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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.
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SMR : Question Problems.
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CPIM(Certified In Production & Inventory Management)
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.
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SMR : Question Problems.
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).
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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CPIM(Certified In Production & Inventory Management)
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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SMR : Question Problems.
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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CPIM(Certified In Production & Inventory Management)
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.
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.
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SMR : Question Problems.
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.
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CPIM(Certified In Production & Inventory Management)
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.
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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SMR : Question Problems.
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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CPIM(Certified In Production & Inventory Management)
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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SMR : Question Problems.
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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CPIM(Certified In Production & Inventory Management)
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.
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SMR : Question Problems.
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.
59. Which of the following is generally MOST complex resource profile when run the RCCP ?
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CPIM(Certified In Production & Inventory Management)
60. Which of the following is MOST effective in unit cost reduction by set up time reduction ?
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 ?
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SMR : Question Problems.
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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CPIM(Certified In Production & Inventory Management)
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.
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SMR : Question Problems.
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.
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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CPIM(Certified In Production & Inventory Management)
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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