews and approvals throughout the design and implementation process. D. Communicating the strategic objectives of the new system and asking all personnel to support its implementation.


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19. Which of the following are TRUE statements regarding JIT ? Ⅰ. Direct labor work force makes tactical decisions. Ⅱ. Communication between functions is very important. Ⅲ. Management and labor conflicts must be overcome.


20. In moving a manufacturing organization towards flexible manufacturing systems or computer integrated manufacturing, the MOST important obstacle to overcome is : A. Personnel issues which arise from change. B. Hardware compatibility across platforms. C. Software language barriers. D. Networking capability of the organization.

21. Which of the following is the LEAST impact by the result of quality function deployment ? A. Product plan. B. Product design. C. Process planning. D. Statistical process control.

22. In a continuous flow manufacturer, manufacturing planning and control systems must be able to accommodate which of the following operations ? Ⅰ. Handling of by-products. Ⅱ. Assembly operations. Ⅲ. Salvage materials which must be re-processed.



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23. The majority of companies tend to be technological followers, choosing to wait for tested technologies which they then exploit to their advantage. Which of the following statements describes technological followers ? Ⅰ. They achieve slow steady improvement in technology. Ⅱ. They avoid risk by using technologies which have been time-tested. Ⅲ. They try to use obsolete existing technology. A. I and II B. I and III C. II and III D. I, II, and III

24. Each of the following design considerations will aid manufacturability EXCEPT : A. Specifying tighter tolerances. B. The use of standardized parts. C. The use of sub-assemblies from other products. D. Using light packaging materials.

25. Which of the following is MOST likely to help an individual move from denying the need for change to accepting the change ? A. Telling him or her that the change is necessary. B. Identifying potential problems resulting from the changes. C. Training him or her on the new procedures. D. Explaining the change and its effects.

26. Which of the following is a typical advantage of vertical integration ? A. Control over critical capacities. B. Increase manufacturing flexibility. C. Increase key supplier alliance. D. Decrease in the levels of BOM.


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27. Much research has been done regarding employee motivation. Which of the following is generally considered to be the BEST motivator ? A. Money paid. B. Recognition by one's peers. C. A gift from the company. D. Lip service.

28. Which of the following contributes the MOST to a purchasing department's ability to improve supplier delivery reliability ? A. A computerized purchase requisition system. B. Use of electronic data interchange (EDI). C. Improved relations between expediters and suppliers. D. Long-term contacts with suppliers.

29. Worker idle time should be an accepted part of any work improvement process because : A. Workers will need to rest. B. Workers should spend time on work problems implementing improvements. C. Work will eventually run out at times. D. Workers should always be producing.

30. All of the following are major categories of infrastructure EXCEPT: A. Capacity plans. B. Workforce involvement. C. Organizational design. D. Major systems.

31. Which of the following BEST describes a employee empowerment/involvement program ? A. Let employee have more experiences and use their best talent. B. Give responsibility to their Scheduling decision. C. Managers are not needed since management role is reduced. D. Give decision making authority to one's own payroll and working time.


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32. Top management generally sets the strategic direction for the company. Which of the following would be included in the strategic planning ? Ⅰ. Business objectives. Ⅱ. Long term resource needs to meet company objectives. Ⅲ. Activities specifically needed to meet the plan.


33. Which of the following is executive management's role in project ? Ⅰ. Give enough authority to project team. Ⅱ. Observe and monitoring the project team. Ⅲ. Transforming business objects into operation.

A. Ⅰ B. Ⅰ, Ⅱ C. Ⅱ, Ⅲ D. Ⅰ, Ⅱ, Ⅲ

34. Measurements that focus on plant and/or machine utilization promote which of the following ? Ⅰ. Buying excessive amounts of raw material. Ⅱ. Building finished goods inventories. Ⅲ. Delaying preventive maintenance.

A. III only B. I and II only C. II and III only D. I, II, and III

35. A company is going to design their products for manufacturability. This will result in: A. Faster market introductions. B. Reduced product options and features. C. Improved product quality. D. Increased capacity available.


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36. Which of the following BEST describes the measure of a "good design?" A. Creates value for the customer. B. Engineers approve of the design. C. Time from concept to market is short. D. Cost of the product.

37. Which of the following action is MOST appropriate to shorten delivery lead time ? A. Shorten setup and queue time. B. Use Alternative routing. C. Increase machine utilization. D. Increase number of workers.

38. Implementing material requirements planning primarily helps a company attains which of the following strategic objectives ? A. Product price. B. Product quality. C. Delivery speed. D. Delivery reliability.

39. A company would like to add 50 products to current production line for 250 products and increase overall yearly sales volume. Which of the following is the MOST likely impact of previous decision in transportation and stock room operation ? A. Decrease shipping cost. B. Reduce shipment lot size. C. Decrease line-haul cost. D. Increase material handling.

40. Which of the following has contributed MOST towards making global sourcing and marketing practical for most industry segments ? A. Advances in transportation and communications. B. Rapid adoption of global standards. C. Consistent legal treatment of business. D. Elimination of non-tariff barriers.


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41. Which of the following is the MOST effective quality cost measurement categories ? A. Scrap, re-work, inspection. B. Internal, external, appraisal, preventive. C. WIP, inspection, warranties. D. Machine maintenance, warranties, scrap.

42. When implementing a total quality management program, which of the following groups should receive education FIRST ? A. Production workers. B. Production supervision. C. Middle Management. D. Senior management.

43. The customers of a company that implements Just-in-Time will MOST likely benefit from which of the following ? A. Increased delivery lead time. B. Improved quality of products shipped. C. Small lot sizes. D. Reduced freight costs.

44. Which of the following is the MOST likely related to House Of Quality(HOQ) ? A. Quality Function Deployment. B. Total Quality Management. C. Distribution Requirement Planning. D. Master Production Schedule.

45. Which of the following performance measures is MOST appropriate for determining the overall improvement of JIT manufacturing operations ? A. Direct labor efficiency. B. Inventory turns. C. Equipment utilization. D. Overhead variances.


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46. Which of the following can be manufacturing control to ensure customer satisfaction ? A. Product design. B. Conformance to customer specification. C. Field service issues. D. Supplier reliability.

47. When measuring an organization's flexibility, which of the following would be used ? A. Number of setups under ten minutes. B. Number of skills per employee. C. Number of different models produced. D. Percent of sales from new products.

48. Which of the following identifies the approach to inventory valuation in which variable costs and a portion of fixed costs are assigned to each unit of production ? A. Activity based costing. B. Throughput accounting. C. Absorption costing. D. Inventory turnover.

49. In a JIT environment, marketing may discuss with customers all of the following benefits EXCEPT A. Incentives for large-lot deliveries. B. Improved on-time delivery. C. Improved quality. D. Reduced customer hedge inventory.

50. The measurement, machine utilization, is a poor measure because it causes all of the following EXCEPT : A. Increased finished goods inventory. B. Increased work-in-process inventory. C. Improved quality. D. Increased raw materials inventory.


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51. c chart is an SPC chart for measuring : A. The number of non-conformities per unit. B. The number of non-conformities. C. The non-conformity percentage. D. The average of data.

52. Which of the following is typically characterized as an element of prevention cost ? A. A/S cost. B. Subcontract certification cost. C. Scrap dealing cost. D. Changeover cost.

53. When a company changes overhead allocation method from full absorption accounting to ABC, which of the following is generally affect on product price ? A. Increase. B. Decrease. C. No changes. D. Can estimate product cost accurately.

54. Cross-trained workers are an important part of a JIT factory for which of the following reasons ? Ⅰ. All skills necessary to run a cell reside in the cell. Ⅱ. Cross-trained workers can create productive teams. Ⅲ. Union rules can be circumvented. A. I and II B. I and III C. II and III D. I, II, and III

55. Which of the following does NOT support forward integration ? A. Electronic data interchange. B. Program evaluation & review technique. C. Basic house of quality. D. Distribution requirement planning.


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56. Which of the following are actions management can take to demonstrate support for the quality improvement process ? Ⅰ. Recognize and publicize quality achievements. Ⅱ. Lay off those who don't cooperate. Ⅲ. Provide leadership in the process. Ⅳ. Encourage defect prevention. A. I, II, and IV B. I, III, and IV C. II, III, and IV D. I, II, III, and IV

57. Which of the following is the BEST way to begin changing employee behavior ? A. Simplify and flatten the organizational structure. B. Implement a human resource information system. C. Change the performance measurement and reward system. D. Provide more timely and explicit management directives.

58. In a factory, the MOST under-utilized resource generally is/are the : A. Machinery. B. Building. C. Workers. D. Materials.

59. Which of the following is generally MOST complex resource profile when run the RCCP ?

Volume Variety Product item Product resource A. High High Many Many B. High Low Low Many C. Low High Many Low D. Low Low Low Low


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60. Which of the following is MOST effective in unit cost reduction by set up time reduction ?

Volume Variety Production item Product resource A. High High Many Many B. High Low Low Many C. Low High Many Low D. Low Low Low Low

61. Setup cost was traditionally allocated as overhead. If new cost accounting system assigns the setup cost directly to product, which of the following change is MOST likely impact each manufacturing environments ? Job shop Continuous A. Over cost Down cost B. Down cost Over cost C. Down cost Down cost D. Over cost Over cost

62. The same manufacturing strategy can be used A. For all products with the competitive advantage in all phases of the product life cycle. B. For all products in each market niche with the same volumes and varieties. C. For all competitive advantages of products in the same market niche. D. For all products with the same volume/variety and same competitive advantages in the same market niche.


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63. If more man power than usual is input to free slack of the project, which of following is MOST likely impact to schedule ? A. Complete earlier than scheduled. B. No changes in schedule. C. Complete later than scheduled. D. Increase cost.

64. Which of the following is generally MOST accurate component after implementing activity based costing(ABC) method ? A. Labor cost. B. Material cost. C. Unit cost. D. Overhead cost.

65. Which of the following is MOST related with flow line of production activity control. A. Back-flushing. B. Jobbing. C. Scrap ratio. D. Count point.

66. Which of the following pairs of strategic advantages would be MOST difficult to achieve simultaneously ? A. Low cost - quality. B. Delivery speed - delivery reliability. C. Flexibility - low cost. D. Delivery speed - flexibility.

67. Which of the following technique is MOST helpful in transition the design phase to production phase smoothly ? A. Concurrent engineering. B. Prototyping. C. Benchmarking D. Taguchi method.


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68. The MOST significant impact of electronic business on supply chain management is A. Reduction of paper-based communications. B. Reduction of data capture costs. C. Coordination of information. D. Ease of global sourcing.

69. Which of the following environment is typically the LEAST beneficial through RCCP ? A. Low finished good inventory. B. Small customer order backlog. C. High product varieties. D. Very stable output rate

70. Which of the following is MOST likely to indicate that a process should be reengineered or redesigned rather than incrementally improve ? A. A stable competitive environment. B. An expansion of the scope of the process. C. A large gap between customer requirements and performance. D. A hierarchical and central organization structure.

71. Job or task-level changes are most appropriately defined by A. Functional management. B. Cross-functional teams. C. Work teams. D. Quality circles.


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Questions 72-73 relate to the following information :

BCD Company is contemplating buying new automated manufacturing equipment. The cost of this equipment is $2.5 million. Expected savings from the project are $500,000/year. This is offset by anticipated annual running costs of $100,000. The accounting department has informed management that the capital equipment, if purchased, would be depreciated at 30%/year. BCD currently pays taxes at a rate of 20% of net profit.

72. The payback period for this project would be : A. 6.25 years. B. 5.0 years. C. 2.5 years. D. 1.5 years.

73. Assuming BCD purchases the equipment, the projected tax benefits in the first year from depreciation would be A. $150,000 B. $175,000 C. $225,000 D. $250,000

74. Which of the following manufacturing environment is typically NOT control the order status ? A. Project. B. Job Shop. C. Batch. D. Line.

75. Which of the following is cost accounting system in which the costs are collected by time period and averaged over all the units produced during the period ? A. Project costing. B. Activity based costing. C. Job costing. D. Process costing.


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Solutions

1 C 11 A 21 D 31 A 41 B 51 B 61 A 71 C

2 C 12 B 22 B 32 A 42 D 52 B 62 D 72 A

3 B 13 D 23 A 33 D 43 B 53 D 63 B 73 A

4 B 14 A 24 A 34 D 44 A 54 A 64 D 74 D

5 A 15 A 25 D 35 C 45 B 55 B 65 A 75 D

6 D 16 D 26 A 36 A 46 B 56 B 66 C

7 B 17 A 27 A 37 A 47 B 57 C 67 B

8 C 18 C 28 D 38 D 48 C 58 C 68 C

9 B 19 D 29 B 39 D 49 A 59 A 69 D

10 D 20 A 30 A 40 A 50 C 60 A 70 C

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CPIM SMR Sample Test