Part 1: Business-wide Concepts
1) Many different end items are made from a small number of components. What manufacturing environment would this be? a) Make-to-stock b) Make-to-order c) Assemble-to-order d) Engineer-to-order 2) A company is beginning a project to implement a Six Sigma program. If the company is going to be successful, which of the following is most necessary? a) Six sigma black belt b) CEO support c) Statistics training d) CPIM certified managers 3) In a lean manufacturing environment, which of the following would be considered waste? a) Set up b) Queue time c) Operation time making saleable parts d) Process charting 4) The key component to quick changeovers is: a) dramatically reduced set up times. b) availability of materials to run when the changeover is complete. c) expensive machines which changeover automatically. d) Large enough lot sizes so changeovers are not critical. 5) Which of the following would not be included in the cost of quality? a) Inspection time and materials b) Quality control procedures c) Supplier audits d) Material costs 6) Based on the data, (revenue in millions) what is the growth rate for this company from 2002 to 2006? 2002 2003 2004 2005 2006 Revenues ($) 200 250 300 350 400 Margin ($) 10.0 8.0 9.0 7.0 8.0 a) 40% b) 60% c) 100% d) 200%
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CPIM BSCM DC Practice Exam Mod 1 Form A 7) Which of the following is a reason to maintain inventory? a)Improve customer service b)Reduce transportation costs c) Increase machine operating time d) Reduce costs
8) In order to maximize profit, a company must have all of the following objectives except: a) Best customer service b) Most accurate production forecast c) Lowest inventory investment d) Lowest distribution cost 9) TPM, Total Productive Maintenance, is used to ensure: a) maximum machine up-time and flexibility. b) emergency repairs are done quickly. c) maintenance technicians are being productive. d) only preventive maintenance is done. 10) In a flow manufacturing environment, product will generally flow consistently and constantly. As a result, there is little time to do inventory transactions to record the movement of parts through the line. To overcome this, many companies record their inventory by using: a) pre-flushing. b) Kanban. c) cycle counts. d) backflushing. 11) The inventory turns ratio measures: a) the amount of inventory needed to support sales growth. b) obsolete inventory as a percent of sales. c) how effectively inventory is being used. d) the amount of space needed to store inventory. 12) In a JIT manufacturing environment, waste can be described as: a) component scrap. b) overtime. c) any process which does not add value. d) any overhead process. 13) A company is planning to add new distribution channels, in new geographic regions, and new products to support this initiative. This information would most likely be found in the company's: a) strategic plan. b) financial plan. c) production plan. d) supply chain plan. Page 2 of 20
CPIM BSCM DC Practice Exam Mod 1 Form A
14) A company is operating as a lean manufacturer. Which of the following functions are still, most likely, needed from their ERP system? a) Forecasting and material planning b) Inventory issues to a work order c) Accounting for each part d) Advanced planning and scheduling 15) In a JIT environment, where work cells are being deployed, the cells should always be set up in which of the following? a) U shape b) Straight line c) Half square d) Shape that makes sense 16) Over the last decade, companies have implemented ERP systems to enhance their business processes. A key part of ERP which contributes to the business process improvement is the: a) cross functional integration. b) supplier portal capability. c) enhanced scheduling capability. d) integrated financial process. 17) If a...