Principles of Management CLEP Practice Exam

What is a primary feature of a kanban system in production processes?

1. It encourages mass production of goods

2. It prevents overproduction and reduces waste

3. It centralizes decision-making power

4. It relies on manual inventory checks

The correct answer is: It prevents overproduction and reduces waste

A primary feature of a kanban system in production processes is that it prevents overproduction and reduces waste. This system operates on a just-in-time (JIT) production philosophy, which emphasizes producing only what is needed when it is needed. The terminology "kanban" translates to "visual signal" in Japanese, and it refers to the visual cues used to trigger the movement of materials within a manufacturing or production process. By implementing a kanban system, organizations can better manage their inventory levels, ensuring that they do not produce surplus goods that could lead to excessive storage costs or waste. This system facilitates a more efficient workflow and helps align production closely with actual consumer demand. The visual signals that indicate when to start or stop the production of certain items contribute to a smoother operational flow, minimizing excess production and thus promoting a leaner and more responsive manufacturing environment. In contrast, the other options do not accurately reflect the essence of a kanban system. For instance, encouraging mass production goes against the principles of kanban, as it favors efficiency over excessive inventory. Centralizing decision-making power is more characteristic of traditional management styles which could hinder flexibility, while relying on manual inventory checks is less efficient compared to the automation and real-time updates facilitated by a kan