Free Practice Questions for APICS CPIM-8.0 Exam

According to the Theory of Constraints (TOC), improving the bottleneck (constraint) in a process directly improves throughput, because the constraint is the limiting factor for the entire system. Other benefits such as WIP reduction follow, but throughput is the first measurable gain.

“Increasing the performance of the bottleneck increases overall system throughput.”

— CPIM ECO Module; Theory of Constraints (TOC) Section

Finite loading is a capacity planning approach that takes into account the available capacity of the resources and does not allow overloading. It considers adjustments to plans based on planned capacity utilization, which means that it can change the start or end dates of the operations to avoid exceeding the capacity limits. This way, finite loading ensures that the production schedule is realistic and feasible. Other capacity planning approaches, such as infinite loading, do not consider adjustments to plans based on planned capacity utilization. Infinite loading ignores the capacity constraints and schedules the operations based on the due dates and the lead times, regardless of the resource availability. This may result in overloading the resources and causing delays or disruptions in the production process. Therefore, the fundamental difference between finite loading and other capacity planning approaches is that finite loading considers adjustments to plans based on planned capacity utilization, while other approaches do not. References:

CPIM Part 2 Exam Content Manual, p. 48

The Difference Between Finite Capacity Scheduling and Infinite Capacity Loading

FINITE LOADING

In inflationary environments, LIFO assigns the most recent (higher) costs to the cost of goods sold, resulting in higher COGS and lower taxable income. FIFO does the opposite, leading to lower COGS and higher profits.

“When inflation occurs, the LIFO method results in higher cost of goods sold because it uses more recent, higher-cost inventory values.”

— CPIM Practice Questions, Inventory Valuation (DSP Page 97)

Total productive maintenance (TPM) is a holistic approach to equipment maintenance that strives to achieve perfect production: no breakdowns, no small stops or slow running, no defects, and no accidents. TPM emphasizes proactive and preventative maintenance to maximize the operational efficiency of equipment. It blurs the distinction between the roles of production and maintenance by placing a strong emphasis on empowering operators to help maintain their equipment. The implementation of a TPM program creates a shared responsibility for equipment that encourages greater involvement by plant floor workers. In the right environment, this can be very effective in improving productivity and quality12. One of the eight pillars of TPM is planned maintenance, which aims to reduce the frequency of breakdowns and minimize the impact of failures on production. Planned maintenance involves scheduling maintenance activities based on the actual condition of the equipment, rather than on a fixed time interval. This reduces the risk of over-maintenance or under-maintenance, and optimizes the use of resources. Planned maintenance also involves improving the maintainability and reliability of the equipment, by identifying and eliminating the root causes of failures, and implementing design changes or modifications34. References: Total Productive Maintenance | Lean Production, Total productive maintenance - Wikipedia, Total Productive Maintenance (TPM): 8 Pillars, Benefits and … - Appvizer