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Effective Study Techniques for the APICS CPIM-ECO Exam

Questions 1

If actual demand is consistently slightly lower than planned demand, which of the following outcomes most likely will occur when a firm produces to stock using a functional layout?

Options:

A.

Production efficiency will decrease.

B.

Customer service will decrease.

C.

Backlog will increase.

D.

Quality levels will increase.

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Questions 2

A company is gathering data as to why the machine is consistently shutting down. What methodology should a company pursue first?

Options:

A.

5S

B.

Plan-do-check-act

C.

Kaizen event

D.

Statistical process control

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Questions 3

A plant that implements a total preventive maintenance program would be likely to:

Options:

A.

acquire the latest in computer-controlled production equipment.

B.

use statistical process control to identify equipment problems.

C.

involve production workers directly in maintaining and managing production equipment.

D.

identify and remove the causes of abnormal instrumentation and tooling variation.

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Questions 4

The actual output of a work center for a given time period can be determined by evaluating the:

Options:

A.

number of standard hours in the queue.

B.

number of standard hours per units produced.

C.

number of machine hours.

D.

amount of rated capacity less rework.

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Questions 5

Which of the following approaches provides the reliability necessary to support a tightly integrated manufacturing operation?

Options:

A.

Preventive maintenance

B.

Group technology

C.

A kanban system

D.

Computer-integrated manufacturing

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Questions 6

Which of the following applications is an effective use of electronic data interchange?

Options:

A.

Routing

B.

Price increase

C.

Advance shipment notice

D.

Returned material authorization

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Questions 7

Standard costing systems may encourage production managers to do which of the following activities?

Options:

A.

Concentrate on easy orders to maintain high productivity ratios.

B.

Implement Theory of Constraints.

C.

Implement lean production systems to reduce cycle times.

D.

Build finished-goods inventory to net requirements.

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Questions 8

Small-group improvement activities are most effective when the:

Options:

A.

group is guided by a professional facilitator.

B.

group focuses on solvable problems.

C.

machine operators are required to participate.

D.

company's industrial engineers participate.

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Questions 9

The implementation of a program designed to reduce changeover times will result in a temporary capacity shortage. This shortage will be handled by using some older equipment and by subcontracting some work. Which of the following methods should the company use to control capacity during this period?

Options:

A.

Kanban

B.

Demand management

C.

Flow control

D.

Input/output control

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Questions 10

Which of the following statements best reflects a goal of the participative approach to management?

Options:

A.

Supervisors will have more control.

B.

The quality of decisions will improve.

C.

The speed of decision-making will increase.

D.

Managers can focus on tactics rather than strategy.

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