CPIM Module 2 G

A master schedule with too short a horizon will result in: release of past-due messages on planned assembly orders. release of past-due messages on planned material orders. less master production schedule flexibility. the need to allocate materials to orders further into the future.

release of past-due messages on planned material orders. If the master production schedule is too short, purchase orders will generally have to be placed in less-than-normal lead time.

Using the information provided below, what are the available-to-promise quantities for periods one through five? 0, 31, 22, 10, 22 5, 9, 0, 0, 2 5, 24, 14, 4, 24 5, 34, 24, 13, 33

5, 9, 0, 0, 2

A company has 20 product families consisting of a total of 500 end items. There is demand for all 500 items over the planning horizon; however, 100 of the items do not have demand for the next four weeks. How many items should be master-scheduled? 500 400 20 0

500 Since there is demand for all 500 items within the planning horizon, all should be scheduled.

Which of the following elements related to closing the demand/supply loop is most likely to be included within rough-cut capacity planning? Final assembly Constraining operations Bottleneck work centers Theoretical capacity

Bottleneck work centers Rough-cut capacity planning is at the key or bottleneck work center level.

Which of the following best measures the production operation's contribution to delivery reliability? Cycle time per part Direct labor hours per product Percentage of master schedule achieved Number of customer complaints

Percentage of master schedule achieved

If the master production schedule (MPS) is overstated, then: raw material inventories will increase. shop floor priorities will be easier to schedule. material requirements planning output will be inconsistent with the MPS. work-in-progress inventories will decrease.

raw material inventories will increase.

The standard hours of load placed on a resource within a time period is the: bill of resources. resource calendar. resource profile. resource driver.

resource profile.

The final assembly schedule (FAS) takes place when: the customer's order is received. there are few options. the forecast is fixed. the component level is fixed.

the customer's order is received.

In an assemble-to-order environment, the number of assemblies is most influenced by: the manufacturing lead time. the master production schedule. the final assembly combinations. the structure of the bill of material.

the structure of the bill of material.

Which of the following statements best applies to the master production schedule (MPS)? The MPS defines the daily quantities for production execution and control. The MPS is represented as a single aggregate line for all of a company's products. Each MPS is directly translated into the product quantity and time period from the production plan. Each product is represented as a quantity per time period and is consistent with the production plan.

Each product is represented as a quantity per time period and is consistent with the production plan.

Which of the following choices will improve a company's responsiveness to customer demand? Large lot sizes Increased productivity Two-level master schedule Drum-buffer-rope

Two-level master schedule A company using a two-level master schedule would have flexibility in operations based on actual demand.

Within the demand time fence used by master scheduling, how much of the forecast demand from sales and operations planning is included? 0 1 Lesser of customer orders or forecast Greater of customer orders or forecast

0 Only customer orders are included within the demand time fence.

Using the information provided below, which periods would have a master schedule quantity? 1, 2, 3 1, 2, 3, 4, 6, 7 1, 2, 4, 5, 6, 8 1, 3, 4, 7

1, 2, 4, 5, 6, 8

Based on the information below, what would the cumulative available-to-promise quantity be in the first period? 0 units 75 units 125 units 145 units

125 units The cumulative available-to-promise quantity in the first period is equal to the on-hand inventory (which is 225) plus the master production schedule (MPS, which is 0) minus the sum of orders until the next MPS (80 + 20); 225 + 0 - 100 = 125.

↵Using the information provided below, what is the available-to-promise quantity in period 2? Period 12345678 Forecast 2021202224262828 Customer Orders 1920212125242018 Projected Available Balance20 Available-to-Promise Master Production Schedule 50 50 50 50 -19 9 31 50

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Which of the following performance measures is of no use to the management of a make-to-stock company with regard to master scheduling and sales and operations planning? Achievement of the backlog plan On-time shipment per the promise date Order completion per the master schedule Adherence to the inventory plan

Achievement of the backlog plan A make-to-stock environment uses an inventory plan, not a backlog plan.

A product shortage exists across a distribution network. Which of the following techniques is the best use of the available inventory? Drop shipping Available-to-promise Expediting Allocation

Allocation A limited quantity of inventory can be allocated to one or more orders until it has all been consumed.

Using both a master production schedule and a final assembly schedule is most likely to achieve the highest on-time customer performance level for which of the following environments? Make-to-order Engineer-to-order Assemble-to-order Make-to-stock

Assemble-to-order

A production plan is based on producing the same quantity per day. The current month is 20 days, and the production plan calls for 8,000 units. There are four models with the following demand: A—3,200, B—2,400, C—1,600, D—800. The sequence for the mixed-model schedule is A-B-C-A-B-D-A-B-C-A. What is the weekly master production schedule? A—120, B—160, C—40, D—120 A—800, B—600, C—400, D—200 A—320, B—240, C—160, D—100 A—40, B—120, C—120, D—160

A—800, B—600, C—400, D—200 A (3,200/4 = 800), B (2,400/4 = 600), C (1,600/4 = 400), D (800/4 = 200)

Why is resource planning difficult to apply in an engineer-to-order environment where a final assembly schedule is used in place of a master production schedule? Because of dissimilarity among orders, there may be little or no order history upon which to base hours per key work center. Resource planning is an iterative process, but final assembly scheduling is performed only once for a customer order. Resource planning is designed to close the loop with master scheduling but not with final assembly scheduling. The final assembly schedule applies only to final assembly, and that may not be where the constraining work centers are.

Because of dissimilarity among orders, there may be little or no order history upon which to base hours per key work center. Resource planning requires a resource profile, and lack of history may mean that one does not exist.

Which of the following is an indication that the current manufacturing lead time is longer than that used by rough-cut capacity planning to check the feasibility of the master schedule? Customer orders are being shipped, but a high percentage are late. Load attributed to past due orders is remaining stable from period to period. Resource planning determines that the production plan was infeasible to begin with. A tour of the production area indicates that there is too much work in process.

Customer orders are being shipped, but a high percentage are late.

An assemble-to-order environment using a mixed-model production schedule has a bottleneck work center. What is the best rough-cut capacity planning approach for determining the feasibility of the master production schedule? Define capacity as rated capacity times utilization times efficiency to factor the engineering standard. Define capacity as some percentage less than 100% of rated capacity by management policy. Define capacity as 85% of rated capacity to provide 15% to accept additional customer orders. Define capacity at 100% of rated capacity and utilization when the mix of demand justifies it.

Define capacity at 100% of rated capacity and utilization when the mix of demand justifies it.

What is the best technique for ensuring master schedule stability for production? Supply time fence Production time fence Demand time fence Planning time fence

Demand time fence A demand time fence identifies the point within which production changes need to be authorized by senior management.

A manufacturer of large appliances uses paced production lines for each product family. The rate varies by product, and labor levels are established to minimize the possibility of a line stoppage. Each product family is produced to a mixed-model schedule with lot sizes of one to ten. What is the best option for verifying the feasibility of the master production schedule? Demonstrated capacity Rough-cut capacity planning Capacity planning using plant-wide factors Resource planning

Demonstrated capacity

The purposes of a modular bill of material include which of the following? Translating the sales and operations plan to the master production schedule Minimizing inventory for unique components Providing for easier material requirements planning processing Facilitating forecasting

Facilitating forecasting A modular bill of material is a type of planning bill that is arranged in product modules or options. It is often used in companies where the product has many optional features.

Which of the following production environments requires the most complex form of resource profiles to perform rough-cut capacity planning? Facility A Facility B Facility C Facility D

Facility A High variety means that there are a number of different products that can be produced; many operations per product means that the rough-cut bill of material is complex; many resources means that many resources will have to be created.

In which facility would product unit costs most likely be reduced through a setup reduction program? Facility A Facility B Facility C Facility D

Facility C The following factors should be considered: Low production volume means that a lot of small orders are released. High product variety means that a number of different products can be produced. Many operations per product means that a lot of setup is being performed.

A customer order for a quantity of 50 exists within the planning time fence. A change order has been received to increase the quantity to 100. There is a forecast in that period of 80. Which of the following changes should occur? Forecast quantity should not be changed; order quantity should be changed to 100. Forecast quantity should not be changed; order quantity should be changed to 80 in this period and 20 in the next period. Forecast quantity and order quantity should both be changed to 100. Forecast quantity should be changed to 120; order quantity should be changed to 100.

Forecast quantity should not be changed; order quantity should be changed to 100. Within the planning time fence, the order change can be accepted. The forecast does not change.

A make-to-order company is in the process of implementing lean manufacturing techniques, making equipment layout changes and standardizing the designs of their highest-value products in order to transition to assemble-to-order. Which of the following actions should also be taken to reduce the backlog from six to three weeks? Gradually reduce marketing's quoted lead time to three weeks. Work overtime until the backlog has been reduced to three weeks. Don't take orders for the assemble-to-order products for three weeks. No action is required, since the backlog will reduce automatically.

Gradually reduce marketing's quoted lead time to three weeks.

Which of the following changes is most likely to directly impact the master schedule? Extending the planning time fence by four periods Increasing safety stock from demand for one period to demand for two periods Reducing the lot size quantity by one-half Shortening the demand time fence by one-half

Increasing safety stock from demand for one period to demand for two periods

Which of the following customer service measures is appropriate for mature make-to-stock products? Capacity planning using overall factors (CPOF) Line-item fill rate Finished goods inventory turnover Total manufacturing cycle time

Line-item fill rate The line-item fill rate measures the performance by line. The percentage of orders shipped on schedule would be a good complementary metric.

An overstated forecast results in an overestimate of which of the following elements? Capacity and backlog Load and inventory Backlog and load Inventory and capacity

Load and inventory An overstated forecast will show an overestimated load on production and will drive component, subassembly, and finished goods inventory to be ordered or produced.

Who is responsible for disaggregating the production plan into the master production schedule? Materials manager Master scheduler Production manager Sales manager

Master scheduler

What is the best reason for using planning bills of material in master scheduling? Planning bills do not require actual engineering or manufacturing bills of material. The company is make-to-stock, and planning bills match planned production levels. A single bill can be used no matter how many products are in a product family. Material procurement or production occurs prior to knowing actual end items.

Material procurement or production occurs prior to knowing actual end items. Planning bills are used to get necessary components on order prior to knowing the actual configuration. In other words, planning bills enable flexibility in what will be produced.

A company produces make-to-order product families that use common work centers configured in a functional layout. It is a stable product line in the maturity stage, but demand is erratic. Ship dates are specified by the customer. The master scheduler has ongoing problems maintaining a balanced schedule due to randomly appearing overload conditions among the various work centers. What is a likely cause of the overload condition? Late supplier shipments Inaccurate capacity records Changes in customer orders Missed schedules in production

Missed schedules in production

A company produces lawn mowers that come in three horsepowers. Product is produced in lot quantities for retail sales and assembled-to-order for direct sales. Which of the following types of bills of material is most likely used for the master scheduling? Modular Multilevel Single-level Common parts

Modular Modular bills (also called planning bills) would allow a percentage to be applied to each of the horsepower options.

A company produces make-to-stock products that are stocked and shipped from distribution centers, to which deliveries are made weekly. No safety stock is carried, and inventory shows available when it is placed into stock at the distribution center. Which of the following statements is most true of a performance measure based on units completed within the master-scheduled weekly period? Master scheduling performance is secondary to distribution customer service. On-time completion is measured relative to the day of shipment to distribution. Performance is more accurate if products are aggregated into families. Any order completed is considered on time any day of the week.

On-time completion is measured relative to the day of shipment to distribution.

What is the best reason for closing the loop between master scheduling and sales and operations planning (S&OP)? One is the plan, and one confirms execution of the plan. One is the plan, and one is the execution of the plan. One is the plan, and one shows where the plan is valid. One is the plan, and one confirms resource availability.

One is the plan, and one is the execution of the plan. S&OP is the plan, and master scheduling identifies how the plan will be executed.

How is the projected available balance (PAB) within the demand time fence calculated? Opening stock plus MPS (master production schedule) orders minus actual demand and production forecast Opening stock plus MPS orders minus actual demand Opening stock minus actual demand and production forecast Opening stock plus MPS orders

Opening stock plus MPS orders minus actual demand Within the demand time fence, the forecast is no longer included in total demand and projected available inventory calculations; only customer orders are considered. Therefore, the PAB would include opening stock plus MPS orders minus actual demand (customer orders).

A production plan has established 1,000 units in a period for a stocked product family. Specific percentages for end items are not known with certainty. Which of the following alternatives should the master schedule ignore when translating the product family into specific master production schedule quantities? Make an estimate of the number of actual end items to produce based on history. Use a super bill of material to overplan the percentages in a two-level master production schedule. Use a modular bill of material and overplan the options to provide for some uncertainty. Overplan the end items based on historical deviations to provide for some uncertainty.

Overplan the end items based on historical deviations to provide for some uncertainty. The end item quantities should not be overplanned, as they must equal the quantity in the production plan.

Which of the following is true of using planning bills to forecast options for an assemble-to-order product? Overplanning of an option would mean that the percentages equal more than 100%. The product mix can equal less than 100%. The product mix cannot equal more than 100%. Each planning bill option is forecast separately and is not combined with other options.

Overplanning of an option would mean that the percentages equal more than 100%.

Which of the following key performance indicators is the master scheduler most likely to monitor to determine if the master schedule is imbalanced? Frequency of master scheduling Percentage of on-time order completeness Need for frequent planned overtime Number of schedule date changes

Percentage of on-time order completeness

Which of the following statements about production planning is true? The production plan should be frozen for at least the cumulative lead time of the product. Production planning is a process that a company uses to plan its resources to change either backlog and/or finished goods inventory. Production planning should be processed on a weekly basis and in detail by unique end items. Production plan families are broken down into material requirements planning items and the time frame changed to days or weeks.

Production planning is a process that a company uses to plan its resources to change either backlog and/or finished goods inventory.

What is the most likely consequence of an overloaded master schedule with two weeks of past-due orders? Available hours are reduced by a decrease in efficiency. Sales and operations planning needs to reduce demand. Purchased parts are received earlier than needed. Utilization of the bottleneck resource is reduced.

Purchased parts are received earlier than needed.

After reviewing production for a particular product family over the past six months, the master scheduler is recommending that the demand time fence be moved out one period. Which of the following sales and operations planning team members could be excused from the discussion and decision making? Production Sales Senior management Purchasing

Purchasing Changing the demand time fence does not impact purchasing lead times or purchase orders.

Which of the following is a problem with evaluating master scheduling and purchasing performance as they relate to each other? Master scheduling uses rough-cut capacity planning to test for schedule feasibility, but this does not test for supplier capacity. Purchasing places orders based on reliance on a forecast in those periods near the time fence, but master scheduling is not responsible for the forecast. Purchasing may have to do a great deal of expediting, incur premium costs for freight, and change priorities of other orders to make the master production schedule appear feasible. Master scheduling has only one order per period to use for performance evaluation, but purchasing may have hundreds of orders for the same period.

Purchasing may have to do a great deal of expediting, incur premium costs for freight, and change priorities of other orders to make the master production schedule appear feasible. Feasibility should be measured with normal effort. The two functions are typically not compared to each other.

An organization converting from a process-focused facility to work cells will most likely experience which of the following? Reduced manufacturing lead times Reduced excess capacity Increased in-process inventory A less focused, unstable workforce

Reduced manufacturing lead times Building products in smaller lot sizes will reduce process lead times.

A company produces desk clocks as a product family, with 20 different end items. The overall production plan has been set at 8,000 units per month. Which of the following actions should the master scheduler take to develop the master production schedule? Finalize the production quantity based on rough-cut capacity planning. Schedule a mix of the 20 end items, minus the quantity already in stock. Schedule a mix of the 20 end items such that the total equals 8,000 units. Schedule a quantity greater than 8,000 units to allow for demand changes.

Schedule a mix of the 20 end items such that the total equals 8,000 units. The total of the end items should equal the production for the product family.

The final assembly schedule is at which of the following levels in the product structure in an assemble-to-order environment? Level 1 of the configured bill of material First occurrence of a custom-designed part Narrowest point of the product structure Shippable end-item level of the bill of material

Shippable end-item level of the bill of material

Which of the following statements about the final assembly schedule (FAS) is true? The FAS is the same as the production plan. The FAS is separate from the master production schedule and serves a completely different purpose. The FAS includes only final operations. The FAS is the same as the master production schedule.

The FAS is separate from the master production schedule and serves a completely different purpose.

Which of the following validations is most likely to be performed for measuring master scheduling performance as it relates to sales and operations planning in a make-to-stock company? The master schedule equals the production plan quantity. The inventory plan supports the finished goods portion of the business plan. The bottleneck work center has a safety capacity to absorb unplanned demand. Available-to-promise shows inventory for promising customer orders.

The master schedule equals the production plan quantity.

Which of the following statements about capacity is true? The master scheduler can schedule load above that indicated by rough-cut capacity planning. Common units such as quantities or hours are used at all levels for consistency. The number of machines in a machine shop is the primary determinant of capacity. Resource planning capacity is more accurate than rough-cut capacity planning due to aggregation.

The master scheduler can schedule load above that indicated by rough-cut capacity planning. Rough-cut capacity planning is a check of only critical resources.

Which of the following statements about planning functions is true? The production plan is a direct input to the master schedule. The business plan is a direct input to the master schedule. Material requirements planning is a direct input to the strategic plan. The production plan is a direct input to the material requirements plan.

The production plan is a direct input to the master schedule.

Which of the following is a tool for reducing material requirements planning (MRP) system nervousness? Pull signals Dynamic lot sizing Scheduled downtime Time fences

Time fences Nervousness in this context refers to instability when changes in higher-level records cause significant changes in lower-level schedules or orders. Devices such as time fences, which restrict changes, introduce stability into the master schedule.

What is the relationship between the number of weeks in the backlog and the number of weeks in the master scheduling demand time fence? They are equal. Backlog weeks are greater. There is no correlation. There is a direct correlation.

There is no correlation. The demand time fence indicates when production schedules should be firmed, so there is no correlation with backlog.

Which of the following tools is used to specify periods when various types of changes can be made to the master schedule? Firm planned orders Sales and operations planning (S&OP) Pegging of requirements Time fences

Time fences Time fences are guidelines established to note where various changes in operating procedures may take place.

Due to a quality problem, only 85% of the master schedule for a finished good has been produced. A decision to service all customers who have submitted orders according to their percentage of total orders is called: assigned material. allowance. reserve stock. allocation.

allocation.

A company has historically provided a high level of customer service. A past-due condition in the master production schedule might be a result of: the master production schedule being overloaded and the condition not being caught by rough-cut capacity planning. an exception occurring in the availability of capacity and materials. the production plan being overloaded and the condition not being caught by resource planning. production not following the master production schedule priorities and not completing all of the orders as scheduled.

an exception occurring in the availability of capacity and materials.

Management has determined that the master production schedule will not be met. The last action to be taken would be to: use alternate routings. schedule overtime. change the master production schedule. move non-utilized resources.

change the master production schedule. Since the master production schedule drives the ordering of all manufactured and purchased components, changing it will lead to changes throughout the planning system. Other alternatives should be considered if possible.

The sum of the master production schedules for the items within a product family must be: not more than the total shown in the material requirements plan. not more than the total shown in the production plan for that family. equal to the total shown in the production plan for that family. equal to the total shown in the material requirements plan.

equal to the total shown in the production plan for that family.

Time fences should be viewed as a way to: measure the likely impact of changing the master production schedule. maximize production. avoid changing the master production schedule. evaluate production effectiveness.

measure the likely impact of changing the master production schedule. The time fence is not a barrier to change, merely an indicator of the point at which effort, time, and cost will start to becoming significant if making a change.