Free APICS CPIM-Part-2 Exam Practice Questions & Explanations

Ergonomic workstation design should incorporate the reduction of repetitive motion, as this can help prevent musculoskeletal disorders, fatigue, and errors. Repetitive motion can cause strain on the muscles, tendons, and nerves, leading to pain, inflammation, and loss of function. Ergonomic workstation design can reduce repetitive motion by optimizing the layout of the workstation, tools, and materials, using automation or mechanization where possible, and varying the tasks performed by the worker.Reference: CPIM Part 2 Exam Content Manual, Domain 8: Manage Quality, Continuous Improvement, and Technology, Section A: Quality Management, Subsection 3: Quality Tools and Techniques, Page 37.

The S&OP process in an ATO production environment focuses on control of key intermediate part inventory, which are the components or subassemblies that are produced in advance and assembled to order when the customer order is received. By controlling the key intermediate part inventory, the S&OP process can balance the demand and supply of the final products, while reducing the lead time and inventory costs. The key intermediate part inventory is also known as the decoupling point, where the production process switches from MTS to MTO mode. The S&OP process can determine the optimal level of key intermediate part inventory based on the forecast and backlog of customer orders, as well as the production capacity and costs.

The other options are less relevant for the S&OP process in an ATO production environment. End product backlog refers to the customer orders that have not been fulfilled yet. Finished goods inventory refers to the final products that are ready for sale. Raw material inventory refers to the basic materials that are used to produce the components or subassemblies. These types of inventory are more applicable for MTS or MTO production environments, where the production process is either entirely based on forecast or entirely based on sales order. In an ATO production environment, the S&OP process does not need to control these types of inventory, as they are either minimal or nonexistent.Reference: CPIM Part 2 Exam Content Manual, Domain 4: Plan and Manage Supply, Section B: Production Planning and Control, Subsection 1: Production Strategies and Techniques, Page 19;Demand management process in assemble to order (ATO) environment;Assemble-to-Order (ATO): Overview, Examples, Pros and Cons.

Establishment of goals and baselines prior to entering the plan-do-check-act (PDCA) cycle allows improvement teams to determine whether an effective change was made in the process.Goals are the desired outcomes or targets that the improvement teams want to achieve by implementing changes in the process1.Baselines are the current or initial performance levels of the process before implementing any changes2. By establishing goals and baselines, improvement teams can have a clear direction and a reference point for their improvement efforts.

In the PDCA cycle, improvement teams follow four steps: plan, do, check, and act. In the plan step, they define the problem, analyze the root cause, and propose countermeasures. In the do step, they test the countermeasures on a small scale. In the check step, they measure and evaluate the results of the test and compare them with the goals and baselines.In the act step, they standardize and sustain the successful countermeasures or revise and repeat the cycle if needed3.

By comparing the results with the goals and baselines in the check step, improvement teams can determine whether an effective change was made in the process.An effective change is one that improves the performance of the process and meets or exceeds the goals set by the improvement teams4. If the results show that an effective change was made, improvement teams can move to the act step and implement the change on a larger scale.If not, improvement teams can go back to the plan step and identify new or revised countermeasures5.

Therefore, establishment of goals and baselines prior to entering the PDCA cycle allows improvement teams to determine whether an effective change was made in the process.

An effective single-sourcing relationship requires that the organizations must be mutually dependent. This means that both the customer and the supplier rely on each other for their success and benefit from the partnership. Mutual dependence can foster trust, collaboration, communication, innovation, and problem-solving between the parties. It can also reduce the risks of supply disruptions, quality issues, price fluctuations, and contract breaches. Mutual dependence can be achieved by aligning the goals, values, and strategies of the organizations, as well as by sharing information, resources, and risks. Demand for the customer's products does not have to be stable for a single-sourcing relationship to work. In fact, single sourcing can help the customer cope with demand variability by ensuring a consistent supply of goods or services from the supplier. The supplier does not have to offer the lowest price per unit for a single-sourcing relationship to be effective. The customer may choose a single supplier based on other factors, such as quality, delivery, innovation, or reputation. The price per unit may not reflect the total cost of ownership, which includes other costs such as transportation, inventory, maintenance, and warranty. The organizations do not have to be located close to each other for a single-sourcing relationship to be successful. With advances in technology and logistics, distance is not a major barrier for communication and coordination between the customer and the supplier. Moreover, single sourcing can reduce the complexity of managing multiple suppliers across different locations.Reference:=What Is Single Sourcing? (Plus Benefits and 7 Examples),Single Sourcing Vs Sole Sourcing Sourcing | CIPS,What Is Single Sourcing In Procurement And Why Is It Important?

According to the CPIM Exam Content Manual, a make-or-buy decision is a strategic decision that involves choosing between manufacturing a product or service internally or purchasing it from an external supplier1.A make-or-buy decision is based on a cost-benefit analysis that considers various factors, such as quality, cost, capacity, lead time, technology, and competitive advantage2.

Some of the potential reasons to make instead of buy a product may include:

Maintain quality: Making a product internally may allow the firm to control and ensure the quality standards of the product, which may affect customer satisfaction and loyalty.Buying a product from an external supplier may involve quality risks or uncertainties, especially if the supplier is located in a different country or has different quality systems3.

Reduce cost: Making a product internally may reduce the total cost of ownership of the product, which includes not only the purchase price, but also the costs of transportation, inventory, inspection, warranty, and maintenance. Buying a product from an external supplier may incur higher total costs due to these factors.

Keep confidential processes within the firm: Making a product internally may protect the firm's proprietary or confidential processes that give it a competitive edge in the market. Buying a product from an external supplier may expose the firm's processes to potential imitation or leakage.

Therefore, the correct answer is C. maintain quality, reduce cost, and keep confidential processes within the firm.

CPIM Exam Content Manual

Make-or-Buy Decision Explained: How to Make Outsourcing Decisions

Make or Buy Decision - What Is It, Examples, Factors, Advantages

Make-or-Buy Decision - Overview, How It Works, Triggers

Make or Buy Decision - Definition & Examples | Marketing Tutor