APICS CPIM-Part-2 Exam Prep Guide: Prep guide for the CPIM-Part-2 Exam
2024 New Preparation Guide of APICS CPIM-Part-2 Exam
NEW QUESTION # 89
The primary consideration in maintenance, repair, and operating (MRO) supply systems typically is:
- A. order quantity.
- B. carrying costs.
- C. shelf life.
- D. stockout costs.
Answer: D
Explanation:
Explanation
Maintenance, repair, and operating (MRO) supply systems are systems that manage the inventory and procurement of the items that are used to support the production process, but are not part of the final product.
MRO items include spare parts, tools, lubricants, cleaning supplies, safetyequipment, and office supplies. The primary consideration in MRO supply systems typically is stockout costs. Stockout costs are the costs associated with the inability to meet the demand for an item due to insufficient inventory. Stockout costs can include lost sales, customer dissatisfaction, production downtime, emergency orders, and reputation damage.
Stockout costs can be very high for MRO items, especially if they are critical for the operation and maintenance of the production equipment. Therefore, MRO supply systems should aim to minimize the risk of stockouts by ensuring adequate availability and accessibility of MRO items.
References: CPIM Exam Content Manual Version 7.0, Domain 5: Plan and Manage Inventory, Section 5.2:
Implement Inventory Plans, Subsection 5.2.3: Describe how to implement inventory replenishment techniques (page 46).
NEW QUESTION # 90
A company has deployed its own proprietary software for web hosting and order management. This software has beenrecognized as best-in-class. The proprietary software represents what defensive operational strategy used to sustain thecompany's business over time?
- A. Difficult to copy
- B. Difficult to substitute
- C. Scarcity
- D. Difficult to relocate
Answer: A
Explanation:
Explanation
Difficult to copy is a defensive operational strategy used to sustain the company's business over time by creating a unique product or service that is hard for competitors to imitate. The proprietary software for web hosting and order management represents this strategy, as it has been recognized as best-in-class and may have some features or functions that are not easily replicated by others. Difficult to substitute is a defensive operational strategy that creates a product or service that has no close substitutes in the market, making it more valuable and desirable for customers. Difficult to relocate is a defensive operational strategy that locates the production or service facilities in a place that has some advantages or benefits that are not available elsewhere, such as low labor costs, favorable tax policies, or access to natural resources. Scarcity is a defensive operational strategy that creates a product or service that has limited supply or availability, making it more exclusive and attractive for customers. References: CPIM Exam Content Manual Version 7.0, Domain 8:
Manage Quality, Continuous Improvement, and Technology, Section 8.1: Quality Concepts, p. 44; Defensive Strategy; Competitive Advantage.
NEW QUESTION # 91
Which of the following approaches should first be considered as part of process improvement?
- A. Hiring more skilled people to perform the job
- B. Buying better and faster equipment
- C. Applying stricter quality control
- D. Making better use of existing resources
Answer: D
Explanation:
Explanation
Process improvement is a method of analyzing and enhancing the production methods and techniques to increase productivity and performance. Process improvement aims to reduce costs, waste, defects, and errors, as well as to improve quality, efficiency, and customer satisfaction. When considering process improvement, the first approach that should be considered is making better use of existing resources. This means that the production system should optimize the utilization andallocation of the available resources, such as materials, labor, machines, and space. This can be achieved by implementing various techniques, such as lean manufacturing, six sigma, kaizen, or 5S. Making better use of existing resources can help to improve the process without requiring additional investment or expenditure.
The other options are not the first approaches that should be considered as part of process improvement.
Hiring more skilled people to perform the job is not the first approach, as it may increase the labor cost and require more training and supervision. Hiring more skilled people may not necessarily improve the process if the existing methods and techniques are inefficient or ineffective. Buying better and faster equipment is not the first approach, as it may involve a large capital outlay and a long payback period. Buying better and faster equipment may not necessarily improve the process if the existing resources are underutilized or misallocated.
Applying stricter quality control is not the first approach, as it may increase the inspection and testing cost and time. Applying stricter quality control may not necessarily improve the process if the existing methods and techniques are prone to errors or defects. References: CPIM Exam Content Manual Version 7.0, Domain 8:
Manage Quality, Continuous Improvement, and Technology, Section 8.2: Continuous Improvement Concepts, p. 46; Process Improvement; Process Improvement Definition.
NEW QUESTION # 92
Which of the following activities will enhance a successful suppliercustomer lean relationship?
- A. Returnable containers are used for material transport.
- B. Consignment inventories are maintained in anticipation of customer need.
- C. Communication between the counterparts at the two companies is studied and improved.
- D. The supplier offers quantity discounts on material purchased.
Answer: C
Explanation:
Explanation
A lean relationship is a type of supplier-customer relationship that focuses on eliminating waste, improving quality, and reducing costs throughout the supply chain. A lean relationship requires a high level of collaboration, trust, and transparency between the supplier and the customer. Communication between the counterparts at the two companies is an essential activity that will enhance a successful lean relationship.
Communication can help to align the goals, expectations, and performance measures of the supplier and the customer, as well as to identify and resolve any issues or problems that may arise. Communication can also facilitate information sharing, feedback, and continuous improvement initiatives. References: CPIM Exam Content Manual Version 7.0, Domain 7: Plan and Manage Distribution, Section 7.1: Develop Distribution Plans, Subsection 7.1.3: Describe how to develop supplier-customer relationships (page 66).
NEW QUESTION # 93
An order that moves into a work center on schedule following completion of a previous operation will move:
- A. to the end of the queue.
- B. into the queue when there is capacity available.
- C. to the beginning of the queue.
- D. into the queue in priority sequence.
Answer: D
Explanation:
Explanation
A queue is the number of hours that a work order sits in front of a work center before it starts. It also includes the move time required to physically move partially completed items from the previous operation to the next work center1. A queue is used to provide a buffer between the time that a component arrives at a machine or work center and when the operation actually starts2. A queue can help to neutralize delays in previous operations and to reduce the waiting time and flow time of the work orders3.
An order that moves into a work center on schedule following completion of a previous operation will move into the queue in priority sequence. This means that the order will be placed in the queue according to its priority level, which is determined by the priority control technique used for the production system. A priority control technique is a method of determining the sequence and timing of production orders in a manufacturing system4. Some examples of priority control techniques are first-come, first-served (FCFS), shortest processing time (SPT), earliest due date (EDD), and critical ratio (CR). Depending on the priority control technique, an order may move to the beginning, end, or middle of the queue.
An order will not necessarily move to the end or the beginning of the queue, as these positions depend on the priority level of the order and the other orders in the queue. An order will not move into the queue when there is capacity available, as this implies that there is no queue at all. Capacity is the amount of time or resources available for production at a work center5. Capacity can be affected by factors such as machine availability, labor skills, setup time, and maintenance. Capacity planning is a function of determining and adjusting the optimal level of resources needed to meet the demand5.
NEW QUESTION # 94
A firm produces a moderate variety of products to stock in a single plant. The plant is organized in a functional layout withsome work cells. Which of the following indicators most appropriately would be used to evaluate the effectiveness of thedetailed capacity planning processes?
- A. Change in level of work-in-process (WIP) inventory
- B. Level of finished goods inventory
- C. Units of output per direct labor hour
- D. Percentage of master schedule attained
Answer: A
Explanation:
Explanation
The change in level of work-in-process (WIP) inventory is the most appropriate indicator to evaluate the effectiveness of the detailed capacity planning processes for a firm that produces a moderate variety of products to stock in a single plant. Detailed capacity planning is the process of determining the quantity and timing of resources, such as labor, equipment, and materials, needed to execute the master production schedule (MPS) at the work center level1. The MPS is a plan that specifies the quantity and timing of end items to be produced in a given time period2. The change in level of WIP inventory is a measure of the difference between the amount of WIP inventory at the beginning and at the end of a period3. WIP inventory consists of partially completed products or components that are waiting for further processing or assembly.
The change in level of WIP inventory can indicate how well the detailed capacity planning processes are aligned with the MPS and the actual demand. A positive change in WIP inventory means that more products or components are being produced than consumed, which implies that there is excess capacity or insufficient demand. A negative change in WIP inventory means that more products or components are being consumed than produced, which implies that there is insufficient capacity or excess demand. A zero or minimal change in WIP inventory means that the production and consumption rates are balanced, which implies that there is optimal capacity and demand. Therefore, by monitoring the change in level of WIP inventory, the firm can evaluate whether its detailed capacity planning processes are effective in meeting customer needs and expectations, as well as minimizing inventory costs and maximizing resource utilization.
The other options are not as appropriate indicators to evaluate the effectiveness of the detailed capacity planning processes for a firm that produces a moderate variety of products to stock in a single plant. Units of output per direct labor hour is a measure of labor productivity, which indicates how efficiently labor is used to produce output. However, labor productivity does not reflect the effectiveness of detailed capacity planning processes, because it does not account for other factors that affect production, such as equipment, materials, quality, or demand. Percentage of master schedule attained is a measure of schedule performance, which indicates how well the actual production matches the planned production. However, schedule performance does not reflect the effectiveness of detailed capacity planning processes, because it does not account for other factors that affect production, such as capacity constraints, resource availability, or customer satisfaction.
Level of finished goods inventory is a measure of inventory management, which indicates how much inventory is available to meet customer orders. However, finished goods inventory does not reflectthe effectiveness of detailed capacity planning processes, because it does not account for other factors that affect production, such as product variety, lead time, or quality.
References: Detail Capacity Planning - Capacity Planning - Gaebler.com Resources ...; Master Production Schedule (MPS) Definition | Operations & Supply Chain Dictionary; Work-in-Process Inventory: Definition & Example - Video & Lesson Transcript | Study.com; [Work-in-Process (WIP) Definition - Investopedia];
[Labor Productivity Definition - Investopedia]; [Labor Productivity: Definition & Statistics - Video & Lesson Transcript | Study.com]; [Schedule Performance Index (SPI) Definition - Investopedia]; [Schedule Performance Index (SPI) & Cost Performance Index (CPI) in Project Cost Management]; [Finished Goods Inventory: Definition & Formula - Video & Lesson Transcript | Study.com]; [Finished Goods Inventory:
Definition & Example - Video & Lesson Transcript | Study.com].
NEW QUESTION # 95
To facilitate transportation efficiency and inventory management, companies frequently use:
- A. automated storage/retrieval systems (AS/RS).
- B. contract carriers.
- C. standardized containers.
- D. small lot sizes.
Answer: C
Explanation:
Explanation
Standardized containers are containers that have uniform dimensions and specifications, such as pallets, crates, boxes, etc. Standardized containers can facilitate transportation efficiency and inventory management by reducing the handling time, increasing the loading capacity, improving the space utilization, and simplifying the packaging and labeling processes. Standardized containers can also enable the use of automated storage/retrieval systems (AS/RS) and other technologies that require consistent dimensions and weights of the items. References: CPIM Part 2 Exam Content Manual, Domain 7: Plan and Manage Distribution, Section 7.1:
Distribution Network Design, p. 38.
NEW QUESTION # 96
Which of the following tools is used to evaluate the impact that a production plan has on capacity?
- A. Safety capacity
- B. Product routing
- C. Bill of resources
- D. Demand time fence (DTF)
Answer: C
Explanation:
Explanation
A bill of resources is a tool that is used to evaluate the impact that a production plan has on capacity. A bill of resources is a document that lists the required resources, such as machines, labor, materials, and space, for each product or service in the production plan1. A bill of resources can help estimate the total capacity requirements for the production plan, as well as the capacity utilization and availability for each resource2. A bill of resources can also help identify potential capacity gaps, bottlenecks, or excesses, and evaluate alternative production plans or resource allocations3.
A bill of resources can be created by using the following steps4:
Step 1: Identify the products or services in the production plan and their quantities and timings.
Step 2: Identify the resources needed for each product or service and their quantities and timings. This can be done by using tools such as product routings, process maps, or work breakdown structures.
Step 3: Aggregate the resource requirements for each product or service and for the entire production plan. This can be done by using tools such as spreadsheets, tables, or charts.
Step 4: Compare the resource requirements with the resource capacities and availability. This can be done by using tools such as capacity planning matrices, load profiles, or resource histograms.
Step 5: Analyze the results and make adjustments or recommendations. This can be done by using tools such as what-if analysis, simulation, or optimization.
Therefore, a bill of resources is a tool that is used to evaluate the impact that a production plan has on capacity.
References: 1: Bill of Resources Definition 1 2: Capacity Planning Definition 2 3: Capacity Planning Tools 3 4: How to Create a Bill of Resources 4
NEW QUESTION # 97
A reduction in purchased lot sizes will reduce which of the following items?
- A. Inventory levels
- B. Frequency of orders
- C. Reorder points (ROPs)
- D. Setup times
Answer: A
Explanation:
Explanation
A reduction in purchased lot sizes will reduce inventory levels. Purchased lot sizes are the quantities of inventory that a stage of the supply chain either produces or purchases at a given time1. Inventory levels are the amount of stock available throughout the distribution network2. By reducing the purchased lot sizes, a company can lower the amount of inventory it holds, which can reduce the inventory costs, such as holding costs, shortage costs, and order costs3.
Holding costs are the costs associated with storing and maintaining inventory, such as rent, utilities, insurance, taxes, depreciation, and obsolescence4. Shortage costs are the costs incurred when demand exceeds supply, such as lost sales, customer dissatisfaction, and backorder costs4. Order costs are the costs involved in placing and receiving orders, such as transportation, inspection, setup, and administrative costs4.
Reducing the purchased lot sizes can lower the holding costs by decreasing the average inventory in the supply chain due to either production or purchases in lot sizes that are larger than those demanded by the customer1. This is also known as cycle inventory1. Reducing the purchased lot sizes can also lower the shortage costs by increasing the frequency of orders and decreasing the lead time between orders5. This can help avoid stockouts and meet customer demand more consistently. Reducing the purchased lot sizes can also lower the order costs by optimizing the order quantity based on the trade-off between holding costs and order costs. This is also known as economic order quantity (EOQ).
Therefore, a reduction in purchased lot sizes will reduce inventory levels and inventory costs.
References: 1: Chapter 11 Flashcards by Amy Horton 3 2: Optimal Inventory Levels: Calculate & Manage Your Stock Levels 2 3: Inventory Levels Explained: The Highs & Lows Of Optimal Stock 1 4: Economic Order Quantity Model in Inventory Management 4 5: Dual sourcing: Advantages and disadvantages :
Economic Order Quantity: What Does It Mean and Who Is It For5
NEW QUESTION # 98
Which of the following is an example of implosion in distribution requirements planning (DRP)?
- A. Gathering information from several field locations and aggregating it at the manufacturing facility
- B. Redistributing inventory from several warehouses to one central warehouse N
- C. Redistributing inventory from several field locations and centralizing it at the manufacturing facility
- D. Gathering information from the manufacturing facility and distributing it to the field locations
Answer: A
Explanation:
Explanation
Implosion in distribution requirements planning (DRP) is the process of calculating the gross requirements for a supplying location based on the net requirements of its customers or demand sources1. Implosion is the opposite of explosion, which is the process of calculating the net requirements for a demand source based on the gross requirements of its customers or demand sources2. Implosion and explosion are used to synchronize the supply and demand across different levels of the distribution network3.
An example of implosion in DRP is gathering information from several field locations and aggregating it at the manufacturing facility. This example shows how the manufacturing facility, which is the supplying location, can determine its gross requirements by adding up the net requirements of its field locations, which are its customers or demand sources. This way, the manufacturing facility can plan its production and inventory levels to meet the demand from the field locations.
NEW QUESTION # 99
The benefits of standardized work include:
- A. less finished goods inventory.
- B. consistent cycle time.
- C. more innovation.
- D. shorter takt time.
Answer: B
Explanation:
Explanation
Standardized work is a method of organizing work processes to improve efficiency, quality, and safety1. One of the benefits of standardized work is consistent cycle time, which is the time it takes to complete a task or a process. By standardizing the work sequence, the takt time, and the standard inventory, standardized work reduces the variability and unpredictability of the work flow, and ensures that each task or process is performed in a consistent and optimal manner2. Consistent cycle time can lead to other benefits, such as improved customer satisfaction, reduced waste, increased productivity, and enhanced quality3. References:
Standardized Work: What Is It and Where Is It Used? - TWI Institute
What is Standard Work: Benefits & Applications | SafetyCulture
Standard Work: The Foundation for Kaizen - Lean Smarts
NEW QUESTION # 100
Which of the following stock location systems would you use in a repetitive manufacturing, lean environment?
- A. Fixed location
- B. Floating location
- C. Central storage N
- D. Point-of-use storage
Answer: D
Explanation:
Explanation
Point-of-use storage is a stock location system that places inventory close to where it is needed in the production process, reducing transportation and handling costs and improving efficiency. It is often used in repetitive manufacturing, lean environment, where the demand is stable and predictable, and the inventory is replenished frequently. Fixed location and central storage are stock location systems that store inventory in a designated area, which may require more space and movement. Floating location is a stock location system that assigns inventory to any available space, which may cause confusion and inefficiency. References: CPIM Exam Content Manual Version 7.0, Domain 5: Plan and Manage Inventory, Section 5.2: Inventory Management Methods, p. 32.
NEW QUESTION # 101
A company with stable demand that uses exponential smoothing to forecast demand would typically use a:
- A. low alpha value.
- B. low beta value.
- C. high alpha value.
- D. high beta value.
Answer: A
Explanation:
Explanation
Exponential smoothing is a forecasting method that assigns weights to past observations, with more recent observations having higher weights. The alpha value is the smoothing constant that determines how much weight is given to the most recent observation. A low alpha value means that the forecast is based more on the historical average, while a high alpha value means that the forecast is more responsive to the latest changes in demand. A company with stable demand would typically use a low alpha value to smooth out random fluctuations and obtain a more accurate forecast. A beta value is another smoothing constant that is used for trend-adjusted exponential smoothing, which accounts for the presence of a linear trend in the data. A low beta value means that the trend component is based more on the historical average, while a high beta value means that the trend component is more responsive to the latest changes in demand. A company with stable demand would not need to use trend-adjusted exponential smoothing, since there is no significant trend in the data. References := CPIM Part 2 Exam Content Manual, Domain 3: Plan and Manage Demand, Section C:
Forecast Demand, Subsection 2: Select appropriate forecasting technique(s) (p. 16)
NEW QUESTION # 102
An online retailer moves from delivering hard copy books to offering digital downloads only. This action may result in an increased possibility of:
- A. supply delays.
- B. supply disruptions.
- C. forecast inaccuracy.
- D. loss of intellectual property.
Answer: D
Explanation:
Explanation
Offering digital downloads only may result in an increased possibility of loss of intellectual property, as this exposes the online retailer to the risk of cyber theft and piracy. Digital downloads are easier to copy, distribute, and modify without authorization than hard copy books, and the online retailer may lose control over its IP rights and revenues. Cyber thieves may hack into the online retailer's network and steal its IP assets, such as the content, design, and format of the books. Pirates may also offer illegal copies of the books to consumers at lower prices or for free, undermining the online retailer's market share and profitability. According to Deloitte Insights, IP cyber theft has largely remained in the shadows compared with more familiar cybercrimes such as the theft of credit card, consumer health, and other personally identifiable information1. However, IP cyber theft can have serious consequences for a company's future, as IP is the heart of the 21st-century company, an essential motor driving innovation, competitiveness, and the growth of businesses and the economy as a whole1. The WIPO Magazine also notes that digital technology has made IP theft easier, as Bad Actors use technology to flood the online market with pirated and counterfeit goods2. The impact of IP theft on the economy can be significant, as it can result in loss of legitimate sales, reduced tax revenues, lower employment opportunities, and diminished incentives for innovation3. Therefore, an online retailer that moves from delivering hard copy books to offering digital downloads only should take appropriate measures to protect its IP from cyber theft and piracy. This may include using encryption, digital rights management, watermarking, authentication, and monitoring technologies, as well as educating consumers about the value and benefits of legal downloads
NEW QUESTION # 103
In a lean environment, one uses material requirements planning (MRP) processing primarily to:
- A. calculate average daily demand.
- B. create plans to share with suppliers.
- C. determine the kanban circuit locations.
- D. determine where to use supermarkets.
Answer: B
Explanation:
Explanation
In a lean environment, one uses material requirements planning (MRP) processing primarily to create plans to share with suppliers. MRP is a software-based system that calculates the quantity and timing of materials needed for production, based on the master production schedule, the bill of materials, and the inventory status.
MRP helps to coordinate the flow of materials from suppliers to the production process, reducing waste and inventory costs. MRP can also generate purchase orders, work orders, and other documents to communicate the plans with suppliers and internal departments. MRP does not calculate average daily demand, which is a measure of the average amount of a product or service that is sold or consumed per day. MRP does not determine the kanban circuit locations, which are the physical places where kanban cards or containers are exchanged between processes in a pull system. MRP does not determine where to use supermarkets, which are locations where a small amount of inventory is kept to buffer against fluctuations in demand or supply.
References: CPIM Exam Content Manual Version 7.0, Domain 4: Plan and Manage Supply, Section 4.1:
Supply Planning Concepts, p. 24; Lean MRP; Manufacturing resource planning.
NEW QUESTION # 104
The master production schedule (MPS) and final assembly schedule (FAS) are most closely linked in which production strategy?
- A. Make-to-order (MTQ)
- B. Assemble-to-order (ATO)
- C. Make-to-stock (MTS)
- D. Engineer-to-order (ETO)
Answer: B
Explanation:
Explanation
The master production schedule (MPS) and final assembly schedule (FAS) are most closely linked in the assemble-to-order (ATO) production strategy. ATO is a production strategy that producescustomized products or services by assembling standardized components or modules according to customer specifications. The MPS is a plan that specifies the quantity and timing of finished products to be produced in a given period. The FAS is a plan that specifies the quantity and timing of final assembly operations to be performed in a given period. In the ATO strategy, the MPS and FAS are closely linked because the MPS determines the demand for the finished products, and the FAS determines the demand for the components or modules. The MPS and FAS are synchronized to ensure that the components or modules are available when needed for the final assembly, and that the finished products are delivered on time to the customers.
The MPS and FAS are not closely linked in the other production strategies. Make-to-stock (MTS) is a production strategy that produces standardized products or services in advance of customer demand, and stores them in inventory until they are sold. The MPS is based on the forecasted demand, and the FAS is not relevant for this strategy, as there is no customization involved. Make-to-order (MTO) is a production strategy that produces customized products or services from raw materials or components after receiving customer orders.
The MPS is based on the actual customer orders, and the FAS is not relevant for this strategy, as there is no assembly involved. Engineer-to-order (ETO) is a production strategy that produces customized products or services that require engineering design or modification after receiving customer orders. The MPS is based on the actual customer orders, and the FAS is not relevant for this strategy, as there is no standardization involved. References: CPIM Exam Content Manual Version 7.0, Domain 4: Plan and Manage Supply, Section
4.1: Supply Planning Concepts, p. 23; Master Production Schedule; Final Assembly Schedule; Assemble to order.
NEW QUESTION # 105
Providing a realistic basis for setting internal performance targets can be accomplished through:
- A. beta testing.
- B. breakthrough innovation.
- C. benchmarking.
- D. best practices.
Answer: C
Explanation:
Explanation
Providing a realistic basis for setting internal performance targets can be accomplished through benchmarking.
Benchmarking is a process of comparing one's own performance, processes, or practices with those of other organizations that are recognized as leaders or best in class in a specific area. Benchmarking can help identify gaps, strengths, weaknesses, opportunities, and threats in one's own performance, as well as learn from the experiences and successes of others. Benchmarking can also help set realistic, achievable, and challenging goals and targets for improvement, based on external standards or benchmarks. Benchmarking can be done internally(within the same organization), externally (with other organizations in the same industry or sector), or functionally (with other organizations that perform similar functions or processes).
Beta testing is not a way of providing a realistic basis for setting internal performance targets. Beta testing is a stage of product development where a sample of potential users or customers test a product or service before it is released to the general public. Beta testing can help identify and fix any bugs, errors, or issues in the product or service, as well as collect feedback and suggestions for improvement. Beta testing can also help evaluate the usability, functionality, and quality of the product or service, as well as measure customer satisfaction and loyalty. Beta testing is not related to setting internal performance targets, as it is focused on the product or service, not the organization.
Breakthrough innovation is not a way of providing a realistic basis for setting internal performance targets.
Breakthrough innovation is a type of innovation that creates significant value for customers and markets by introducing new products, services, or business models that are radically different from existing ones.
Breakthrough innovation can help create competitive advantage, disrupt existing markets, or create new markets. Breakthrough innovation is not related to setting internal performance targets, as it is focused on the outcome, not the process.
Best practices are not a way of providing a realistic basis for setting internal performance targets. Best practices are methods or techniques that have been proven to be effective and efficient in achieving desired results or outcomes. Best practices can be derived from one's own experience, research, or benchmarking.
Best practices can help improve performance, quality, or productivity by adopting proven solutions or standards. Best practices are not related to setting internal performance targets, as they are focused on the implementation, not the measurement.
References := Benchmarking - Wikipedia, Benchmarking: Definition & Process | Study.com, What Is Benchmarking? Definition And Examples, What Is Beta Testing? Definition And Examples, What Is Breakthrough Innovation? Definition And Examples, What Are Best Practices? Definition And Examples
NEW QUESTION # 106
Operations strategy:
- A. involves translating market requirements into operations decisions.
- B. is a top-down activity where operations improvements cumulatively build strategy.
- C. involves exploiting operations capabilities in the global market.
- D. is a bottom-up reflection of what the whole group or business wants to do.
Answer: A
Explanation:
Explanation
Operations strategy is the process of aligning the operations function with the strategic goals of the organization. It involves translating market requirements into operations decisions that support the competitive priorities of the organization. Operations strategy is not a bottom-up reflection of what the whole group or business wants to do, but rather a top-down alignment of the operations function with the overall business strategy. Operations strategy is not a top-down activity where operations improvements cumulatively build strategy, but rather a deliberate and coherent plan that guides the design and management of the operations system. Operations strategy is not only about exploiting operations capabilities in the global market, but also about developing and sustaining those capabilities in response to the changing market needs.
References := What Is an Operations Strategy? Definition and Benefits, Operations Strategy: Definition And Impact On Projects - monday.com, Operations Strategy: Definition, Example & Strategies In 2022
NEW QUESTION # 107
......
Latest Questions CPIM-Part-2 Guide to Prepare Free Practice Tests: https://actual4test.practicetorrent.com/CPIM-Part-2-practice-exam-torrent.html