Production Planning Essentials

What is the primary goal of production planning?

• To eliminate all production processes.

• To maximize production costs.

• To ensure efficient production processes that meet demand.

• To reduce the workforce in production.

Name one technique used in production planning.

• Lean Manufacturing

• Total Quality Management (TQM)

• Just-in-Time (JIT)

• Material Requirements Planning (MRP)

What is the purpose of inventory management?

• To increase the price of products

• To reduce the number of suppliers

• The purpose of inventory management is to maintain optimal stock levels to meet customer demand while minimizing costs.

• To eliminate all stock from the warehouse

Describe a strategy for effective inventory management.

• Ignore stock levels and rely on intuition

• Implement a robust tracking system, use demand forecasting, establish reorder points, conduct regular audits, and adopt just-in-time practices.

• Only conduct audits once a year

• Purchase excess inventory to avoid stockouts

What is demand forecasting and why is it important?

• It is a method to predict employee performance.

• Demand forecasting is irrelevant to supply chain management.

• Demand forecasting is crucial for optimizing inventory levels, reducing costs, improving customer satisfaction, and enhancing overall business efficiency.

• Demand forecasting is only useful for large corporations.

List one method used for demand forecasting.

• Time series analysis

• Sales data review

• Customer surveys

• Market analysis

How does resource allocation impact production efficiency?

• Higher resource allocation always leads to lower production efficiency.

• Resource allocation directly impacts production efficiency by optimizing the use of inputs to maximize output.

• Production efficiency is solely determined by market demand.

• Resource allocation has no effect on production efficiency.

What are the key factors to consider in resource allocation?

• Historical data and past performance

• Employee satisfaction and morale

• Key factors include project priorities, resource availability, strategic alignment, cost-effectiveness, and potential impact.

• Market trends and consumer preferences

What is the role of quality control in production?

• Quality control in production ensures products meet quality standards, reduces defects, and enhances customer satisfaction.

• Quality control is only necessary for high-end products.

• Quality control focuses solely on employee performance.

• Quality control eliminates the need for customer feedback.

Explain one process used in quality control.

• Statistical Process Control (SPC)

• Six Sigma

• Total Quality Management (TQM)

• Lean Manufacturing