Production Management

Question 1

What is the primary goal of Lean Operations?

Answer 1

To eliminate non-value-added activities from the supply chain, reducing waste and improving efficiency.

Question 2

Who pioneered the Just-in-Time (JIT) philosophy?

Answer 2

Taiichi Ohno at Toyota, as part of the Toyota Production System.

Question 3

What are the three core principles of JIT philosophy according to Harrison (1992)?

Answer 3

1. Eliminate waste, 2. Involve everyone, 3. Continuous improvement.

Question 4

Name the seven types of waste identified by Ohno (1988).

Answer 4

Overproduction, Waiting time, Transport, Process, Inventory, Motion, Defective goods.

Question 5

What does “Kaizen” refer to in Lean Management?

Answer 5

A philosophy of continuous improvement through small, incremental changes over time.

Question 6

What is a ‘Kanban’ system?

Answer 6

A pull-based production system where signals (like cards) manage inventory and production flow.

Question 7

How does JIT supplier networks support Lean Management?

Answer 7

By forming close, long-term relationships with a small number of suppliers to ensure frequent, small-batch deliveries.

Question 8

Define Total Preventative Maintenance (TPM).

Answer 8

A proactive approach combining maintenance with quality and employee involvement to reduce equipment downtime and improve reliability.

Question 9

What is the purpose of Setup Reduction (SUR) in JIT?

Answer 9

To drastically reduce machine setup times to accommodate small-batch production.

Question 10

What is the difference between push and pull production systems?

Answer 10

Push systems schedule production based on forecasts; pull systems produce based on actual demand.

Question 11

How does cellular manufacturing align with JIT principles?

Answer 11

It reduces transportation and material handling costs by grouping different types of equipment into a U-shaped cell for specific product production.

Question 12

What does the ‘Chase Strategy’ in production management aim to do?

Answer 12

Adjust workforce levels (hiring and firing) to match fluctuating demand without building inventory.

Question 13

What is a key trade-off of the ‘Level Strategy’ in production management?

Answer 13

It keeps workforce constant, avoiding hiring/firing costs but may incur higher inventory costs.

Question 14

What is Linear Programming (LP) used for in production management?

Answer 14

To optimize resource allocation and decision-making within constraints for objectives like cost minimization.

Question 15

Production management definition

Answer 15

have the right product, in the right amount, in the right place, in the right quality

Question 16

2 core concepts of production management

Answer 16

1. Manufacturing resource planning: a top-down approach
   –> if I have a business plan, how do I come ultimately to machines and machine scheduling: very broad understanding of what I want to produce to a detailed execution
2. bottom-up concept: lean management and just-in-time production

Question 17

MRP II (Manufacturing Resource Planning) : top down approach

Answer 17

is a method for efficient planning of all resources of manufacturing companies

Question 18

Difference between MRP I and MRP II

Answer 18

MRP II must be distinguished from MRP I (Material Requirement Planning), which is part of MRP II. Although MRP II can help to select suitable suppliers, this does not reflect the core of MRP II.

Question 19

Steps of MRP II (Manufacturing Resource Planning):

Answer 19

1. Business Planning
2. Aggregated Planning
3. Master Production Schedulting (MPS)
4. Material Requirements Planning (MRP)
5. Scheduling

Question 20

Business planning

Answer 20

sales planning and demand planning (how many products will we sell in which region, which, which month, which quarter)

Question 21

Aggregated Planning

Answer 21

about the resources: assure that we can delivery
–> make sure we can fulfil expected demand

Question 22

Master Production Scheduling (MPS)

Answer 22

product level : planning on a product level

Question 23

Material Requirements Planning (MRP)

Answer 23

we are talking about parts (parts of product)
—> complexity increases because we are not talking about one car but a thousand Parts that have to be available to manufacture

Question 24

Why are Chase and Level Strategies often associated with large costs?

Answer 24

Both strategies rely entirely on in-house production, leading to significant costs related to workforce or inventory management.

Question 25

What do both Chase and Level Strategies aim to achieve?

Answer 25

They aim to meet aggregate staffing requirements for production management.

Question 26

Why is the “hire & fire” principle of the Chase Strategy considered morally reprehensible?

Answer 26

It involves frequent hiring and firing, raising ethical and social concerns despite its alignment with demand fluctuations.

Question 27

What is Linear Programming (LP)?

Answer 27

A mathematical model used for resource allocation and decision-making by maximizing or minimizing an objective function subject to constraints.

Question 28

What fields commonly use LP?

Answer 28

Manufacturing, finance, marketing, and transportation

Question 29

What are the three steps to develop an LP model?

Answer 29

1. Formulation (defining variables, constraints, and objective function), 2. Solution (solving graphically or via software), 3. Interpretation (analyzing and applying results).

Question 30

What does the feasible region represent in an LP problem?

Answer 30

The overlapping area where all constraints are satisfied simultaneously.

Question 31

Where does the optimal solution to an LP problem occur?

Answer 31

At a corner point of the feasible region

Question 32

What is an unbounded solution in LP?

Answer 32

A condition where the objective function value becomes infinitely large, indicating an improperly formulated problem.

Question 33

What are special cases in LP?

Answer 33

Redundancy, infeasibility, unboundedness, and alternate optimal solutions.

Question 34

How is the objective function represented in LP?

Answer 34

As a linear equation or inequality to be maximized or minimized (e.g., profit or cost).

Question 35

What is the Corner Point Method in LP?

Answer 35

A technique that identifies optimal solutions at corner points of the feasible region, preferred for its simplicity

Question 36

What tool in Excel is used for solving LP problems?

Answer 36

The Solver add-in, used to optimize decision variables under constraints.

Question 37

What are the key steps for setting up an LP problem in Excel?

Answer 37

1. Enable Solver, 2. Set up spreadsheet with decision variables, constraints, and objective function, 3. Define constraints, 4. Configure Solver, 5. Solve and review results.

Question 38

What are non-negativity constraints in LP?

Answer 38

Constraints that ensure decision variables cannot be negative

Question 39

What does the SUMPRODUCT function do in LP setups?

Answer 39

It helps calculate the left-hand side (LHS) of constraints and the objective function efficiently in Excel

Question 40

What is a Bill of Material (BOM)?

Answer 40

A document that captures the structure of a product, detailing all components, subassemblies, and materials needed for manufacturing.

Question 41

What is a Multi-Level BOM?

Answer 41

A detailed BOM that shows the full structure of a product, including all subassemblies and components at multiple levels

Question 42

What is a Single-Level BOM?

Answer 42

A BOM that only lists the components or materials at the first level of the product structure, focusing on immediate assemblies

Question 43

What is a Flattened BOM?

Answer 43

A BOM that lists all parts and components in a single view, multiplying subassemblies with their components to show the overall need