APICS CSCP Questions Answers

When selecting an enterprise resources planning (ERP) system, a corporation must consider the unique aspects of its operations, including:

Customization Needs: The ERP system must be adaptable to the specific processes and requirements of the company.

Scalability: The system should support the company's growth and changing operational needs.

Industry-Specific Features: Certain industries may require specialized functionalities that are crucial for operational efficiency.

While corporate profitability (B) is an outcome influenced by many factors, including ERP efficiency, it is not a direct consideration in system selection. MRP and MRP II processing (C) are specific functionalities that an ERP system may include, but they are not the primary selection criteria. Industry benchmarks (D) can provide useful comparative data but do not address the specific needs of the company.

References

"ERP: Making It Happen" by Thomas F. Wallace and Michael H. Kremzar.

APICS Dictionary, 16th edition.

A company would consider moving a portion of its manufacturing to a second location to minimize the impact of natural disasters. This strategy, known as geographical diversification, helps ensure continuity of operations by spreading risk across different locations. If one site is affected by a natural disaster, the other location can continue to operate, thus minimizing downtime and ensuring a steady supply to customers.

Improving competitive advantage through cost control is more associated with outsourcing or offshoring to lower-cost regions.

Avoiding manufacturing downtime due to material shortages typically involves supply chain optimization rather than relocating manufacturing.

Maximizing security for customer shipments pertains to logistics and transportation security measures, not manufacturing location.

When sourcing globally, the most important challenge is balancing the difference between piece price and total cost. The piece price is the direct cost of purchasing the material, while the total cost includes all associated costs such as transportation, tariffs, warehousing, lead times, and risk of supply chain disruptions. Focusing solely on the piece price can lead to underestimating the actual cost implications of global sourcing, thus impacting the overall profitability and efficiency of the supply chain.

Identification of sources capable of producing the materials is important but not the primary challenge.

Availability of low-cost labor and energy is a factor but does not address the comprehensive cost considerations.

Complying with specific import/export issues is a regulatory challenge but is part of the total cost consideration.

ISO Standards Overview: ISO standards provide guidelines and specifications to ensure products, services, and systems are safe, reliable, and of good quality.

ISO 31000: Focuses on risk management principles and guidelines, helping organizations manage risks effectively.

ISO 14001: Specifies requirements for an effective environmental management system (EMS), enabling organizations to improve their environmental performance.

ISO 26000: Provides guidance on social responsibility, assisting organizations in contributing to sustainable development by encouraging them to operate in an ethical and transparent manner.

ISO 9001: Specifies criteria for a quality management system (QMS) and is based on principles such as customer focus and continuous improvement.

Sustainable Development: ISO 26000 is specifically designed to assist organizations in adopting socially responsible practices that contribute to sustainable development.