CPIM Operations Exam – Certified in Production and Inventory Management “Execution and Control of Operations” Exam:
The CPIM Execution and Control of Operations Exam is the fourth of five exams created by the Association for Operations Management, also known as APICS, that are administered by Promissor and are required in order for an individual to receive a Certification in Production and Inventory Management.
This certification can be extremely useful as a resume-builder for individuals in the manufacturing and warehousing industries, but in order to receive the certification, the individual must pass all five CPIM exams.
This exam consists of 75 questions, 60 of which are scored and 15 that are not scored, related to time management techniques including prioritizing and sequencing work, plan execution, quality and improvement initiatives including physical control implementation, reporting results, evaluating performance, and providing feedback to employees.
The exam-taker has three hours to complete the exam and there are no official breaks scheduled during that period.
The exam is scored based on a scale of 265 to 330 with 300 as the minimum score necessary to pass the exam.
To register for the exam, you must contact APICS to get a customer number and register online or by phone with APICS or Promissor to schedule a testing date. The registration fee for the exam is $110 for APICS members and $145.00 for nonmembers.
CPIM Exams
Practice Questions
1. Among the four statements below, the incorrect or FALSE statement is:
- Capacity testing is done during OMP, or operations management planning
- OMP includes scheduling and material requirements planning
- Kanban streamlining is done during the top management planning phase of MPC
- Time frames for production are set during the top management planning phase of MPC
2. In the beginning stages of planning, sales and operations are linked because:
- The rate of production is set in accordance with projected sales
- Senior management must determine products and product families far into the future and set production schedules that maximize production capacity
- The production plan must identify product volumes at specific time periods to account for seasonal or other periodic fluctuations of sales
- Of all of the above
3. How does RRP enhance and balance manufacturing operations?
- RRP ensures more efficient material distribution through the employment of kanban techniques
- RRP balances material needs to productive capacity and tests operational planning and performance
- RRP allows for better senior management planning of sales and operations.
- RRP disperses manufacturing data throughout all work centers involved in a manufacturing process
4. The timeline for manufacturing and sales is sometimes called the “planning cycle.” During each planning cycle, managers of both sales and operations meet to discuss:
- Inventory levels, seasonal demand fluctuations, monthly and quarterly production scheduling
- Inventory handling, storage, shipping costs, and spoilage
- The costs of maintaining inventory, manufacturing costs, and overhead
- All of the above
5. APICS defines the master production schedule (MPS) as a set of figures and projections used as the basis for materials requirements planning. The MPS differs from forecasting in that:
- It depends heavily on demand forecast figures, availability of material, and management policies
- It puts greater emphasis on forecasts of both trend variation and seasonality than on specifics
- The master production schedule is specific with respect to the configuration of product groups to be manufactured, the quantities to be manufactured, and the target dates for beginning and completion
- All of the above
Answer Key
1. C: The correct answer, that is, the FALSE statement is shown in “c.” Kanban refers to a method of streamlining factory assembly developed initially by the Japanese. Operations management execution refers to the control phase of MPC, during which plans are executed. Aside from kanban, other components of control are procurement, and actual assembly line or work center production. The procurement component involves negotiating the supply, transportation, handling, and storage of materials or parts needed for manufacture.
2. D: Answer “d” applies to early planning by senior management. One of the early planning tasks that must be addressed by the senior management team is a coordinated plan for sales and operations. Senior management must define the products and family groups to be sold and they must plan far into the future when material resources may fluctuate and meeting production schedules and sales targets become more difficult. Senior management must consider economies of scale as productive capacity comes close to its top levels. After coordinating sales and operations, the senior top management team must develop and distribute separate sales and production plans.
3. B: Choice “b” is the best answer, even though there are elements of truth in the other answer choices. RRP, or resource requirement planning, is a way of matching resources to production capabilities with a view toward greater efficiency of utilization. RRP can analyze and anticipate long-term material needs and requirements, balancing materials and capacity in a way that prevents shortages or bottlenecks in manufacturing. It also serves as a testing mechanism that validates the metrics of operational planning and performance. RRP relies heavily on computerization for the the transmission of data through the manufacturing environment.
4. A: The correct answer is “a.” Sales and operations segments meet regularly to identify the needs of the organization and changing circumstances pertaining to the planning cycle. Among the issues that are addressed and discussed at regular planning meetings are inventory levels, seasonal changes in production and sales, discrepancies between forecasts and actual sales, product grouping and differentiation, and monthly/quarterly production scheduling. All of these elements fall within the reach of the “planning cycle” and can be adjusted to more accurately align production targets with product demand.
5. C: The correct answer is shown in option “c.” Choices “a” and “b” represent coordinated areas that are common to forecast and specific data. The MPS is a specific set of figures and data that serve as a basis for MRP. Unlike forecast data, the master production schedule is specific with respect to the configuration of product groups to be manufactured, the quantities to be manufactured, and the target dates for beginning and completion. Standing inventory and “pipeline” inventory are also considered. Less predictable are forecast areas like availability of material and management policies.
