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CPIM (PART 2) ALL YOU NEED TO KNOW 2022 EXAM REVIEW
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CPIM (PART 2) ALL YOU NEED TO KNOW 2022 EXAM REVIEW
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CPIM (PART 2) ALL YOU NEED TO KNOW 2022 EXAM REVIEW14 Points (Deming's) - (1) create constancy of purpose for improving products and
services; (2) adopt the new philosophy; (3) cease dependence on inspection to achieve
quality; (4) end the practice of awarding business on price alone; instead, minimize total
cost by working with a single supplier; (5) improve constantly and forever every process
for planning, production, and service; (6) institute training on the job; (7) adopt and
institute leadership; (8) drive out fear; (9) break down barriers between staff areas; (10)
eliminate slogans, exhortations, and targets for the workforce; (11) eliminate numerical
quotas for the workforce and numerical goals for management; (12) remove barriers
that rob people of pride of worksmanship and eliminate the annual rating or merit
system; (13) institute a vigorous program of education and self-improvement for
everyone; and (14) put everybody in the company to work to accomplish the
transformation.
A3 method - A means of compactly describing a business process.
abnormal demand - Demand in any period that is outside the limits established by
management policy.
absorption costing - An approach to inventory valuation in which variable costs and a
portion of fixed costs are assigned to each unit of production.
acceptable quality level (AQL) - When a continuing series of lots is considered, a quality
level that, for the purposes of sampling inspection, is the limit of a satisfactory process
average.
acceptance sampling - The process of sampling a portion of goods for inspection rather
than examining the entire lot.
action message - An output of a system that identifies the need for, and the type of
action to be taken to correct, a current or potential problem.
activation - Putting the resource to work.
activity based management (ABM) - The use of activity-based costing information about
cost pools and drivers, activity analysis, and business processes to identify business
strategies; improve product design, manufacturing, and distribution; and remove waste
from operations.
activity-based cost accounting - A cost accounting system that accumulates costs
based on activities performed and then uses cost drivers to allocate these costs to
products or other bases such as customers, markets, or projects.
actual costs - The labor, material, and associated overhead costs that are charged
against a job as it moves through the production process.
,actual demand - Composed of customer orders.
adaptive smoothing - A form of exponential smoothing in which the smoothing constant
is automatically adjusted as a function of forecast error measurement.
adjustable capacity - Capacity, such as labor or tools, that can be changed in the short
term.
advanced planning and scheduling (APS) - Techniques that deal with analysis and
planning of logistics and manufacturing during short, intermediate, and long-term time
periods.
advanced planning system (APS) - Syn: advanced planning and scheduling.
Techniques that deal with analysis and planning of logistics and manufacturing over the
short, intermediate, and long-term time periods. APS describes any computer program
that uses advanced mathematical algorithms or logic to perform optimization or
simulation on finite capacity scheduling, sourcing, capital planning, resource planning,
forecasting, demand management, and others. These techniques simultaneously
consider a range of constraints and business rules to provide real-time planning and
scheduling, decision support, available-to-promise, and capable-to-promise capabilities.
APS often generates and evaluates multiple scenarios. Management then selects one
scenario to use as the "official plan." The five main components of APS systems are
demand planning, production planning, production scheduling, distribution planning, and
transportation planning.
aggregate forecast - An estimate of sales, often time-phased, for a grouping of products
or product families produced by a facility or firm.
aggregate plan - A plan that includes budgeted levels of finished goods, inventory,
production backlogs, and changes in the workforce to support the production strategy.
agility - The ability to quickly plan, source, make, and deliver to adapt and respond to
changes in the competitive environment.
allocation - A process used to distribute material in short supply.
alpha factor - Syn: smoothing constant. In exponential smoothing, the weighting factor
that is applied to the most recent demand, observation, or error. In this case, the error is
defined as the difference between actual demand and the forecast for the most recent
period. The weighting factor is represented by the symbol ⍺. Theoretically, the range of
⍺ is 0.0 to 1. Syn: alpha factor, smoothing factor.
alternate operation - Replacement for a normal step in the manufacturing process.
,alternate routing - A routing that is usually less preferred than the primary routing but
results in an identical item.
analysis of variance (ANOVA) - A statistical analysis system that estimates what portion
of variation in a dependent variable is caused by variation in one or more independent
variables.
andon - A sign board with signal lights used to make workers and management aware
of a quality, quantity, or process problem.
anticipated delay report - A report, normally issued by both manufacturing and
purchasing to the material planning function, regarding jobs or purchase orders that will
not be completed on time.
appraisal costs - Those costs associated with the formal evaluation and audit of quality
in the firm.
assignable cause - A source of variation in a process that can be isolated, especially
when its significantly larger magnitude or different origin readily distinguishes it from
random causes of variation.
attribute data - Go/no-go information. The control charts based on attribute data include
percent chart, number of affected units chart, count chart, count-per-unit chart, quality
score chart, and demerit chart.
availability - The percentage of time that a worker or machine is capable of working. The
formula is availability = (scheduled time - downtime) / scheduled time x 100%
available capacity - Syn: capacity available.
available time - The number of hours a workcenter can be used, based on management
decisions regarding shift structure, extra shifts, regular overtime, observance of
weekends and public holidays, shutdowns, and the like.
average cost per unit - The estimated total cost, including allocated overhead, to
produce a batch of goods divided by the total number of units produced.
average outgoing quality limit (AOQL) - The maximum average outgoing quality over all
possible levels of incoming quality for a given acceptance sampling plan and disposal
specification.
backflush costing - The application of costs based on the output of a process.
backward integration - The process of buying or owning elements of the production
cycle and channel of distribution back toward raw material suppliers.
, backward scheduling - A technique for calculating operation start dates and due dates.
The schedule is computed starting with the due date for the order and working
backward to determine the required start date and/or due dates for each operation.
balanced scorecard - A list of financial and operational measurements used to evaluate
organizational or supply chain performance.
balancing operations - In repetitive just-in-time production, matching actual output cycle
times of all operations to the demand or use for parts as required by final assembly and,
eventually, as required by the market.
base series - A standard succession of values of demand-over-time data used in
forecasting seasonal items.
baseline measures - In project management, the approved time-phased plan for the
schedule or cost of a piece of work, including approved changes.
basic seven tools of quality (B7) - Tools that help organizations understand their
processes in order to improve them.
batch - A quantity scheduled to be produced or in production.
batch processing - A manufacturing technique in which parts are accumulated and
processed together in a lot.
benchmark measures - A set of measurements (or metrics) that is used to establish
goals for improvements in processes, functions, products, and so on.
benchmarking - Comparing products, processes, and services to those of another
organization thought to have superior performance.
bill of distribution - Syn: distribution network structure.
bill of labor - A structured listing of all labor requirements for the fabrication, assembly,
and testing of a parent item.
bill of resources - A listing of the required capacity and key resources needed to
manufacture one unit of a selected item or family.
block scheduling - An operation scheduling technique where each operation is allowed
a "block" of time, such as a day or a week.
bottleneck - A facility, function, department, or resource whose capacity is less than the
demand placed upon it.
bottleneck operation - Syn: bottleneck.
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