CPIM Practice Exam

What does on-time schedule performance indicate?

1. The accuracy of forecasting demand

2. The percentage of orders delivered on the scheduled date

3. The efficiency of the manufacturing process

4. The quality of the finished goods

The correct answer is: The percentage of orders delivered on the scheduled date

On-time schedule performance is a critical metric that evaluates how well a company meets its promised delivery dates to customers. When assessing this performance, the primary focus is on the percentage of orders that are delivered on the scheduled date. This measurement provides insights into the reliability of the supply chain and the effectiveness of production and logistics processes in fulfilling commitments. Measuring on-time delivery is essential for customer satisfaction, as it directly impacts the customer experience and can influence future business relationships. Organizations that consistently meet their scheduled delivery dates are often viewed favorably by customers, which can lead to greater loyalty and repeat business. Other options correlate with key performance indicators but do not specifically define on-time schedule performance. For instance, the accuracy of forecasting demand relates more to predicting customer needs rather than the actual execution of delivery schedules. Similarly, efficiency of the manufacturing process is focused on how well resources are utilized in production rather than how timely the outputs are delivered. Lastly, the quality of finished goods is concerned with the standards and attributes of the product itself, independent of the timing of delivery. Thus, option B stands out as a precise definition of on-time schedule performance.