Product Management Production Management Knowledge 5

Question 1

Which forecasting method assigns exponentially decreasing weights to older historical data?

Accepted Answer

Exponential Smoothing

Answer

Exponential smoothing uses a smoothing constant (α) to weight recent observations more heavily than older ones.

Question 2

In JIT manufacturing, what is the primary role of a kanban card?

Accepted Answer

Signal downstream demand to trigger upstream production or replenishment

Answer

Kanban cards are visual pull signals that authorize the upstream process to produce or move a defined quantity to the downstream process.

Question 3

What does 'safety stock' protect against in inventory management?

Accepted Answer

Variability in demand and lead time uncertainty

Answer

Safety stock is buffer inventory held to cover unexpected demand spikes or supply delays beyond average lead time.

Question 4

A process has a mean of 50 and standard deviation of 2. The specification limits are 44 to 56. What is the process capability index (Cp)?

Accepted Answer

1.0

Answer

Cp = (USL - LSL) / (6σ) = (56 - 44) / (6 × 2) = 12 / 12 = 1.0.

Question 5

Which work measurement technique uses random observations to estimate the proportion of time workers spend on various activities?

Accepted Answer

Work Sampling

Answer

Work sampling takes random snap observations over time to statistically estimate activity percentages without continuous observation.

Product Management Practice Test