Cpim-Smr - Braindump

APICS CPIM-SMR Exam
Volume: 236 Questions
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
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APICS CPIM-SMR Exam
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?

APICS CPIM-SMR Exam
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

APICS CPIM-SMR Exam
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

APICS CPIM-SMR Exam
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?

APICS CPIM-SMR Exam
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

APICS CPIM-SMR Exam
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

APICS CPIM-SMR Exam
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

APICS CPIM-SMR Exam
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
Question No: 21

APICS CPIM-SMR Exam
Which of the following are the three topics under the definition and design phases of a project?
I. Objective
II. Statement of Work
III. Scope
IV. Strategy
B. I, II, & IV Only
Answer: A
Explanation: The following are the three topics under definition and design phase
1. Objective
2. Scope
3. Strategy
Question No: 22
What is MOST appropriate to shorten delivery lead time?
A. Increase machine utilization
B. Shorten setup an queue time
C. Increase the number of workers
D. use alternate routing
Answer: B
Explanation: Most appropriate is to shorten setup and queue time
Question No: 23
Which of the following is NOT a part of sustainability to the organization, stakeholders, and supply chain?
A. Profit

APICS CPIM-SMR Exam
B. Environmental
C. Economic
D. Social
Answer: A
Explanation: The three parts of sustainability are

1. Economic (Profit would be a part of this category)
2. Environmental
3. Social
Question No: 24
What in project management is the hierarchical description of a project in which each lower level is more
detailed?
A. Work Breakdown Schedule
B. Responsibility Assignment Matrix (RAM)
C. Organization Chart
D. Statement of Work
Answer: A
Explanation: A work breakdown schedule t is the hierarchical description of a project in which each lower
level is more detailed
Question No: 25
Which of the following are good performance measures?
I. Be-individual oriented
II. Be understood by all
III. Provide accurate and timely feedback
IV. Be revised on a continuous basis
A. I, II, & III Only
B. II, III, & IV Only

APICS CPIM-SMR Exam
C. I, II, & IV Only
D. I, III, & IV Only
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: 26
The first step of preparing others for change is what?
A. Communication directly to them
B. Involving others in the change
C. Training users on the changes
D. Learning about the change
Answer: A
Explanation: The FIRST step is to communicate to the users directly
Question No: 27
According to Davenport and Short which of the following is NOT a major process dimension?
A. Process Objects
B. Process Route
C. Process Activities
D. Entities

APICS CPIM-SMR Exam
Answer: B
Explanation: 3 major process dimensions Davenport and Short

1. Entities
2. Process objects
3. Process activities
Question No: 28
The cost of goods forecast to be sold in the next 3 months equal $1,200,000, and the average projected
inventory is $600,000. What is the projected stock turns?
A. 6
B. 8
C. 2
D. 4
Answer: B
Explanation: Stock turns = Projected annual cost of goods sold/ average inventory=(1200000*4)/600000
Question No: 29
Which of the following are phases of change
I. Actioning the plan
II. Systemizing Change
III Gain approval from CEO
A. I, II, & III
B. II & III Only
C. I & II Only
D. I & III Only
Answer: C
Explanation: The phases of changes include

1. Identify the project

APICS CPIM-SMR Exam
2. Plan the project

3. Action the plan
4. Implementation
5. Reorganizing to the new
6. Systemizing the change
7. Closure
Question No: 30
According to Kapp, what is the first level of training evaluation?
A. Evaluation checks to ensure student is using skills learned in training
B. Survey after training. How did it all go?
C. test demonstration of the skill
D. Bottom line impact of training reviewed
Answer: B
Explanation: According to Kapp, the first level of training evaluation is to survey after training. These are
the 4 levels of training evaluation.
1. Survey after training. How did it go?
2. Test or demonstration of the skill
3. Evaluation checks to ensure student is using the skills learned in training
4. Bottom line impact of training reviewed
Question No: 31
What is the BEST way to begin changing employee behavior?
A. Flatten the organization
B. Provide more detailed directives
C. Change performance measurement and reward system
D. Implement a suggestion box
Answer: C
Explanation: What is the BEST way to begin changing employee behavior is to change the performance

APICS CPIM-SMR Exam
measurement and reward system.
Question No: 32
Worker idle time should be accepted in any process because of why?
A. Work will eventually run out.
B. Workers should have time to work problems and implement improvements
C. should not be accepted because they should always be producing
D. Workers need to rest
Answer: B
Explanation: Worker idle time should be accepted in any process because workers should have time to
work problems and implement improvements
Question No: 33
Which of the following is MOST related to Quality Function Deployment?
A. Total Quality management
B. JIT Principles
C. House of Quality
D. Distribution Requirements Planning
Answer: C
Explanation: House of Quality is also known as a Quality Function Deployment
Question No: 34
Material Management organization brings together what organizations?
I. Purchasing
II. Scheduling
III. Finance
A. II & III Only

APICS CPIM-SMR Exam
B. I & III Only
C. I, II, & III
D. I & II Only
Answer: D
Explanation: Material Management organization brings together purchasing and production that at one
time purchasing reported to finance and scheduling reported to production. Materials management
brought these two groups together.
Question No: 35
What type of environment would MOST likely not control the order status
A. Project
B. Job Shop
C. Batching
D. Flow
Answer: D
Explanation: A flow shop would likely not control the order status because it is "flowing" through the
factory.
Question No: 36
All of the following teams and positions need to be identified for a project EXCEPT
A. Project Manager
B. The Change Champion
C. Executive Steering Committee
D. Supplier
Answer: D

APICS CPIM-SMR Exam
Explanation: The following are the teams and positions that need to be identified for a new project
1. Executive Steering Committee
2. The Change Champion
3. Project Manager
4. Project Team
Supplier would not need to be identified as not all projects require suppliers.
Question No: 37
What is the BEST measure for organization flexibility?
A. Number of skills per employee
B. Change over time
C. Number of different models produced
D. Lead Time
Answer: A
Explanation: The best measure is how many skills there are per employee. That can prove for a very
flexible organization.
Question No: 38
The decision to use a functional layout or a process layout is dependent on what?
A. Volumes
B. Inventory
C. Quality
D. Labor
Answer: A
Explanation: The decision to use a functional layout or a process layout is dependent on how much
volume will be going through.
Question No: 39

APICS CPIM-SMR Exam
An important issue with revenue and expenses is the timing of the money received and the expenses paid.
What financial statement helps to highlight this timing issue?
A. Cash Flow Statement
B. Profit Statement
C. Income Statement
D. Balance Sheet
Answer: A
Explanation: The Cash flow statement helps to show revenue and expenses during a period of time
helping to highlight any timing issues. In an expanding business would buy equipment now for future
profits. This is a cash flow issue.
Question No: 40
JIT strives for an economic order quantity of what?
A. 0
B. Less than 1 but greater than 0
C. 1
D. Greater than 1
Answer: C
Explanation: JIT strives for an economic order quantity of one. This is really a goal as it may not be
practical, but it is the goal of a JIT program.
Question No: 41
Which of the following are principles of re-engineering?
I. Link parallel activities instead of integrating results
II. Put a decision point where work is performed
III. Capture info once at the source
IV. Treat geographically dispersed resources separately
A. I, III, & IV

APICS CPIM-SMR Exam
B. I, II, & IV Only
C. I, II, & III Only
D. II, III, & IV Only
Answer: C
Explanation: 7 principles of re-engineering

1. Organize around outcomes, not tasks
2. Have those that use the output of the process perform the process
3. Subsume info processing work into the real work that produces info
4. Treat geographically dispersed resources as they are centralized
5. Link parallel activities instead of integrating results
6. Put decision point where work is performed, and build control into the process
7. Capture info once at the source
Question No: 42
According to the article "Crafting and Executing Strategy" by Thompson, Strickland and gamble, which of
the following are NOT identified as one of the generic competitive strategies that can be used to give a
company a competitive advantage?
A. Monopoly provider
B. Broad differentiation
C. Low cost provider
D. Best Cost Provider
Answer: A
Explanation: According to the article "Crafting and Executing Strategy" by Thompson, Strickland and
gamble, monopoly provider is not one of the 5 generic competitive strategies that can be used to give a
company a competitive advantage. Here are the 5 that were identified
1. Low-cost provider
2. Broad differentiation
3. Best Cost Provider
4. Focused Low-Cost Provider
5. Focused Differentiation

APICS CPIM-SMR Exam
Question No: 43
Which of the following is NOT a part of reverse logistics?
A. Customer Purchase
B. Customer Returns
C. Product Recall
D. Reusable containers
Answer: A
Explanation: Reverse logistics include anything going in reverse of normal product purchase process.
Reverse logistics include
1. Customer returns
2. Product recalls
3. Re-usable containers
4. Waste management
5. Hazardous waste
Question No: 44
Costs that include education, quality training, and supplier certification would be what type of quality cost?
A. Internal Failure Cost
B. Appraisal Cost
C. External Failure Cost
D. Prevention Cost
Answer: D
Explanation: Costs that include education, quality training, and supplier certification would be a prevention
cost
Question No: 45
If a company has a capacity shortfall due to a machine shortage, what is the quickest and most effective
way to maximize the capacity constraint?

APICS CPIM-SMR Exam
A. Sub contract
B. hire new workers
C. Overtime
D. Create a full time 2nd shift
Answer: D
Explanation: The most effective way to maximize the machine is to create a full time second shift to work
the machine. This maximizes the use of the machine without needing to hire or subcontract out some of
the work.
Question No: 46
According to the Gavin article, which of the following is NOT an activity that learning organizations are
skilled at?
A. Experimentation with new approaches
B. Implementing JIT system
C. Systematic Problem Solving
D. Learning from their own experiences
Answer: B
Explanation: 5 activities learning organizations are skilled at Garvin

1. Systemic problem solving
2. Experimentation with new approaches
3. Learning from their own experiences and past history
4. Learning from experiences of others
5. Transforming knowledge quickly and efficiently
Question No: 47
Which of the following is NOT a rule for choosing the right measurement?
A. Must cause correct response
B. Measure more

APICS CPIM-SMR Exam
C. Provide a basis for decisions
D. Immediately understandable
Answer: B
Explanation: Measure more is not a rule for measurement. Should only measure what is needed, not
everything.
Question No: 48
What would MOST likely indicate that a process should be reengineered rather than incrementally
improved?
A. Large gap between customer requirements and performance
B. A stable demand signal
C. expansion of scope in the process
D. a decentralized organizational structure
Answer: A
Explanation: A process should be reengineered when there is a large gap between customer
requirements and performance.
Question No: 49
Service level cost what as the service level increases?
A. decreases steadily
B. increases steadily
C. increases exponentially
D. decreases exponentially
Answer: C
Explanation: Service level cost increases exponentially as the service level increases.

APICS CPIM-SMR Exam
Question No: 50
Using the following information calculate the payback period
Purchase Price = $50,000
Life span of new machine = 7 years
Annual earnings before depreciation and tax = 20,000
A. 2.5 Years
B. .4 Years
C. 4.5 Years
D. 17.5 Years
Answer: A
Explanation: Payback Period = Initial cash investment/ annual net cash income=50000/20000= 2.5 years
Question No: 51
Using value innovation logic, assets and capabilities should what?
A. not be constrained by what it already has. It must ask. What would we do differently if starting over?
B. Removes all equipment and starts over
C. target the mass of capabilities and lets the rest go
D. leverage its existing assets and capabilities
Answer: A
Explanation: Using value innovation logic, assets and capabilities should not be constrained by what it
already has. It must ask. What would we do differently if starting over
Question No: 52
Which of the following are approaches to cutting over to a new technology?
I. Big Bang Approach
II. Step Approach
III. Parallel
A. II & III Only

APICS CPIM-SMR Exam
B. I, II, & III
C. I & III Only
D. I & II Only
Answer: B
Explanation: All of the following are approaches to cutting over to a new technology?
1. Big Bang Approach
2. Step Approach
3. Parallel
Question No: 53
Strategic Business Plan should be reviewed
A. day to a month
B. weekly or monthly
C. every 6 months to a year
D. Monthly or quarterly
Answer: C
Explanation: Strategic Business Plan should be reviewed every 6 months to a year per text. It can be
longer or shorter depending on the cycle of the business, but 6 months to a year is what is recommended
Question No: 54
What are basic data that is needed to draw a Gnat Chart and Critical path network diagram?
I. Task
II. Duration
III. Code
IV. Dependencies
B. I, II, & IV Only
C. I, II, III & IV

APICS CPIM-SMR Exam
Answer: C
Explanation: All of the basic data is needed to draw a Gantt Chart and Critical path network diagram
1. Task
2. Duration
3. Code
4. Dependencies
Question No: 55
Which of the following is a generic strategy to distinguish from competitors?
I. Cost Leadership
II. Product differentiation
III. Focus responsive delivery
IV. Lowest Inventory
C. I, III, & IV Only
D. I, II, & IV Only
Answer: A
Explanation: The following is a generic strategy to distinguish from competitors?

1. Cost Leadership
2. Product differentiation
3. Focus responsive delivery
Lowest Inventory would not be included because that would not distinguish between your competitors
from your customer's point of view.
Question No: 56
TQM methodology is for continuously improving a process in small increments. Re-engineering is for
what?
A. Re-creating an already existing product
B. improving the process quickly

APICS CPIM-SMR Exam
C. questions whether we need the process to exist at all.
D. implementing small changes over a long period of time
Answer: C
Explanation: TQM methodology is for continuously improving a process in small increments.

Re-engineering questions whether we need the process to exist at all.
Question No: 57
What is the result from design for manufacturability?
A. Reduced product features
B. Longer design time
C. Reduced training needs
C. Reduced training needs
Answer: D
Explanation: Design for manufacturability causes an increase in product quality because special attention
is given to making a product that can be manufactured at high consistent quality.
Question No: 58
Which of the following stage of a product life cycle is NOT related to the market place?
A. Engineering
B. Growth
C. Maturity
D. Introduction
Answer: A
Explanation: Engineering is not a part of the lifecycle. The following are the4 phases of a product life
cycle in the market place
1. Introduction

APICS CPIM-SMR Exam
2. Growth
3. Maturity
4. Phasing Out
Question No: 59
The MOST underutilized resources in a factory is usually what?
A. Materials
B. Workers
C. Building
D. Machines
Answer: B
Explanation: The MOST underutilized resources in a factory is usually the workers
Question No: 60
Immediate feedback of performance while doing the task would be a requirement of what?
A. Six Sigma
B. JIT
C. Continuous Improvement
D. Quality at the Source
Answer: D
Explanation: Immediate feedback of performance while doing the task would be a requirement of quality
at the source.
Question No: 61
The MOST significant impact of electronic business on supply chain management is what?
A. Coordination of information

APICS CPIM-SMR Exam
B. Electronic Data Interface
C. Electronic Kanban
D. Reduction of paper products
Answer: A
Explanation: The MOST significant impact of electronic business on supply chain management is the
coordination of information
Question No: 62
When two businesses conduct business through the internet, a common acronym for this is what?
A. B2I
B. B2C
C. BPI
D. B2B
Answer: D
Explanation: B2B stands for business to business commerce that is done through the internet.
Question No: 63
Well known service merchandisers like Pizza Hut get into foreign markets by how?
A. Licensing
B. Joint Venture
C. Franchising
D. Exporting
Answer: C
Explanation: Pizza Hut, McDonalds get into foreign markets by usually franchising their name and brand
to a foreign company to market and sell under their brand name/ service.

APICS CPIM-SMR Exam
Question No: 64
The choice to either vertically integrate with a supplier would be directly decided under what strategy?
A. Manufacturing Strategy
B. Marketing Strategy
C. Financial Strategy
D. Engineering Strategy
Answer: A
Explanation: The choice to vertically integrate with a supplier would be a part of manufacturing
strategy's decisions
Question No: 65
Which of the following are critical objectives of process design?
I. Throughput time is reduced to absolute minimum
II. Process supports level of quality to support market
III. Reduce product inventory
IV. Process supports product flexibility to meet market demand
A. I, II, & IV Only
B. I, III, & IV Only
Answer: A
Explanation: The following are critical objectives of process design

1. Throughput time is reduced to absolute minimum
2. Process supports level of quality to support market
3. Process supports product flexibility to meet market demand
Reduce product inventory is not a critical objective of process design.
Question No: 66
Which of the following are profit categories?

APICS CPIM-SMR Exam
I. Gross Profit
II. Operating Profit
III. Net Profit
IV. Variable Profit
A. I, II & III Only
C. I, II, III, & IV
D. I, II, & IV Only
Answer: A
Explanation: Which of the following are profit categories?

1. Gross Profit
2. Operating Profit
3. Net Profit
There is no such thing as Variable Profit
Question No: 67
Which of the following are assets of a company?
I. Inventory
II. People
III. Rent
IV. Facilities
A. I, III, & IV only
B. I, II, & IV Only
D. I & IV Only
Answer: B
Explanation: Which of the following are assets of a company?

1. Inventory
2. People
3. Facilities

APICS CPIM-SMR Exam
Rent would not be considered an asset of a company
Question No: 68
What is the MOST critical factor for a company to achieve manufacturing excellence?
A. Reduce product features
B. Quality Improvement
C. Increase manufacturing flexibility
D. Cost reduction for the customer
Answer: B
Explanation: The most critical factor would be to improve quality to achieve manufacturing excellence.
Question No: 69
There are 5 performance objectives that are set out to satisfy the market place. The five are Quality,
Speed, Flexibility, Cost, and what is the final performance objective?
A. Inventory
B. Management Team
C. Dependability
D. Suppliers
Answer: C
Explanation: The fifth performance objective is dependability. It is saying that a company delivers the
goods or services in the time frame promised. The customer can rely on the company when needed.
Question No: 70
Which of the following is not an area under Theory of Constraints?
A. Drum Buffer Rope Scheduling
B. Performance Measurements

APICS CPIM-SMR Exam
C. Elimination of Waste
D. Process Tools
Answer: C
Explanation: Elimination is not under theory of Constraints but in a bigger idea of Lean and JIT. All other
choices are areas under Theory of Constraints
Question No: 71
What are principles of strategic revolution?
I. Planning must be different than strategizing
II. Planning is about programming, strategizing is about discovery
III. Planning is for technocrats
IV. Strategizing is for dreamers
A. I, II, & III
B. I, II, III, & IV
C. II, III, & IV
D. I, III, & IV
Answer: B
Explanation: Principles of a strategic revolution

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
Question No: 72
When a provider is targeting to provide extra special attributes that satisfy niche needs and cost is not the
key factor. Which of the 5 generic competitive advantages identified by the text "Crafting and Executing
Strategy" by Thompson, Strikland and Gamble would be described?
A. Focused Differentiation

APICS CPIM-SMR Exam
B. Broad Differentiation
C. Best Cost Provider
D. Low-Cost Provider
Answer: A
Explanation: When a provider is targeting to provide extra special attributes that satisfy niche needs and
cost is not the key factor is called focused differentiation
Question No: 73
According to Davis- what are the biggest problems of major implementations?
I. Not a strong project manager
II. Conflicting interpretations of business goals
III. Uncoordinated choosing and implementation of changes
A. I & III Only
B. II & III Only
C. I & II Only
D. I, II, & III
Answer: B
Explanation: 2 biggest problems of major implementation Davis

1. Conflicting interpretations of business goals
2. Uncoordinated choosing and implementation of changes
Question No: 74
What measures net profit over the cost of all capital to create the profit?
A. Cash to Book Value
B. Economic Value Added
C. Inventory Turns
D. Earnings Before Interest and Taxes (EBIT)

APICS CPIM-SMR Exam
Answer: B
Explanation: Economic Value Added measures net profit over the cost of all capital to create the profit?
Question No: 75
When each link in the supply chain builds in extra safety in the planned requirements creates what?
A. Higher Quality
B. Reduced Inventory
C. Higher Customer Satisfaction
D. Bullwhip effect
Answer: D
Explanation: When each link in the supply chain builds in extra safety in the planned requirements creates
the bullwhip effect. Synchronization across the supply chain is the only way to resolve this bullwhip
effect.
Question No: 76
Supplier Relationship Managements MOST important intent is to what?
A. Reduce Unnecessary Inventory
B. Quicker Lead Time
C. Higher Quality
D. Reduce Material Cost
Answer: A
Explanation: Supplier Relationship Managements MOST important intent is to reduce inventory. By

reducing unneeded inventory can have quicker lead times and lower material costs.
Question No: 77
Sub-contracting is normally planned by whom?

APICS CPIM-SMR Exam
A. Executive Management
B. MPS Planner
C. Operations Director
D. Marketing Manager
Answer: B
Explanation: Sub-contracting is normally planned by the MPS planner
Question No: 78
Which of the following are differences from conventional strategic logic and value innovation?
I. Value innovation build on strengths and weaknesses compared to competitors to build a strategic
advantage
II. Value innovators ask what if we start a new
III. Value innovators tackle reducing material costs first
A. II & III Only
B. I & III Only
C. I & II Only
D. I, II, & III
Answer: C
Explanation: The following are differences from conventional strategic logic and value innovation
1. Value innovation build on strengths and weaknesses compared to competitors to build a strategic
advantage
2. Value innovators ask what if we start a new
Neither tackle material costs first.
Question No: 79
Using the following information calculate the average return on investment
Purchase Price = $50,000
Life span of new machine = 7 years
Annual earnings before depreciation and tax = 20,000

APICS CPIM-SMR Exam
A. 450%
B. 40%
C. 250%
D. 70%
Answer: B
Explanation: Average Return on investment = annual net income * 100/ Initial cash
investment=(20000*100)/50000= 40%
Question No: 80
What is a tool to ensure that each component of work is assigned to a responsible person?
A. Responsibility Assignment Matrix (RAM)
B. Work Breakdown Structure
C. Statement of Work
D. Project Schedule
Answer: A
Explanation: A responsibility assignment matrix ensures that each component of work is assigned to a
responsible person
Question No: 81
Which of the following are product mix flexibility measurements?
I. Manufacturing cycle time
II. New Product introduction time
III. Multi-skilled workers
IV. Supplier quality
A. II, III, & IV Only
B. I, II, & III Only

APICS CPIM-SMR Exam
D. I, II, & IV Only
Answer: B
Explanation: Which of the following are product mix flexibility measurements?

1. Manufacturing cycle time
2. New Product introduction time
3. Multi-skilled workers
Supplier quality would be for volume flexibility not product mix flexibility
Question No: 82
There are three elements in a project that if you change one you must change one or both of the other two.
Which of the following is NOT included in the project management triangle?
A. People
B. Quality
C. Duration
D. Cost
Answer: A
Explanation: The project triangle includes project costs, duration, and quality. If you change to a shorter
duration you will either need to increase costs or decrease quality. People would be considered a cost in
this model since they are charging their time to the project.
Question No: 83
Out of the different approaches to cutting over to a new technology, which one utilizes the least amount of
human resources?
A. Parallel Approach
B. Step Approach
C. Big Bang Approach
D. Local Approach
Answer: C

APICS CPIM-SMR Exam
Explanation: The big bang approach utilizes the least amount of human resources?
Question No: 84
Which of the following are a basic approaches to compensation?
I. Cost Based
II. Fixed Rates
III. Skills Based
IV. Profit Sharing
D. I, II, & IV Only
Answer: A
Explanation: The following are basic approaches to compensation

1. Fixed Rates
2. Skills Based
3. Profit Sharing
4. Incentive methods
Cost base would not be a basic approach to compensation. If reduce cost and increase profit that would
be under Profit sharing approach.
Question No: 85
What is the FIRST thing in the phases of change?
A. Plan the project
B. Systemize the change
C. Identify the Project
D. Action the Plan
Answer: C
Explanation: The phases of changes include

APICS CPIM-SMR Exam
1. Identify the project

2. Plan the project
3. Action the plan
4. Implementation
5. Reorganizing to the new
6. Systemizing the change
7. Closure
Question No: 86
Which of the following are performance indicator groups?
I. Enablers that promote positive improvements
II. Inhibitors, which encourage the practices that are contrary to the desired principles
III. Disablers - discouraging bad behavior through punishment
A. I & II Only
B. I, II, & III
C. I & III Only
D. II & III Only
Answer: A
Explanation: The two performance indicator groups are

1. Enablers that promote positive improvements and
2. Inhibitors which encourage the practices that are contrary to desired principles
Disablers are not a performance indicator group.
Question No: 87
The company's vision is made up of from four view points. Which of the following is NOT one of those
viewpoints?
A. The business strategy set by management
B. The resources currently or planned to be available
C. The government
D. The operations staff's input based on experience

APICS CPIM-SMR Exam
Answer: C
Explanation: The following are the four viewpoints that would make up a company's vision
1. The business strategy set by management
2. The operation's staff's input based on experience
3. The resources currently or planned to be available
4. What is believed the marketplace wants
The government would not be involved in forming a company's vision
Question No: 88
Which of the following is NOT one of the five principles of quality?
A. Value Based Quality
B. BOM Quality
C. Manufacturing Based Quality
D. Transcendent Quality
Answer: B
Explanation: BOM quality is not one of the five principal approaches to quality defined by APICS. These
are the 5 principal approaches
1. Transcendent Quality
2. Product Based Quality
3. User Based Quality
4. Manufacturing Based Quality
5. Value Based Quality
Question No: 89
A typical objective of becoming a world class organization is what?
A. Business Strategy
B. Strategic Planning Model
C. Corporate Strategy
D. Mission Statement

APICS CPIM-SMR Exam
Answer: D
Explanation: A typical objective of becoming a world class organization is usually included in a mission
statement. Other common objectives in mission statements are to be a leader in a particular field and to
be highly profitable.
Question No: 90
Which of the following BEST describes the weakness of management accounting reports as performance
measures?
A. Not flexible to fit specific department's environments
B. Not directly related to quality, customer service, reliability, or flexibility
C. Measure of return on investment can be misleading
D. Reports are too late for management to take action
Answer: B
Explanation: The biggest weakness of management accounting reports as performance measures is that
they are not directly related to issues such as quality, customer service, reliability, or flexibility.
Question No: 91
When told to eliminate waste, what should you be looking to eliminate?
A. Extra Process Steps that are Not Necessary
B. Bad Product Quality
C. anything being done that is unnecessary
D. Paperwork Errors
Answer: C
Explanation: When told to eliminate waste, you should be looking to eliminate ANYTHING that is
unnecessary. This can include extra process steps, bad paperwork, or even bad quality products.
Question No: 92

APICS CPIM-SMR Exam
When dealing with a partner company, which of the following are risks to a partnership?
I. Each partner want to be the senior leader
II. Difference in language
III. Different operating practices
IV. Gaining direct access to a foreign market
B. I, II, & IV Only
Answer: D
Explanation: When dealing with a partner company, the following are risks to a partnership
1. Each partner wants to be the senior leader
2. Difference in language
3. Different operating practices
Gaining access to a foreign market would be a benefit to a partnership, not a risk.
Question No: 93
A local manufacturing company knows that its current stock turns equals 4. It also sees that a local
software company has a stock turn of 22. What does this baseline say about the local manufacturing
company?
A. Software company is able to more quickly get their product out the door compared to the local
manufacturing company
B. Software company manages their inventory better than the manufacturing company
C. Nothing - can not compare stock turns between different companies
D. Software company is slower than the manufacturing company to get their product out the door
Answer: C
Explanation: Because these are two separate companies you will not be able to make a good comparison
between the companies based on stock turns.

APICS CPIM-SMR Exam
Question No: 94
When a provider is targeting the best value for their money, the aim is to provide extra value at a good
price. Which of the 5 generic competitive advantages identified by the text "Crafting and Executing
Strategy" by Thompson, Strikland and Gamble would be described?
A. Broad Differentiation
B. Low-Cost Provider
C. Focused Differentiation
Answer: D
Explanation: When a provider is targeting the best value for their money and the aim is to provide extra
value at a good price then they are aiming for the Best Cost Provider.
Question No: 95
A company that has a functional layout and utilizing a job shop manufacturing process should use what
type of strategy focus?
A. Service Focus
B. Product Focus
C. Process Focus
D. Business Focus
Answer: C
Explanation: A company that has a functional layout and utilizing a job shop manufacturing process
should use a process focus. This would focus in on making the processes in the job shop more efficient.
Question No: 96
According to Stonebraker and Leong article, which of the following is NOT a dimension of operations
management?
A. Critical Resources

APICS CPIM-SMR Exam
B. Operation management Function
C. Sales
D. Level of interaction
Answer: C
Explanation: According to Stonebraker and Leong the 4 dimensions of operations management are
1. Level of interaction
2. Operations management focus
3. Critical resources
4. Marketing
Question No: 97
For employee empowerment to work properly which of the following choices are needed to be
successful?
I. Education and Training to the employee
II. Proper performance measurements of employees
III. Work procedures and Methods
A. I & II Only
B. I, II, & III
C. II & III Only
D. I & III Only
Answer: B
Explanation: For employee empowerment to work properly all three of the following choices are needed to
be successful
1. Education and Training to the employee
2. Proper performance measurements of employees
3. Work procedures and Methods
Question No: 98
A company is considering some brand new equipment that will have a major impact on the production
process. What will likely cause the MOST delays in implementing the new equipment?

APICS CPIM-SMR Exam
A. Net enough skilled technicians
B. New technology conflicts with current personnel and culture
C. Maintenance support does not exist yet for new equipment
D. Determining how to use new machine
Answer: B
Explanation: The longest would be to change personnel and the corporate culture. If there is resistance
with the people that need to use the new machinery will cause many delays in delivering and installing the
new machines.
Question No: 99
Which of the following would NOT contribute to the strategic planning process?
A. Department Heads
B. Unions
C. Competitor Management
D. Top Management
Answer: C
Explanation: Competitor Management would not contribute to the strategic planning process since the
company would be competing with that company.
Question No: 100

What is the first thing to do in a Kaizan event process?
A. Identify room for improvement
B. Form a team
C. Provide education to team
D. Choose a facilitator

APICS CPIM-SMR Exam
Answer: A
Explanation: Kaizan event process is

1. Identify room for improvement
2. Choose a facilitator
3. Form a team
4. Provide education to team
5. make sure team is on track to conclusion
Question No: 101

According to the Kapp article, which of the following are levels of training evaluation?
I. Pre-test before coming to training
II. Test or demonstration of the skill
III. Evaluation checks to ensure student is using the skills learned in training
IV. Bottom line impact of training reviewed
B. I, II, & IV Only
Answer: A
Explanation: According to Kapp, what is the first level of training evaluation is to survey after training.
These are the 4 levels of training evaluation.
1. Survey after training. How did it go?
2. Test or demonstration of the skill
3. Evaluation checks to ensure student is using the skills learned in training
4. Bottom line impact of training reviewed
A pretest is not one of the levels of training
Question No: 102

A process flow chart could also be described as an expanded what?
A. Thought Process Map
B. Routing File

APICS CPIM-SMR Exam
C. HOQ Diagram
D. Inventory File
Answer: B
Explanation: A process flow chart could also be described as an expanded routing file. A process flow
chart will usually be more detailed of actions within work centers and between work centers, but when
process mapping the factory floor.
Question No: 103

A car manufacturer decides to allow a foreign company to create a car with their car logo on it because it
costs too much to ship the cars. The car manufacturer has implemented what type of channel strategy?
A. Joint Venture
B. Exporting
C. Licensing
D. Franchising
Answer: C
Explanation: The car manufacturer is licensing their product and logo to the foreign company to produce
the goods in a foreign market.
Question No: 104

If additional man-power is needed during the free-slack period of a project, what is the impact to the
delivery time for that project?
A. Decreased costs
B. Complete earlier than scheduled
C. Complete later than scheduled
D. No change
Answer: D

APICS CPIM-SMR Exam
Explanation: If additional man-power is needed during the free-slack period of a project there would not
be a change to the overall project schedule because it was in the free slack period time. Free slack
period is not on the critical task so can wait and use extra resources during that time with no effect to the
schedule.
Question No: 105

Which of the following would be included in the liabilities category of the balance sheet?
I. Accounts payable
II. Provisions for taxes
III. Accounts receivable
A. II & III Only
B. I & II Only
C. I & III Only
D. I, II, & III
Answer: B
Explanation: Which of the following would be included in the liabilities category of the balance sheet?
1. Accounts payable
2. Provisions for taxes
Accounts receivable would be considered under the assets proton of the balance sheet.
Question No: 106

What is a typical advantage of vertical integration?
A. Increased buying power
B. decrease levels of BOM
C. Control over critical capacities
D. Manufacturing flexibility
Answer: C
Explanation: A typical advantage of vertical integration is the control over critical capacities. Sometimes
the critical capacity is a raw material so a plant will purchase the raw material supplier in order to control

APICS CPIM-SMR Exam
that critical capacity to the plant.
Question No: 107

Which of the following are parts of reverse logistics?
I. Waste management
II. Hazardous waste disposal
III. Product Quality
A. I, II, & III
B. I & III Only
C. II & III Only
D. I & II Only
Answer: D
Explanation: Reverse logistics include anything going in reverse of normal product purchase process.
Reverse logistics include
1. Customer returns
2. Product recalls
3. Re-usable containers
4. Waste management
5. Hazardous waste
Question No: 108

The objective of a product launch is to what?
A. How to be more efficient in the supply chain
B. Get in front of a prospective customers and tempt them to buy
C. To stop production or not
D. How to gain market share
Answer: B
Explanation: The objective of a product launch is to get in front of the prospective customers and tempt
them to buy. While there are many things to think about in the product launch stage, in that stage the

APICS CPIM-SMR Exam
objective is to get in front of those customers.
Question No: 109

The difference between risks and issues is that risks what?
A. Has already happened
B. Have not happened yet, but will guarantee happen in the future
C. Hurt the financials
D. May happen, but have not happened yet
Answer: D
Explanation: Risks are potential failures that may happen, but have not happened yet. Issues are
failures that have already happened and are currently working.
Question No: 110

a p-chart is a SPC chart for measuring what?
A. statistical average of non-conformances
B. number of non-conformances
C. Percentage of non-conformances
D. Number of non-conformances per unit
Answer: C
Explanation: A p-chart is the percentage of non-conformances. The P-stands for percentage
Question No: 111

Which one of the three parts of sustainability would help answer the question can energy consumption is
reduced by using new environmental controls?
A. Economic
B. Social

APICS CPIM-SMR Exam
C. Profit
D. Environmental
Answer: D
Explanation: Reducing energy consumption would be part of the environmental portion of sustainability.
Question No: 112

At a workbench the factory worker needs to assemble several electronic components, the worker is not
able to place the components onto the wrong area of the board because they would not fit. This would
be considered what?
A. Total Quality management (TQM)
B. Kaizen
C. Six Sigma
D. Poka Yoke
Answer: D
Explanation: This would be considered poka yoke. Poka yoke is also known as mistake proofing/ a fail
safe. Because the components cannot be placed in the wrong area would be mistake proofing the
assembly of the product.
Question No: 113

Which of the following technique is MOST helpful in transition the design phase to the production phase
smoothly?
A. Employee Involvement
B. Prototyping
C. Kanban Event
D. Quality Circles
Answer: B

APICS CPIM-SMR Exam
Explanation: Prototyping is the MOST helpful in transition the design phase to the production phase
smoothly
Question No: 114

What are considered basic approaches to sales?
I. Making a range of products the company wants to make, then going into the market place to sell the
product
II. Specializing in a single product company wants to make, then attempt to sell product to anyone that
would want it
III. Making what the market place wants, and being better than the competition at making it
A. I & II Only
B. I & III Only
C. III Only
D. II & III Only
Answer: B
Explanation: The two basic approaches to sales are

1. Making a range of products the company wants to make, then going into the market place to sell the
product
2. Making what the market place wants, and being better than the competition at making it
Specializing in a single product company wants to make, then attempt to sell product to anyone that
would want it would not be a sales approach because usually not a single product and would not attempt
to sell to anyone, must know their business segment.
Question No: 115

The difference between gross margin and profit margin is what?
A. fixed costs
B. Sales Revenue
C. Variable costs
D. Manufacturing costs
Answer: D

APICS CPIM-SMR Exam
Explanation: The difference between gross margin and profit margin is manufacturing costs. Gross
margin includes gross margin and profit margin does not include that number.
Question No: 116

A chocolate factory in Canada produces a limited number of products in high volume should use what
type of strategy focus?
A. Business Focus
B. Product Focus
C. Marketing Focus
D. Process Focus
Answer: B
Explanation: A chocolate factory in Canada produces a limited number of products in high volume should
use a product focus. In a product focus manufacturing usually has dedicated lines of work cells.
Question No: 117

A balanced scorecard has what main topics in it?
I. Financial perspective
II. Customer perspective
III. Internal Business Perspective
IV. Innovation and Learning Perspective
C. I, II, III, & IV
D. I, II, & IV Only
Answer: C
Explanation: A balanced scorecard has all of the following main topics in it

1. Financial perspective
2. Customer perspective
3. Internal Business Perspective

APICS CPIM-SMR Exam
4. Innovation and Learning Perspective
Question No: 118

Overall control is maintained by what in a batch shop?
A. CRP
B. Detailed Floor Reporting
C. Master Production Schedule
D. RCCP
Answer: C
Explanation: The overall control would be maintained by the master production schedule.
Question No: 119

Allocating individuals to a task should in what step of a project?
A. Implementing the project
B. Planning the project
C. Executing the project
D. Supporting the project
Answer: B
Explanation: Allocating an individual to a task should happen in the planning portion of the project.
Question No: 120

Which of the following does NOT support forward integration?
A. House of Quality
B. Electronic data interface
C. Distribution requirement planning

APICS CPIM-SMR Exam
D. Capacity Requirements Planning
Answer: D
Explanation: Capacity Requirements Planning does NOT support forward integration.
Question No: 121

Which of the following is NOT a well-established project investment measurement?
A. Average Return on Investment
B. Management analysis
C. Net Present Value
D. Payback Method
Answer: B
Explanation: The following are established project investment analysis measurements

1. Payback method
2. Average return on investment
3. Net Present Value method
Management analysis is not used for determining project investment
Question No: 122

Which of the following would be the worst basis for a new plant location?
A. Facility Size
B. Close to supplier
C. Labor Rates
D. Close to Transportation Hub
Answer: A
Explanation: Biggest does not always mean best. Going by facility size only can cause many issues if
you are not near your customers, suppliers, or a transportation hub.

APICS CPIM-SMR Exam
Question No: 123

A workforce should not only be trained in their technical aspects of their job, but also what would be
MOST important skill for employees?
A. Project management Skills
B. JIT concept skills
C. Problem Solving Skills
D. IT systems skills
Answer: C
Explanation: The most important for an employee is to have problem solving skills. All are important, but
problem solving skills would be the worst.
Question No: 124

What is the BEST way to document customer wants in a product?
A. Interview management
B. Review Market Intelligence
C. Customer Survey
D. Interview competitor of similar product
Answer: C
Explanation: The BEST way to document customer wants in a product is directly survey or interview a
customer. While there are many sources to get a glimpse at what a customer may want, the best is to go
to the source on what they want.
Question No: 125

Companies that not only take on the responsibility of the physical movement of goods between a supplier
and a customer, but also take more of the supply chain service requirements are called what?
A. Fourth Part Logistics companies
B. First Party Logistics Companies

APICS CPIM-SMR Exam
C. Third Party Logistics companies
D. Second Party Logistics companies
Answer: A
Explanation: Companies that not only take on the responsibility of the physical movement of goods
between a supplier and a customer, but also take more of the supply chain service requirements are
called a fourth party logistics company
Question No: 126

A company's business strategy must reflect company's what?
A. Competitive Advantage
B. Pricing Strategy
C. Business Strategy
D. Manufacturing Strategy
Answer: A
Explanation: A company's business strategy must reflect company's competitive advantage. It must
focus on the company's strong points.
Question No: 127

The difference between a bottleneck and a capacity constrained resource is what?
A. Capacity constrained is not a bottle neck, but is close to becoming a bottleneck.
B. Capacity constrained is a bottleneck, but only a small bottleneck.
C. Capacity constrained is an extremely bad bottleneck
D. No difference
Answer: A
Explanation: The difference between a bottleneck and a capacity constrained resource is that capacity
constrained is not a bottleneck, but it is close to becoming one.

APICS CPIM-SMR Exam
Question No: 128

What performance measurement would be BEST for measuring JIT manufacturing operations?
A. Inventory Turns
B. Equipment utilization
C. Labor efficiency
D. Overhead variances
Answer: A
Explanation: What performance measurement would be BEST for measuring JIT manufacturing
operations would be inventory turns. Inventory turns would show a reduction in lead time which is the
goal of JIT.
Question No: 129

Which of the following are critical designs to manufacturing performance measures?
I. Percentage of common parts
II. Percentage of non-value added operations
III. Number of Suppliers
A. I & III Only
B. II & III Only
C. I, II, & III
D. I & II Only
Answer: C
Explanation: All of the following are critical design to manufacturing performance measures
1. Percentage of common parts
2. Percentage of non-value added operations
3. Number of Suppliers
Question No: 130

When implementing a large scale IT project, what is the MOST likely to provide end-user support for the
new system?

APICS CPIM-SMR Exam
A. Verifying system requirements are in the system before deploying
B. Involve everyone in reviews and approvals through the design and implementation of the system
C. Providing high quality detailed training materials
D. Communicating regularly the strategic objectives
Answer: B
Explanation: When implementing a large scale IT project, to involve users in the design and
implementation process is the MOST likely to provide end-user support for the new system
Question No: 131

What is used to prove that the decision made in the project meetings do in fact work as expected, and to
train the users in the system?
A. Module training
B. Specific theoretical education
C. Full Deployment
D. Conference Room Pilot
Answer: D
Explanation: Conference room pilot is used to prove that the decisions made in the project meetings do in
fact work as expected, and to train the users in the system.
Question No: 132

What is the BEST way to reduce inventory?
A. Implement Kanban
B. Implement Work Cells
C. Implement Cycle Count Program
D. Implement JIT

APICS CPIM-SMR Exam
Answer: D
Explanation: Implementing JIT removes wait times between operations and is the best process to
implement to remove inventory.
Question No: 133

Which of the following is NOT included on the routing file?
A. Manufacturing Instructions
B. Set-Up Time
C. Unit Run Time
D. Current Inventory
Answer: D
Explanation: Current Inventory would not be stored in the Routing file
Question No: 134

Which of the following are rules for choosing right measurements?
I. Economical to obtain and supply
II. Provide a basis for decisions
III. Easily correct and interpret
IV. Multiple Measures are better than single
B. I, II, III, & IV
D. I, II, & IV Only
Answer: B
Explanation: 6 rules for choosing the right measurements (this came up 3 times on my final test! Know
these)
1. Multiple measures are better than single
2. Should provide a basis for decisions

APICS CPIM-SMR Exam
3. Immediately understandable
4. Easily and correctly interpreted
5. Economical to obtain and supply
6. Must cause correct response from a strategic perspective
Question No: 135

According to Whitney - which of the following is NOT a reason businesses lose focus on strategic
planning and don't refocus?
A. Too much business/ not needed
B. Preoccupied with the past or the present
C. Misunderstand the future
D. Have no formal procedure to cut back, only grow
Answer: A
Explanation: 3 reasons businesses lose focus on strategic planning and don't refocus Whitney
1. Preoccupied with the past or the present
2. Misunderstand the future
3. They have no formal procedure to cut back, only grow.
Question No: 136

Top management completes all of the following in Manufacturing Planning and Control System EXCEPT
A. Sales and Operations Planning
B. Resource Requirements Planning
C. Business Planning
D. Distribution Planning
Answer: D
Explanation: Top management completes all of the following in Manufacturing Planning and Control
System EXCEPT distribution planning. Distribution planning would be done by operations management,
not top management.

APICS CPIM-SMR Exam
Question No: 137

Which of the following is NOT one of the four elements of competitive advantage?
A. Time
B. Manufacturing Strategy
C. Quality
D. Flexibility
Answer: B
Explanation: The four elements of competitive advantage are time, cost, quality, and flexibility.
Manufacturing strategy, while important, is not one of the four elements of competitive advantage.
Question No: 138

Which of the following are dimensions of operations management according to stonebraker and Leong?
I. Marketing
II. Critical resources
III. Purchasing
IV. Level of interaction
D. I, II, & IV Only
Answer: D
Explanation: According to Stonebraker and Leong the 4 dimensions of operations management are
2. Operations management focus
3. Critical resources
4. Marketing
Question No: 139

Which of the following are documents created during the planning Phase?

APICS CPIM-SMR Exam
I. Implementation document
II. Project schedule
III. Responsibility Assignment Matrix
IV. Work Breakdown Structure
A. I, II, & IV Only
C. II, III, & IV
Answer: C
Explanation: The following documents are created during the planning phase
1. Statement of Work (SOW)
2. Work Breakdown Structure (WBS)
3. Project Schedule
4. Responsibility Assignment Matrix
5. Resource Requirements and Budget.
The implementation document is not created until the implementation phase of the project
Question No: 140

What type of partnering comes from a product level where the supplier shares the cost of developing a
specific product and the customer will use the product in their production?
A. Technical Partnering
B. Sales Partnering
C. Strategic Partnering
D. Operational Partnering
Answer: A
Explanation: Technical partnering comes from a product level where the supplier shares the cost of
developing a specific product and the customer will use the product in their production.
Question No: 141

APICS CPIM-SMR Exam
What type of costing identifies each variable cost and also assigns fixed costs to each unit of production?
A. Common Costing
B. Absorption Costing
C. Activity Based Costing
D. Traditional Costing
Answer: B
Explanation: Absorption costing is when both fixed and variable costs are allocated per unit of production
Question No: 142

To enhance productivity from the workforce which of the following must happen?
I. Specialize worker assignments
II. Poka yoke a process
III. Reorganize people and equipment to match product flow
A. I, II, & III
B. I & III Only
C. II & III Only
D. I & II Only
Answer: C
Explanation: To enhance productivity from the workforce which of the following must happen?
1. Poka yoke a process
2. Reorganize people and equipment to match product flow
Specialize worker assignments would not increase productivity
Question No: 143

A local furniture factory is planning on producing their goods in their already existing plant and then
shipping the order to foreign customers. What international distribution channel strategy is this company
taking?
A. Joint Venture

APICS CPIM-SMR Exam
B. Franchising
C. Licensing
D. Exporting
Answer: D
Explanation: The local factory is taking an international distribution channel strategy of exporting their
goods to the foreign market.
Question No: 144

Lowest utilization of machines would MOST LIKELY come from what manufacturing environment?
A. Batch Manufacturing
B. Group Technology
C. Cellular Manufacturing
D. Traditional Layout
Answer: C
Explanation: Lowest utilization would usually come from cellular layout because of its layout it can have
very low utilizations on machines compared to a traditional work center approach where there will be
much higher utilization.
Question No: 145

What is the BEST motivator for employees to do something?
A. Recognition by peers
B. Gift from company
C. Recognition from boss
D. Money
Answer: D

APICS CPIM-SMR Exam
Explanation: The best motivator supported by research is money
Question No: 146

What gives employees the responsibility to make decisions regarding their own jobs and tasks?
A. Quality Circle
B. Employee Support
C. Employee Empowerment
D. Concurrent engineering
Answer: C
Explanation: Employee empowerment gives employees the responsibility to make decisions regarding
their own jobs and tasks?
Question No: 147

Schroeder and Conden alignment process says technology can follow strategy and strategy can follow
technology, however strategy and technology can NOT follow what?
A. Measurements
B. Change
C. Strategic plan
D. Skills
Answer: D
Explanation: Schroeder and Conden alignment process says technology can follow strategy and strategy
can follow technology, however strategy and technology can NOT follow skills.
Question No: 148

Which of the following contributes the MOST to improving supplier delivery reliability?
A. Improved relationship with expediters

APICS CPIM-SMR Exam
B. Use of Electronic Data Interface
C. Use of an electronic portal
D. Long-term contracts with suppliers
Answer: D
Explanation: Long term contracts with suppliers contributes the MOST to improving supplier delivery
reliability
Question No: 149

Which of the following are basic approaches to competitive advantage?
I. Manufacturing Strategy
II. Price Leadership
III. Product Differentiation
IV. Customer Focus
A. II, III, & IV
D. I, II, & IV Only
Answer: A
Explanation: The following are a basic approach to competitive advantage?

1. Price Leadership
2. Product Differentiation
3. Customer Focus
Manufacturing Strategy is not a basic approach to competitive advantage
Question No: 150

Which of the following is NOT a principle of re-engineering?
A. Capture info wherever it is available
B. Organize around outcomes, not tasks

APICS CPIM-SMR Exam
C. Subsume info processing work into the real work that produces info
D. Have those that use the output of the process perform the process
Answer: A
Explanation: 7 principles of re-engineering

1. Organize around outcomes, not tasks
2. Have those that use the output of the process perform the process
3. Subsume info processing work into the real work that produces info
4. Treat geographically dispersed resources as they are centralized
5. Link parallel activities instead of integrating results
6. Put decision point where work is performed, and build control into the process
7. Capture info once at the source
Question No: 151

What is the MOST LIKELY reason a project fails?
A. Bad project team
B. Bad project manager
C. lack of training
D. Not the appropriate tools
Answer: C
Explanation: The biggest reason why projects fail is the lack of education.
Question No: 152

Looking at the project investment for a project comes out to an average rate or return of 22%. The
current hurdle rate for the company is 25%. What should the company do with this project?
A. start project when resources becomes available - barely meets minimum threshold
B. Start project immediately - meets minimum threshold
C. Not start- does not meet minimum threshold
D. Can not tell with information provided

APICS CPIM-SMR Exam
Answer: C
Explanation: If the hurdle rate is 25% and the rate for the project is 22% then the minimum requirement is
not met and the project should not start based on the internal company's hurdle rate.
Question No: 153

Marketing strategy supports which of the following?
I. Corporate Strategy
II. Business Strategy
III. Financial Strategy
IV. Manufacturing Strategy
A. I & IV Only
B. I & II Only
C. I, II, III, & IV
D. II & III Only
Answer: B
Explanation: Marketing strategy supports the following strategies

1. Corporate Strategy
2. Business Strategy
Financial Strategy and Manufacturing Strategy is at the same level as the marketing strategy so
marketing strategy does not support them.
Question No: 154

When a company "flattens their organization" this means what?
A. Organization growth is now flat
B. head count is reduced
C. The company is bankrupt
D. layers are removed from top managers and workers
Answer: D

APICS CPIM-SMR Exam
Explanation: When a company "flattens their organization" this means that layers are removed from top
management to the workers. This is a flattening of the overall organizational structure removes middle
management.
Question No: 155

Which of the following are NOT considered a part of the quality management principles?
A. Internal Focus
B. Mutually beneficial supplier relationships
C. Factual Approach to decision making
D. Continuous Improvement
Answer: A
Explanation: Internal focus is not the focus of quality, customer focus is.
Question No: 156

What type of regulation can restrict association's members in the way they operate?
A. Non-compulsory
B. Legislation
C. Government
D. Compulsory
Answer: A
Explanation: Non-compulsory includes industry and non governmental organizations that can restrict
association's members in the way they operate. This is like Dr's being a part of a medical association
and how they conduct business is regulated by the medical council.
Question No: 157

What is the FIRST step in the evolution of inspection processes performed on a product?
A. Parts are not checked, but the process is checked periodically

APICS CPIM-SMR Exam
B. 100% inspection of parts
C. Supplier certified and materials and process are not inspected
D. Sample check each delivery of a part
Answer: B
Explanation: The first step in the evolution is 100% inspection of parts
Question No: 158

In a jobbing environment, what is the MOST important item?
A. Suppliers
B. Skilled Employees
C. Design Documentation
D. Inventory
Answer: B
Explanation: Most important in a jobbing environment are skilled laborers that can read and build what is
needed from a set of drawings.
Question No: 159

When human resources function and accounts payable is located and reports into the head office is what
type of organization structure?
A. Functional
B. Matrix
C. Centralized
D. Decentralized
Answer: C
Explanation: When human resources function and accounts payable is located and reports into the head

APICS CPIM-SMR Exam
office is a centralized type of organization structure. Centralized means that control and operational
control is held centrally.
Question No: 160

When a customer is reviewing to buy a new set of office furniture, he always buys from whoever is the
lowest cost. Cost would be a what for this customer?
A. Order qualifier
B. Driver
C. Deterrent
D. Order winner
Answer: D
Explanation: If a customer always buys whoever has the lowest cost then cost would be the order winner
because it is the one item that will win the job for this customer.
Question No: 161

During the project justification stage of a project, which of the following is used for internal rate of return?
A. Discounted cash flow
B. Common Distribution
C. ABC analysis
D. Pareto Diagram
Answer: A
Explanation: Discounted cash flow is what is used for internal rate of return
Question No: 162

Which of the following are dimensions of flexibility?
I. Total volume flexibility
II. Product Mix flexibility
III. Labor Flexibility

APICS CPIM-SMR Exam
IV. New Product Flexibility
A. I, II, & IV Only
B. I, II, III, & IV
Answer: B
Explanation: All four of the following are dimensions of flexibility

1. Total volume flexibility
2. Product Mix flexibility
3. Labor Flexibility
4. New Product Flexibility
Question No: 163

On a balance sheet, the assets category contains which of the following?
I. Fixed assets
II. Current assets
III. Accounts receivable
IV. Cash on hand
A. I, II, & IV Only
B. I, II, III, & IV
D. I & II Only
Answer: B
Explanation: On a balance sheet, the assets category contains all of the following
1. Fixed assets
2. Current assets
3. Accounts receivable
4. Cash on hand

APICS CPIM-SMR Exam
Question No: 164

Which of the following are counterproductive traditional measures?
I. Quality
II. Individual Incentives
III. Machine utilization
IV. Labor utilization
A. I, II, & IV Only
Answer: C
Explanation: Three counterproductive traditional measures are

1. Individual incentives
2. Machine utilization
3. Labor efficiency
Question No: 165

What is the next thing to do in process improvement after determining if the process is valuable to work
on?
A. Determine Root Cause Using an Ishikawa Diagram
B. Document the as-is process flow
C. Document To-Be Process Flow Diagram
D. Brainstorm Process Improvement Ideas
Answer: B
Explanation: The Next thing to do after determining that the process if valuable to improve is to document
the as-is process flow.
Question No: 166

Which of the following are types of functional strategies?

APICS CPIM-SMR Exam
I. Financial strategy
II. Product development strategy
III. Marketing Strategy
IV. Operations Strategy
A. I, III, & IV only
B. I, II, & IV Only
C. I, II, III, & IV
Answer: C
Explanation: All four of the following are types of functional strategies

1. Financial strategy
2. Product development strategy
3. Marketing Strategy
4. Operations Strategy
Question No: 167

What is the best process to follow to analyze a number of competing suppliers all competing for your
business?
A. Customer Satisfaction Scores
B. SWOT Analysis
C. Market Analysis
Answer: B
Explanation: The best process is to review SWOT analysis. SWOT stands for Strengths, Weaknesses,
Opportunities, and Threats. You would want to know suppliers customer satisfaction scores and cost,
however that is only one variable to look at.
Question No: 168

What is MOST important for a make or buy decision?

APICS CPIM-SMR Exam
A. Kanban Square
B. Process Map
C. Breakeven analysis
D. House of Quality
Answer: C
Explanation: A breakeven analysis compares the two choices of make or buy and sees when each of
them would break even. This is important to know when deciding to either make the investment in the
plant or hire out the job to someone else.
Question No: 169

Which of the following is NOT a visual technique?
A. Push system
B. Dual Card Kanban
C. Daily Schedule Board
D. Kanban Squares
Answer: A
Explanation: A push system is not a visual technique. You receive the material and start to process it
because it arrived, not because of any signal light or distribution board.
Question No: 170

Which of the following are categories of flexibility
I. Modification flexibility
II. Rerouting flexibility
III. Design change flexibility
IV. Mix Flexibility
A. I, II, III, & IV

APICS CPIM-SMR Exam
C. I, II, & IV Only
Answer: A
Explanation: All of the following are categories of flexibility

1. Modification flexibility
2. Rerouting flexibility
3. Design change flexibility
4. Mix Flexibility
Question No: 171

Which of the following are different types of stratagies?
I. Financial Strategy
II. Growth Strategy
III. Operations Strategy
IV. Marketing Strategy
B. I, II, III, & IV
D. I, II, & IV Only
Answer: B
Explanation: All of the following are types of strategies

I. Financial Strategy
II. Growth Strategy
III. Operations Strategy
IV. Marketing Strategy
Question No: 172

If increasing a manager's span of control, what would that look like to the manager?
A. Manager is now allowed to punish his employees more than he used to be able to
B. Manager gives up a portion of his group to specialize in one area

APICS CPIM-SMR Exam
C. Manager is able to give bonuses to his employees more than he used to
D. Where the manager used to only control one department he now controls multiple functions and
departments
Answer: D
Explanation: Span of control takes a manager and increases the amount of people/ responsibilities. A
good example of this is when a manager is selected to manage more than one group/ department, where
he used to only manage one department. This is increasing the manager's span of control.
Question No: 173

Margin is a measurement of management's ability to control what?
A. Sales
B. Quality
C. Inventory
D. Operating costs
Answer: D
Explanation: Margin is a measurement of management's ability to control operating costs
Question No: 174

Traditionally, all of the following are variable production costs EXCEPT
A. Variable overhead costs
B. Direct Labor
C. Inventory
D. Direct Material
Answer: C
Explanation: Variable production costs are direct labor, direct material, and variable overhead costs.

APICS CPIM-SMR Exam
Question No: 175

Which is MOST associated with a flow line of production activity control?
A. Back-flushing
B. Count points
C. Low scrap ratio
D. Batching
Answer: A
Explanation: Back flushing is MOST associated with a flow line of production activity control because at
the end of a flow line the materials are back flushed through.
Question No: 176

What organizational structure includes a formal structure with defined staff reporting into marketing, sales,
manufacturing, etc.
A. Group Structure
B. Functional Structure
C. Simple Structure
D. Divisional Structure
Answer: B
Explanation: A functional organization structure includes a formal structure with defined staff reporting
into marketing, sales, manufacturing, etc.
Question No: 177

A distribution center has implemented a process where when a supplier delivers goods, it is received,
sorted, and then loaded into an outgoing vehicle within the day so the material never reaches inventory.
What is this distribution center doing?
A. Kanban
B. Cross Docking

APICS CPIM-SMR Exam
C. Third Party Logistics
D. Reverse Logistics
Answer: B
Explanation: A distribution center has implemented a process where when a supplier delivers goods, it is
received, sorted, and then loaded into an outgoing vehicle within the day so the material never reaches
inventory. What is this distribution center is doing cross docking.
Question No: 178

Which of the following are characteristics of a project?
I. Involvement of a cross functional group of people
II. Limited set of resources
III. Logical sequence of activities
IV. Clear user of the results
C. I, II, & IV
D. I, II, III,& IV
Answer: D
Explanation: 8 characteristics of a project

1. On-time focus
Question No: 179

Kaizen is the Japanese word for what?
A. Continuous Improvement

APICS CPIM-SMR Exam
B. Quality
C. Mistake Proof
D. Visual Signal
Answer: A
Explanation: Kaizen is the Japanese word for continuous improvement.
Question No: 180

A new company experienced tremendous growth in their first year. After the first year sales began to
slightly decline. The new company lost focus on their strategic planning during this time MOST likely
because of why? (Whitney article)
A. Too much business/ not needed
B. Preoccupied with the past or the present
C. Have no formal procedure to cut back, only grow
D. Misunderstand the future
Answer: C
Explanation: Most likely what is happening is they have no formal procedure to cut back/ only grow.
Once the business became mature, lost the way on the strategic direction.
Question No: 181

What is the last thing to do in a Kaizan event process?
A. Choose a facilitator
B. Make sure team is on track to conclusion
C. Provide education to team
D. Form a team
Answer: B

APICS CPIM-SMR Exam
Explanation: Kaizan event process is

3. Form a team
5. make sure team is on track to conclusion
Question No: 182

Which of the following are objectives of operations strategy?
I. Alignment
II. Vision
III. Kanban Implementation
IV. Performance Objectives
C. I, II, & IV Only
Answer: C
Explanation: The following are the three objectives of operations strategy

1. Alignment
2. Vision
3. Performance Objectives
Kanban implementation would not be a direct objective of operations strategy, but may be considered
while reviewing the operations depending on the business environment.
Question No: 183

Which of the following would BEST describe an infrastructure choice?
A. Make or buy products
B. Where plant should be located
C. The range of products that should be made in the plant
D. Deciding the organizational design

APICS CPIM-SMR Exam
Answer: D
Explanation: Deciding the organization chart would BEST describe an infrastructure choice. Other
choices would be considered structural choices.
Question No: 184

When a company is using design for manufacturability the result is supposed to be what?
A. Reduce product features
B. Delay product introduction
C. Improve product quality
D. Increase management span of control
Answer: C
Explanation: When a company is using design for manufacturability the result is supposed to be a better
quality product.,
Question No: 185

What are types of process objects from Davenport and Short
I. Logical
II. Physical
III. Informational
A. II & III Only
B. I, II, & III
C. I & III Only
D. I & II Only
Answer: A
Explanation: Two types of process objects from Davenport and Short are physical and informational
Question No: 186

APICS CPIM-SMR Exam
Environmental scanning is defined as what?
A. Benchmarking competitors
B. process used to find out all the key approaches used by a company and the advantages it gives them
in the market place.
C. Reviewing metrics of the marketplace
D. Reviewing land for any potential environmental disaster
Answer: B
Explanation: Environmental scanning is defined as a process used to find out all the key approaches used
by a company and the advantages it gives them in the market place.
Question No: 187

Which of the following is NOT a competitive dimension of manufacturing?
A. Quality
B. Implementing JIT
C. Cost
D. Flexibility
Answer: B
Explanation: The five competitive dimensions of manufacturing are

1. Quality
2. Cost
3. Flexibility
4. Dependability
5. Innovation
Question No: 188

What would be the most accurate after implementing Activity Based Costing?
A. Overhead Costs

APICS CPIM-SMR Exam
B. Unit Revenue
C. Labor Cost
D. Material Cost
Answer: A
Explanation: Overhead costs would be the most accurate after implementing Activity Based Costing.
Question No: 189

One of the first and most important items to review in process improvement is to what?
A. Document Baseline Process Flow Chart
B. Determine Root Cause Using an Ishikawa Diagram
C. Determine if the process is even valuable
D. Brainstorm Process Improvement Ideas
Answer: C
Explanation: The FIRST thing to do is review if the process is even valuable enough to improve.
Question No: 190

Which of the following are major categories of infrastructure?
I. Capacity Plans
II. Major Systems
III. Workforce Involvement
IV. Organizational Design
A. I, II, & IV Only
Answer: B

APICS CPIM-SMR Exam
Explanation: The following are major categories of infrastructure?

1. Major Systems
2. Workforce Involvement
3. Organizational Design
Capacity Plans are not considered a major category of infrastructure
Question No: 191

What is defined as an in increase in the number of tasks that an employee performs?
A. Job Enrichment
B. Degree of Specialization
C. Job Enlargement
D. Job Rotation
Answer: C
Explanation: Job enlargement is defined as an in increase in the number of tasks that an employee
performs?
Question No: 192

What is used to support the mission, goals, and objectives of the organization?
A. Production Plan
B. Business Plan
C. Strategic Plan
D. Operations Plan
Answer: C
Explanation: The strategic plan is used to support the mission, goals, and objectives of the organization
Question No: 193

All of the following are phases companies go through for performance measurement EXCEPT?

APICS CPIM-SMR Exam
A. Cut the Gordian knot
B. Change only what is necessary
C. Tinkering with cost systems
D. Embrace change
Answer: B
Explanation: The three phases companies go through for performance measurement

1. Tinkering with cost systems
2. Cut the Gordian knot
3. Embracing change
Question No: 194

If a company decided to buy out a customer that purchases their products for distribution, it would be
defined as what?
A. Manufacturing Strategy
B. Business Strategy
C. Forward Integration
D. Backward Integration
Answer: C
Explanation: If a company decided to buy out a customer that purchases their products for distribution, it
would be defined as forward integration. Backward integration would be defined as a company buying
out a supplier. Both forward and backward integration are forms of vertical integration.
Question No: 195

What manufacturing environment would be the most expensive to increase capacity?
A. Project
B. Job Shop
C. Batch Manufacturing

APICS CPIM-SMR Exam
D. Continuous Manufacturing
Answer: D
Explanation: Continuous manufacturing uses many fixed set of equipment. In order to increase capacity
at a continuous flow plant it will take significant investment for the new fixed equipment.
Question No: 196

What profit adds earnings less miscellaneous income and expenses such as royalties, interest, and tax?
A. Fixed Profit
B. Gross Profit
C. Operating Profit
D. Net Profit
Answer: D
Explanation: Net profit adds earnings less miscellaneous income and expenses such as royalties, interest,
and tax
Question No: 197

Which of the following is NOT an approach to creating the best overall company strategy?
A. Supplier Approach
B. Reductionist approach
C. Trade-off approach
D. Overview approach
Answer: A
Explanation: The four approaches to creating the best overall strategy are
1. Overview approach
2. Trade-off approach
3. Reductionist approach
4. Sequential approach

APICS CPIM-SMR Exam
Supplier approach would not be the best strategy for creating the best overall strategy
Question No: 198

What best measures a "good design"?
A. Engineering approval
B. Value to the customer
C. Lowest cost of product
D. Best utilization of plant resources
Answer: B
Explanation: The best measure of a good design is if the customer sees value in the design
Question No: 199

Which of the following is NOT a measurement for sales?
A. Sales vs. Inventory
B. Sales vs. forecast
C. Number of new customers
D. Sales vs. quotas
Answer: A
Explanation: Sales measurements include

1. Sales vs. quotas
2. Sales vs. Forecast
3. Sales vs. sales plan
4. Number of calls made
5. Number of new customers
6. Telephone answering time
7. Complaints handling
Question No: 200

APICS CPIM-SMR Exam
The difference between gross margin and profit margin is what?
A. fixed costs
B. Sales Revenue
C. Variable costs
D. Manufacturing costs
Answer: D
Explanation: The difference between gross margin and profit margin is manufacturing costs. Gross
margin includes gross margin and profit margin does not include that number.
Question No: 201

Which of the 5 types of quality is an ideal, a condition of excellence?
A. Transcendent Quality
B. User Based Quality
C. Product Based Quality
D. Manufacturing Based Quality
Answer: A
Explanation: Transcendent quality is an ideal, a condition of excellence.
Question No: 202

A steel manufacturer that brings in one raw material and makes a variety of finished goods would have
what type of logical product structure?
A. A - Logical Structure
B. T - Logical structure
C. I - Logical Structure
D. V - Logical Structure

APICS CPIM-SMR Exam
Answer: D
Explanation: The steel manufacturer would be a V- logical structure because they are taking a single raw
material and then exploding it out to many end products. (Looks like a V)
Question No: 203

What type of channel strategy takes the greatest amount of effort and has the greatest amount of risk?
A. Exporting
B. Licensing
C. Direct Ownership
D. Joint Venture
Answer: C
Explanation: Direct Ownership requires the maximum amount of effort and
Question No: 204

Which of the following is NOT a part of the marketing mix?
A. Promotion
B. Price
C. Packaging
D. Place
Answer: C
Explanation: The 4Ps of marketing mix are Product, Price, Place, and Promotion. Packaging would not
be a part of the 4 Ps.
Question No: 205

What is it called when a company removes distribution centers and delivers to retailers directly from the
factory?

APICS CPIM-SMR Exam
A. Strategic Partnering
B. JIT Factory
C. Disintermediation
D. System Removal
Answer: C
Explanation: Disintermediation is defined as removing an intermediately in a supply chain like removing a

distribution center between a factory and a retail outlet.
Question No: 206

Engineering change notes (ECN) are a good indicator of what?
A. The effectiveness of the design process
B. Quality of the product
C. Future inventory
D. Complexity of the product
Answer: A
Explanation: Engineering change notes (ECN) are a good indicator of the effectiveness of the design
process
Question No: 207

What stage of a project is the time that you should document lessons learned?
A. Implementing the project
B. Executing the project
C. Closing out the project
D. Supporting the project
Answer: C

APICS CPIM-SMR Exam
Explanation: During the close out stage should be documenting lessons learned
Question No: 208

Which of the following are included in the routing file?
I. What work centers need to be used
II. Sequence of manufacturing operations
III. Tooling needed
IV. BOM data
B. I, II, & IV Only
Answer: D
Explanation: The following are included in the routing file

1. What Worcester's need to be used
2. Sequence of manufacturing operations
3. Tooling needed
BOM data would not be included in the routing file
Question No: 209

If a company buys additional equipment in anticipation of additional demand coming in the future then
what type of strategic approach to increasing plant capacity is being used?
A. Unconstrained Demand
B. Lagging Demand
C. Tracking Demand
D. Leading Demand
Answer: D
Explanation: The strategic approach being used is leading demand because they are increasing capacity
in anticipation of future demand.

APICS CPIM-SMR Exam
Question No: 210

What are the 3 primary reasons why business units lose focus?
1. Business units lose focus because of flawed notions about fixed costs and incremental contributions.
2. Business units lose focus when managers pursue nonstrategic growth targets.
3. Business units lose focus because they are ignorant of the true profitability of customers, products, and
services.
Question No: 211

Companies must differentiate themselves in 4 ways. What are those 4 ways?
1. being the low cost producer in their market;
2. they must be most flexible and responsive by developing processes which allow them to react quickly
to marketplace changes;
3. they must be able to provide the high quality products in the marketplace;
4. make it easy for customers to do business with them.
Question No: 212

What are 2 types of process objects according to Davenport and Short?
1. Physical
2. Informational
Question No: 213

What are 8 characteristics of a project?
1. On-time focus
Question No: 214

What are 4 primary customer needs related to manufacturing?
1. Delivery: A product is available when the customer wants it.
2. Price: The customer perceives value in the product.
3. Reliability: The product performs as specified, consistently and dependently.
4. Options: The customer has sufficient choices within the product line.

APICS CPIM-SMR Exam
Question No: 215

What are 3 process types?
1. Interpersonal process ex: SGIA, tasks within and across groups
2. Interfunctional process ex: management processes that are within the org, but cross functions
3. Interorganizational process ex: customer relationship - crosses multiple orgs
Question No: 216

What are 3 project implementation approaches?
1. Big Bang Approach:
- Quickest time to benefit
- Least amount of human resources
- Can be traumatic
- Risks are significant
2. Step Approach:
- Ideal for large complex projects
- Allows high degree of focus
- Lengthens time to benefit
- Cutover strategy can be complex
3. Parallel:
- Ideal for small or high risk ventures
- Safest
- Requires a large amount of support
Question No: 217

What are 4 categories of cost drivers are?
1. Factory sustaining activities represent fixed and variable expenses that are unidentifiable by product.
Examples would be plant management, facilities and grounds, etc.
2. Product sustaining activities are those that develop and update product and manufacturing information.
Examples include engineering, bills of material, routings and standards.
3. Batch level activities are those that match the supply of materials, labor and capacity with demand.
Examples include purchasing, receiving, material planning, etc.
4. Unit level activities are costs traditionally associated with individual production units. Examples include
materials, direct labor, tooling, etc.
Question No: 218

What are 2 important factors to institutionalize change?
1. Show how new approaches, behaviors, and attitudes improve performance
2. Next generation of managers really personify the new approaches

APICS CPIM-SMR Exam
Question No: 219

What are 3 phases companies go through for performance measurement?
1. Tinkering with cost systems
2. Cut the Gordian knot
3. Embracing change
Question No: 220

What are 2 biggest problems of major implementations according to Davis?
1. Conflicting interpretations of business goals
2. Uncoordinated choosing and implementation of changes
Question No: 221

What are 3 reasons businesses lose focus on strategic planning and don�t refocus according to Whitney?
1. Preoccupied with the past or the present
2. Misunderstand the future
3. They have no formal procedure to cut back, only grow.
Question No: 222

What are the 4 types of strategies?
1. Financial strategy
2. Product Development strategy
3. Operations strategy
4. Marketing strategy
Question No: 223

What are 7 principles of re-engineering?
1. Organize around outcomes, not tasks.
2. Identify all the processes in an organization and prioritize them in order of redesign urgency.
3. Integrate information processing work into the real work that produces the information.
4. Treat geographically dispersed resources as though they were centralized.
5. Link parallel activities in the workflow instead of just integrating their results.
6. Put the decision point where the work is performed, and build control into the process.
7. Capture information once and at the source.
Question No: 224

What are the 4 approaches to focusing the operations strategy?
1. Overview
2. trade-off

APICS CPIM-SMR Exam
3. reduction
4. sequential
Question No: 225

What are the 6 rules for choosing the right measurements ?
1. Multiple measures are better than single
2. Should provide a basis for decisions
3. Immediately understandable
4. Easily and correctly interpreted
5. Economical to obtain and supply
6. Must cause correct response from a strategic perspective
Question No: 226

What are 3 major process dimensions according to Davenport and Short?
1. Entities
2. Process objects
3. Process activities
Question No: 227

What are the 5 steps in the Kaizan event process?
3. Form a team
5. Make sure team is on track to conclusion
Question No: 228

What are the 4 performance measurements that can be measured?
1. Quantity
2. production
3. Suppliers
4. quality
Question No: 229

What are 5 competitive dimensions of manufacturing?
1. Quality
2. Cost
3. Flexibility

APICS CPIM-SMR Exam
4. Dependability
5. Innovation
Question No: 230

What are 5 activities learning organizations are skilled at according to Garvin?
1. Systemic problem solving
2. Experimentation with new approaches
3. Learning from their own experiences and past history
4. Learning from experiences of others
5. Transforming knowledge quickly and efficiently
Question No: 231

What are 3 generic strategies to distinguish from competitors?
1. cost leadership - low cost, standardized, off the shelf products and standard processes
2. product differentiation - high quality products and easily adaptable processes
3. focus - cost advantage or responsive delivery and customization in response to targeted market
segments
Question No: 232

What are the 4 basic types of integration?
1. Functional deals with the integration of internal functions
2. Organizational deals with the links and extent of coordination that exists between the different
functional areas of the firm.
3. Strategic deals with the extent that strategic objectives are coordinated with the activities of the
functional areas.
4. interorganizational deals with the linkages external to the firm.
Question No: 233

What are 4 phases of product life cycle and their strategies?
1. Introduction - Quality, features, and flexibility
2. Growth - Delivery, reliability, and flexibility
3. Maturity - Price and cost
4. Decline - Flexibility through added features
Question No: 234

What are the 4 levels of training evaluation according to Kapp?
1. Reaction - What is the "customer satisfaction" of training attendees?
2. Learning - What attitudes, knowledge, or skills did they gain?

APICS CPIM-SMR Exam
3. Behavior - What do they do differently on the job?

4. Results - How does training make a difference to the organization?
Question No: 235

What are 4 dimensions of operations management according to Stonebraker and Leong?
2. Operations Management Function
3. Critical Resources
4. Decision focus
Question No: 236

What are the 10 principles of a strategic revolution?
2. Strategy making must be subversive.
4. Revolutionaries exist in every company
5. Change is not the problem; engagement is
6. Strategy making must be democratic
7. Anyone can be a strategy activist
8. Perspective is worth 50 IQ points
9. Top-down and Bottom-up are not alternatives
10. You can’t see the end from the beginning

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APICS CPIM-SMR Exam

Volume: 236 Questions

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?

A. Have sit down meeting with them

B. Evaluate what customer gives

C. Identify who the customer is

D. Listen to the customer

B. Have a start and finish

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C. Risks and Issues identified

D. Specific purpose and desired results

Explanation: 8 characteristics of a project

A. Be customized to suit the environment

B. Be understood only be the person doing the work

C. Reflect the manufacturing strategy

Explanation: Good performance measures should

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D. Total Quality Management (TQM)

A. Short time to market

B. Lowest amount of failures

C. Lowest cost of the product

D. Creates value for the customer

A. Run a job shop

B. not export their products

C. Use JIT manufacturing

D. Use lot traceability

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B. 1st level management

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A. I & III Only

B. II & III Only

D. I, II, & III

A. I, III, & IV Only

B. I, II, & IV Only

C. II, III, & IV Only

D. I, II, & III Only

Explanation: A successful Employee involvement program includes which of the following?

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B. II, III, & IV

D. I, II, & III

Explanation: Principles of a strategic revolution

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B. Create excellent training materials

D. Have in-person training with users

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A. Inventory cost reports

B. Detailed shop floor reporting

D. Detailed Business Plan

Explanation: Most important would be a detailed shop floor reporting system

A. I & III Only

B. I, II, & III

C. II & III Only

Explanation: The five competitive dimensions of manufacturing are

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B. Strategic Planning Model

A. I & III Only

B. II & III Only

C. I, II, & III

Explanation: 2 important factors to institutionalize change are

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