Master APICS CPIM-Part-2 Exam with Reliable Practice Questions

Correct : D

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.Reference: 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.

Correct : D

Customer relationship management (CRM) is a program that uses data and technology to manage the interactions and relationships with customers. CRM helps to understand the needs, preferences, and behaviors of customers, and to provide them with better products, services, and experiences. In a rapidly changing business environment, a primary advantage of an effective CRM program is earlier identification of shifts in customer preferences. This means that CRM can help to detect and anticipate the changes in customer demand, tastes, or expectations, and to respond accordingly. This can help to improve customer satisfaction, loyalty, and retention, as well as to gain a competitive edge in the market. CRM does not necessarily reduce forecast variability, which is the degree of difference between the actual demand and the forecasted demand. CRM does not necessarily reduce customer order changes, which are the modifications or cancellations of orders by customers. CRM does not necessarily reduce customer defections, which are the losses of customers to competitors or other alternatives.Reference: CPIM Exam Content Manual Version 7.0, Domain 3: Plan and Manage Demand, Section 3.1: Demand Management Concepts, p. 16; Customer relationship management; Customer Relationship Management (CRM) Definition.

Correct : A

Adopting a lean approach to manage supply chain throughput rather than a more traditional approach means that more capacity may be required. Throughput is the rate at which a system produces or processes its output. A lean approach is a philosophy that aims to eliminate waste and improve efficiency by focusing on customer value, continuous improvement, and pull systems. A traditional approach is a philosophy that relies on forecasting, push systems, and large batch sizes. A lean approach may require more capacity because it reduces inventory levels, buffers, and safety stocks, which may expose the system to more variability and uncertainty. More capacity may be needed to cope with fluctuations in demand or supply, and to maintain high service levels. A lean approach does not necessarily require less training, as it involves empowering employees, cross-training them, and involving them in problem-solving and improvement activities. A lean approach does not necessarily require more inventory, as it aims to minimize inventory and its associated costs. A lean approach does not necessarily result in longer cycle times, as it strives to reduce lead times, setup times, and waiting times.Reference: CPIM Exam Content Manual Version 7.0, Domain 4: Plan and Manage Supply, Section 4.2: Supply Planning Methods, p. 26; Lean Manufacturing; Throughput.

Correct : B

Full pegging is a method of tracing the relationship between supply and demand in a manufacturing system. Full pegging shows the link between each demand and its corresponding supply, as well as the link between each demand and the highest-level order that triggered it. Full pegging helps to identify the impact of changes in demand or supply on the production plan, and to make adjustments accordingly. Full pegging is most beneficial in an assemble-to-order (ATO) environment, where products are customized by assembling standardized components or modules according to customer specifications. In an ATO environment, full pegging can show the connection between the finished products, the components or modules, and the customer orders. This can help to optimize the inventory level, reduce lead time, and improve customer service.

Full pegging is not very useful in the other production environments. Distribute-to-order is a production strategy that delivers finished products from inventory to customers based on their orders. There is no customization or assembly involved in this strategy, so full pegging is not needed. Make-to-order is a production strategy that produces customized products from raw materials or components after receiving customer orders. There is no standardization or modularization involved in this strategy, so full pegging is not applicable. Make-to-stock is a production strategy that produces standardized products in advance of customer demand, and stores them in inventory until they are sold. There is no customization or assembly involved in this strategy, so full pegging is not relevant.Reference: CPIM Exam Content Manual Version 7.0, Domain 4: Plan and Manage Supply, Section 4.1: Supply Planning Concepts, p. 23;Full Pegging; Assemble to order.

Correct : B

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 and allocation 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.Reference: 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.