CPIM Practice Exam

On what basis should product families be established for production planning?

1. Market segments

2. Similarity of manufacturing process

3. Availability of materials

4. Availability of equipment

The correct answer is: Similarity of manufacturing process

Establishing product families for production planning should be based on the similarity of the manufacturing process. This approach allows manufacturers to streamline operations, make efficient use of resources, and minimize changeover times between different products. When products share similar manufacturing processes, it becomes easier to allocate labor, materials, and equipment effectively. Grouping products that follow similar processes enables the organization to optimize workflows, implement standard operating procedures, and leverage economies of scale in production. This ultimately enhances productivity and can lead to cost reductions, while ensuring that best practices are applied uniformly across similar product types. While considerations such as market segments, availability of materials, and availability of equipment are also important factors in production planning, the primary focus on manufacturing process similarity ensures operational efficiency and alignment across production lines.