BeITCert
ified.c
om
QUESTION: 1 Operations management works in a complex environment affected by many factors. Among the most important are: A. Government regulation B. the economy and competition C. Customer expectations and quality D. all of these Answer: D QUESTION: 2 Government regulations majorly apply to areas as: A. Environment and taxation B. Product liability and safety C. Population growth D. All of these Answer: A & B QUESTION: 3 Shifts in the age of the population needs of ethnic groups, low population growth, freer trade between countries and increased global competition all contributes to: A. Government B. changes in the marketplace C. Business decisions D. customer expectations Answer: B QUESTION: 4 Some of the characteristics customers expect when they buy products are all of the following EXCEPT:
CPIM
2
BeITCert
ified.c
om
A. A fair price with higher quality products and services B. Delivery lead time C. Presale services better than after sale services D. Product and volume flexibility Answer: C QUESTION: 5 Customer requirements may be based on price, quality, delivery and so forth are called: A. Order qualifiers B. Order prerequisites C. Order basis D. None of these Answer: A QUESTION: 6 For example, the price for a certain type of product must full within a range for the suppliers to be considered .but being considered does not mean winning the order. so win orders a supplier must have characteristics that encourage customers to choose its products and services over competitors. Those competitive characteristics, or combination of characteristics are called A. Order takers B. Order achievers C. Order winners D. Order credentials Answer: C QUESTION: 7 Order winning characteristics are defined primarily from:
CPIM
3
BeITCert
ified.c
om
A. Competition B. customer needs C. Business sector D. Both A & B Answer: D QUESTION: 8 It is virtually impossible to be the best in every dimension of competition. Firms should in general: A. Strive to provide at least minimum level of acceptance for each of the order qualifiers B. Should try to be the best in the market for the order winners. C. Should keep in mind the pace of change D. A & B Answer: D QUESTION: 9 It should be recognized that order winners and qualifiers for any product market combination are not static. not only will customers change perspectives as competitors jokey for position but the order winners and qualifiers will often change based on the concepts of: A. Product life cycle B. Economic changes C. Government regulation D. Market needs Answer: A QUESTION: 10 Quality and delivery factor of products tend to have increased importance during:
CPIM
4
BeITCert
ified.c
om
A. Maturity phase B. Growth phase C. Introduction phase D. Decline phase Answer: B QUESTION: 11 Life cycle approach for identifying order winners and qualifiers is complicated in that: A. The duration of life cycle will be very different for different products. B. Customer needs change work frequently C. Life cycle phase are difficult to understand D. Not a single requirement applies to all these of life cycle Answer: A QUESTION: 12 Which one of the following is a basic strategy to achieve the level of shortest lead time? A. Engineer-to-order B. Assemble-to-order C. Make-to-stock D. None of these Answer: D QUESTION: 13
CPIM
5
BeITCert
ified.c
om
This is the situation of lead time strategy in case of: A. Engineer-to-order B. Make-to-stock C. Make-to-order D. None of these Answer: A QUESTION:14 Delivery lead time is the longest in case of: A. Make-to-order B. Make to-stock C. Assemble-to-order D. None of these Answer: D QUESTION: 15 Which one of following is not an important factor in supply chain? A. The supply chain includes all activities and processes to supply a product or service to a final customer B. Any number of companies can be linked in the supply chain C. product or services usually flow from customer to supplier and design and demand information usually flows from customer to supplier. Rarely is this not so. D. A customer can be a supplier to another customer so the total chain can have a number of supplier customer relationships. Answer: C QUESTION: 16
CPIM
6
BeITCert
ified.c
om
With the explosive growth in just-in-time (JIT) concepts, the supplier-customer partnership concept grew as a result many changes in their relationships came including: A. Mutual analysis for cost reduction B. Mutual product design C. Need for rapid delivery D. Speed of accurate information flow Answer: D QUESTION: 17 As 1980 gave way to the 1990 the world continued to change, forcing additional changes in supply-chain concepts. All of the following statements depict those changes EXCEPT: A. Explosive growth in computer capability applications as ERP. B. Large growth in global competition C. growth in the technological capabilities for product and processes D. Growth in JIT Answer: D QUESTION: 18 To result in optimal performance for customer service and cost, it is felt that the supply chain of activities as an extension of partnership. This implies many issues, but critical one/s include/includes: A. Flow of material B. Flow of information and sharing of information, mostly through the internet C. Fund transfers D. All of these Answer: D QUESTION: 19
CPIM
7
BeITCert
ified.c
om
Take as an example the supply chain of organizations that represent the flow from raw silicon used to make computer chips to the delivery and disposal of the computer itself:
What is illustrated here is but one chain of a set of different component chains that represent a network of suppliers and distributors for a product to manage a supply chain one must: A. Try of efficiently plan material and information flows along each chain to maximize cost efficiency, effectiveness, delivery and flexibility. B. Understand the network of suppliers and customers C. Rapid flows of accurate information and increased organizational flexibility D. All of these Answer: D QUESTION: 20 What was/were the conflict/s in traditional system before the growth of supply chain concept? A. Supply, production and distribution system were organized into separate functions that reported to different departments of a company. B. Often departmental objectives were maximized without considering the effect they would have on other parts of the system. C. Costly distribution systems were these D. Strategy of high inventory pile up was following Answer: A & B
CPIM
8
BeITCert
ified.c
om
QUESTION: 21 To get most profit, a company must have: A. Best customers service B. Lowest production and inventory costs C. Lowest distribution costs D. All of these Answer: D QUESTION: 22 Which of the following help to achieve marketing objectives? A. Maintain high inventories to goods are always available for the customers B. Interrupt production runs so that a non-inventoried item can be manufactured quickly C. Create an extensive and costly distribution system so good can be shipped to the customer rapidly D. All of these Answer: D QUESTION: 23 All of the following are ways to achieve financial objectives EXCEPT: A. Reduce inventory so inventory investment is at a minimum level B. Decrease the number of plants and warehouses C. Extensive distributions system D. Manufacture only to customer order Answer: C QUESTION: 24 Production must keep its operating cost as low as possible this can be done in the following way/ways:
CPIM
9
BeITCert
ified.c
om
A. Make long production runs of relatively few production runs of relatively few products. Fewer Changeovers will be needed and specialized equipment can be used thus reducing the cost of making the product B. Maintain high inventories of raw materials and work-in-process so production is not disrupted by shortages. C. Manufacture only to customer order D. Provide lowest distribution costs Answer: A & B QUESTION: 25
The Question mark represents: A. Inventories
CPIM
10
BeITCert
ified.c
om
B. Payables C. Cost of goods solved D. None of these Answer: A QUESTION: 26 Important way to resolve conflicting objective is: A. To provide close coordination of the supply, production and distribution functions. B. Balance conflicting objectives to minimize the total of all costs involved C. Integrated materials management or logistics organization D. All statements related ones. Answer: D QUESTION: 27 An income statement of a company is as follows: Dollars Percent of sales Revenue (Sales)
$1,00,000 100
Cost of Goods Sold
$500,000 50
Direct material $200,000 20 Direct Labor $200,000 20 Factory Overhead
$200,000
$900,000 90 Gross Profit $100,000 10 If through a well-organized materials management department direct materials can be reduced by 10% and direct labor by 5% the improvements in profits would be: A. 5% B. 6%
CPIM
11
BeITCert
ified.c
om
C. 7% D. 4% Answer: B QUESTION: 28 An income statement of a company is as follows: Dollars Percent of sales Revenue (Sales)
$1,00,000 100
Cost of Goods Sold
$500,000 50
Direct material $200,000 20 Direct Labor $200,000 20 Factory Overhead
$200,000
$900,000 90 Gross Profit $100,000 10 Profit has been increased by 60% to get the in profit by 600,000 by increasing revenue; sales would have to increase to 1.2 million. What will happen with CGS? A. Decrease by 3% B. Increase by 4% C. Decrease by 4% D. Will remain same Answer: A QUESTION: 29 If the cost of direct material is 60%, direct labor is 10%, and overhead is 25%of sales what will be the improvement in profit if direct material is reduced to 55%? A. 5% B. 3% C. 4%
CPIM
12
BeITCert
ified.c
om
D. No improvement Answer: A QUESTION: 30 If the cost of direct material is 60%, direct labor is 10%,and overhead is 25%of sales. How much to give the same increase in profit? (Remember overhead cost is constant) A. 19% B. 18% C. 17% D. 13% Answer: C QUESTION: 31 On the overage a company has 12week of work-in-process (WIP) inventory and annual cost of goods sold of 36$ million. Assuming the company works 50 weeks per year. What is the dollar value of the WIP? A. $4, 32,000 B. $423,000 C. $4, 33,000 D. $4, 22,000 Answer: A QUESTION: 32 On the overage a company has 12week of work-in-process (WIP) inventory and annual cost of goods sold of 36$ million. Assuming the company works 50 weeks per year. If the WIP could be reduced to 5week, and the annual cost of inventory value what would be annual savings? A. $50,000 B. $500,400
CPIM
13
BeITCert
ified.c
om
C. $504,000 D. None of these Answer: C QUESTION: 33 Production planning includes; A. Forecasting B. Master planning C. Material Requirement planning and capacity planning D. All of these Answer: D QUESTION: 34 Production activity control activities in manufacturing planning and control may also be called: A. Shop-floor control B. Capacity planning C. Master planning D. Material Requirement planning Answer: A QUESTION: 35 Inventories are part of planning process and provide buffer against: A. Demand rates B. Production rates C. Differences in demand and production rates D. None of these
CPIM
14
BeITCert
ified.c
om
Answer: C QUESTION: 36 Which one of the following is Not out of five basic inputs to the manufacturing planning and control system? A. Product Description and process specifications B. Customized Design C. Time needed to perform operations D. Available facilities and quantities required Answer: B QUESTION: 37 Engineering drawings and specifications and bill of material are the methods of: A. Product Description B. Process specifications C. Quantities required D. None of these Answer: A QUESTION: 38 As used in material management, bill of material: A. Describes the components used to make the product B. Describes the subassemblies at various stages of manufacture. C. Both of these D. None of these Answer: C QUESTION: 39
CPIM
15
BeITCert
ified.c
om
Process specifications are step-by-step set of instructions describing how the product is made this information is usually recorded an: A. A route sheet B. A Routing file C. Process sheet D. Both A& B are the same Answer: D QUESTION: 40 Route sheet or a routing file gives information in the manufacturing of a product such as: A. Operations required making the product B. Sequence of operations C. Equipment and accessories required D. All of these Answer: D QUESTION: 41 The time needed to perform operation is an important input factor to the manufacturing planning and control system. It is needed to schedule work through the plans, A. Load the plant B. Make delivery promises C. And cost the product D. All of these Answer: D QUESTION: 42 The information for quantities required in manufacturing, planning and control system will come from all of these EXCEPT:
CPIM
16
BeITCert
ified.c
om
A. Forecasts and material Requirement plan B. Customer orders C. Orders to replace finished-goods inventory D. Sequence of operations Answer: D QUESTION: 43 Transportation Distribution inventory Warehousing Packaging Material handling Order Entry These are the activities of: A. physical supply Distribution system B. Virtual supply and distribution system C. Distribution details D. None of these Answer: A QUESTION: 44 Metrics give us: A. Control by supervisors B. Reporting of data to supers and external description C. Product description D. Process specification Answer: A&B QUESTION: 45 Metrics:
CPIM
17
BeITCert
ified.c
om
A. Communicate expectations and motivate people B. Identify problems C. Direct a course of action D. All o0f these Answer: D QUESTION: 46 Today production control works in a demanding environment shaped by six major challenges. Which one of the following is not of those challenges? A. Customer that are never satisfied B. A supply chain that is large and must be manage C. A product life cycle that is getting shorter and shorter D. None of these Answer: D QUESTION: 47 There is difference between measurement and standards, because: A. Performance standards set the goal B. Performance measures say how close you came C. Performance measures set and measure the goals D. Standards are for market analysis Answer: A & B QUESTION: 48 The old saying “What you do not measure, you cannot control”, is as valid today as it was when first stated. The necessary step/s in implementing a successful performance measurement program is/are:
CPIM
18
BeITCert
ified.c
om
A. Establish company goals and objectives B. Define performance C. State the measurement to be used, set performance standards, educate the user and make sure the program is consistently applied D. All of these Answer: D QUESTION: 49 Continuous improvement does not focus on a “one-shot” improvement out on such things as: A. Rate on improvement in quality B. Cost and cost C. Reliability, innovation, effectiveness and productivity D. All of these Answer: D QUESTION: 50 If the cost of manufacturing (direct material and direct labor) is 60% of sales and profit is 10% of sales ,what would be the improvement in profit if, through better planning and control, the cost of manufacturing was reduced from 60%of sales to 50%of sales? A. 100% B. 70% C. 50% D. 10% Answer: A QUESTION: 51 Considering the above question how much would sales have to increase in profits? A. 50%
CPIM
19
BeITCert
ified.c
om
B. 25% C. 20% D. 10% Answer: B QUESTION: 52 On the average a firm has 10 weeks of work-in-process and annual cost of goods sold is $15 million. Assuming that, the company works 50 weeks a year. What is the dollar value of the work-in-process? A. 1,000,000 B. 1,000,500 C. 1,500,000 D. None of these Answer: C QUESTION: 53 In the above question, if the work-in-process could be reduced to 7 weeks and the annual cost of carrying inventory was 20% of the inventory value, what would be annual saving? A. $ 80,000 B. $ 70,000 C. $ 90,000 D. $ 60,000 Answer: C QUESTION: 54 Which of the following is/are included in five major levels in the manufacturing planning and control system? A. Strategic business plan B. Production plan
CPIM
20
BeITCert
ified.c
om
C. Master production schedule D. All of these Answer: D QUESTION: 55 Each level of MPC (Manufacturing planning and control) differs in the following: Purpose of the plan Planning Horizon Level of detail Planning Cycle Since each level is: A. For different time span B. Responsible for satisfying market demand C. For different purposes D. Both A and C Answer: D QUESTION: 56 1) What are the priorities-How much of what is to be produced and when? 2) What is available capacity-What resources do we have? 3) How can differences between priorities and capacity be resolved? These questions must be answered: A. During material resource planning B. During priority planning C. At each level of MCP D. During capacity planning Answer: C QUESTION: 57 Strategic business plans are usually reviewed
CPIM
21
Recommended
