Production and Business Practice Quiz

The process of converting raw materials into finished products is the core of production. Other functions like marketing or hiring are separate business activities.

Quality control is all about ensuring that products adhere to set standards. It does not directly relate to production speed, reducing workforce costs, or marketing tactics.

Supply chain management involves overseeing the movement of products from the sourcing of raw materials to the finished product delivered to customers. It requires planning and coordination, unlike design or payroll functions.

Inventory management is concerned with the effective ordering, storage, and utilization of inventory. This process ensures that materials and products are available when needed without incurring excessive storage costs.

Production planning focuses on efficiently scheduling and coordinating production processes to adequately meet customer demand. It is not primarily about pricing, hiring, or advertising.

Assembly line production is designed to achieve high efficiency for mass production by breaking processes into standardized tasks. It contrasts with job or custom production, which are more tailored and less efficient for large volumes.

JIT production minimizes excess inventory, thereby reducing carrying costs and waste. This approach ensures that production closely meets demand without overstocking.

Effective production scheduling ensures that resources are used optimally, avoiding bottlenecks and delays. This coordination directly contributes to timely delivery and improved customer satisfaction.

Lean production is centered on eliminating waste in all forms, including time, materials, and labor. By doing so, companies can streamline operations and boost overall efficiency.

Capacity planning forecasts future resource needs, ensuring that production can scale to meet demand. It prevents bottlenecks by aligning resources with business growth.

A Fishbone diagram, also known as an Ishikawa diagram, helps in identifying root causes of quality problems. It is widely recognized as an effective tool for systematic problem analysis.

Diversification involves spreading business risk by expanding into new products or markets. This strategy reduces dependence on a single area and fosters growth opportunities.

Economies of scale refer to the reduction in per-unit costs as production volume increases. Spreading fixed costs over a larger number of units drives these cost advantages.

Automation enhances production speed and ensures consistent quality by standardizing tasks. While skilled labor is still needed to oversee and maintain systems, overall efficiency improves.

Strategic planning establishes the long-term vision and goals of a company, aligning resources and actions toward achieving them. It provides a roadmap that goes beyond daily operations or short-term gains.

TQM is a comprehensive approach that engages every employee in the pursuit of continuous improvement. This inclusive strategy leads to higher quality products and overall business success.

Supply chain disruptions can result in significant delays, rising operational costs, and overall inefficiencies in production. These effects ripple through the entire process, affecting timely delivery and cost control.

Data analytics provides insights into production performance by identifying trends and inefficiencies. Using these insights helps companies optimize processes and make informed decisions.

Environmental sustainability in production means adopting practices that reduce waste and harm to the environment. This approach not only benefits the planet but also contributes to long-term business viability.

Integrating technologies like AI and IoT transforms production management through enhanced real-time monitoring and predictive maintenance. This leads to improved operational efficiency while still relying on human expertise for strategic decision-making.