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Strategic Management of Resources Flashcards

6 cards from real CPIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What is the primary benefit of 'concurrent engineering' (simultaneous engineering)?

    Answer: Shortening product development cycle time by overlapping design and manufacturing process development activities

    Concurrent engineering involves cross-functional teams working on product design and process design simultaneously rather than sequentially, significantly reducing time to market.

  2. In supply chain strategy, 'supply chain agility' is best defined as:

    Answer: The ability to respond rapidly and cost-effectively to unpredictable changes in demand or supply

    Supply chain agility is the capability to quickly reconfigure supply chain resources and processes in response to unexpected disruptions or market opportunities.

  3. The 'strategic profit model' (DuPont model) in CPIM links inventory management decisions to:

    Answer: Return on assets and overall financial performance

    The strategic profit model shows how inventory decisions affect asset turnover and profit margins, ultimately driving return on assets (ROA) and return on investment (ROI).

  4. What does 'flexible manufacturing system' (FMS) enable that traditional dedicated lines cannot?

    Answer: Rapid changeover between different products with minimal manual intervention

    An FMS is a group of computer-controlled machines and material handling equipment that can automatically switch between different parts or products with little or no changeover time.

  5. In CPIM, 'enterprise resource planning' (ERP) is best described as:

    Answer: An integrated information system that supports cross-functional business processes with a shared database

    ERP integrates all major business functions — manufacturing, finance, HR, procurement, sales — into one system with a common database, enabling real-time data visibility across the enterprise.

  6. A 'focused factory' strategy, as described by Wickham Skinner, recommends:

    Answer: Dedicating each plant to a narrow product range or market segment to achieve excellence in a limited set of tasks

    Skinner's focused factory concept argues that a plant performing a limited, focused set of tasks will outperform a complex plant trying to do everything for everyone.