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CIPS L4M7 Exam
Whole Life Asset Management (Page 4 )

Updated On: 30-Jan-2026
Page 4 of 28
PDF with 255 Questions

Lean principle focuses on eliminating eight types of waste. Waste in Lean manufacturing is defined as...?

  1. Non value-adding steps in a process
  2. Part of activity when operator is idle
  3. Part of any activity which is inevitable
  4. Rejection of material because of quality related problems

Answer(s): A

Explanation:

Lean thinking aims to remove wastes from work processes. Before diving into the 8 wastes, it is important to understand what waste is. Waste is any action or step in a process that does not add value to the customer. In other words, waste is any process that the customer does not want to pay for.
The original seven wastes (Muda) was developed by Taiichi Ohno, the Chief Engineer at Toyota, as part of the Toyota Production System (TPS). The seven wastes are Transportation, Inventory, Motion, Waiting, Overproduction, Overprocessing and Defects. They are often referred to by the acronym `TIMWOOD'. The 8th waste of non-utilized talent or `Skills' of workers was later introduced in the 1990s when the Toyota Production System was adopted in the Western world. As a result, the 8 wastes are commonly referred to as `TIMWOODS'.



Source: The lean way


Reference:

CIPS study guide page 127-129

LO 2, AC 2.3



Which of the following best describe the function of MRP?

  1. Planning and controlling of production and finance
  2. Planning and monitoring of inventory resources
  3. Planning and monitoring of production resources only
  4. Planning and controlling of production and inventory

Answer(s): D

Explanation:

Material requirement planning (MRP) is a production planning and material (inventory) control system used in manufacturing. Objectives of MRP are to ensure materials are available for production while minimising inventory and to plan production and procurement activities.
MRP process is described in the graph below:


Reference:

CIPS study guide page 116-119
LO 2, AC 2.3



In a manufacturing facility, which types of inventory have the lowest value?
1. Finished goods
2. Secondary components
3. Work in progress
4. Raw materials

  1. 1 and 3 only
  2. 2 and 4 only
  3. 1 and 2 only
  4. 3 and 4 only

Answer(s): B

Explanation:

Raw materials are basic input materials - they are only processed limitedly or have not been pro- cessed at all. Their values are equal to acquisition cost and are the lowest value of stock held. Secondary components are the products that are combined with others to produce the finished goods. They are acquired in the processed state. Their value is higher than raw materials, but still at acquisition cost.
Work in progress is the stock part-way through manufacture that has not been finished. It is typically not completed yet, so it doesn't have full value. But the costs of processing already carried out makes it more valuable than materials and components.
Finished goods are completed and ready to be used or sold. Finished goods are the most expensive and need to be stored in good conditions.


Reference:

CIPS study guide page 82-83
LO 2, AC 2.1



Which one of the following statements is true about radio frequency identification (RFID)?

  1. RFID tags require laser scanning.
  2. A passive RFID tag does not use an antenna
  3. An active RFID tag does not require a power source
  4. Normally passive RFID tags store ID numbers

Answer(s): D

Explanation:

Radio frequency identification (RFID) are items which use radio technology to identify itself and its location subject to having appropriate hardware and software. RFID tags are made of three different components: an RFID chip, which is an integrated circuit (IC), an antenna, and a substrate.
A RFID Reader is a device that uses radio-frequency waves to wirelessly transfer data between itself and a RFID tag/label in order to identify, categorize and track assets.
When combined with the right RFID software, a RFID reader can identify objects quicker, more accurately, at a reduced overall cost, and at various points of the object's lifecycle.
Passive RFID systems use tags with no internal power source and instead are powered by the electromagnetic energy transmitted from an RFID reader. Passive RFID tags are used for applica-tions such as access control, file tracking, race timing, supply chain management, smart labels, and more. Active RFID systems have three essential parts ­ a reader or interrogator, antenna, and a tag. Ac-tive RFID tags possess their own power source ­ an internal battery that enables them to have ex-tremely long read ranges as well as large memory banks.


Reference:

CIPS study guide page 49-50
LO 1, AC 1.2



Which of the following best describes what happens when order volumes from customers increase and multiply through the supply chain?

  1. Pareto curve
  2. Opitz system
  3. Forrester effect
  4. Seasonal demand

Answer(s): C

Explanation:

The bullwhip effect (or Forrester effect) is a distribution channel phenomenon in which forecasts yield supply chain inefficiencies. It refers to increasing swings in inventory in response to shifts in customer demand as one moves further up the supply chain. Seasonal demand: consumer interest in purchasing particular products only during a specific peri-od within the calendar year.
OPITZ is a coding system used to form Groups in Group Technology philosophy of Manufactur-ing. The Pareto Curve is the shape created when the bars of a Pareto Chart are progressively summed and the points joined together. The final curve ends at 100% of items in the chart, which means that you can then draw a line across at 80% and 'bounce' it down to find the bar which, when combined with all bars to its left, will give 80% of all items.


Reference:

CIPS study guide page 112
LO 2, AC 2.3



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