Product Management Production Management Knowledge 3 — Questions and Answers
Question 1: Which quality control tool displays the frequency distribution of defect causes ranked from most to least frequent?
- Control Chart
- Scatter Diagram
- Pareto Chart (Correct answer)
- Cause-and-Effect Diagram
Correct answer: Pareto Chart
A Pareto Chart visually identifies the vital few causes (often 20%) responsible for most defects (often 80%).
Question 2: What is the purpose of Value Stream Mapping (VSM) in lean production?
- Calculate the financial value of finished goods
- Visualize material and information flow to identify waste and improvement opportunities (Correct answer)
- Map employee career advancement paths
- Document supplier pricing structures
Correct answer: Visualize material and information flow to identify waste and improvement opportunities
VSM creates a visual representation of all steps in a production process, distinguishing value-added from non-value-added activities.
Question 3: A production facility uses 5,000 units annually. Order cost is $50 per order, holding cost is $2 per unit per year. What is the EOQ?
- 250 units
- 500 units (Correct answer)
- 1,000 units
- 2,500 units
Correct answer: 500 units
EOQ = √(2DS/H) = √(2×5000×50/2) = √250,000 = 500 units.
Question 4: Which type of plant layout groups similar machines or processes together regardless of product type?
- Product Layout
- Process Layout (Correct answer)
- Fixed-Position Layout
- Cellular Layout
Correct answer: Process Layout
Process (functional) layout clusters similar equipment together, suited for low-volume, high-variety job shop environments.
Question 5: What distinguishes 'push' production systems from 'pull' production systems?
- Push uses kanban signals; pull uses MRP forecasts
- Push produces based on forecasts; pull produces based on actual downstream demand (Correct answer)
- Push is used for services; pull is used for manufacturing
- Push minimizes inventory; pull maximizes inventory
Correct answer: Push produces based on forecasts; pull produces based on actual downstream demand
Push systems (like MRP) schedule production from forecasts, while pull systems (like JIT/kanban) respond to real customer demand signals.
Question 6: In project management, what does 'crashing' a schedule mean?
- Allowing a project to fail due to budget overruns
- Adding resources to critical path activities to shorten project duration (Correct answer)
- Delaying non-critical tasks to reduce peak resource usage
- Merging parallel project phases into a single phase
Correct answer: Adding resources to critical path activities to shorten project duration
Crashing involves spending additional cost (overtime, extra staff) on critical path tasks to compress the project timeline.
Question 7: Which Six Sigma phase focuses on identifying the root causes of defects using statistical analysis?
- Define
- Measure
- Analyze (Correct answer)
- Control
Correct answer: Analyze
The Analyze phase uses statistical tools like regression, hypothesis testing, and fishbone diagrams to identify root causes.
Product Management Production Management Knowledge 3
Which quality control tool displays the frequency distribution of defect causes ranked from most to least frequent?