APICS CPIM-Part-2 Practice Test Questions Answers

Scrap allowance is a percentage or quantity of material that is expected to be lost or wasted during the production process. Scrap allowance is usually applied to the component items in a bill of materials (BOM), which is a document that lists the materials, quantities, and relationships required to produce an end item. An increase in the scrap allowance in an assembled item will result in replanning of the component items in material requirements planning (MRP), which is a system that calculates the timing and quantity of materials and resources needed to meet the production plan. Replanning of the component items in MRP means that the system will adjust the planned order releases, order quantities, and due dates of the component items to account for the increased scrap allowance. Replanning of the component items in MRP will ensure that enough material is available to meet the demand for the assembled item, and to avoid shortages or excess inventory.

References: CPIM Exam Content Manual Version 7.0, Domain 4: Plan and Manage Supply, Section 4.2: Implement Supply Plans, Subsection 4.2.1: Describe how to implement material requirements planning (MRP) (page 38).

 A focused differentiation strategy is a type of focus strategy that targets a narrow buyer segment and pursues a unique competitive advantage. A focus strategy is a business-level strategy that involves concentrating on a specific market niche or segment and tailoring the products or services to the needs and preferences of that niche1. A differentiation strategy is a business-level strategy that involves creating a product or service that is perceived as unique, distinctive, or superior by the customers, and charging a premium price for it2. A focused differentiation strategy combines these two approaches by offering a differentiated product or service to a narrow market segment that has unique demands or characteristics. This strategy allows the firm to create value for its customers and charge higher prices than its competitors, while avoiding direct competition with firms that target a broader market or offer lower-cost products or services3.

An example of a focused differentiation strategy is Lululemon, a Canadian company that sells high-end yoga and athletic apparel. Lululemon targets a niche market of health-conscious, affluent, and fashion-oriented women who are willing to pay premium prices for its products. Lululemon differentiates itself from other sportswear brands by offering high-quality, stylish, and innovative products that are designed to enhance the performance and comfort of its customers. Lululemonalso fosters a strong brand identity and community among its customers by providing yoga classes, fitness events, online platforms, and social media engagement4.

References:

Focus Strategy - Definition, Types and Examples | Marketing Tutor

Differentiation Strategy - Definition & Examples | Marketing Tutor

Focused Differentiation Strategy: Definition & Examples - Video & Lesson Transcript | Study.com

Lululemon’s Focused Differentiation Strategy - Business Strategy Hub

 An organization’s immediate industry and competitive environment includes the factors that directly affect its ability to compete and achieve its goals. These factors are often analyzed using Porter’s Five Forces model, which identifies five competitive forces that shape the industry: threat of new entrants, power of suppliers, power of buyers, threat of substitute products, and rivalry among existing competitors1. Among these forces, substitute products are the most relevant component of the immediate industry and competitive environment, as they represent the alternative solutions that customers can choose instead of the organization’s products. Substitute products can reduce the demand and profitability of the organization’s products, as well as increase the price sensitivity and bargaining power of customers1.

The other options are not components of the immediate industry and competitive environment, but rather components of the general or macro environment. The general or macro environment includes the broader factors that affect all organizations in a society or a market, such as political, economic, social, technological, environmental, and legal factors2. These factors are often analyzed using PESTEL analysis, which helps organizations identify the opportunities and threats arising from the external environment2. Among these factors, political factors include the government policies, regulations, and stability that affect the organization’s operations and decisions2. Interest rates are part of the economic factors that include the market conditions, growth, inflation, unemployment, and exchange rates that affect the organization’s performance and profitability2. Sociocultural forces are part of the social factors that include the demographics, values, beliefs, lifestyles, and preferences of the customers and society that affect the organization’s demand and customer satisfaction2.

References : Competitive Environment: Definition, Examples & Factors - StudySmarter US; Industry Analysis | Porter’s Five Forces | Competition.

The poka-yoke technique of process design is a method for preventing or detecting errors and defects in the manufacturing process. Poka-yoke means “mistake-proofing” in Japanese, and it aims to eliminate human errors by creating systems that either make it impossible for a mistake to occur or make the mistake immediately obvious once it has occurred1. One way to implement poka-yoke is to use part attributes, which are physical features of a part that ensure it can only be assembled or used in the correct way2. For example, a part attribute can define the correct orientation of a part, such as a notch, a hole, a shape, or a color, so that it can only fit into the matching component. This prevents the operator from inserting the part incorrectly or using the wrong part.

The other options do not illustrate the poka-yoke technique of process design. Reducing the number of types of fasteners is an example of standardization, which is a method for simplifying and streamlining the production process by minimizing variation and complexity3. Customized containers that hold mixed sets of parts are an example of kitting, which is a method for organizing and delivering parts or materials to the point of use or consumption in the production process4. An andon is a visual or audible signal that indicates the status of a machine or process, such as normal,abnormal, or emergency5. An andon can be used to alert operators or supervisors of problems or issues, but it does not prevent or detect errors by itself.

References: Lean Six Sigma Tools: What is Poka-Yoke? - Villanova University; What is Poka-Yoke? Mistake & Error Proofing | ASQ; What is Poka-Yoke? [Examples, Principles, Methods]; Standardization - an overview | ScienceDirect Topics; Kitting - an overview | ScienceDirect Topics.

The horizon for forecasts that are input to the sales and operations planning (S&OP) process should be long enough that required resources can be properly planned. The S&OP process is a cross-functional process that aligns the demand and supply plans of an organization. The S&OP process consists of several steps, such as data gathering, demand planning, supply planning, pre-S&OP meeting, executive S&OP meeting, and S&OP implementation. The output of the S&OP process is the production plan, which is a statement of the resources needed to meet the aggregate demand plan over a medium-term horizon. The production plan can be stated in different units of measure depending on the type of manufacturing environment, such as hours, units, tons, or dollars. The horizon for forecasts that are input to the S&OP process should be long enough that required resources can be properly planned, meaning that the organization can anticipate and allocate the necessary capacity, materials, labor, equipment, and facilities to meet the expected demand. The horizon for forecasts should also match the lead time for acquiring or changing the resources, as well as the planning cycle for updating the production plan.

References: CPIM Exam Content Manual Version 7.0, Domain 4: Plan and Manage Supply, Section 4.1: Develop Supply Plans, Subsection 4.1.2: Describe how to develop a production plan (page 36).