APICS CPIM Part 2 terms Questions and
Answers.
14 Points - Correct Answer W. Edwards Deming's 14 management practices to help
companies increase their quality and productivity
A3 Method - Correct Answer A means of compactly describing a business process
Abnormal Demand - Correct Answer Demand in any period that is outside the limits
established by management policy
Absorption Costing - Correct Answer An approach to inventory valuation in which variable
costs and a portion of fixed costs are assigned to each unit production.
Acceptable Quality Level (AQL) - Correct Answer When a continuing series of lots is
considered, a quality level that, for the purposes of sampling inspection, is the limit of a
satisfactory process average
Acceptance Sampling - Correct Answer the process of sampling a portion of goods for
inspection rather than examining the entire lot
Action Message - Correct Answer An output of a system that identifies the need for, and
the type of action to be taken to correct, a current or potential problem.
Activation - Correct Answer Putting a resource to work
Activity-Based Cost Accounting - Correct Answer A cost accounting system that
accumulates costs based on activities performed and then uses cost drivers to allocate
these costs to products or other bases such as customers, markets, or projects. It
attempts to allocate overhead costs on a more realistic basis than by using direct labor or
machine hours
Activity-Based Management (ABM) - Correct Answer The use of activity-based costing
information about cost pools and drivers, activity analysis, and business processes to
identify business strategies; improve design, manufacturing, and distribution; and remove
waste from operations
Actual Costs - Correct Answer The labor, material, and associated overhead costs that
are charged against a job as it moves through the production process
Actual Demand - Correct Answer Composed of customer orders (and often allocation of
items, ingredients or raw materials to production or distribution). Nets against or chosen
over a time horizon.
,Adaptive Smoothing - Correct Answer A form of exponential smoothing in which the
smoothing constant is automatically adjusted as a function of forecast error measurement
Adjustable Capacity - Correct Answer Capacity, such as labor or tools, that can be
changed in the short term
Advanced planning and scheduling (APS)/Advanced Planning Systems (APS) - Correct
Answer Techniques that deal with analysis and planning of logistics and manufacturing
during short, intermediate, and long-term time periods.
Aggregate Forecast - Correct Answer An estimate of sales, often time-phrased, for a
grouping of products or product families produced by a facility or firm. Stated in terms of
units, dollars, or both, the aggregate forecast is used for sales and production planning
purposes
Aggregate Plan - Correct Answer A plan that includes budgeted levels of finished goods,
inventory, production backlogs, and changes in the workforce to support the production
strategy. Aggregated information rather than product information is used
Agility - Correct Answer The ability to quickly plan, source, make, and deliver to adapt and
respond to changes in the competitive environment. It is a SCOR performance attribute
that includes product or service flexibility (speedy introduction of new products and
services), mix flexibility (ability to quickly change products or services offered), volume
flexibility (ability to service large order quantities), and delivery flexibility (ability to quickly
change delivery dates to meet new requirements)
Allocation - Correct Answer The classification of resources or items quantities that have
been assigned to specific orders but have not yet been released from the stockroom to
production. It is an "uncashed" stockroom requisition. 2. A process used to distribute
material in short supply
Alpha Factor/Smoothing Constant - Correct Answer In exponential smoothing, the
weighting factor that is applied to the most recent demand, observation, or error
Alternate Operation - Correct Answer Replacement for a normal step in the manufacturing
process
Alternate Routing - Correct Answer A routing that is usually less preferred than the
primary routing but results in an identical item. Alternate routings may be maintained in the
computer or off-line via manual methods, but the computer software must be able to
accept alternate routings for specific jobs
Analysis of Variance (ANOVA) - Correct Answer A statistical analysis system that
estimates what portion of variation in a dependent variable is caused by variation in one or
more independent variables. It also produces a number used to infer whether any or all of
the independent-dependent variable relationships have statistical significance
, Andon - Correct Answer A sign board with signal lights used to make workers and
management aware of a quality, quantity, or process problem
Anticipated Delay Report - Correct Answer A report, normally issued by both
manufacturing and purchasing to the material planning function, regarding jobs or
purchase orders that will not be completed on time. This report explains why the jobs or
purchases are delayed and when they will be completed. This report is an essential
ingredient of the closed-loop MRP system. It is normally a handwritten report
Appraisal Costs - Correct Answer Those costs associated with the formal evaluation and
audit of quality in the firm. Typically costs include inspection, quality audits, testing,
calibration, and checking time
Assignable Cause - Correct Answer A source of variation in a process that can be
isolated, especially when its significantly larger magnitude or different origin readily
distinguishes it from random causes of variation
Attribute Data - Correct Answer Go/no-go information. The control charts based on
attribute data include percent chart, number of affected units chart, count chart, count-per-
chart, quality score chart, and demerit chart
Availability - Correct Answer The percentage of a time that a worker or machine is capable
of working.
Availability Formula - Correct Answer = (S-B)/S x 100% where S is the scheduled time and
B is the downtime
Available Capacity - Correct Answer The capability of a system or resource to produce a
quantity of output in a particular time period
Available Time - Correct Answer The number of hours a work center can be used, based
on management decisions regarding shift structure, extra shifts, regular overtime,
observance of weekends and public holidays, shutdowns, and the like
Backflush Costing - Correct Answer The application of costs based on the output of a
process. Is usually associated with repetitive manufacturing environments
Backward Integration - Correct Answer The process of buying or owning elements of the
production cycle and channel of distribution back toward raw material suppliers
Backward Scheduling/Back Scheduling - Correct Answer A technique for calculating
operation start dates and due dates. The schedule is computed starting with the due date
for the order and working backward to determine the required start date and/or due dates
for each operation
