BSIE Production Management 4 — Questions and Answers
Question 1: In the Theory of Constraints (TOC), the step of 'exploiting the constraint' means:
- Adding more capacity to the bottleneck immediately
- Maximizing throughput at the bottleneck with existing resources (Correct answer)
- Offloading bottleneck work to non-constraint stations
- Redesigning the product to eliminate the bottleneck
Correct 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.
Question 2: Which production planning technique time-phases gross requirements backward from the due date to determine order release dates?
- Forward scheduling
- Backward scheduling (Correct answer)
- Infinite capacity scheduling
- Level loading
Correct answer: Backward scheduling
Backward scheduling starts from the required completion date and subtracts lead times to establish when to start each operation.
Question 3: The 'bullwhip effect' in supply chains refers to:
- Increased lead time variability caused by supplier strikes
- Amplification of demand variability as orders move upstream (Correct answer)
- A sudden stockout triggered by a single large order
- The cost increase caused by safety stock at each echelon
Correct 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.
Question 4: In statistical process control (SPC), the control limits on an X-bar chart are typically set at:
- ±1 standard deviation from the process mean
- ±2 standard deviations from the process mean
- ±3 standard deviations from the process mean (Correct answer)
- The specification limits defined by engineering
Correct 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.
Question 5: A company uses continuous review inventory policy. The reorder point (ROP) is calculated as:
- Average demand during lead time plus safety stock (Correct answer)
- EOQ divided by average daily demand
- Maximum demand minus minimum demand over lead time
- Annual demand divided by number of orders per year
Correct 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.
Question 6: Which work measurement technique estimates standard times by observing a sample of work elements and recording their frequency?
- Time study
- Work sampling (Correct answer)
- MOST (Maynard Operation Sequence Technique)
- Predetermined motion time systems (PMTS)
Correct answer: Work sampling
Work sampling uses random observations at intervals to estimate the proportion of time spent on each activity.
Question 7: In project management, the critical path is defined as the sequence of activities that:
- Has the highest total cost
- Requires the most resources
- Determines the minimum project duration with zero float (Correct answer)
- Contains the most risk according to FMEA
Correct 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.
BSIE Production Management 4
In the Theory of Constraints (TOC), the step of 'exploiting the constraint' means: