Product Management Production Management Knowledge 4

Question 1

What is 'aggregate planning' in production management?

Accepted Answer

Medium-term planning to match production capacity with anticipated demand

Answer

Aggregate planning sets production, workforce, and inventory levels over a 3-18 month horizon to balance supply and demand.

Question 2

Which maintenance strategy replaces components at fixed time intervals regardless of their condition?

Accepted Answer

Preventive Maintenance

Answer

Preventive maintenance follows a scheduled calendar or usage-based plan to prevent failures before they occur.

Question 3

In MRP (Material Requirements Planning), what three inputs are required to generate the material plan?

Accepted Answer

Master Production Schedule, Bill of Materials, and Inventory Records

Answer

MRP explodes the MPS through the BOM and adjusts for current inventory records to calculate net material requirements.

Question 4

What is 'takt time' and how is it calculated?

Accepted Answer

Available production time divided by customer demand rate

Answer

Takt time sets the production rhythm needed to meet demand: available time ÷ required units = time per unit.

Question 5

A company produces 200 defective units out of 10,000 total. What is the defect rate in parts per million (PPM)?

Accepted Answer

20,000 PPM

Answer

PPM = (defects/total) × 1,000,000 = (200/10,000) × 1,000,000 = 20,000 PPM.

Product Management Practice Test