When deciding what to report externally regarding sustainability performance, a company should

disclose its past results and future strategies. This will help the company to demonstrate its progress,

achievements, challenges, and commitments in relation to its environmental, social, and governance

(ESG) goals. Disclosing past results and future strategies will also enhance the company’s

transparency, accountability, and credibility with its stakeholders, such as investors, customers,

employees, regulators, and the public.

Disclosing results of poor performance or acceptable performance alone is not sufficient, as it does

not provide a complete picture of the company’s sustainability performance. Moreover, disclosing

only poor performance may damage the company’s reputation and trust, while disclosing only

acceptable performance may raise doubts about the company’s honesty and reliability. Disclosing

why current regulations are too costly is irrelevant and inappropriate, as it does not reflect the

company’s sustainability performance or efforts. It may also imply that the company is not willing or

able to comply with the regulations or improve its sustainability practices.

Reference : A Comprehensive Guide on How to Write a Sustainability Report; Designing Your

Company’s Sustainability Report; What to Include in a Sustainability Report.

Failure Mode and Effects Analysis (FMEA) is a systematic, proactive method for identifying and

evaluating the potential causes and impacts of failures in a process, product, or service1. It aims to

anticipate and prevent failures by assessing the relative effect and risk of different failure modes1.

The use of FMEA would be most appropriate prior to a new product introduction (NPI). During the

NPI phase, FMEA can be used to identify potential failure modes in the design of the product and

assess their potential effects on the product’s performance and reliability. This allows for proactive

measures to be taken to mitigate or eliminate these risks before the product is launched. FMEA is

particularly useful in the early stages of design, as it helps in making informed decisions that can

improve the quality and safety of the product1.

In contrast, using FMEA after a one-time quality incident investigation (A) or during evaluation of a

new market opportunity © may not be as effective, as these situations do not involve the design or

development of a product or process. While FMEA can be used during the define phase of a Six

Sigma project (B), its most impactful application is during the design phase of a new product, where

it can significantly influence the final outcome.

Ergonomic workstation design should incorporate the reduction of repetitive motion, as this can help

prevent musculoskeletal disorders, fatigue, and errors. Repetitive motion can cause strain on the

muscles, tendons, and nerves, leading to pain, inflammation, and loss of function. Ergonomic

workstation design can reduce repetitive motion by optimizing the layout of the workstation, tools,

and materials, using automation or mechanization where possible, and varying the tasks performed

by the worker. Reference: CPIM Part 2 Exam Content Manual, Domain 8: Manage Quality, Continuous

Improvement, and Technology, Section A: Quality Management, Subsection 3: Quality Tools and

Techniques, Page 37.

A life cycle assessment (LCA) would be used to determine environmental aspects and impacts.

Environmental aspects are the elements or characteristics of a product or service that can interact

with

the

environment,

such

as

emissions,

energy

use,

water

use,

waste

generation,

etc. Environmental impacts are the effects or consequences of the environmental aspects on the

environment, such as climate change, acidification, eutrophication, human health, biodiversity, etc1

A life cycle assessment (LCA) is a systematic analysis of the potential environmental impacts of

products or services during their entire life cycle. During an LCA, you evaluate the potential

environmental impacts throughout the entire life cycle of a product (production, distribution, use and

disposal) by considering all the relevant environmental aspects and their interactions with the

environment23

An LCA can help you:

Identify the most significant environmental aspects and impacts of your product or service

Compare the environmental performance of different products or services

Find opportunities to reduce the environmental impacts and improve the environmental

performance of your product or service

Communicate the environmental benefits of your product or service to your customers, stakeholders,

and regulators

Therefore, an LCA would be used to determine environmental aspects and impacts.

Reference: 1: Environmental Aspect Definition 2: Life-cycle assessment - Wikipedia 1 3: Life Cycle

Assessment (LCA) - Complete Beginner’s Guide - Ecochain 2

ABC classification is an inventory categorization technique that divides items into three classes based

on their usage value, which is the product of the number of units sold and the cost per unit. Class A

items have the highest usage value and account for a large proportion of the total inventory value,

but a small percentage of the number of items. Class B items have a moderate usage value and

account for a moderate proportion of the total inventory value and the number of items. Class C

items have the lowest usage value and account for a small proportion of the total inventory value,

but a large percentage of the number of items1.

An advantage of applying ABC classification to a firm’s replenishment items is that it allows planners

to focus on critical products. Replenishment items are items that are regularly ordered or produced

to maintain a certain level of inventory. By using ABC classification, planners can prioritize the

replenishment of class A items, which have the highest impact on the firm’s profitability and

customer satisfaction. Planners can also apply different inventory management techniques and

policies for each class of items, such as more frequent reviews, tighter controls, lower safety stocks,

and higher service levels for class A items, and less frequent reviews, simpler controls, higher safety

stocks, and lower service levels for class C items234. This way, ABC classification can help planners

optimize the replenishment process and reduce costs, waste, and stockouts.

The other options are not advantages of applying ABC classification to a firm’s replenishment items,

because they are either irrelevant or incorrect. ABC classification does not distinguish independent

demand from dependent demand, which are two types of demand that depend on whether the item

is sold to customers or used as a component in another item5. ABC classification does not provide

better order quantities than the economic order quantity (EOQ), which is a formula that calculates

the optimal order quantity that minimizes the total inventory costs6. ABC classification does not

allow the firm to utilize time-phased order point (TPOP), which is a method that determines when to

place an order based on the projected inventory position and the lead time7.

A benefit of the ISO 9000 series of specifications is that purchasers may accept ISO 9001

certifications, minimizing additional surveys. ISO 9001 is the standard within the ISO 9000 family that

specifies the requirements for a quality management system (QMS) that an organization must fulfill

to demonstrate its ability to consistently provide products and services that meet customer and

regulatory requirements1. ISO 9001 certification is a third-party verification that an organization has

implemented and maintained a QMS that conforms to the ISO 9001 standard2. By obtaining ISO 9001

certification, an organization can provide objective evidence of its quality performance to its

customers, suppliers, regulators, and other stakeholders3. This can reduce the need for additional

audits or surveys by the purchasers, as they can rely on the ISO 9001 certification as a proof of

quality assurance4. This can save time, money, and resources for both the purchasers and the

suppliers, as well as improve their trust and confidence in each other5.

Reference: 1: ISO 9000 Vs. 9001 3 2: ISO 9000 Standard: Benefits, How to Achieve 4 3: The Ultimate

Guide to ISO 9000 5 4: ISO 9000 Certification Guide 1 5: ISO - Selection and use of the ISO 9000 family

of standards 6

According to the web search results, the production plan is a long-term plan that establishes the

quantity and timing of the end products to be produced by the company1. The production plan is

based on the

forecasted demand,

the

available

capacity,

and the

company’s strategic

objectives2. The production plan is also used to authorize and guide the master schedule, which is a

more detailed and short-term plan that specifies the quantity and timing of each end product to be

produced in each time period3. The master schedule is derived from the production plan, and it must

not exceed the production plan’s limits. Therefore, the major contribution of the production plan is

to provide authorization for the master schedule.

The other options are not correct, because they are either irrelevant or inaccurate. The production

plan does not establish demand by end item, but rather responds to the forecasted demand by end

item. The production plan does not identify key resources to support the master schedule, but rather

determines the overall resource requirements to meet the production targets. The production plan

does not establish the weekly build schedule, but rather provides the basis for the weekly build

schedule, which is a more detailed breakdown of the master schedule that specifies how many units

of each end product will be built in each week.

Reference:

Production Planning - Definition, Objectives, Types, Importance

Production Planning in Manufacturing: Best Practices for Production Plans

Master Production Schedule (MPS) - Definition & Examples | Marketing Tutor

[Master Production Schedule (MPS) - Meaning & Process | Tallyfy]

[Production Planning - an overview | ScienceDirect Topics]

[Production Planning: Definition, Levels, Objectives and Factors]

[What Is a Weekly Build Schedule? | Bizfluent]

Process improvement is a method of analyzing and enhancing the production methods and

techniques to increase productivity and performance. Process improvement aims to reduce costs,

waste, defects, and errors, as well as to improve quality, efficiency, and customer satisfaction. When

considering process improvement, the first approach that should be considered is making better use

of existing resources. This means that the production system should optimize the utilization and

allocation of the available resources, such as materials, labor, machines, and space. This can be

achieved by implementing various techniques, such as lean manufacturing, six sigma, kaizen, or 5S.

Making better use of existing resources can help to improve the process without requiring additional

investment or expenditure.

The other options are not the first approaches that should be considered as part of process

improvement. Hiring more skilled people to perform the job is not the first approach, as it may

increase the labor cost and require more training and supervision. Hiring more skilled people may

not necessarily improve the process if the existing methods and techniques are inefficient or

ineffective. Buying better and faster equipment is not the first approach, as it may involve a large

capital outlay and a long payback period. Buying better and faster equipment may not necessarily

improve the process if the existing resources are underutilized or misallocated. Applying stricter

quality control is not the first approach, as it may increase the inspection and testing cost and time.

Applying stricter quality control may not necessarily improve the process if the existing methods and

techniques are prone to errors or defects. Reference: CPIM Exam Content Manual Version 7.0,

Domain 8: Manage Quality, Continuous Improvement, and Technology, Section 8.2: Continuous

Improvement Concepts, p. 46; Process Improvement; Process Improvement Definition.

The output of the equipment on Day 6 can be calculated by multiplying the demonstrated capacity,

the utilization, and the efficiency. The demonstrated capacity is given as $1,200 per day. The

utilization is the ratio of the actual time that the equipment is used to the available time that it could

be used. Since the utilization is reduced by 25% on Day 6, it means that the equipment is used for

75% of the available time. Therefore, the utilization is 0.75. The efficiency is the ratio of the actual

output to the standard output. It is given as 110%, which means that the equipment produces 10%

more than the standard output. Therefore, the efficiency is 1.1. The output on Day 6 can be found by

multiplying these three factors:

Output = Demonstrated capacity x Utilization x Efficiency Output = $1,200 x 0.75 x 1.1 Output = $990

Therefore, the output on Day 6 is $990. Reference: CPIM Part 2 Exam Content Manual, Version 7.0,

Domain 6: Plan, Manage, and Execute Detailed Schedules, Section A: Detailed Capacity Planning and

Scheduling, Subsection 2: Capacity Management Concepts and Calculations, p. 37-38.

The cumulative available-to-promise (ATP) method is based on an assumption that available

inventory in a period can be committed to demand in that period and any future period in the

planning horizon. The planning horizon is the time span for which plans are made and

executed1. The cumulative ATP is a running total of the ATP figure in the master schedule, which

shows the planned production or purchase of a product over a series of time periods2. The

cumulative ATP method allows the company to account for future shortages and build up inventory

for large or seasonal orders3.

The other options are not correct. The demand time fence (DTF) is a point in the near future, usually

equal to the cumulative lead time, beyond which changes to the master schedule are not allowed4.

The cumulative ATP method does not depend on the DTF, as it considers all future periods in the

planning horizon, regardless of whether they are inside or outside the DTF. Future periods with a

planned receipt are periods where there is an expected supply of inventory from production or

purchase orders2. The cumulative ATP method does not only commit inventory to these periods, but

also to any other periods where there is demand.

Reference : Available-to-Promise (ATP) - Tutorial; Planning Horizon Definition; Demand Time Fence

(DTF) Definition; Cumulative Available-to-Promise | Cargoz.