Production Management Flashcards

In the Theory of Constraints (TOC), the step of 'exploiting the constraint' means:

Answer: Maximizing throughput at the bottleneck with existing resources

Exploiting the constraint means getting the most out of the current bottleneck before investing in additional capacity.

Which production planning technique time-phases gross requirements backward from the due date to determine order release dates?

Answer: Backward scheduling

Backward scheduling starts from the required completion date and subtracts lead times to establish when to start each operation.

The 'bullwhip effect' in supply chains refers to:

Answer: Amplification of demand variability as orders move upstream

Small fluctuations in end-customer demand get amplified at each upstream stage, causing large order swings.

In statistical process control (SPC), the control limits on an X-bar chart are typically set at:

Answer: ±3 standard deviations from the process mean

Control limits are placed at ±3σ from the process mean, capturing 99.73% of natural process variation.

A company uses continuous review inventory policy. The reorder point (ROP) is calculated as:

Answer: Average demand during lead time plus safety stock

ROP = (average demand rate × lead time) + safety stock, ensuring inventory doesn't run out before the next order arrives.

Which work measurement technique estimates standard times by observing a sample of work elements and recording their frequency?

Answer: Work sampling

Work sampling uses random observations at intervals to estimate the proportion of time spent on each activity.

In project management, the critical path is defined as the sequence of activities that:

Answer: Determines the minimum project duration with zero float

The critical path is the longest path through the network, and any delay on it directly delays the project completion date.