Practice Questions

A Gantt chart is a type of bar chart that illustrates a project schedule. This chart lists the tasks to be performed c the vertical axis and time intervals on the horizontal axis. Fo each task, a horizontal bar spans the duration of the task fr start to end, allowing one to visualize the timeline of various tasks or activities in tandem. Therefore, it is a highly effectiv tool for production scheduling, to manage and keep track o different aspects of the production process.

Johnson's rule is used for sequencing n jobs through two machines to minimize idle time and total time taken. It finds an optimal sequence of jobs to reduce makespan time and reduces idle time between work centers. Assignment method is used to allocate jobs to work centers and appropriate for problems with n things to be distributed to n destinations, each thing assigned to one destination and only one criterior used. Aggregate production planning determines production inventory, and workforce levels to meet fluctuating demand requirements. Scheduling determines timing and order of operations to optimize resource use for production requirements.

The physical arrangement of resources in a manufacturing or service system is called layout planning. Four types of layouts are process, product, group, and fixed-position. Fixed- position layout is useful when the product is very big, heavy, or difficult to move. This type of layout is suitable for manufacturing aeroplanes, ships, locomotives, large turbines, heavy machinery, pressure vessels, and others that involve heavy materials and sub-assemblies. In a fixed-position layout, service is performed around a stationary customer.

The Bill of Materials (BOM) file includes information about sub-components, their quantity, and build-up sequence in the product. It does includes the part number, name, and specifications.

Margin of safety is the difference between actual sales and breakeven point. It indicates the business's ability to earn profit even if there is a reduction in output. The breakeven point is where total cost is equal to total sales and there is no profit or loss. The Margin of safety ratio is calculated using the formula (M/S) = (Sales - Break-even point sales) / Present sale.

Forecasting is the prediction of future sales or demand for a product. Qualitative technique involves opinion survey, market trial, market research, and Delphi technique. Delphi technique uses a panel of experts including decision-makers, staff personnel, and respondents to obtain the final forecast by common opinion. Quantitative technique is used for short term forecasting and involves methods like Simple Moving Average, Weighted Moving Average, Simple Exponential Smoothing, and Trend Line Estimate or Linear Regression.

Military or Scalar organisation is a type of organisation structure where the line of authority flows directly from top to bottom and the line of responsibility from bottom to top. Each department works as a self-supporting unit.

Increasing the number of averaging periods in the simple moving average method of forecasting results in greater smoothing. However, it comes at the cost of responsiveness to changes as it treats past observations equally and ignores preceding ones. The simple exponential smoothing model is superior as it places more weight on recent observations, making it more responsive to changes occurring in the recent past.

Layout planning in manufacturing and service organisations involves arranging resources to improve performance. Layouts include process, product, group, and fixed-position. Process layout is suitable for a multi-product company carrying out batch production, as it groups similar machines and services together. Product layout is used for high volume production of a single product. Group layout combines the advantages of both layouts.

ERP stands for Enterprise Resource Planning. It integrates core business processes in real-time using software and technology. ERP provides an updated view of business processes using common databases maintained by a database management system.

Gantt charts are used for production schedule and resource planning. Each bar in the chart represents an activity to the duration of time for that activity. It helps in allocating resources like staff, hardware, and software to activities.

75. Forecasting is estimating the future value of a parameter using past data. Exponential smoothing, which gives weight to all previous data with highest weight to the most recent data, is a commonly used method. PERT and CPM are network techniques for planning, scheduling and controlling large projects. Gantt charts are used for resource planning and control charts indicate whether a process is in control or out of control and ensure product quality.

In production or operations management, the five M's typically include Materials, Men, Machines, Methods, and Money. One of the options listed does not fit into these categories.

In inventory control theory, the Economic Order Quantity (EOQ) refers to the optimum lot size. It is the quantity that minimizes the total cost, including both ordering and holding costs. This concept is crucial for efficient inventory

management as it helps in determining the most economical

quantity to order, ensuring cost-effectiveness and optimal
inventory levels.

Lot size corresponding to break-even analysis

Flow production is a technique where products are manufactured one unit at a time without delays. Gas and oil plants belong to continuous production, which is a type of flow production where production continues for 24 hours. Flexibility is limited to minor modifications in the layout or design of models. Mass production and flow production belong to the continuous type only.

The term Kanban is closely related to a methodology that aims to improve efficiency and reduce waste in the production process. It utilizes visual signals to control the flow of production and ensure that the right amount of inventory is available at the right time. This approach is integral to a specific production strategy that focuses on minimizing inventory levels and enhancing workflow.

During the manufacture of cement, the handling of limestone is typically done by belt conveyors. Belt conveyors are widely used in the cement industry for transporting raw materials like limestone over long distances within the plant.

Throughput is the rate at which an organization generates money through sales for a product or service. Operating expenses are costs involved in day-to-day operations, inventory is goods available for sale, and takt time is the average time between production of one unit and the next. Manufacturing throughput time is the duration for a product to pass through the manufacturing process.

MRP-I is a planning technique that converts the master production schedule into a detailed schedule for raw materials and parts. It refers to Materials Requirement Planning. MRP- II(Manufacturing Resources Planning) is an effective planning method for all resources of a manufacturing company.

The trend line, also known as the best-fit line, is used in linear regression analysis to find the line of best fit between a dependent variable and an independent variable. It is represented by the equation Y = a + bx, where a is the intercept and b is the slope of the line

In ABC analysis, C items are characterized by a small percentage of total consumption value. This classification helps in inventory management by focusing on the items that have less impact on the overall consumption value but might be higher in quantity.

Small percentage of closing inventory value

Small percentage of total consumption value

High percentage of closing inventory value

Product layout, also known as line layout, involves performing various operations on raw material in a sequence and arranging machines along the product flow line. It is preferred for continuous production and results in smooth flow lines, reduced material handling, and simple production planning. Process layout, also known as functional layout, involves arranging machines according to their functions.

ABC analysis is a technique often applied in managing inventory. It classifies items into three categories (A, B, and C) based on their importance, which helps in prioritizing the management efforts on the most critical items. This method is particularly useful in optimizing stock levels and ensuring efficient resource allocation.

Pallets follow the operating principle of unit load which means handling products in a large unit load. Pallets are horizontal platforms used for assembling, storing, handling, and transporting materials and products. Gravity principle encourages the usage of gravity in the movement of goods, space utilization principle encourages effective utilization of all available space and system flow principle encourages integration of data flow with physical material flow.

In inventory planning, extra inventory is unnecessarily carried to the end of the planning period when using the EOQ (Economic Order Quantity) lot size decision policy. The EOQ model determines the optimal order quantity that minimizes the total inventory costs, including ordering and holding costs. However, it does not necessarily align the order quantity with actual demand, potentially leading to excess inventory at the end of the planning period.

A Gantt chart is a type of chart which illustrates the project schedule. It is commonly used in project management to represent the timing and duration of various tasks and activities within a project. This visual tool helps in tracking the progress, dependencies, and deadlines of the tasks involved. Unlike charts that focus on variation causes in processes or inventory status, a Gantt chart specifically aids in project planning and monitoring.

Assignable causes of variation in a process

Inventory status and materials requirement

In a P-system of inventory control, the time between orders is constant. This system is designed to maintain inventory levels by placing orders at regular, fixed intervals. Unlike other systems where reorder points or order quantities might be fixed, the key characteristic of the P-system is its fixed order cycle, ensuring that inventory checks and orders occur at consistent time intervals.

MRP II refers to Manufacturing Resources Planning, which is a method for effective planning of all resources in a manufacturing company. It serves as an extension of MRP and helps in detailed scheduling of raw materials and parts used in end products. Materials Requirement Planning is a planning technique converting the master production schedule into a detailed schedule. Maximum retail price is the highest price labeled on a product, while ERP stands for Enterprise Resource Planning.

The amount of time elapsed from the moment an inventory replenishment order is placed and the moment the supplier delivers the goods is called lead time.

The inventory cost that represents the cost of loss of demand due to shortage in supplies is stockout cost. Stockout cost refers to the financial impact incurred when inventory is insufficient to meet customer demand, leading to lost sales and potentially dissatisfied customers.

Production Planning & Control consists of three stages - Planning, Action, and Monitoring. The Planning stage includes the Pre-planning stage and the Planning stage. The Pre- planning stage involves activities such as product planning and forecasting, while the Planning stage involves production planning, routing, scheduling, and material planning. The Action stage is the implementation of the plan, while the Monitoring stage involves controlling and monitoring planned activities using techniques such as inventory control, tool control, cost control, and quality control. Therefore, inventory control and quality are involved in the Monitoring stage of Production Planning & Control.

Pre-planning stage in production planning and control involves various activities crucial for setting the foundation for efficient production operations. Among the provided options, activities such as inventory control and quality control are more aligned with operational and control phases. However,demand forecasting stands out as a critical activity in the pre- planning stage, as it helps in predicting future demand, enabling better planning and resource allocation. Therefore, focusing on demand forecasting can significantly enhance the effectiveness of the production planning process.

Challenger App

No.1 PSC Learning App