CPIM Practice Exam

What leads to increased WIP inventory in a functional layout?

1. Standardized routing of products

2. Lumpy workflow from varying batch sizes

3. Regular cycles of production

4. Limitations on product variety

The correct answer is: Lumpy workflow from varying batch sizes

In a functional layout, where similar machines and processes are grouped together rather than aligned by product flow, the way work-in-progress (WIP) inventory accumulates can be significantly affected by the workflow characteristics. The correct choice highlights that lumpy workflow arising from varying batch sizes contributes to increased WIP inventory. When products are produced in batches of differing sizes, this can lead to inefficiencies as some processes may wait for work to be completed before they can continue. For instance, if a machine is set to process a large batch while another is dealing with a smaller batch, there can be significant periods of inactivity for the machines processing the smaller batches or delays in moving products from one functional area to another. This inconsistency creates bottlenecks and forces some materials to sit idle longer, contributing to an increase in WIP inventory as items wait for their turn in the workflow. On the other hand, standardized routing of products and regular cycles of production would likely lead to a more predictable flow of resources, potentially reducing WIP levels. Limitations on product variety could also streamline processes and reduce the complexity of managing WIP. Therefore, the unique challenges of irregular batch sizes interacting with the functional layout prove to be the critical factor leading to increased WIP inventory