CIPS L4M7 Whole-life Assets Management Online Training

Question #1

XYZ Ltd organises a meeting in order to decide on the safety stock level of a strategic material which is used in XYZ latest product – DMD. To do this, they must forecast the future demand for this new product. In the meeting, external consultants are invited to join with cross-functional team. Each person of the group anonymously replies to questionnaires and subsequently receives feedback in the form of a statistical representation of the "group response," after which the process repeats itself. The goal is to reduce the range of responses and arrive at something closer to expert consensus. XYZ Ltd is using which forecasting method?

A . Objective forecasting technique
B . Delphi method
C . Holt-Winters seasonal method
D . Time series analysis

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Question #2

XYZ Ltd has been adopting MRP system for years. The system helps the company improve efficiency greatly and generates huge cost-savings. However, MRP system is only limited to production process

management and XYZ management team would like to have better insights into re-sources required across the organisation as a whole.

Which software system would help XYZ management team achieve the above objective?

A . MRP II
B . MPS
C . ERP
D . P2P

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Correct Answer: C
C

Explanation:

Enterprise resource planning (ERP) is the integrated management of main business processes, often in real time and mediated by software and technology. ERP provides an integrated and continuously updated view of core business processes using common databases maintained by a data-base management system. ERP systems track business resources―cash, raw materials, production capacity―and the status of business commitments: orders, purchase orders, and payroll. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data. ERP facilitates information flow between all business functions and manages connections to outside stakeholders.

Manufacturing resource planning (MRP II) is defined as a method for the effective planning of all resources of a manufacturing company. Ideally, it addresses operational planning in units, financial planning, and has a simulation capability to answer "what-if" questions and extension of closed-loop MRP. This is not exclusively a software function, but the management of people skills, requiring a dedication to database accuracy, and sufficient computer resources. It is a total company management concept for using human and company resources more productively.

A master production schedule (MPS) is a plan for individual commodities to be produced in each time period such as production, staffing, inventory, etc. It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. This plan quantifies significant processes, parts, and other resources in order to optimize production, to identify bottlenecks, and to anticipate needs and completed goods. Since a MPS drives much factory activity, its accuracy and viability dramatically affect profitability.

Procure-to-pay (P2P) is a term used in the software industry to designate a specific subdivision of the procurement process. The procure-to-pay systems enable the integration of the purchasing department with the accounts payable (AP) department. Some of the largest players of the software

industry agree on a common definition of procure-to-pay, linking the procurement process and

financial department.

LO 2, AC 2.3

Question #3

Assuming that all other factors are constant except one, the net present value of a capital expenditure increases when…?

A . The initial cost of a project increases
B . The discounted rate increases
C . Net cash flow during a time period increases
D . Cash outflow during a time period increases

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Question #4

A supermarket calculates that the average holding cost for an item is $1.50 per cubic meter per day. A beer pallet which has volume of 0.5 cubic meter will be stored for 5 days.

What is the holding cost of this beer pallet?

A . $4.00
B . $4.50
C . $4.25
D . $3.75

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Question #5

Which of the following is the minimum aisle width for using standard counterbalanced forklifts?

A . 4.9 ft – 5.2 ft
B . 5.6 ft – 5.9 ft
C . 6.9 ft – 7.2 ft
D . 10.5 ft – 13.1 ft

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Question #6

With D is the annual demand (units), S is cost per order, H is annual carrying cost per unit; the formula for Economic Order Quantity is….?

A . √(D*S/2H)
B . √(2D*S/H)
C . √(D*S*H)
D . √(D*S/3H)

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Question #7

To improve the security of a warehouse, alarm systems are commonly used.

Which of the following is an important part of these systems?

A . Sensors
B . Fencing
C . CCTV
D . Lighting

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Correct Answer: A
A

Explanation:

The most basic alarm consists of one or more sensors to detect intruders, and an alerting device to indicate the intrusion.

However, a typical premises security alarm employs the following compo-nents:

– Premises control unit (PCU), Alarm Control Panel (ACP), or simply panel: The "brain" of the system, it reads sensor inputs, tracks arm/disarm status, and signals intrusions. In modern system, this is typically one or more computer circuit boards inside a metal enclosure, along with a power supply.

– Sensors: Devices which detect intrusions. Sensors may be placed at the perimeter of the protected area, within it, or both. Sensors can detect intruders by a variety of methods, such as monitoring doors and windows for opening, or by monitoring unoccupied interiors for motions, sound, vibration, or other disturbances.

– Alerting devices: These indicate an alarm condition. Most commonly, these are bells, sirens, and/or flashing lights. Alerting devices serve the dual purposes of warning occupants of intrusion, and potentially scaring off burglars. These devices may also be used to warn occupants of a fire or smoke condition.

– Keypads: Small devices, typically wall-mounted, which function as the human-machine interface to the system. In addition to buttons, keypads typically feature indicator lights, a small multi-character display, or both.etc.

– Interconnections between components. This may consist of direct wiring to the control unit, or wireless links with local power supplies.

In addition to the system itself, security alarms are often coupled with a monitoring service. In the event of an alarm, the premises control unit contacts a central monitoring station. Operators at the station see the signal and take appropriate action, such as contacting property owners, notifying police, or dispatching private security forces. Such signals may be transmitted via dedicated alarm circuits, telephone lines, or the internet.

Reference:

Security alarm – Wikipedia LO 1, AC 1.1

Question #8

Which of the following best describes the term ‘periodic review’?

A . Items are reviewed and orders placed depending on requirements
B . Items are reviewed when the Kanban is triggered
C . Items are reviewed when the price is at its lowest
D . Items are reviewed as part of an imprest system

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Question #9

What is the different between gross material requirements plan (gross MRP) and a net material requirements plan (net MRP)?

A . The gross requirement doesn’t take taxes into account, whereas the net requirement includes the tax considerations
B . The gross MRP includes consideration of available inventory, whereas the net MRP does not
C . The net MRP includes the amount of inventory on hand, whereas the gross MRP does not
D . The gross MRP is mostly paper-based, but the net MRP must be computerised

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Question #10

The following are examples of scheduled maintenance except…

A . Oil changes and regular servicing
B . Overhauling of machine
C . Repair signage damage from a recent storm
D . Cleaning of tank

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CIPS L4M7 Whole-life Assets Management Online Training