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NEW QUESTION # 69
The maintenance function should be viewed in value added terms and should be associated with profit and the optimization of maintenance costs. When developing the maintenance budget, it is important to:
- A. Determine, through benchmarking, the percentage of money spent on maintenance compared to the Replacement Asset Value of equipment.
- B. Increase last year's budget by approximately 9.5% to 12% and be prepared to reduce the budgeted amount after management reviews the budget.
- C. Review the budget from the previous year and increase the budget for the upcoming year based on the effects of inflation.
- D. Base the budget on the individual needs of each specific equipment item annually.
Answer: D
NEW QUESTION # 70
When an asset is unable to perform its required function. This excludes proactive work.
- A. Actual Production Rate
- B. Rework
- C. AVAILABILITY
- D. Failure
Answer: D
NEW QUESTION # 71
Less than 20%
- A. What percentage of your assets should be ranked critical based on the risk to business?
- B. Best practices would indicate that 90% or more of all maintenance work is planned.
(T/F) - C. The biggest benefit of failure modes and effects analysis occurs during:
- D. Total Maintenance Cost As a Percent of Replacement Asset Value (RAV)
Answer: A
NEW QUESTION # 72
For which of the following elements is the maintenance manager directly responsible?
- A. Optimization of maintenance costs
- B. Equipment failure probability
- C. Equipment operating practices
- D. Life cycle costs of equipment
Answer: A
NEW QUESTION # 73
Total quality management focuses all employees on producing products that meet customer needs. This is done by:
- A. Eliminating processes that waste time and materials
- B. Developing a high level of expertise in all employees
- C. Balancing the needs of all stakeholders in the organization
- D. Sharing information with all levels in the organization
Answer: B
NEW QUESTION # 74
What is defined as "the supervision of a process designed to alter and improve the function of a business"?
- A. Commitment Management
- B. Incremental Management
- C. Change Management
- D. Strategic Planning
Answer: C
NEW QUESTION # 75
metrics that describe the Reliability, Availability and Maintainability (RAM) characteristics of a component, asset or even facility
- A. mean metrics
- B. Quality Rate
- C. Replacement Asset Value (RAV)
- D. Mean Time To Repair or Replace (MTTR) Formula
Answer: A
NEW QUESTION # 76
Ratio of Replacement Asset Value ($) to Craft-Wage Head Count = RAV ($) ÷ Craft-Wage Headcount
- A. TOTAL INTERNAL MAINTENANCE EMPLOYEE LABOR COSTS
- B. Ratio of Replacement Asset Value (RAV) to Craft-Wage Headcount Formula
- C. Stocked MRO Inventory Value As a Percent of Replacement Value (RAV) Formula
- D. TOTAL MAINTENANCE TRAINING COST
Answer: B
NEW QUESTION # 77
You are new to the job of maintenance manager. As you start reviewing the work done by your five planners you find that, on average, they are dividing their time as follows:
5% Interviewing area personnel to scope out jobs
2% Creating pipe sketches and other small drawings
9% Ordering materials through the Computerized Maintenance Management System (CMMS)
5% Creating work order estimates
15% Researching what spare parts are needed and where to find them
25% Expediting materials that have not come in yet
5% Creating material kits for future jobs and maintaining the kitting area
1% Creating formal job steps in the work order record in the CMMS
10% Checking on field progress of the larger jobs
15% Talking with mechanics to explain the details of work they are to perform
8% Closing work orders and other data clean up tasks in the CMMS
In which two areas should you concentrate onto make the planners more productive?
- A. Eliminate the practice of job materials kitting or staging and purchase a different computerized maintenance and materials system
- B. Improve their communication skills through training and train all planners on proper estimation methods
- C. Increase the planning horizon and improve the quality of bills of material in the computerized maintenance and materials system
- D. Encourage the planners to create more detailed job instructions in the work order record and hire another designer draftsman
Answer: D
NEW QUESTION # 78
Which of the following is a potential advantage of participatory budgeting?
- A. Less expense associated with budget development
- B. Top-down approach to budget decisions
- C. Not subject to employee misperceptions
- D. Increased buy-in from employees
Answer: D
Explanation:
One of the potential advantages of
participatory budgeting is increased buy-in from employees. Indeed, the entire premise of this approach to budgeting is to encourage participation from employees.
A positive side effect is that employees will be more committed to making the budget a success, or at least will be more cognizant of how their actions are likely to contribute to the ultimate success of the budget. Participatory budgeting tends to be more expensive and time consuming. Also, it tends to focus research more on the knowledge and skills of employees than of managers. In other words, it is a grassroots rather than a top-down approach. For this reason, it is entirely dependent on the beliefs and perceptions of employees and is therefore vulnerable to negative influence from employee misperceptions.
NEW QUESTION # 79
Stocked MRO Inventory Value per RAV (%) = [Stocked MRO Value ($) × 100] ÷ Replacement Asset Value ($)
- A. Which of the following is not a primary objective for implementing a planning process?
- B. Stocked MRO Inventory Value As a Percent of Replacement Value (RAV) Formula
- C. Scheduled Downtime
- D. Mean Time To Repair or Replace (MTTR) Formula
Answer: B
NEW QUESTION # 80
Total Available Time - (Idle Time + Downtime)
- A. Maintenance Unit Cost Formula
- B. Equipment Availability Formula
- C. Ratio of Replacement Asset Value (RAV) to Craft-Wage Headcount Formula
- D. Uptime Formula
Answer: D
NEW QUESTION # 81
Select the best measure of maintenance effectiveness from the following list.
- A. Percent planned maintenance
- B. Return on net assets
- C. Maintenance cost per unit of production
- D. Total maintenance cost
Answer: D
NEW QUESTION # 82
O&M → RCM Methodology can't be used effectively on new systems
being designed. (t/F)
- A. True
- B. False
Answer: A
NEW QUESTION # 83
Uptime and downtime
- A. Mean Downtime (MDT) Formula
- B. PM compliance is a ________ KPI.
- C. Limiting Availability Formula
- D. Availability is a function of:
Answer: D
NEW QUESTION # 84
The rate at which an asset is designed to produce product during a designated time period or the demonstrated best sustained rate, whichever is higher. → Best Production Rate
- A. True
- B. False
Answer: A
NEW QUESTION # 85
The metric is a measure of equipment or asset performance based on actual availability, performance efficiency, and quality of product or output when the asset is scheduled to operate
- A. Overall Equipment Effectiveness (OEE)
- B. Mean Time To Repair or Replace (MTTR)
- C. Preventive Maintenance Hours
- D. Mean Time Between Maintenance (MTBM)
Answer: A
NEW QUESTION # 86
When training maintenance workers, it is best to first:
- A. List all the tasks the workers need to perform
- B. Review the list of classes already taken by the workers
- C. Give classes to all workers on basic skills
- D. Check the budget to set how much to spend per worker
Answer: A
NEW QUESTION # 87
Of the choices below, which is the best way to evaluate the effectiveness of a Safety Program?
- A. Solicit feedback about safety performance from employees
- B. Measure the number of safety slogans and bulletins posted
- C. Review health and safety performance as required
- D. Periodic safety audits of work processes in the field
Answer: D
NEW QUESTION # 88
What practice is outlawed by the Robinson-Patman Act?
- A. Collusion
- B. Price fixing
- C. Affirmative action
- D. Price discrimination
Answer: D
Explanation:
The Robinson-Patman Act outlaws price discrimination. Specifically, it asserts that vendors must offer the same prices to all customers at a given level. In other words, health care facilities must offer the same rates to individual customers as they do to businesses.
NEW QUESTION # 89
the percentage of total maintenance labor hours used to restore equipment to a functional state after a failure or when failure is imminent → Corrective Maintenance Cost
- A. False
- B. Ture
Answer: A
NEW QUESTION # 90
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