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Plant Operations Management Flashcards

7 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. A control chart shows several points beyond the upper or lower control limits. What does this indicate?

    Answer: Special-cause variation requiring investigation

    Points beyond control limits signal special-cause variation, indicating the process has been affected by an assignable, non-random cause.

  2. Which key performance indicator (KPI) directly measures the percentage of customer orders shipped complete and on time?

    Answer: On-Time Delivery (OTD) rate

    On-Time Delivery rate measures the percentage of orders delivered by the promised date, a direct indicator of customer service performance.

  3. In manufacturing cost accounting, what does the term 'standard cost' represent?

    Answer: The predetermined cost based on efficient operating conditions and expected inputs

    Standard cost is a pre-established benchmark reflecting expected material, labor, and overhead under normal efficient operating conditions.

  4. A plant manager wants to create visual signals that immediately indicate when a process is abnormal. Which lean concept supports this?

    Answer: Andon system

    An andon system uses lights, boards, or alarms to signal abnormal conditions, allowing immediate response and stopping the line if needed.

  5. When conducting a Failure Mode and Effects Analysis (FMEA), the Risk Priority Number (RPN) is calculated as:

    Answer: Severity × Occurrence × Detectability

    RPN = Severity × Occurrence × Detectability, producing a score from 1 to 1,000 that prioritizes which failure modes to address first.

  6. Which supply chain strategy involves maintaining minimal inventory and relying on frequent deliveries from suppliers to match production needs?

    Answer: Just-in-Time (JIT) replenishment

    JIT replenishment synchronizes supplier deliveries with production requirements, minimizing on-hand inventory and associated holding costs.

  7. A plant manager is assessing a proposed process change using a Pugh Matrix. What is the primary function of this tool?

    Answer: Evaluate and compare multiple design concepts against a reference using weighted criteria

    A Pugh Matrix scores competing alternatives against a datum (reference) using weighted selection criteria to guide objective decision-making.

Plant Operations Management Flashcards — CPM Study Cards with Answers