CPIM Strategic Management of resources (CPIM-SMR)

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Exam Code : CPIM-SMR
Exam Name : CPIM Strategic Management of resources
Version : Demo
Question No: 1
What would MOST LIKELY be a structural question?
A. Are we over our capacity at the plant?
B. Will the firm make or buy its products?
C. Is a work center going over capacity?
D. How much of a particular product will need to be produced next month?
Answer: B
Explanation: A structural question would be if a company would make or buy its parts.
Question No: 2
What is the first step in determining what a customer "wants"?
A. Have sit down meeting with them
B. Evaluate what customer gives
C. Identify who the customer is
D. Listen to the customer
Answer: C
Explanation: First step is to listen to identify who the customer is. In complex business world, it may not
be as easy as you would think.
Question No: 3
Which of the following are NOT characteristics of a project
A. On-time focus
B. Have a start and finish

C. Risks and Issues identified
D. Specific purpose and desired results
Answer: C
Explanation: 8 characteristics of a project
1. On-time focus
2. Specific purpose and desired results
3. Start and a finish
4. Time frame for completion
5. Involvement of a cross functional group of people
6. Limited set of resources
7. Logical sequence of activities
8. Clear user of the results
Question No: 4
Good performance measures should be all of the following EXCEPT
A. Be customized to suit the environment
B. Be understood only be the person doing the work
C. Reflect the manufacturing strategy
D. Be non-financial in nature
Answer: B
Explanation: Good performance measures should
1. Reflect the manufacturing strategy
2. Be non-financial in nature
3. Be customized to suit the specific environment
4. Be revised on a continuous basis
5. Provide accurate and timely feedback
6. Be understood by all
7. Promote improvement rather than just do monitoring
8. Be group oriented
Question No: 5
Quality at the source is one of the most powerful concepts in what?

A. JIT
B. Kaizen
C. Six Sigma
D. Total Quality Management (TQM)
Answer: D
Explanation: Quality at the source is one of the most powerful concepts in Total Quality Management
(TQM)
Question No: 6
What would be considered the BEST measure of a good design?
A. Short time to market
B. Lowest amount of failures
C. Lowest cost of the product
D. Creates value for the customer
Answer: D
Explanation: The BEST measure of a good design is that it creates value for the customer
Question No: 7
The pharmaceutical and aircraft industries have one thing in common, they must both
A. Run a job shop
B. not export their products
C. Use JIT manufacturing
D. Use lot traceability
Answer: D

Explanation: Both the airline industry and the pharmaceutical industry must use lot traceability so there is
complete traceability back from the original source all the way through final product.
Question No: 8
A company decides to buy out one of its suppliers. This is a strategic move to be more what?
A. Kanban Integrated
B. Horizontally integrated
C. JIT Integrated
D. Vertically integrated
Answer: D
Explanation: Buying out a supplier would be a strategic move to be more vertically integrated. Vertically
integrated because the company has decided to directly produce more value adding stages from raw
materials to the point of sale of the product to the customer.
Question No: 9
Job or task-level changes are most appropriately defined by what?
A. Work Teams
B. 1st level management
C. Cross-functional team
D. Quality Circle
Answer: A
Explanation: Job or task-level changes are most appropriately defined by what work teams
Question No: 10
Which of the following are types of distribution channels?
I. Direct shipments
II. Consolidation shipments
III. Local Distribution

A. I & III Only
B. II & III Only
C. I & II Only
D. I, II, & III
Answer: D
Explanation: All of the following are types of distribution channels that can get products physically routed
from the production facility to the end user.
1. Direct shipments
2. Consolidation shipments
3. Local Distribution
Question No: 11
A successful Employee involvement program includes which of the following?
I. Common understanding of the employee’s role in the plant
II. Management clearly defining the problems to be solved
III. Provide teams with authority to change work process
IV. Developing a rewards system
A. I, III, & IV Only
B. I, II, & IV Only
C. II, III, & IV Only
D. I, II, & III Only
Answer: A
Explanation: A successful Employee involvement program includes which of the following?
1. Common understanding of the employee's role in the plant
2. Provide teams with authority to change work process
3. Developing a rewards system
In an employee involvement program should not have management defining the problems to be solved
Question No: 12
Which of the following in a modern company is the LOWEST cost element?

A. Labor Cost
B. Material Cost
C. Inventory Cost
D. Overhead Cost
Answer: A
Explanation: In a modern company labor cost is usually the lowest and material is the highest. Inventory
is not a cost element because it is considered an overhead cost.
Question No: 13
What are principles of strategic revolution?
I. The bottleneck is at the top of the bottle
II. Strategic planning isn’t strategic
III. Plan then strategize
IV. Strategy planning must be subversive
A. I, III, & IV
B. II, III, & IV
C. I, II, & IV
D. I, II, & III
Answer: C
Explanation: Principles of a strategic revolution
1. The bottleneck is at the top of the bottle
2. Strategic planning isn’t strategic
3. Strategy planning must be subversive
4. Planning must be different than strategizing
5. Planning is about programming, strategizing is about discovery
6. Planning is for technocrats
7. Strategizing is for dreamers
Plan then strategize is not a principle of the strategic revolution
Question No: 14

To purchase a new hole-boring machine to increase capacity of the plant would be considered what?
A. Supply Investment
B. Capacity Investment
C. A financial Investment
D. A capital investment
Answer: D
Explanation: To purchase a new hole-boring machine to increase capacity of the plant would be
considered a capital investment because investing in the future of the company.
Question No: 15
To purchase a new hole-boring machine to increase capacity of the plant would be considered what?
A. Supply Investment
B. Capacity Investment
C. A financial Investment
D. A capital investment
Answer: D
Explanation: To purchase a new hole-boring machine to increase capacity of the plant would be
considered a capital investment because investing in the future of the company.
Question No: 16
What is the BEST way to resolve people issues in change management?
A. Inform users of change as early as possible and include them in the decision making process
B. Create excellent training materials
C. Punish anyone who does not work with the new process
D. Have in-person training with users

Answer: A
Explanation: The best way to resolve people issues is to Inform users of change as early as possible and
include them in the decision making process
Question No: 17
What is the MOST important requirement for a jobbing environment?
A. Inventory cost reports
B. Detailed shop floor reporting
C. Accurate MPS
D. Detailed Business Plan
Answer: B
Explanation: Most important would be a detailed shop floor reporting system
Question No: 18
Which of the following are competitive dimensions of manufacturing?
I. Innovation
II. Dependability
III. Inventory
A. I & III Only
B. I, II, & III
C. II & III Only
D. I & II Only
Answer: D
Explanation: The five competitive dimensions of manufacturing are
1. Quality
2. Cost
3. Flexibility
4. Dependability

5. Innovation
Question No: 19
What is the tool used to formally announce the company's intention, its scope of operations and its
purpose?
A. Corporate Strategy
B. Strategic Planning Model
C. Business Strategy
D. Mission Statement
Answer: D
Explanation: The mission statement is the tool used to formally announce the company's intention, its
scope of operations and its purpose.
Question No: 20
Which of the following are important factors to institutional change?
I. Show how new approaches, behaviors, and attitudes improve performance
II. Create top notch training materials for new users
III. Next generation of managers really personify the new approaches
A. I & III Only
B. II & III Only
C. I, II, & III
D. I & II Only
Answer: A
Explanation: 2 important factors to institutionalize change are
1. Show how new approaches, behaviors, and attitudes improve performance
2. Next generation of managers really personify the new approaches

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  • Vendor: APICS 
  • Exam Code: CPIM-SMR
  • Questions & Answers: 236
  • Update Time: 2019-09-11
  • $39.00

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Tags: cpim, strategic, management, resources, apics, cpim-smr