Question 1

What is the primary goal of bottleneck analysis in production management?

Accepted Answer

B) Identifying constraints that limit production capacity

Question 2

Which of the following is a characteristic of a push production system?

Accepted Answer

D) The production schedule is fixed

Question 3

Break-even analysis for two alternatives primarily compares:

Accepted Answer

Break-even compares total cost lines using **fixed cost** and **variable cost** across output levels.

Question 4

Plant layout refers to:

Accepted Answer

Plant layout is the **physical arrangement** of facilities for smooth flow.

Question 5

The 5R concept in purchasing includes all EXCEPT:

Accepted Answer

5R includes right quality, quantity, time, source, and price—not advertisement.

Question 6

Which is NOT a common allowance type in time study?

Accepted Answer

Allowances in time study include personal, fatigue, and delay—not import tariff allowance.

Question 7

A key objective of good plant layout is to:

Accepted Answer

Good layout aims to **minimize material handling** and improve workflow.

Question 8

Autonomous maintenance in TPM means:

Accepted Answer

Autonomous maintenance involves **operators** doing routine care to prevent deterioration.

Question 9

Which production control method is associated with a pull system?

Accepted Answer

C) Kanban

Question 10

Which of the following production management concepts emphasises the importance of employee involvement and empowerment?

Accepted Answer

B) Theory X and Theory Y

Question 11

Which is an internal failure cost?

Accepted Answer

Internal failure occurs **before delivery** (scrap, rework). External failure occurs after delivery.

Question 12

Vibration analysis is mainly used in:

Accepted Answer

Vibration analysis is a key **predictive maintenance** technique for rotating machines.

Question 13

Pareto chart is used to:

Accepted Answer

Pareto chart applies the **80/20** principle to focus on major causes of defects.

Question 14

OEE (Overall Equipment Effectiveness) is the product of:

Accepted Answer

OEE = **Availability × Performance × Quality**.

Question 15

Which forecasting horizon is mainly used for facility location and new plant decisions?

Accepted Answer

Major facility decisions require **long-term** forecasts (years).

Question 16

Which is a key objective of production management?

Accepted Answer

Production management aims to produce **right quality/quantity on time at minimum cost**.

Question 17

Routing in PPC refers to:

Accepted Answer

Routing determines the **sequence of operations** and work centers for processing a job.

Question 18

Maintenance planning mainly answers:

Accepted Answer

Planning covers job content and resources; scheduling decides the time.

Question 19

Inventory refers to:

Accepted Answer

Inventory includes raw materials, WIP, finished goods and spares kept to meet production and demand.

Question 20

Predictive maintenance is also known as:

Accepted Answer

Predictive maintenance is **condition-based maintenance (CBM)** using monitoring data.

Question 21

What is design capacity?

Accepted Answer

**Design capacity** is the theoretical maximum output as per design specification of a facility or machine.

Question 22

State the 5R concept in purchasing (any three).

Accepted Answer

The 5R concept includes **right quality, right quantity, right time, right source, and right price** (any three).

Question 23

Write one difference between efficiency and effectiveness.

Accepted Answer

**Efficiency** means doing work with minimum waste (doing things right), while **effectiveness** means achieving desired goals (doing the right things).

Question 24

What is safety stock?

Accepted Answer

**Safety stock** is extra inventory kept to handle uncertainty in demand or lead time and to avoid stock-outs.

Question 25

Define quality.

Accepted Answer

**Quality** is the ability of a product/service to satisfy stated and implied customer needs; it is commonly described as **fitness for use**.

Question 26

Define production management.

Accepted Answer

**Production management** is the planning, organizing, directing and controlling of production activities to convert inputs into outputs efficiently.

Question 27

Expand DMAIC.

Accepted Answer

**DMAIC** = **Define, Measure, Analyze, Improve, Control**.

Question 28

What is process (functional) layout?

Accepted Answer

**Process (functional) layout** groups similar machines or functions together (e.g., drilling section, painting section).

Question 29

What is materials management?

Accepted Answer

**Materials management** deals with planning, sourcing, purchasing, storing and issuing materials needed for production at minimum total cost.

Question 30

What is vendor rating?

Accepted Answer

**Vendor rating** is the systematic evaluation of supplier performance (quality, delivery, cost, service) using a scorecard/weighting system.

Question 31

Explain planned maintenance and unplanned maintenance (any three points) with a table.

Accepted Answer

### **Planned vs Unplanned Maintenance**

- **Planned maintenance** is scheduled (PM/CBM) and resources are prepared in advance.
- **Unplanned maintenance** is emergency work after a breakdown; it disrupts production.
- Planned maintenance generally results in **lower downtime** and better cost control.

Table:

| Basis | **Planned maintenance** | **Unplanned maintenance** |
|---|---|---|
| Timing | scheduled | sudden/emergency |
| Preparation | manpower/tools/spares arranged | rush arrangement |
| Impact | less disruption | high disruption |

Hence, moving from unplanned to planned maintenance improves reliability and production continuity.

Question 32

Explain time study: key terms (observed time, rating, normal time, allowances) briefly.

Accepted Answer

Key terms in time study:

- **Observed time**: time recorded by stopwatch during study.
- **Performance rating**: adjustment for worker speed compared to normal.
- **Normal time**: observed time adjusted for rating.
  - Normal time = Observed time × Rating factor
- **Allowances**: extra time added for personal needs, fatigue and unavoidable delays.

Thus, standard time is obtained by adding allowances to normal time for realistic planning.

Question 33

Differentiate between design capacity, effective capacity and actual output (any three points) with a table.

Accepted Answer

Design capacity vs Effective capacity vs Actual output:

- **Design capacity** is the theoretical maximum as per design.
- **Effective capacity** is practical maximum after considering maintenance, breaks and setups.
- **Actual output** is the real output achieved in practice.

Table:

| Term | Meaning | Usual relation |
|---|---|---|
| **Design** | theoretical max | highest |
| **Effective** | practical max | lower than design |
| **Actual** | achieved output | ≤ effective |

Hence, performance gaps can be identified by comparing design, effective and actual values.

Question 34

Explain qualitative forecasting methods (any three) with brief meaning.

Accepted Answer

Qualitative (judgmental) forecasting methods (any three):

- **Delphi method**: experts give forecasts in rounds; feedback is shared until consensus is reached.
- **Sales force composite**: salespeople estimate future demand based on customer interactions.
- **Market research**: surveys, interviews and test marketing to estimate demand.
- **Managerial judgment**: experienced managers estimate demand using knowledge of market conditions.

Thus, qualitative methods are useful when historical data is limited or demand conditions are changing.

Question 35

Differentiate between product layout and process layout (any three points) with a table.

Accepted Answer

Product layout vs Process layout:

- **Basis**: sequence of operations vs similarity of functions.
- **Best for**: high volume, low variety vs low volume, high variety.
- **Handling and flow**: smoother flow and less handling vs more movement and complex routing.

Table:

| Basis | Product layout | Process layout |
|---|---|---|
| Volume/variety | high/low | low/high |
| Flow | smooth | complex |
| Flexibility | low | high |

Thus, product layout is efficient for mass production, while process layout is flexible for variety.

Question 36

Explain capacity strategies (lead, lag and match) with merits and limitations (exam-style with table).

Accepted Answer

### **Capacity Strategies (Lead, Lag, Match) — Exam-Style**

Capacity strategy decides when and how much capacity to add relative to demand.

#### **1) Lead strategy**
- Add capacity **before** demand increases.
- **Merits**: better customer service, capture market share, avoid lost sales.
- **Limitations**: risk of **idle capacity** and higher fixed cost initially.

#### **2) Lag strategy**
- Add capacity **after** demand has increased.
- **Merits**: better utilization, less risk of overcapacity.
- **Limitations**: risk of lost sales, late deliveries during demand surge.

#### **3) Match strategy**
- Add capacity in small steps to match demand.
- **Merits**: balanced risk and cost.
- **Limitations**: requires frequent adjustments; may still face short-term mismatch.

Table:

| Strategy | When capacity is added | Main advantage | Main risk |
|---|---|---|---|
| **Lead** | before demand | service level ↑ | idle capacity ↑ |
| **Lag** | after demand | utilization ↑ | lost sales ↑ |
| **Match** | step-by-step | balanced | adjustment complexity |

**Conclusion:** Choice depends on demand uncertainty, competition, cost structure and service requirements.

Question 37

Explain time study procedure and standard time calculation (exam-style with example).

Accepted Answer

### **Time Study and Standard Time Calculation (Exam-Style)**

#### **Time study procedure (steps)**
- select the job and ensure the method is standardized.
- break the job into elements.
- record **observed time** for several cycles using stopwatch.
- apply **performance rating** to get normal time.
- add allowances to compute **standard time**.

#### **Example (simple)**
Given:
- Observed time = 10 minutes
- Rating = 120% (rating factor = 1.20)
- Allowances = 15%

Step 1: Normal time = 10 × 1.20 = 12 minutes

Step 2: Standard time = Normal time × (1 + allowance)
- Standard time = 12 × 1.15 = 13.8 minutes

Mini table:

| Item | Value |
|---|---:|
| Observed time | 10 min |
| Rating factor | 1.20 |
| Normal time | 12 min |
| Allowance | 15% |
| Standard time | 13.8 min |

**Conclusion:** Standard time is used for production planning, costing and incentive schemes.

Question 38

Explain benefits and limitations of PPC (exam-style with table).

Accepted Answer

### **Benefits and Limitations of PPC (Exam-Style)**

PPC improves coordination and efficiency, but it also needs discipline and data accuracy.

Table:

| Aspect | Benefits | Limitations |
|---|---|---|
| Resource use | better utilization of men/machines | needs accurate capacity and time data |
| Flow | smoother production, fewer stoppages | frequent demand changes disturb schedules |
| Delivery | improved on-time delivery | difficult in highly customized jobs without systems |
| Cost/Inventory | reduced WIP and waste | requires trained staff and implementation effort |

**Conclusion:** PPC is essential for efficient production, but success depends on accurate information, trained people and consistent follow-up.

Question 39

Explain TQM: meaning and principles (exam-style) with a summary table.

Accepted Answer

### **TQM (Total Quality Management) — Exam-Style**

**Meaning:** TQM is an organization-wide approach in which everyone participates in **continuous improvement** to meet customer requirements and achieve long-term success.

#### **Key Principles**
- **Customer focus**: quality is defined by the customer.
- **Leadership commitment**: top management drives quality culture.
- **Employee involvement**: participation and empowerment at all levels.
- **Process approach**: manage activities as processes to reduce variation.
- **Continuous improvement**: ongoing improvement (Kaizen mindset).
- **Fact-based decisions**: use data and analysis rather than assumptions.
- **Supplier relationship management**: quality depends on the supply chain.

Summary table:

| Principle | What it means |
|---|---|
| **Customer focus** | meet needs consistently |
| **Continuous improvement** | reduce defects and waste |
| **Employee involvement** | ownership and teamwork |
| **Process approach** | stable, repeatable processes |

**Conclusion:** TQM builds a culture where quality is not a department’s job; it is a responsibility of the whole organization.

Question 40

Explain operations strategy and its key decision areas (exam-style) with a flowchart.

Accepted Answer

### **Operations Strategy (Exam-Style)**

**Operations strategy** is a long-term plan for designing and managing operations so that it supports business strategy and competes on selected priorities.

#### **Key decision areas**
- **Capacity strategy**: how much to produce now and in future.
- **Process choice**: job/batch/mass/continuous; level of automation.
- **Facilities**: location and plant layout decisions.
- **Quality strategy**: conformance and continuous improvement systems.
- **Supply chain**: sourcing, outsourcing, supplier relationships.
- **Workforce strategy**: skills, training, flexibility, incentives.

Flowchart:

```text
Business goals
   ↓
Choose competitive priorities (cost/quality/delivery/flexibility/service)
   ↓
Align decisions (capacity + process + facilities + supply chain + quality + workforce)
   ↓
Implement improvement systems (lean/Kaizen/OEE)
   ↓
Measure performance → feedback and revise
```

**Conclusion:** A strong operations strategy aligns resources and processes to deliver consistent competitive advantage.

Production Management — Question Paper

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