BBM Operations Management 3

Question 1

What is a 'bottleneck' in a production process?

Accepted Answer

The stage that limits overall throughput due to lower capacity

Answer

A bottleneck is the process step with the least capacity, which constrains the overall throughput rate of the entire production system.

Question 2

Which type of layout groups similar machines or functions together in a manufacturing facility?

Accepted Answer

Process layout

Answer

A process (functional) layout groups similar equipment or functions together (all drilling machines in one area), suitable for low-volume, high-variety production.

Question 3

What does 'inventory turnover ratio' measure?

Accepted Answer

How many times a company sells and replaces its inventory in a period

Answer

Inventory turnover ratio measures how frequently a company sells through its entire inventory within a period, indicating efficiency of inventory management.

Question 4

What is the purpose of a 'Kanban' system?

Accepted Answer

To visually signal when materials need to be replenished in a pull-based system

Answer

Kanban is a visual pull-based inventory control system that uses cards or signals to trigger replenishment of materials only when needed.

Question 5

What is 'total productive maintenance' (TPM)?

Accepted Answer

A proactive approach involving all employees in maintaining equipment to maximize uptime

Answer

TPM engages all employees — not just maintenance staff — in proactive equipment care to maximize operational efficiency and minimize breakdowns.

BBM - Business Management Degree Practice Test

BBM - Business Management Degree Practice Test

BBM Operations Management 3