Staging in a manual system corresponds to which of the following functions in a computer system?
In a make-to-order (MTO) environment, inputs to sales and operations planning (S&0P) should include the:
Answer : A
In a make-to-order (MTO) environment, the production process is triggered by customer orders, which means there is no finished goods inventory or work-in-process inventory to consider in the sales and operations planning (S&OP) process. The available-to-promise (ATP) data is not an input to the S&OP process, but rather an output that indicates the quantity and date of products that can be promised to customers based on the current supply plan. The projected backlog of customer orders, on the other hand, is an important input to the S&OP process, as it reflects the current and future demand for the products and services offered by the organization. The projected backlog can help the organization plan its capacity, resources, materials, and delivery schedules to meet customer expectations and optimize profitability.Reference: CPIM Part 2 Exam Content Manual, Domain 3: Plan and Manage Demand, Section 3.1: Demand Management Concepts and Tools, p. 27-28.
Fishbone diagrams would help a service organization determine:
Answer : B
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.Reference: 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.
Which of the following approaches is most effective in communicating operational performance?
Answer : C
Visual control boards are tools that display the key performance indicators (KPIs) and metrics of a production system in a graphical and easy-to-understand format. Visual control boards are usually located at several locations within the production facility, such as the work centers, the shop floor, or the management office. Visual control boards help to communicate operational performance by providing real-time and relevant information, enabling quick feedback and corrective actions, and promoting transparency and accountability.
The other options are not the most effective approaches in communicating operational performance. Quality performance measures are indicators that evaluate the degree to which the products or services meet or exceed the specifications and standards. Quality performance measures are important for communicating operational performance, but they are not sufficient, as they do not cover other aspects of performance, such as cost, time, or customer satisfaction. Reviewing conformance to schedule is a method of comparing the actual production output with the planned production output, based on the master production schedule or the material requirements plan. Reviewing conformance to schedule is useful for communicating operational performance, but it is not timely, as it is usually done after the production is completed, and it does not provide enough details or explanations for the deviations or variances. Monthly meetings with employees are events that involve discussing and reviewing the operational performance with the staff members who are involved in the production process. Monthly meetings with employees are beneficial for communicating operational performance, but they are not frequent, as they are only held once a month, and they may not be effective, as they may lack participation or engagement from the employees.
When forecasting the demand for a product, the highest percentage of error will occur at the:
Answer : D
The question is about forecasting the demand for a product, and the options are different levels of aggregation or disaggregation. The highest percentage of error will occur at the most disaggregated level, which is the field warehouses. The field warehouses are the locations where the finished products are stored and delivered to the customers. The demand at the field warehouses is affected by various factors, such as customer preferences, seasonality, promotions, and competition. The demand at the field warehouses is also more volatile and uncertain than the demand at the higher levels of aggregation, such as the market segment or the central warehouse. Therefore, forecasting the demand at the field warehouses will have the highest percentage of error, which means that the forecast will deviate more from the actual demand.
The other options are not the levels where the highest percentage of error will occur. The master schedule is not a level of aggregation or disaggregation, but a plan that specifies the quantity and timing of finished products to be produced in a given period. The master schedule is based on the forecasted demand, the customer orders, and the production capacity. The master schedule does not have a percentage of error, but it may have a variance or deviation from the actual production output. The market segment is a level of aggregation that groups the customers or products based on their common characteristics or needs. The market segment is a higher level than the field warehouses, and it has less variability and uncertainty in demand. Therefore, forecasting the demand at the market segment will have a lower percentage of error than forecasting at the field warehouses. The central warehouse is a level of aggregation that consolidates the inventory from different sources and distributes it to different destinations. The central warehouse is a higher level than the field warehouses, and it has less variability and uncertainty in demand. Therefore, forecasting the demand at the central warehouse will have a lower percentage of error than forecasting at the field warehouses.
Which of the following actions will result in lower inventory levels?
Answer : B
What is the shortest manufacturing lead time required for 10 units of Item A assuming that it must complete Operations 10, 20, and 30 in a work cell, and these operations require no set up time''?
Answer : B
Manufacturing lead time = Preprocessing time + Processing time + Postprocessing time
In this question, we are given the following information:
The product is Item A, which requires Operations 10, 20, and 30 in a work cell
The order quantity is 10 units
The operations require no set up time
The processing times for each operation are:
To find the shortest manufacturing lead time, we need to assume that the preprocessing and postprocessing times are zero, and that the operations can be performed in parallel. This means that the work cell can process 10 units of Item A simultaneously, without any waiting or transportation time.
Therefore, the shortest manufacturing lead time is equal to the longest processing time among the three operations. Since Operation 10 has the longest processing time of 1 hour per unit, the shortest manufacturing lead time is:
Manufacturing lead time = 1 hour x 10 units = 10 hours
However, this answer is not among the options given. Therefore, we need to consider another possibility: that the work cell can only process one unit of Item A at a time, and that the operations must be performed in sequence. This means that each unit of Item A must complete Operation 10 before moving to Operation 20, and then to Operation 30. In this case, the shortest manufacturing lead time is equal to the sum of the processing times for all three operations multiplied by the order quantity. Therefore, the shortest manufacturing lead time is:
Manufacturing lead time = (1 hour + 0.5 hour + 0.5 hour) x 10 units = 20 hours
However, this answer is also not among the options given. Therefore, we need to consider one more possibility: that the work cell can process one unit of Item A at a time, but that the operations can be performed in parallel with overlapping times. This means that as soon as one unit of Item A finishes Operation 10, it moves to Operation 20, while another unit of Item A starts Operation 10. Similarly, as soon as one unit of Item A finishes Operation 20, it moves to Operation 30, while another unit of Item A starts Operation 20. In this case, the shortest manufacturing lead time is equal to the sum of the processing times for all three operations plus the processing times for each operation multiplied by the order quantity minus one. Therefore, the shortest manufacturing lead time is:
Manufacturing lead time = (1 hour + 0.5 hour + 0.5 hour) + (1 hour + 0.5 hour + 0.5 hour) x (10 units - 1) = 12 hours
This answer is among the options given and it is the shortest possible manufacturing lead time under these assumptions. Therefore, the correct answer is B. 12 hours.