Production Management Flashcards
7 cards from real Product Management practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Production Management flashcards as text
A product manager is evaluating whether to add a new production line. The break-even analysis shows fixed costs of $500,000 and a contribution margin of $50 per unit. What is the break-even volume?
Answer: 10,000 units
Break-even volume = Fixed Costs ÷ Contribution Margin = $500,000 ÷ $50 = 10,000 units.
Which scheduling approach schedules jobs by starting from the due date and working backward to determine the latest possible start date?
Answer: Backward scheduling
Backward scheduling calculates start dates by working back from the due date, minimizing work-in-process time.
Statistical Process Control (SPC) uses control charts primarily to:
Answer: Distinguish between common cause and special cause variation
SPC control charts signal when process variation is due to an assignable (special) cause requiring investigation, vs. normal random variation.
A company applies ABC inventory classification. 'A' items should be managed with:
Answer: Tight controls, frequent reviews, and accurate records
A items represent high-value, high-priority inventory requiring strict controls and frequent cycle counts.
The Theory of Constraints (TOC) 'Five Focusing Steps' begin with which action?
Answer: Identify the system's constraint
TOC's first step is to identify the single constraint that limits the system's throughput before taking any action.
Single Minute Exchange of Die (SMED) is a lean technique designed to:
Answer: Reduce machine changeover time to under ten minutes
SMED aims to shorten equipment changeover time to single-digit minutes, increasing flexibility and reducing batch sizes.
Which term describes the total time from when a customer places an order to when they receive the finished product?
Answer: Lead time
Lead time is the elapsed time from order placement to customer delivery, encompassing all production and logistics steps.