Product Management Production Management Knowledge 3

Question 1

Which quality control tool displays the frequency distribution of defect causes ranked from most to least frequent?

Accepted Answer

Pareto Chart

Answer

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?

Accepted Answer

Visualize material and information flow to identify waste and improvement opportunities

Answer

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?

Accepted Answer

500 units

Answer

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?

Accepted Answer

Process Layout

Answer

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?

Accepted Answer

Push produces based on forecasts; pull produces based on actual downstream demand

Answer

Push systems (like MRP) schedule production from forecasts, while pull systems (like JIT/kanban) respond to real customer demand signals.

Product Management Practice Test