CPIM Module 4 C

Based on the information provided below, what is the standard cost to produce one unit based on a batch quantity of 1,000? 10.54 10.81 10.9 11.53

10.81 (8 x 60 + 1 x 60 + 8 x 30 + 1 x 30)/1,000 + 10 = 10.81

Using the information provided below, what is the cumulative input deviation at the end of period 5? 40 80 120 200

120

What is a likely reason why a process is said to exhibit signs of being out of control if 13 points are on one side of the median? 13 points should be equally likely to occur on both sides of the median. 13 is a typical number used for plotting and is easy to remember. 13 points can easily be plotted in a two-shift or two-day operation. 13 points are statistically required in order to calculate a new median.

13 points should be equally likely to occur on both sides of the median. The average of all points should approximate the median. Points all on one side are showing a tendency of heading out of control.

Based on the information provided below, what is the productivity of the work center? Total hours worked—480Planned labor—420 standard hours/weekStandard labor cost—$5/standard hour 83% 89% 94% 120%

94% Based on the data, the actual output (hours charged) is 250 + 100 + 100 = 450. The actual input (total hours worked) is 480. Production = 450/480 = 94%.

A company manufactures and assembles large systems with a lead time of four months. Shipments are scheduled toward the end of each month, and backlog ensures that shipments are fairly leveled each month. What is indicated by a weekly work-in-process report showing a decrease? Throughput is increasing. Queue times are decreasing. A system has been completed. There is a reporting mistake.

A system has been completed. Work in process would decrease as systems are completed and shipped.

Which of the following is least likely to focus on throughput? Theory of constraints Lean manufacturing Total quality management Activity-based costing

Activity-based costing Activity-based costing is focused on the actual costs incurred for one item.

Which of the following labor reporting elements is most important to a continuous improvement program in a standard cost environment? Actual setup hours Standard production order hours Standard internal setup hours Actual run hours

Actual run hours

Which of the following causes of variation does statistical process control (SPC) attempt to detect before defective items are produced? Assignable Machine Chance Environmental

Assignable SPC measures one or more elements where causes of variation can be determined and corrected.

The input/output report for a work center in the current period is showing an input queue at the work center. What is the most appropriate action? Decrease the work center input. Increase the work center output. Check the cumulative input/output report. Re-run capacity requirements planning.

Check the cumulative input/output report.

Which of the following types of causes of process variation indicates that the process is under control and subject only to uncontrollable everyday factors such as temperature and humidity? Assignable cause Special cause Nominal cause Common cause

Common cause

What are process capability studies based on? Analysis of form, fit, and function Overall equipment effectiveness (OEE) Comparisons between tolerances and variation Input/output control charts

Comparisons between tolerances and variation

In order to reduce process variability, what should a company do first? Tighten up the tolerances. Use statistical sampling to find defects. Determine the cost of quality. Conduct a process capability study.

Conduct a process capability study. A company should first conduct a process capability study to determine whether a process can be maintained within a tolerance.

A company is going to evaluate the quality performance of several suppliers over a 120-day period, and the initial measure will be the acceptance rate of each incoming lot. Which of the following would be most appropriate to use to track the suppliers' performance? Flowchart Histogram Scatter diagram Control chart

Control chart A control chart is a graphic comparison of process performance data used to detect assignable causes of variation in the process. By using control charts, the company can evaluate the average acceptance rates, any trends, and whether the acceptance rates vary or remain stable for each supplier.

Which of the following techniques best shows the measure of variability within boundaries? Run chart Scatter diagram Check sheet Control chart

Control chart Control charts provide limits for checking that a process is within a tolerance or boundary.

Which of the following data collection points serve two purposes in a pull environment that has machining and assembly lines and receives material directly to point-of-use areas? Operation start and completion dates Count points Statistical process control points Order start and completion dates

Count points Count points identify the number of units passing the point and can also be used to backflush the inventory consumed up to that point that has not already been issued.

Which of the following is a typical measure for the SCOR metric reliability? Average lateness of orders Actual versus theoretical throughput time Customer satisfaction score Time to increase activity rate

Customer satisfaction score

Which of the following statements about process quality is true? All variations can be controlled in some way. Defects further down the process cost more. Quality can be inspected into a product. Statistical process control determines quality criteria.

Defects further down the process cost more.

A statistical control chart has displayed one reading below the mean but within the upper and lower control limits. What action should be taken? Adjust the mean. Stop the operation to review the tolerances. Do nothing, but continue to monitor the operation. Ignore the reading.

Do nothing, but continue to monitor the operation. Statistical control charts are used to identify trends, which have not occurred yet with only one reading.

A highly engineered product was introduced a few years ago, with standards defined, bills of material and routings finalized, and work centers set up to minimize material handling. Major improvements in cycle time have been made. What information is most likely to need to be changed? Engineering standards and work center output Bills of material and routings Routings and work center capacity Cycle time and bills of material

Engineering standards and work center output

An operator can assemble a product at a rate of 30 units per hour. What is the throughput time? .5 minute 1 minute 2 minutes 1 hour

2 minutes 60 minutes/30 units = 2 minutes per unit. Throughput time is also called cycle time.

There are four production kanban cards for part A, two for part B, and then two more for part A. Quantity per kanban is 50 units. Safety stock is equal to one kanban quantity for parts A and B. What production occurs based on this information? 200 part A, 100 part B, 100 part A 250 part A, 150 part B, 150 part A 300 part A, 100 part B 350 part A, 150 part B

200 part A, 100 part B, 100 part A Production occurs in the exact sequence and quantity specified by the kanban cards.

A product can be produced at a rate of two per minute. This is known as: cycle time. delivery time. lead time. cumulative lead time.

cycle time.

The kanban system is responsible not only for implementing the production schedule but also for: replacing the annual physical inventory process. eliminating the need for a raw material or component warehouse. facilitating the material requirements plan. facilitating the continuous improvement of execution and control.

facilitating the continuous improvement of execution and control.

A supplier corrective action program should be used to: help identify root causes of problems and correct them. correct invoices that do not match their purchase orders. provide a way for suppliers to communicate buyer issues to management. process credit memos.

help identify root causes of problems and correct them.

A major airline has achieved considerable cost savings with its mastery of fast turnarounds of planes at the gate. This is an example of improvements from: vertical integration. improved labor conditions for gate personnel. supply chain redesign. improved efficiencies.

improved efficiencies.

Based on the theory of constraints, the capacity of a work center can be managed most effectively by: increasing utilization of bottlenecks. increasing utilization of non-bottlenecks. decreasing utilization of bottlenecks. decreasing utilization of non-bottlenecks.

increasing utilization of bottlenecks. Maximizing the utilization of constraints is the primary method of ensuring that the maximum capacity can be realized.

Introducing incremental improvements to an existing system is known as: kaizen. heijunka. hoshin. andon.

kaizen.

Records for a part dimension over time show that it has a single mean and that values tend to cluster around the mean. This type of distribution is likely to be referred to as: z-bar. normal. Pareto. binomial.

normal.

Variability refers to a characteristic of: causes. standards. processes. statistical process control.

processes. Variability is related to the output of a process, and in a process capability analysis it can be measured by how well centered the results are around the mean and whether the results are tightly or loosely grouped. Processes are measured to determine their variability.

In hopes of achieving strategic goals, executives may: provide resources for only those projects that facilitate accomplishing strategic goals. engage specialists to lobby the government in hopes of attaining special tax breaks. pit one department or group against another in hopes of instilling competition. initiate a public relations organization to advertise the company's strategic objectives.

provide resources for only those projects that facilitate accomplishing strategic goals.

Feedback of production information in a company using kanbans is most likely to exclude: production quantity completed. number of units that were reworked. quantity produced in excess of target. scrap by quantity and operation.

quantity produced in excess of target. Production beyond what is needed to complete a kanban quantity is not allowed.

Manufacturing lead times can be reduced by: reducing input at bottleneck work centers. ensuring that there is a backlog of work so that no machines are idle. reducing planned queue times at work centers. increasing the number of operators at the work center.

reducing planned queue times at work centers. Queue time makes up most of the lead time, so reducing what is planned will reduce the amount of time the product is in process.

Corrective actions are defined as: the implementation of solutions to reduce or eliminate problems. changes to the general ledger to fix incorrect entries. adjustments to inventory balances based on cycle counts. the discipline of employees for nonconformance.

the implementation of solutions to reduce or eliminate problems.

A lot undergoing acceptance sampling inspection is most likely accepted because: the sample conforms to the sampling plan with respect to defects. no part variability outside of three standard deviations is detected. the sample shows a quality issue but there is a need for the parts in production. the sample measured values can be statistically compared to nominal values.

the sample conforms to the sampling plan with respect to defects. The sampling plan identifies the criteria for acceptance and rejection.

Standard activities producing differing results is an example of: conformance. rejection. variation. common cause.

variation. Variation is a change in data, a characteristic, or a function.

Which of the following performance measure areas is excluded from any measure of variance? Utilization Efficiency Actual run time External setup time

External setup time

What is a good method for mitigating an out-of-control internal manufacturing process? Fact finding, educating, empowering, observing, adjusting, and repeating Hiring a public relations consultant Using the supplier of the raw materials as the temporary scapegoat Hiring more quality personnel

Fact finding, educating, empowering, observing, adjusting, and repeating

Producing a consistently high-quality product requires which of the following actions? Focusing on an error-free process Increasing the amount of sampling Implementing preventive maintenance Using automated inspection equipment

Focusing on an error-free process Monitoring and controlling the process prevents the production of defects by tracking assignable causes of variation and watching for trends toward out-of-control processes.

Which of the following characteristics are desirable in a system measuring overall plant productivity? I. Visibility of multiple manufacturing resources II. Identification of factors for improving throughput III. Presentation of data in discounted dollars IV. Detailed analysis of labor variances I and II I and III II and IV I, II, and IV

I and II Visibility of multiple manufacturing resources and identification of factors for improving throughput provide for the measurement of overall plant productivity.

Which of the following is a downside associated with linking corporate financial incentives to specific performance objectives? If the objectives are not long-term, executives may follow risky strategies, hoping to increase short-term earnings. Since executives always focus on long-term strategies, there are typically few downsides. Executives always prioritize financial goal achievement over sustainability goals. While achieving their goals, executives may not communicate deep enough into the organization.

If the objectives are not long-term, executives may follow risky strategies, hoping to increase short-term earnings.

Which of the following statements is most true of a one-card kanban system? The card quantity is equal to a one-day supply. It can use a visual signal instead of a card. The two operations are not in line-of-sight. It uses one combination move/production card.

It can use a visual signal instead of a card.

Why would floor stock not appear on a pick list? It has already been issued to production. It is easily misplaced. It needs to be available to all employees. It is always backflushed.

It has already been issued to production.

Which of the following techniques encourages suppliers to adopt lean principles? Kanban Random storage Point-of-use Dedicated storage

Kanban Kanban is the only response that would impact suppliers; the others would be in-house.

Which of the following may cause errors in a sales forecast based solely on shipment history? Machine downtime Exponential smoothing Changes in customer demand Changes in the demand time fence

Machine downtime Machine downtime may cause shipments to be missed even though they were part of customer demand.

Pull systems have which of the following advantages over push systems? Product designs are more robust. End item customer satisfaction is higher. End item production output is higher. Material tracking on the shop floor is decreased.

Material tracking on the shop floor is decreased.

What is the most likely cause of greater input than output at a work center on an occasional basis? Normal variability in the execution process Planning using the wrong work center capacity Less output than planned at the work center Less output than planned at the previous work center

Normal variability in the execution process

What is an important transaction point in both push and pull environments? Setup completion and start of production order Order completions at departmental boundaries Out-of-stock condition based on satisfying a customer order Cycle count adjustments based on a planned cycle

Order completions at departmental boundaries Departmental boundaries commonly act as costing points, regardless of whether pull or push is being used.

A company operates in a pull environment with final assembly lines in synchronous mode. Subassemblies maintain buffers ranging from hours to days. What would be a global production performance measurement? Standard hours compared to actual hours Planned number of setups compared to actual setups Planned throughput rate compared to actual rate Planned order completions compared to actual completions

Planned throughput rate compared to actual rate

A company produces products that are unique and highly customized. Which of the following methods for costing should be used for each product they produce? Direct costing Standard costing Project costing Activity-based costing

Project costing

Which of the following invalidates acceptance sampling for purchased items? Multiple lots from the supplier are received together but inspected separately. Receipts from multiple suppliers are included in the inspection lot to speed up the process. The sample quantity is selected based on the lot quantity indicated on the packing slip. The sample quantity is specified by the computer and randomly selected per the quality plan.

Receipts from multiple suppliers are included in the inspection lot to speed up the process.

Which of the following actions is most likely to be a quality initiative at an operation? Removing non-conforming parts from the line at the operation where a defect occurs Removing defective products from the line at the point where the defect is found Encouraging employee involvement and improvement programs Ensuring 100% quality at the source of incoming inspection

Removing non-conforming parts from the line at the operation where a defect occurs

Which of the following improvements is most difficult to achieve with a well-implemented continuous improvement program? Lot size reduction Run time reduction Workplace organization Safety stock reduction

Run time reduction Run time reduction may require new equipment, part design, new methodologies, etc.

What is a likely reason for performing acceptance sampling on a supplier receipt of 1,000 resistors? Testing 100% of the resistors is too expensive. The lot has come from multiple production runs. Testing a resistor is a destruct-test process. Sampling can be used to accept or reject the lot.

Sampling can be used to accept or reject the lot. Acceptance sampling uses statistics to determine a sample size based on the receipt quantity. The entire lot doesn't need to be tested using this statistical logic.

Which of the following performance measures is most appropriate for a lean enterprise? Labor utilization Management involvement Inventory accuracy Schedule attainment

Schedule attainment

When measuring shop floor performance, which method will encourage not producing unwanted product? Efficiency Utilization Productivity Schedule completion

Schedule completion

The actual cost of an order can be different from its standard cost because of which of the following factors? Scrap Maintenance Tooling Queue

Scrap

Which of the following measurements remains the same regardless of what is reported for performance? Efficiency Utilization Actual hours Standard hours

Standard hours Standard hours are based on a work center and production quantity.

In the theory of constraints, which of the following actions best reduces work-in-process (WIP) inventory on the shop floor? Identifying the constraint to the system Subordinating all else to the constraint to the system Deciding how to exploit the constraint Elevating the constraint to the system

Subordinating all else to the constraint to the system Once a process constraint has been identified, WIP is reduced by reducing all load to be equal to the allowable capacity found at the constrained process. Any load released to the manufacturing floor that is greater than the constrained process capacity will simply end up as excess load. Identifying process constraints is the first step in WIP reduction. Maximizing the constraint means that planners will search for alternative methods for working around the constraint so that productivity can actually be increased.

In its haste to roll out new products, marketing often sells product too early and promises delivery dates that are unworkable. What is a good way to prevent this type of failure? Punish the marketing people with a negative hit to their bonuses. Systematically prevent any orders from being accepted until the product is fully released, carefully monitor published lead times, and ensure that operations has a say in the release. Track how often marketing sells product prematurely and use this information as justification for introducing remedial training. Appease the affected customers with promises of future discounts.

Systematically prevent any orders from being accepted until the product is fully released, carefully monitor published lead times, and ensure that operations has a say in the release.

A component stockout has occurred, and production has substituted a higher-priced alternate. What is the effect on cost variance? The alternate is charged at standard cost, so there is a total cost variance. The alternate is charged at the original part's standard cost, so there is no variance. There is no cost variance due to the second part being a valid alternate. The alternate is charged at standard cost, so there is no variance.

The alternate is charged at standard cost, so there is a total cost variance.

Which of the following is true of the capability index? The higher the capability index, the greater the number of rejects. The higher the capability index, the fewer the number of rejects. The higher the capability index, the greater the upper specification limit. The higher the capability index, the lower the upper specification limit.

The higher the capability index, the fewer the number of rejects.

Which of the following benefits is the most likely reason for reducing internal setup time when implementing continuous improvement? The number of kanbans in the process can be reduced. There are fewer activities where a mistake can be made. The lot quantity per kanban can be reduced. Shorter cycle times can be quoted to the end customer.

The lot quantity per kanban can be reduced. The lot quantity can be reduced due to being able to perform more frequent setups.

What is the most likely reason for waiving inspection on a purchased receipt? The receipt is a replacement for one previously rejected. The part passed inspection six times in a row. The material is holding up production at the bottleneck. The lot quantity is too small to select a random sample from.

The part passed inspection six times in a row. Part of acceptance sampling is to determine when the need for sampling can be reduced or eliminated.

What is indicated if the Cp process capability index is 1.8? The standard deviation is 1.8/9, or .2. The distribution is off the nominal center line by 1.8 sigma. The process is capable. Special cause variation is not being controlled or eliminated.

The process is capable. Cp is calculated by dividing the difference between the upper specification limit (USL) and the lower specification limit (LSL) by 6 times the standard deviation. Cp assumes that the process is centered between the upper and lower specification limits. If the Cp is greater than 1.00, the process is capable.

One point is outside of the upper control limit for a process. Which of the following statements is most applicable to this situation? The point needs to be checked to see if it is a special cause. The upper control limit may be set too tight for the process. The process shows an indication of being out of control. The process has gone out of control.

The process shows an indication of being out of control.

Which of the following generally applies to only a limited number of parts when determining the number of kanban containers and their quantities? The quantity per kanban should ensure that move frequency remains constant. The number of production kanbans is reduced through continuous improvement efforts. The number of kanbans is a function of the work-in-process target. The quantity per kanban may be a range between a one-hour supply and a 20-day supply.

The quantity per kanban should ensure that move frequency remains constant.

Which of the following results is indicated as the standard deviation becomes smaller through continuous improvement efforts? The sample mean is moving closer to the standard deviation. The entire process is moving from non-capable to capable. Chance causes of variation are being systematically reduced. The range related to deviation is being systematically reduced.

The range related to deviation is being systematically reduced. The range is a measure of +/- 3 standard deviations. It gets smaller as the standard deviation gets smaller.

What is a key rule for operations performance measures? They must align with the company's overall goals. They must be consistent year after year. They must be easily viewed on charts. They must focus on a department's positive performance.

They must align with the company's overall goals.

What is the most important reason for knowing and reporting throughput? Throughput per hour can be used to monitor continuous improvement at a work center. Throughput can vary due to the time period being reported when capacity is underutilized. Throughput measures capability in addition to reporting production status. Throughput is a good measure for reporting to external stakeholders.

Throughput measures capability in addition to reporting production status.

What is a primary reason to use statistical process control (SPC) on an operation that is in a state of statistical control? To define the specification limits for parts To track parts acceptance To detect special cause variation To reduce the operation cycle time

To detect special cause variation SPC applies statistical methods to measuring and analyzing variation in a process. It detects abnormalities in a process or special (assignable) causes of variation.

What is the objective of performance measurements? To provide information for finance To provide benchmarking for other companies To determine if the operation is meeting or exceeding expectations To reward employees for jobs well done

To determine if the operation is meeting or exceeding expectations

Which of the following is a reason for basing incoming inspection on acceptance sampling? To determine whether 100% inspection is required to separate defective parts from good parts To develop a quality history for each supplier part that can be used to evaluate performance To infer lot acceptability from the sample and take defined actions per the quality plan To reduce part unit cost by eliminating the need for a supplier to inspect the part

To infer lot acceptability from the sample and take defined actions per the quality plan

Which of the following actions minimizes or eliminates wasteful activities in an operation? Converting internal to external setup activities Mistake-proofing the external setup activities Using statistical process control Eliminating external setup activities

Using statistical process control Statistical process control is a method of quality control in which statistical methods are used to monitor and control a process. This ensures that the process operates at its full potential and can make as much conforming product as possible with a minimum (if not elimination) of waste, rework, and scrap.

What is a significant difference between absorption costing and variable costing? Variable costing captures all costs of production. Variable costing should not be used for make-or-buy decisions. Variable costing does not assign fixed factory overhead to the product. Variable costing assigns a portion of fixed factory overhead to the product.

Variable costing does not assign fixed factory overhead to the product. Variable costing is an inventory valuation method in which only variable production costs are assigned to the product; fixed factory overhead is not assigned to the product.

Charting the process average can best be done using which of the following types of charts? P Median X-bar S

X-bar An X-bar chart is a control chart in which the subgroup average is used to evaluate the stability of the process level.

A company should use which of the following techniques to maintain control of a process? X-bar chart Histograms Ishikawa diagram A3 problem solving

X-bar chart An x-bar chart is a control chart in which the subgroup average, X-bar, is used to evaluate the stability of the process level.

A synchronized production principle that determines the size of the production batch as compared to other quantities is that the production batch is equal to: the order quantity. a multiple of the transfer quantity. the bottleneck yield quantity. the work center activation quantity.

a multiple of the transfer quantity. The production batch and the transfer batch need to be logically interrelated. The needs of production at a work center may dictate the production batch size; the transfer batch will then be some evenly divisible portion of the production batch so that each transfer batch can be exactly the same size. In other cases, such as in lean systems, the size of the transfer batch may dictate the size of the production batch, such as when the transfer batch is the same as or some multiple of the kanban quantity of the next work center.

A satisfactory quality average used during sampling inspection is called the: perceived quality. first article inspection. first pass yield. acceptable quality level (AQL).

acceptable quality level (AQL). For the purposes of sampling inspection, an acceptable quality level is the limit of a satisfactory process average.

To detect when a work center's output might vary from the plan, the planner should compare: planned output to planned input. actual output to planned output. actual input to actual output. actual input to planned input.

actual input to planned input.

An electronic board that provides visibility of floor status and supplies information to help coordinate the efforts of linked work centers is: a kanban. jidoka. a heijunka. an andon.

an andon. An andon is an electronic board that provides visibility of floor status and supplies information to help coordinate the efforts of linked work centers.

Establishing standards and performance measurements for warehousing is important in order to: report performance to the central supply warehouse management. base compensation on achievement of standards. eliminate disagreements on what utilization and efficiency should be. benchmark daily activities and guide continuous improvement.

benchmark daily activities and guide continuous improvement.

Quality can be defined as: within one standard deviation of the mean. six sigma. zero defects. conformance to requirements.

conformance to requirements.

Statistically determined lines on a control chart are called: control limits. axes. standard deviations. medians.

control limits. Control limits are statistically determined lines on a control chart.