Business and Management Strategy Flashcards
6 cards from real CMRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Business and Management Strategy flashcards as text
What is the concept of Total Cost of Ownership (TCO) in asset management?
Answer: The sum of all costs associated with an asset throughout its entire life cycle
TCO encompasses all costs from acquisition through disposal, including purchase, installation, operation, maintenance, and decommissioning.
Which contract type places the most risk on the maintenance service provider?
Answer: Fixed-price performance-based
Fixed-price performance-based contracts transfer risk to the service provider, who must deliver agreed-upon outcomes within a fixed budget.
What is the primary benefit of integrating maintenance planning with production scheduling?
Answer: Minimizing the conflict between maintenance windows and production demands
Integrating maintenance and production planning ensures maintenance windows are coordinated with production schedules.
What does a gap analysis identify in maintenance management improvement?
Answer: The difference between current performance and desired performance levels
A gap analysis identifies the difference between current and desired states, helping prioritize improvement initiatives.
Which financial concept describes the declining value of an asset over time due to wear and obsolescence?
Answer: Depreciation
Depreciation accounts for the gradual decrease in an asset's value over its useful life.
What role does change management play in implementing a new maintenance strategy?
Answer: It manages the people side of transitions to ensure adoption of new practices
Change management addresses the human aspects of organizational transitions, ensuring new strategies are effectively adopted.