Sequence the Work and Execute the Plans Self-Assessment
Introduction
Course Overview
Welcome to the CPIM Execution and Control of Operations — Sequence the Work and Execute the Plans self-assessment course.

This introduction provides an overview of the CPIM program, this course, and further preparation for the certification examinations.

The CPIM certification is the recognized standard for individual assessment in the field of production and inventory management. The certification is designed to validate the candidate’s in-depth knowledge of a variety of subjects specific to the field. APICS has ensured that CPIM exams are consistently reliable and that the highest professional standards are used in developing and administering the program. The program consists of five examinations and the candidate must pass all five examinations to earn the CPIM designation.
The examinations that make up the program are: • Basics of Supply Chain Management (BSCM) • Master Planning of Resources (MPR) • Detailed Scheduling and Planning (DSP) • Execution and Control of Operations (ECO) • Strategic Management of Resources (SMR)
A CPIM Exam Content Manual is published annually by APICS. It is a key resource for anyone preparing for the APICS certification examinations. The manual addresses all five of the examinations by documenting the scope of the module, the content outline, the key terms, and primary and secondary references. The CPIM Exam Content Manual can be ordered directly from APICS. Click here for APICS contact information.

The APICS Web site is www.apics.org. APICS is located in Alexandria, Virginia, USA, and the telephone numbers are: 1.800.444.2743 and 1.703.354.8851. The fax number is 703.354.8106. Course Components
This course gives you a chance to review key content points and assess your understanding of the Sequence the Work and Execute the Plans segment of the APICS CPIM Execution and Control of Operations tested body of knowledge. It addresses the interfaces for the planning and execution of production activities.
There are four topics in this course with a summary of key learning points and a set of assessment items for each topic. The topics are: • Execution and Control of Operations Concepts The execution and control processes use the resources of the organization to transform the detailed plans into products and services. The four subprocesses are: prioritize the work to be done, execute the plans and report the results, evaluate the results, and take any required corrective actions. These subprocesses must be consistent with the basic business choices made by the organization and integrated with the other planning and control functions. These relationships are explored in this topic. • Scheduling Production and Process Operations Priority plans identify what is needed and when, but they do not provide a schedule of the work to be performed by operations. The work must be scheduled to indicate when each work element needs to be completed in order to meet the priority plans. The work waiting at a resource must be prioritized so that schedules can be met and the work can be performed in an efficient manner. When there are schedule or capacity constraints, adjustments must be made to the schedules or to the resources. These are the aspects of the execution and control processes that are explored in this topic. • Authorizing and Reporting Activities for Push Systems The requirements for execution and control processes are affected by the nature of the production system. This topic explores the configuration of those processes when push production is used. The authorizing activities transform the detailed priority plans into work for operations to perform. The authorization is typically communicated by work orders, shop packets, and dispatching priorities. Operations must execute the work and report the resources used and the results produced. This data is then used in the control subprocesses and to communicate with other processes in the overall business planning and control system. • Authorizing and Reporting Activities for Pull Systems The requirements for execution and control processes are affected by the nature of the production system. This topic explores the configuration of those processes when pull production is used. The authorizing activities transform the detailed priority plans into work for the operations function to perform. The authorization is typically communicated by production schedules. Operations must execute the work and report the resources used and the results produced. This data is then used in the control subprocesses and to communicate with other processes in the overall business planning and control system. All of these processes are typically simpler when a pull production system is used than when a push production system is used. CPIM Examination Preparation
The tested body of knowledge for each of the examinations is very broad. It is defined by the literature for the field of resource management. Therefore, the teaching and testing cannot be exhaustive. They must be samplings of the broad body of knowledge.

This course presents questions that are similar to those on the certification examination. Your performance in the course will help you identify areas where you may want to do additional preparation before taking the certification examination. Course Scoring
Each question (also referred to as an item) in this course is scored as correct or incorrect. No partial credit is given for partially correct answers. Your score for each topic and your score for the course are maintained and reported to you in the course Conclusion. Your score for this course will be posted to your training plan record, so that you have a record of your scores for the three self-assessment courses for the Execution and Control of Operations module.

You will be given feedback on why the correct answer is correct and why the other options are not the best choice. You will also be given pointers to the core course that covers the topic being tested and to references that support the test item.

If you find that you need to refresh your memory about specific terms, you can easily link to terms in the APICS Dictionary. Execution and Control of Operations Examination
The Execution and Control of Operations module encompasses the principles, approaches, and techniques needed to schedule, control, measure, and evaluate the effectiveness of production operations. The emphasis is on applied and higher-thinking questions.

This module is made up of three major topic areas. The topic areas, and the approximate percentage of questions from each area, are shown in the table below.
|Topic Area |Approximate Weight |
|Sequence the Work and Execute the Plans |40% |
|Implement Controls and Report Results |25% |
|Evaluate Performance and Provide Feedback |35% |

ECO Concepts
Overview
This topic presents a summary of the key learning points for the Execution and Control of Operations Concepts course and assessment items on that area of the tested body of knowledge. The learning points are grouped around three specific subtopics: • Execution and control interfaces • Effects of business choices • Effects of improvement initiatives
When you have achieved an understanding of this topic, you will be able to: • Identify the interfaces between the execution and control processes and the other operations planning and control processes and the requirements for each interface • Select execution and control processes that are consistent with the basic business choices of the firm • Explain the effects of quality and process improvement initiatives Execution and Control Interfaces
Execution and control processes transform the detailed plans into products and services. • The planning functions communicate information to the execution function using the production plan, the master production schedule, material requirements plan, and capacity requirements plan. • The data communicated through the planning interfaces are execution inputs — what to make, when to make it, expected cost, scheduled completion time, and manufacturing standards. • The execution outputs provide feedback to the planning process — order status, completed orders, performance to standards, and notification of delays and problems. Effects of Business Choices
The execution processes must be consistent with the basic business choices made by the organization. The business plan and other long-range planning can be achieved if the execution function is designed to support it.

Whether the plan calls for a connected or disconnected flow, the objectives of a production layout are to reduce costs, time, and inventory, while increasing quality. Balancing customer requirements and operational limitations, the appropriate layout type can be determined.

Options include: • Functional • Job shop • Flow • Cellular • Hybrid production process Effects of Improvement Initiatives
The business plan may be consistent over a long period of time, but the execution process will continually be modified by quality and process improvement initiatives.

Quality initiatives start with: • Identifying the problem • Finding the root cause • Changing the process so the problem is not repeated
Process improvement initiatives are applicable in all environments to: • Streamline the production process • Reduce non-value-added activity • Ensure effective process execution • Deliver total customer satisfaction
Eliminating waste requires modifications to the execution process for continuous improvement. Scheduling Operations
Overview
This topic presents a summary of the key learning points for the Scheduling Production and Process Operations course and assessment items on that area of the tested body of knowledge. The learning points are grouped around four specific subtopics: • Scheduling production and projects • Scheduling operations • Managing priorities • Managing schedules
When you have achieved an understanding of this topic, you will be able to: • Select the most appropriate production scheduling approach for a given situation • Develop a project schedule using the critical path method (CPM) and identify the critical path • Select the most appropriate operations scheduling and loading approaches for a given situation • Calculate priority and sequence the work to be performed • Identify ways to adjust the schedule of work to be performed to honor capacity and schedule constraints Scheduling Production and Projects
A manufacturing operation may use a combination of approaches for production. For example, a company may produce both standard and customized products. In this case, the standard products may be produced on a dedicated line, while the customized items are produced in an area using the job shop layout. Each area would then use the appropriate scheduling technique.

The following are important in scheduling production and projects: • Operations that produce high-volume, low-variety items should implement rate-based scheduling tuned to marketplace demand. Rates can be applied to final assembly, subassemblies, and purchased components, considering the yield rates and quantity per the bill of material (BOM). • Operations that produce a wide variety of products in varied lot sizes require a high degree of planning and control. The tools and techniques of production and inventory management (P&IM) are most appropriate for this environment. • Operations that produce single-piece orders for specialized items use project management techniques such as critical path method (CPM), program evaluation and review technique (PERT), or Gantt charts to sequence individual task completion. The focus is on managing constraints and precedence relationships to maintain the overall project deadline and budget targets. Scheduling Operations
The execution and control processes use the information gained from the scheduling techniques to determine the priorities and, therefore, the sequence of work to be performed by a specific resource. The primary scheduling techniques used in manufacturing environments are forward scheduling and backward scheduling. • Forward scheduling assumes a start date and schedules operations in the order they are listed on the routing. It sequentially calculates start and finish times for each operation and lead-time element (Q-S-R-W-M), ultimately providing a projected earliest possible finish date. • Backward scheduling assumes a finish date and schedules operations in the reverse order they are listed on the routing. It sequentially calculates finish and start times for each operation and lead-time element (M-W-R-S-Q), ultimately providing a projected latest possible start date.
Additional consideration must be given to loading. Loading refers to the placement of work (load) within a particular time bucket, for a given work center. Loading represents demand for a resource (manpower or machine) and is considered to fill up available capacity. Two types of loading are finite loading and infinite loading. • Finite loading assigns work to time buckets only up to the rated capacity level. Any additional work is shifted to another period where capacity exists. • Infinite loading assigns work to time buckets without regard to capacity limits. Planners will observe underload and overload conditions and initiate appropriate actions. Managing Priorities
Managing queues is essential to satisfy business objectives, such as desired inventory targets and on-time delivery. Numerous formulas are available to calculate a priority sequence for the jobs in queue.

The rule selected will depend on what metric or metrics the company values — reduced average lateness, reduced work-in-process (WIP), reduced cycle time, improved on-time delivery. • Simple rules — such as earliest due date or first come, first served — are the easiest to use, but may not provide the optimal sequence. • Slack time and critical ratio tend to outperform the other techniques because they consider due date and work remaining. • Dysfunctional rules — such as highest value job, highest piece rate, and last come, first served — should be avoided because they yield results which are not consistent with operations strategy. Managing Schedules
There are many different ways to manage schedules to ensure on-time delivery while recognizing capacity constraints. The focus is on opportunities that exist at the most detailed level of execution — the short-term management of daily operations, or even by shift or hour.

Four methods of managing the schedule by reducing lead-time are: • Lot splitting which is splitting a lot into smaller batches to run concurrently on multiple machines. • Operation overlapping where a portion of an order moves downstream to go through queue, set-up, and run concurrently with the remainder still being processed upstream. • Interoperation time reduction where non-value-adding queue, wait, and move time are reduced using a variety of techniques. • Expediting which should only be used as an exception, not as standard procedure.
The input/output control chart is useful in monitoring the flow of work into and out of the work center, as well as managing backlog. It details how the floor is doing in terms of actual versus planned inputs and outputs.

Four methods of adjusting capacity to relieve constraints are: • Alternate work centers where secondary work centers perform the operations when the primary work center is not available. • Alternate routings where the sequence of operations is changed because they cannot be performed in the normal sequence. • Alternate operations where a similar operation is substituted for the normal step. • Alternate operators where another operator is available to do the work. Push Systems
Overview
This topic presents a summary of the key learning points for the Authorizing and Reporting Activities for Push Systems course and assessment items on that area of the tested body of knowledge. The learning points are grouped around three specific subtopics: • Authorizing activities • Executing activities • Reporting activities
When you have achieved an understanding of this topic, you will be able to: • Explain resource availability checking and the feasible alternatives for resolving shortages • Demonstrate the use of priorities in assigning material and capacity resources to work • Given a specific situation, select the most appropriate approach to reporting work progress and status Authorizing Activities
Resource availability must be verified before work is released to the shop. The effects of inaccurate or out-of-date data can lead to increased intensity of bottleneck operations, increased queues, extended lead-times, and unacceptable service levels.

The load profile shows the information needed to check capacity requirements and availability. Capacity available is determined by rated capacity, demonstrated capacity, or both. Exceptions — such as unplanned maintenance, bottleneck work centers, or employee retention issues — could also affect the available capacity.

Checking the availability of material is determined by the following process characteristics. • Requirements for the manufacturing floor or your vendor are calculated using material requirements planning (MRP) • Quantities available include balances on-hand and quantities allocated to other orders • Availability that is checked by staging of inventory runs the risk of unauthorized use of components for other orders, leads to inefficient use of space, and complicates the cycle-counting process
Capacity shortages can be resolved in two ways: increase capacity or reduce the load. Increasing capacity, which is usually a short-term resolution, includes overtime, temporary help, reassignment of individuals from other work cells, and renting or leasing additional equipment. Additionally, alternate routings, subcontracting, lot splitting, and rescheduling releases or reprioritizing orders can reduce load. The key point is that both capacity and load need to be evaluated to determine the most efficient method to address the shortage of the resource in question.

Material shortages may be resolved by expediting components or raw materials, using alternate or substitute material, manufacturing components in-house, borrowing components, or obtaining them through the distributor network.

If resources related to capacity, material, and other resources can not be balanced, then the overall schedule must be adjusted. Adjusting the schedule can have the following effects: necessitate rescheduling of the parent part, delay the master schedule, affect timing of other assembly parts needed, or destroy previously balanced material and capacity. If the schedule has to be adjusted, the following alternatives could occur: delay release of orders, implement a recovery plan, evaluate impact on other related assemblies, or change order quantity to protect customer satisfaction index. Executing Activities
The execution activities related to issuing material in a push system include staging and kitting, dispatching, assignment of work, expediting and de-expediting, and activity reporting.

When maintaining priorities, expediting is probably the best-known technique for shop control. It consists principally of rushing urgent jobs through the production facilities by pushing them ahead of other jobs competing for the same resources. Expediting can be costly to an organization from a performance and reliability perspective. To avoid or minimize the situation, a few procedures could be put into place. • Arrange for delivery, assembly, and distribution of raw materials and components to ensure a smooth flow of materials throughout the process • Compile and prepare documentation related to production sequences, transportation, personnel schedules, and purchase, maintenance, and repair orders • Compile information — such as production rates and progress, material inventories, material used, and customer information — so status reports can be completed • Contact suppliers to verify shipment details
Dispatching is the function of selecting and sequencing available jobs to be run at individual work centers. Job selection is the selection of specific jobs to run in priority sequence. The purpose of job selection is to ensure that manufacturing objectives are being achieved.

A sample of the many job sequencing rules include first come, first serve (FCFS), earliest due date (EDD), and shortest process time (SPT). If a sequence can not be determined using the primary rule, then a secondary rule is applied. Reporting Activities
The production environment influences the level and design of the production reporting system. • Reporting in a process flow environment with long production runs may take place on an exception basis with feedback provided only when the output rate falls below an acceptable level • In a custom design and manufacturing environment where there is evidence of project management and fixed-site manufacturing, emphasis is on reporting the status of activities on the critical path. • Part or subassembly fabrication in a job shop environment requires more data collection for control than continuous processes or repetitive manufacturing of discrete parts.
Approaches to reporting progress include released order status, unreleased order status, and the dispatch list status. The type of manufacturing environment will determine the approach to reporting progress and the level of detail required.

The variables used to report progress in a push-system environment can include labor, equipment, tooling, and material. All of these variables together determine the overall progress of production.

There are situations when providing traceability is often required by law. It can be important with regard to liability and problems associated with recalling a product. It is more evident in, but not limited to, process industries. Even though it is commonly used in process industries, traceability is becoming more common throughout manufacturing. The functions involved in monitoring traceability include purchasing, inventory control, production control, distribution and logistics, and customer service. Pull Systems
Overview
This topic presents a summary of the key learning points for the Authorizing and Reporting Activities for Pull Systems course and assessment items on that area of the tested body of knowledge. The learning points are grouped around three specific subtopics: • Authorizing activities • Executing activities • Reporting activities
When you have achieved an understanding of this topic, you will be able to: • Demonstrate the use of visual signals to authorize movement of goods and performance of operations when a pull system is used • Given the basic data, determine the number of pull signals and inventory level for an item • Explain the methods that can be used to simplify the reporting activities when a pull system is used • Demonstrate how the required information is derived from the reported data Authorizing Activities
When using a connected production, the production schedule is the authorization for all production activities. The flow of goods along the line translates the production schedule into the authorization for each workstation. There is no need for work orders, operation priorities, or pull signals.

Several methods are used in a pull system to authorize and control work when using a disconnected flow of production. These methods included two-bin systems and visual reorder point methods such as cards, lights, or discs. Another method of authorizing production in a pull system is known as kanban, which normally uses cards as signals to move material and authorize production. There are two types of kanbans —brand-name and generic kanbans. Each answers two questions (what to make and when to make it) by different means. • A brand-name kanban, which is the more familiar type, answers both of these questions at once. When we receive a free brand-name kanban, we are authorized to immediately (answers, “When?”) build another identical item (answers, “What?”). • A generic kanban authorizes production to begin immediately (answers, “When?”), but it does not provide specific information regarding what to build. This information usually comes from the next shippable order or the production plan.
Kanbans facilitate our use of visual controls by enabling us to establish a visible ceiling on the amount of time or material that one work center is allowed to get ahead of another. The kanban ceiling can be expressed in terms of a maximum number of pieces. Or, if products vary in work content, a kanban unit of measure should be established to represent a consistent amount of time.

Two-card and one-card systems can be used to authorize movement of material. • With a two-card system, a move card and production card are used. Rules for a two-card system include only one card per container, return move card immediately, and leave the production card at the supply point. • With a one-card system, only a move card is used.
Volume and mix considerations related to the kanban system include repetition of the processes must be the norm, generic kanban handles volume/mix changes, and the system automatically reacts to mix considerations. Executing Activities
With connected production, the production order will initiate the requirements to the manufacturing group or external supplier. However, with a disconnected flow of production, executing activities related to a pull system include various signals that can be used to trigger an order to an upstream work center or an outside supplier.

When reviewing the number of signals and inventory, the kanban quantity is normally a fixed amount. The work center that manufactures the product is authorized to produce only in multiples of the kanban quantity and only when replenishment signals have been received. Other stations might not signal for a replenishment until two or more kanban quantities have been consumed. This is more common for materials replenished via a route, which is run less frequently than the rate at which the kanban quantity is consumed.

The kanban distribution graphic below shows a system where empty containers act as the replenishment signal. Routes are designed to pick up and deliver four containers at a time from the holding area and deliver them to the consuming station.

Calculating the number of signals is based on the type of environment or the stage of the manufacturing process. There are different formulas for the calculation for raw materials and finished goods than for work-in-process. The major difference between the two is that the calculation related to raw materials and finished goods includes safety stock, while the calculation for work-in-process includes a safety factor for process variability.

When reducing inventory within a pull system, the one less at a time methodology recognizes that inventory may be necessary given the current processes. But it also recognizes that inventory masks underlying problems. By systematically removing inventory one or a few pieces at a time, we can expose the weak links of our processes. By making the problems visible to those involved, we can stimulate customer and supplier communication which generates motivation to solve the problems rather than cover them up. Reporting Activities
With connected production, the only reporting that needs to be done includes the actual completion of units on each line, material that was scrapped in the production of those units, and the staffing of the line. The actual resources used can be calculated from the reported production, the bill of material, and the line staffing.

When addressing the required level of reporting related to a disconnected flow in a pull system, the process should be minimal and essentially streamlined. We assume that all processes are working correctly, and only report when things go wrong. Finally, we report the outcomes of the processes, rather than the inputs.

Production paperwork — such as work orders — gives way to kanban-style pull methods and visual systems. Work-in-process inventory tracking is eliminated, since inventory is reduced and standardized. These and other methods constantly reduce the amount of data gathered to maintain the accounting, control, and performance measurement systems.

When approaching the reporting process in a pull system implementing one less at a time, production problems are exposed because there is no buffer stock of inventory. If a part is discovered to be defective, and therefore unusable, then the production line must be stopped because there is no excess inventory to replace it. An exception report would be issued. The problem must be addressed immediately so that production can resume and similar problems can be avoided in the future.

In companies that implement pull systems, inventory stockrooms are smaller or have been eliminated altogether in favor of point-of-use storage or the ship-to-WIP process, and inventory balances are maintained through backflushing.

Scrap and rework reporting should be minimal. Since items are produced in small batches, the issue is confined to a smaller sample. Problems are not masked by large quantities of work-in-process. The root cause of the problem can be addressed and corrected immediately. There is a lower probability that product will be damaged, since items are delivered to the point-of-use and extra steps of moving the raw material or components in and out of inventory are eliminated. Conclusion
Quiz Results