WorksheetsProduction Planning & Methods of Production (Q1-25)
Total questions: 95
Worksheet time: 48mins
Which of the following is a key component of production planning?
Price discrimination
Workforce scheduling
Investment appraisal
Market segmentation
A production plan that is based on meeting customer orders as they arrive is referred to as:
Just-in-case
Just-in-time
Batch scheduling
Demand-pull pricing
A Gantt chart is primarily used to:
Forecast stock levels
Graphically schedule tasks over time
Set product prices
Measure workforce motivation
Capacity utilization is calculated by:
(Actual output ÷ Maximum output) × 100
(Sales ÷ Costs) × 100
Maximum output − Actual output
(Profit ÷ Capacity) × 100
High capacity utilization typically leads to:
Higher unit costs
Lower productivity
Greater efficiency
Less employee workload
A major limitation of production planning tools is that they:
Are too simple to use
Cannot predict external changes accurately
Eliminate the need for scheduling
Increase production costs
Operations managers use productivity ratios to measure:
Revenue per unit sold
Output relative to inputs
Market share
Production technology
A buffer stock is maintained to:
Reduce excess supply
Prevent stockouts
Minimize batch size
Increase JIT efficiency
Which factor most affects demand forecasting?
Electricity costs
Seasonal variations
Office layout
Recruitment policies
A firm that produces at a level below capacity is said to have:
Spare capacity
Overutilization
Diseconomies of scale
Market cannibalization
Routing in production refers to:
Assigning workers to tasks
Selecting the path materials follow
Setting prices for production schedules
Monitoring product quality
Which type of production plan focuses on balancing workforce levels with fluctuating demand?
Level production
Chase production
Flow production
Mass customization
Lead time refers to the time between:
Receiving raw materials and payment
Ordering stock and receiving it
Production and distribution
Product design and launch
Production planning helps businesses primarily by:
Increasing product prices
Ensuring efficient resource use
Reducing employee training needs
Increasing taxes
A project that involves unique, one-off tasks is best planned using:
CPA
JIT
Batch production
Kaizen
A major weakness of capacity underutilization is:
Lower fixed costs
Higher average costs
Higher productivity
Increased wastage
Production scheduling determines:
Total sales value
When specific tasks occur
The firm's market structure
Labor union relations
Which is NOT a production resource?
Land
Capital
Labor
Dividend policy
Bottlenecks in production typically cause:
Reduced waiting times
Higher throughput
Production delays
Lower unit costs
The critical path in CPA is the sequence of activities with:
Maximum slack
No slack
Lower unit costs
Maximum profitability
Batch production is most appropriate when:
Products are highly individualized
A single product is mass-produced
There is moderate product variety
Demand is extremely unpredictable
Flow production is best defined as:
Producing goods in groups
A continuous production process
Customizing products for individual buyers
Producing at home
Job production typically results in:
High economies of scale
Standardized goods
Labor-intensive processes
Fast throughput times
Mass production maximizes:
Customization
Economies of scale
Lead time
Job specialization
Which method allows for unique, one-off items?
Flow production
Batch production
Job production
Cell production
The major disadvantage of flow production is:
High need for skilled labor
High initial capital costs
Inconsistent quality
Excessive customization
Mass customization attempts to combine:
Job and cellular production
Flow production with customization
Batch and job production
Lean and batch production
Cellular manufacturing improves efficiency by:
Increasing movement between workstations
Reducing worker specialization
Grouping workers based on product lines
Increasing stock levels
Which is most associated with job production?
Car manufacturing
Bakery goods
Tailor-made suits
Steel production
Batch production is advantageous because:
It offers high flexibility
It eliminates downtime
It requires no storage
It yields the lowest unit costs
Job production has high:
Capital intensity
Customization
Output levels
Economies of scale
Flow production is NOT suitable when:
Products are standardized
Demand is consistent
Production needs flexibility
Huge volumes are required
Mass production requires significant investment in:
Workforce creativity
Machinery and automation
Raw material buffers
Distribution channels only
Cellular manufacturing helps reduce:
Variety
Set-up times
Worker collaboration
Flexibility
A strength of batch production is that it:
Minimizes unit costs at all levels
Allows some customization
The aim of lean production is to eliminate what?
Efficiency
Value-added activities
Waste
Labor specialization
Kaizen emphasizes which approach to improvement?
Large, infrequent improvements
Continuous improvement
Employee avoidance
Eliminating training needs
Just-in-time (JIT) production primarily minimizes which of the following?
Cash flow
Workforce participation
Inventory levels
Product quality
Which principle is associated with lean production?
Large batch sizes
Customer value focus
Overprocessing
High buffer stock
JIT requires which condition to operate effectively?
Reliable suppliers
High inventory
Long lead times
Multiple storage facilities
Kanban helps organizations primarily by doing what?
Increase inventory
Signal production stages
Train employees
Test product quality
A key goal of lean production is to do which of the following?
Increase waste
Reduce flexibility
Increase productivity
Maximize buffer stock
A downside of JIT is best described as which risk?
Requires large amounts of capital
Is vulnerable to supply chain interruptions
Increases warehousing costs
Reduces efficiency
Lean production improves quality primarily by which mechanism?
Reducing employee involvement
Encouraging continuous improvement
Increasing idle time
Emphasizing batch sizes
Lean production focuses on which priority?
Minimizing customer involvement
Eliminating bottlenecks
Increasing waste
Reducing standardization
In a Kanban system, a card most directly signals which action?
Price change
Production needed
Worker absenteeism
Product promotion
JIT helps companies reduce which of the following?
Cash flow
Wastage
Supplier reliability
Efficiency
Lean production improves competitiveness through which effect?
Increasing stock levels
Reducing defects
Reducing motivation
Adding waste
Value stream mapping is used to identify which element?
Supplier power
Waste in the production process
Marketing channels
Distribution systems
JIT supports which capability for firms?
High storage costs
Rapid response to demand
Slow production
Less supplier coordination
Kaizen encourages which style of improvement and decision-making?
Hierarchical decision-making
Small, frequent improvements
No employee input
Capital-intensive upgrades
A major requirement for lean production is which organizational condition?
Poor communication
Employee empowerment
High inventories
Limited training
Lean production tends to have what effect on lead times and quality?
Increase lead times
Lower quality
Reduce lead times
Increase defects
Which lean tool explicitly reduces waste by visually signaling workflow stages and limiting work-in-progress?
Kaizen
Kanban
Value stream mapping
Buffer stock charts
Quality assurance focuses on which primary objective?
Inspecting products after production
Preventing defects
Increasing rejected goods
Reducing training
Quality control relies mainly on which approach?
Prevention
Inspection
Standardization
Zero defects
Total Quality Management (TQM) emphasizes what scope of responsibility?
Quality only in production
Organization-wide responsibility
Top management only
Inspection-based control
Which is a major benefit often associated with TQM?
Reduced customer satisfaction
Increase in waste
Improved employee morale
Higher defect rates
Benchmarking typically involves which action?
Setting low performance standards
Comparing performance to industry leaders
Increasing inventory
Eliminating training
Zero defects is a principle most closely associated with which concept?
Lean production
Benchmarking
TQM
Outsourcing
Quality circles are best described as what?
Groups of inspectors
Teams solving quality problems
Customer feedback surveys
Training manuals
ISO certification focuses mainly on which aspect?
Safety compliance
Price controls
Standardized quality processes
Employee appraisal
Quality control checks usually occur at which stage?
Before production
During distribution
After production
During product design
TQM’s success strongly depends on which factor?
Employee involvement
High inventory
Long inspections
Low management commitment
A key principle of TQM is:
One-time fixes
Continuous improvement
Minimal training
High defect tolerance
Quality assurance most directly leads to which outcome?
Higher rework costs
Lower employee involvement
Fewer defects
More inspection
Statistical quality control primarily uses which method?
Surveys
Data analysis
Manual inspection only
Price tags
Which is a disadvantage of implementing TQM?
Higher employee engagement
High initial cost
Lower quality standards
Increased stock
Quality circles improve quality mainly through which mechanism?
Worker participation
Reducing communication
Increasing silos
Reducing teamwork
Quality management enhances competitiveness primarily by:
Increasing defects
Improving customer loyalty
Raising unit costs
Slowing production
Quality assurance reduces costs chiefly by:
Preventing defects
Increasing inspections
Reducing training
Increasing rework
TQM encourages which overarching focus?
Customer focus
Low staff empowerment
Price cutting
Short-term fixes
Stockouts occur when:
Stock exceeds maximum
No stock is available
Stock is reordered early
Lead time is short
Lead time affects the:
Reorder level
Total revenue
Product price
Workforce size
A key benefit of computerized stock control is:
Increased stock
Real-time tracking
Higher wastage
Longer lead time
Holding too much stock leads to:
Higher storage costs
Lower variety
Greater stockouts
Reduced risks
Just-in-Time (JIT) reduces:
Dependence on suppliers
Stockholding costs
Flexibility
Product quality
The reorder level formula is:
Maximum stock + Minimum stock
Lead time × Average daily usage
Buffer stock – Lead time
Unit cost × Quantity
Stock turnover ratio measures:
Profit margin
How often stock is sold
Defect rate
Holding cost
A low stock turnover ratio suggests:
Fast sales
Excess inventory
High demand
Efficient stock control
Economic Order Quantity (EOQ) is used to minimize:
Ordering and holding costs
Stock turnover
Lead time
Supplier reliability
Overstocking often results in:
Waste reduction
High obsolescence
Lean production
Short lead times
Crisis management involves:
Preventing crises from happening
Responding to unexpected events
Running routine operations
Planning marketing strategies
A contingency plan is created to:
Increase stock
Prepare for potential crises
Replace business strategies
Hire new workers
A crisis typically threatens a business’s:
Long-term goals only
Survival
Marketing position only
Branding only
A key feature of effective crisis management is:
Slow communication
Quick decision-making
Employee turnover
High bureaucracy
Contingency planning helps firms:
Waste resources
Reduce impact of disasters
Increase unpredictability
Avoid training
Which of the following is an example of a crisis?
Hiring new workers
Financial fraud
Routine maintenance
Stable supplier relationships
Which capability is essential for effective crisis management teams?
Poor communication
Specialized training
High inventory
Slow response times
A business continuity plan primarily focuses on:
Maintaining essential functions during crises
Pricing decisions
Marketing communications
Product design
Crisis communication should be:
Delayed
Clear and immediate
Confusing
Restricted internally
Creativity involves:
Routine thinking
Novel and useful ideas
Imitation
Standardization
Product innovation refers to:
New distribution channels
Improvements to products
New management structures
New pricing strategies
A major risk of innovation is:
Reduced differentiation
Financial uncertainty
Increased economies of scale
Increased customer loyalty
Intrapreneurship occurs when:
Entrepreneurs work outside firms
Employees innovate within organizations
Managers avoid risk
Customers co-create products
