Spring 2010 MGT613-Production / Operations Management (Session - 4)

FINALTERM EXAMINATION
Spring 2010
MGT613- Production / Operations Management (Session - 4)
Solved By vuZs Team
vuzshelp@gmail.com
www.vuzs.net
Time: 90 min
Marks: 69
Question No: 1 ( Marks: 1 ) - Please choose one
As a project manager, your project has become lengthy enough and you have to spend more money to complete
it quickly within time constraints, the activity is known as:
► Rectifying time estimation
► Project scope creeping
► Project crashing
► Project risk management
Ref: Crashing a project involves paying more money to complete a project more quickly.

Which of the following refers to the inherent variability in a process?
► Control limits
► Process capability
► Chance causes of variation
► Assignable causes of variation
Reference

Which of the following are the priorities emphasized most often in JIT system?
► High quality and minimal wastage
► Low cost and consistent quality
► Low inventory and consistent material supply
► Low cost and low inventory
Ref: Lean Manufacturing: is a management philosophy focusing on reduction of the seven wastes. By
eliminating waste (muda), quality is improved, production time is reduced and cost is reduced.

Identify the correct sequence of steps in Deming wheel.
► Plan, Do, Check, Act
► Plan, Check, Do, Act
► Plan, Do, Act, Check
► Plan, Act, Do, Check
Question No: 5 vuzs ( Marks: 1 ) - Please choose one

Which of the following is a type of kanban that authorizes the production of goods?
► Supplier kanban
► Material kanban
► Withdrawal kanban
► Production kanban
Reference
Product life cycle is based on which of the following components?
► Price
► Place
► Demand
► Supply

What would be the availability if a carpenter is expected to be able to operate for 300 hours between repairs,
and the mean repair time is expected to be 2 hours?
► 6.02
► 2.0
► 0.99
► 0.006
Calculation: Availability = (MTBF)/(MTBF + MTR)
MTBF = mean time between failure = 300
MTR = mean time repair =2 hours
= (300)/(300+2)
=0.993

What would be the productivity if a machine produced 50 units in 3 hours?
► 0.066 units per hr
Calculation: Productivity = 50/3
=16.66
Which of the following defines inventory turnover?
► A ratio of cost of goods sold to the average inventory
► A ratio of work in process to the average inventory
► A ratio of cost of carrying cost to the average inventory
► A ratio of cost of assets to the average inventory

Which one the following is an assumption of center of gravity method?
► The quantity to be shipped is variable
► The quantity to be shipped is fixed
► The quantity carries no value
► The quantity to be shipped should be extraordinarily high
Reference

The quality guru Kaoru Ishikawa is famous for:
► Statistical quality control
► Fishbone diagram
► Zero defects
► Cost of quality
Identify the dimension of quality that relates to the expected operational life of a product.
► Durability
► Performance
► Serviceability
► Reliability

Which one of the following forecasting techniques is used to identify a trend when data is neither growing nor
declining rapidly and has no seasonal characteristics?
► Simple moving average
► Delphi method
► Trend adjusted forecast
► Naïve forecast

Which of the following is the focus of statistical process control?
► Determining the efficiency of an operations system
► Measuring the amount of re-work required to rectify faulty goods
► Identifying the security needs of an operations system
► Measuring and controlling process variations

All of the following are the decision areas of an operations manager EXCEPT:
► Inventory management
► Scheduling tasks
► Supply chain management
► Financial reporting

Which of the following refers to the average of accepted lots and rejected lots?
► Acceptable Quality Level (AQL)
► Lot Tolerance Percent Defective (LTPD)
► Average Outgoing Quality (AOQ)
► Average Outgoing Quality Limit (AOQL)
Question No: 17 ( Marks: 1 ) vuzs - Please choose one

Identify the set of factors that affect the choice of a strategy for aggregate planning.
► Cost and corporate policy
► Cost and location analysis
► Cost and capacity constraints
► Cost and training of employees

Which one of the following location strategies is favored by automobile manufacturers?
► Product plant strategy
► Process plant strategy
► Market area plant strategy
► Cost conservation strategy
For which of the following purpose master schedule determines quantities?
► Capacity
► Demand
► Resources
► Production requirements
Ref: Master schedule: Determines quantities needed to meet demand.(Page 139)

Which of the following contains a listing of all the assemblies, sub-assemblies, parts and raw materials needed
to produce one unit of a finished product?
► Master schedule
► Bill of materials file
► Inventory records file
► Rough – cut capacity plan
Ref: Bill of materials (BOM): One of the three primary inputs of MRP; a listing of all of the raw materials,
parts, subassemblies, and assemblies needed to produce one unit of a product.(Page no.157)(vuZs)

Which of the following reports compares known and expected future capacity requirements with projected
capacity availability?
► Performance control report
► Exception report
► Load report
► Planned order report
Ref: Load reports: Department or work center reports that compare known and expected future capacity
requirements with projected capacity availability.(Page no.161)

Which of the following is the output of capacity requirement planning process?
► Planned order releases
► Job times
► Resource requirements
► Load reports

Given the table:

Alternatives Possible future demand
Low (Rs.) High (Rs.)
Small facility 10,000 8,000
Medium 12,000 20,000
facility
Large facility 18,000 15,000

Which one of the following is the correct payoff under
LAPLACE approach?
► Rs. 9,000
► Rs. 16,000
► Rs. 33,000
► Rs. 16,500
Ref: LAPLACE approach best average of alternatives.
Small facility = 18000/2 = 9000
Medium facility = 32000/2 = 16000
Large facility = 33000/2 = 16500 this is best average as it is highest.

Which one of the following refers to the assignment of jobs to process centers?
► Sequencing
► Loading
► Scheduling
► Budgeting

Which of the following charts shows management of flow of work and waiting lines at work stations?
► Gantt charts
► Load charts
► Schedule charts
► Input/output charts

Which one of the following is TRUE about work sampling?
► It describes individual human motions that are used in a job task
► It involves determining the length of time it will take to undertake a particular task
► It involves determining the amount of time a worker spends on various activities
► It provides standard times for micro motions such as reach, move and release

The Strategies which are more focused on maintaining or improving the quality of an organization’s products
or services are known as:
► Quality at the source
► Time based strategies
► Cost leadership strategies
► Quality-based strategies

Which of the following is a technique that averages a number of recent actual values that are updated as new
values become available?
► Weighted moving average
► Linear trend equation
► Exponential smoothing
Ref: Moving average – A technique that averages a number of recent actual values, updated as new values
become available.
· Weighted moving average – More recent values in a series are given more weight in computing the forecast.
(Page no.37)

Which one of the following refers to translating the voice of the customer into technical design requirements?
► Concurrent design
► Design for manufacture
► Robust design
► Quality function deployment
Ref: A popular managerial view is that the Quality Function should be deployed at the source or at the design
stage. We also should know what Quality Function Deployment is. Two common answers being that it is the
voice of the customer (which always sets a standard for the service organization to follow) and the second one
being that it should be in the form of a house of quality.(Page no.55)

Training program and quality audits come under which type of costs that an organization has to bear as cost of
service quality?
► Internal failure cost
► Recovery cost
► Prevention cost
► Detection cost

Which of the following describes the people who have sufficient experience of working with six sigma
methodology?
► Black belts
► Green belts
► Top management
► Master black belts
All of the above options are correct. All of above having experience of six sigma. I am confused about this
question.
Ref: Six Sigma Teams are formed for implement of Six Sigma in true spirit keeping in mind both managerial as
well as technical aspects.
1. Top management
2. Program champions
3. Master “black belts”
4. “Black belts”
5. “Green belts”

Which of the following is the characteristic of an effective design?
► It facilitates manufacturing of the product
► It satisfies customer requirements
► It sells in the marketplace
► All of the given options

The operating characteristic (OC) curve shows the probability of which of the following?
► Acceptance for every possible true percentage of defectives
► Rejection for every possible true percentage of defectives
► Making type I error for various percentages of defectives
► None of the given options
Ref: The curve shows the probability that use of the sampling plan will result in lots with various fractions
defective being accepted.(Page no.130)

Which of the following defines the orders which have been placed but not yet completed?
► Order releases
► Planned receipts
► Scheduled receipts or open orders
► Planned order releases
Ref: A released order not yet shipped (customer order) or received into stock (production, purchase or
replenishment order). OR Scheduled receipts: Open orders scheduled to arrive.

Select the appropriate term for the total demand derived from all parent production plans from the following
options.
► Inventory record
► Load reports
► Projected on-hand inventory
► Gross requirement
Reference

An automatic car wash is an example of which of the following?
► Customized service
► Batch processing
► Intermittent processing (not sure)
► Standardized service

If alpha = 0, how many containers are needed with the given data?
K = 1500 (0.8 + 0.2) (1 + 0)
270
► 6.5 Containers
► 7 Containers
► 6 Containers
► 9 Containers
Calculation: 1500/270 =5.6. After round off the value, it is 6 containers.(vuzs)

In supply chain management event-management capability enables organization in which of the following
ways?
► To achieve quick response
► To create trust among trading partners
► To increase productivity
► To detect and respond to unplanned events
Ref: Event-management capability
The ability to detect and respond to unplanned events.(Page no.176)

Which of the following statement is FALSE regarding Supply Chain Management?
► Supply Chain Management issues are insignificant in service organizations
► For effective supply chain management, “long-term partnerships” with key suppliers is much important
► Ideas from suppliers can lead to improved competitiveness by increasing revenues
► Supply chain management creates value though changes in time, location and quantity

An operations manager of an airline industry schedules the arrival and departure of flights by working ahead
form some point in time is following which type of scheduling?
► Backward scheduling
► Forward scheduling
► Vertical scheduling
► Horizontal scheduling
Ref: Forward scheduling may result in jobs being completed earlier then the requested due date because
forward scheduling schedules the tasks as early as possible.

Tasks are easily scheduled in which of the following production environments?
► Intermediate-volume-systems
► Low-to-medium volume production (Job shop)
► Medium-to-high volume production (Flow shop)
► Optimal production mixes

In multiple workstations scheduling, the priority rule is applied to which kind of given jobs?
► The jobs waiting for the operations
► The jobs of the least critical ratio (CR)
► The jobs arrived at workstation first
► The jobs with earliest due date

Difference between length of a path and critical path gives which of the following values?
► Critical activities
► Slack activities
► Activity on node
► Activity on arrow
Ref: Slack: Allowable slippage for path; the difference the length of path and the length of critical path.(Page
no.194)

When timing of activities is fairly well established in management of projects, which of the following time
estimations approach is useful?
► Deterministic approach
► Probabilistic approach
► Optimistic time approach
► Pessimistic time approach
Ref: A deterministic approach is useful for estimating the duration of the project, when activity times can be
fairly well established.(Page no.209)

Which one of the following is the goal of method analysis?
► Dividing and analyzing a job
► Check individual human motions used to perform an operation
► Determining the length of time it will take to undertake a particular task
► Determining the amount of time a worker spends on various activities

Managers should greatly focus on which of the following demand options in aggregate planning process?
► Back orders
► Promotion
► Pricing
► New demand
Ref: The operations manager should know all four demand options but should be more interested in back
order option.(Page no.135)
In production planning, future requirement for finished goods can be derived from all of the following
EXCEPT:
► Stock out
► Backlogs
► Demand from distributors or dealers
► Forecasts for product families

Chase demand strategy is an example of which of the following?
► Proactive strategy
► Reactive strategy
► Mixed or hybrid strategy
► Active strategy
Spring 2010
Solved By vuZs Team
vuzshelp@gmail.com
Time: 90 min
Marks: 69
Mr. Ali purchased a TV set. After a period of a year, the picture quality started deteriorating. He went to the
company and complained and the company responded subsequently. Which of the following dimensions of
quality would come into play?
► Reliability
► Conformance
► Serviceability
► Aesthetics
Ref: Serviceability refers to services after sale.

Which of the following refers to the inherent variability in a process?
► Control limits
► Chance causes of variation
► Assignable causes of variation
Reference

If holding cost of an item is 70,000 per year,
Time savings = 2 days using 1 day alternative
What is the incremental holding cost for additional 2 days?
► Rs.350
► Rs.380
► Rs.384
► Rs.375
Calculation: Incremental Holding Cost= H ( d/365)
Where H=Annual Holding cost for the item.
d = Time savings in days and d/365 is fraction of year saved.
Incremental Holding Cost= 70,000 ( 2/365)
=383.56 or 384

Which of the following is NOT mark of a good layout in manufacturing?
► Bottleneck operations
► Straight line flow pattern (or adaption)
► Work stations close together
► Open plant floors (high visibility)
Ref: Bottleneck is one process in a chain of processes, such that its limited capacity ( increased time of
completion, or increased labour requirement) reduces the capacity of the whole chain.

Which one of the following correctly explains the elements of a good forecast?
► Timely, having a purpose, accurate, written, reliable, meaningful
► Timely, accurate, judgmental, correctness, verbal, simple to use
► Timely, accurate, reliable, meaningful, written, simple to use
► Timely, accurate, reliable, consistent, meaningful, written, simple to use

CBR stands for which one of the following?
► Commercial board of revenue
► Central board of recycling
► Central board of renovation
► Central board of revenue

What would be the availability if a carpenter is expected to be able to operate for 300 hours between repairs,
and the mean repair time is expected to be 2 hours?
► 6.02
► 2.0
► 0.99
► 0.006
Calculation: Availability = (MTBF)/(MTBF + MTR)
Where,
MTBF = Mean time between factor =300
MTR = Mean repair time =2 hours
Availability = (300)/(300+2)
=300/302
= 0.99

Technology has impacted the work place by:
► Adding to the existing geographical barriers for recruiting
► Increasing the cost of telecommuting
► Increasing the amount required to be spent on training
► Unifying the workforce to a common skill level

Which one of the following is an example of site related factors that affect location decision?
► Transportation
► Quality of life
► Location of new markets
► Location of raw materials
Ref: Site Related Factors
•Land
•Transportation
•Environmental
•Legal

Which of the following statements corresponds to an order-winning characteristic?
► A factor which may be significant in other parts of the organization
► A factor which gives an organization a competitive edge
► A factor which serves as a minimum standard for purchase
► A factor which increases the profitability of the organization
Which of the following is NOT true about TQM?
► Focused on worker’s activity rather than management
► Meeting the needs and expectations of customers
► Inclusion of every person in the organization
► Covering all the functional areas of the organization
Ref: It is that common viewpoint as well as attitude shared by the whole organization.(Page no.111)

Identify the stage of the DMAIC (Define, Measure, Analyze, Improve and Control) methodology which
involves eliminating the root causes of non-random variation.
► Define
► Measure
► Analyze
► Improve

Which of the following stage of Deming's wheel involves evaluating the improvement plan?
► Plan
► Do
► Check
► Act
Ref: CHECK
· Evaluate the data collection during this phase.
· Check how closely the results match the original goals of the plan phase.(Page no.116)

Which of the following statement defines process analysis?
► It is collecting information, identifying each step and finding inputs and outputs of process
► It is collecting information about cost reduction and improving the defects
► It relates to asking questions about process flow and identifying missing or duplicating activities
► It relates with taking a fresh approach to solve an issue on hand
Reference

Identify the correct sequence of steps in the control process.
(a) Define(b) Measure(c) Compare
(d) Evaluate(e) Corrective action(f) Monitor results
► a, b, d, c, f, e
► a, b, c, d, e, f
► a, b, c, f, e, d
► a, b, d, e, f, c
Ref: The Control Process consists of the following important stages.
1. Define
2. Measure
3. Compare
4. Evaluate
5. Correct
6. Monitor results
Which one of the following formula can be used to compute break even point?
► Q = VC / (R - VC)
► Q = FC / (R - VC)
► Q = VC / (R + FC)
► Q = FC / (R + VC)

Which of the following defines the purpose of acceptance sampling?
► Deciding whether a lot satisfies pre-determined standards
► Determining the lot size for sampling process
► Evaluating the process of inspection for sampling
► Implementing quality control policies for the process
Ref: Acceptance sampling is an important form of inspection applied to lots or batches of items before or after a
process, to judge conformance with predetermined standards.(Page no.128)

Which one of the following is an example of a long range plan?
► Location layout
► Work schedule
► Machine loading
► Backorder
Ref: Long-range plans
1. Long term capacity
2. Location / layout (Page no.133)

Aggregate planning usually covers time span of how many months?
► 2 – 12 months
► 2– 15 months
► 2 – 16 months
► 2 – 17 months

Which of the following costs is inversely related with order size?
► Annual ordering cost
► Annual carrying cost
► Annual shortage cost
► Annual stockout cost

Which of the following refers to the actual amount of an item needed in each time period?
► Gross requirements
► Net requirements
► Planned-order receipts
► Planned-order releases

Which of the following is a benefit of an MRP (Material Requirements Planning) system to an organization?
► Increased sales price
► Increased inventory
► Reduced customer service
► Ability to track material requirements
Ref: Low levels of in-process inventories
Ability to track material requirements
Ability to evaluate capacity requirements
Means of allocating production time

Which of the following statements is TRUE about Just-in-Time?
► It is essential for a project organization
► It pushes inventory through the operations process
► It is only useful in a high product variety environment
► It seeks to reduce inventory in an effort to reduce waste

Which one of the following is NOT a characteristic of Just-in-time (JIT) production system?
► Flexible workforce
► Pull methods of materials flow
► Large lot size
► Close supplier ties
Ref:JIT system requires small lot size.(Page no.166)

Which of the following is NOT a benefit of supply chain management?
► Lower inventory
► Higher productivity
► Less variety
► Greater agility
Ref: Benefits of Supply Chain Management
1. Lower inventories
2. Higher productivity
3. Greater agility
4. Shorter lead times
5. Higher profits
6. Greater customer loyalty

Scheduling is a function of which of the following?
► Volume of systems’ output
► Nature of systems’ output
► Timing of systems’ output
► Value of systems’ output
Ref: Scheduling is the timing and coordination of Operations.(Page no.184)

Which one of the following is a type of Gantt chart that shows the loading and idle time for a group of
machines?
► Load chart
► Schedule chart
► Input/output control chart
► Sequence chart
Ref: Load chart – A type of Gantt Chart that shows the loading and idle times for a group of machines or list
of departments.(Page no.181)
Which one of the following is a type of Gantt chart that shows the order of jobs in progress and whether they
are on schedule or not?
► Load chart
► Schedule chart
► Input/output control chart
► Sequence chart

Which of the following refers to the length of time, a job is in the shop at a particular workstation?
► Slack time
► Lead time
► Job flow time
► Make-span

Which one of the following is focused to reduce the incidence of failures in the plant or equipment to avoid the
associated costs?
► Preventive maintenance
► Predictive maintenance
► Reactive maintenance
► Total productive maintenance
Ref: Preventive maintenance: Proactive approach; reducing breakdowns through a program of lubrication,
adjustment, cleaning, inspection, and replacement of worn parts.(Page no.189-190)

Which of the following is NOT a key decision in project management?
► Selecting the project manager
► Selecting the project team
► Deciding the inventory levels
► Planning and designing the project
Ref: Project Management has certain major administrative issues, such as
1. Executive responsibilities
2. Project selection
3. Project manager selection
4. Organizational structure
5. Organizational alternatives
6. Manage within functional unit
7. Assign a coordinator
8. Use a matrix organization with a project leader

Which of the following is required to describe project scope?
► Program Evaluation and Review Technique
► Gantt chart
► Work breakdown structure
► Critical path method
Ref: The primary tool required to describe Project Scope is the Work Breakdown Structure.
Which one of the following is TRUE about the importance of capacity planning?
► It is profitable
► It increase the capacity of productive unit
► It helps managers quantify production capability
► It establishes good relationship with the customer (not sure)

► Delphi method
► Naïve forecast
Ref:The Moving Average model takes the average of several periods of data; the result is a dampened or
smoothed data set; use this model when demand is stable and there is no evidence of a trend or seasonal pattern.

Which of the following is NOT an attribute to classify services?
► Tangibility
► Perishability
► Simultaneity
► Courtesy
Ref:A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-
producer.

Which of the following determinants of effective capacity is taken into account by operations manager at
macro level?
► Supply chain
► Process factors
► Product and service factors
► Operational factors
Ref: At the macro levels the managers look for Supply chain and External factors, while at the micro level they
look for operational factors including facilities and man and machine resources.

Which of the following refers to the way an organization chooses to produce its goods or services?
► Process selection
► Process reengineering
► Process redesign
► Process design
Ref: It takes into account selection of technology, capacity planning, layout of facilities, and design of work
systems. Process selection is a natural extension after selection of new products and services.

In a computer education institution at the beginning of each module many students do not get proper
instructions and get enrolled in the modules they are not intended to be. Therefore, management has to bear the
cost of rework and extra time in shifting students to their relevant modules. What type of service gap it
represents?
► Service design gap
► Communication gap
► Service quality gap
► Service delivery gap
Reference

For an item, the on-hand inventory is only 20 units and the reorder point R is 100 units. There are no
backorders, but there is one open order for 90 units. Which one of the following statements is TRUE?
► An order should be placed now for 20 units
► The current inventory position is 100 units
► An order should be placed now for 10 units
► There is no need to order at the present
Reference

Which of the following is re-ordering point inventory model?
► Economic production model (EPQ)
► The ABC model
► Economic order quantity model (EOQ)
► Cycle counting model

Most inventory models aim at minimizing which of the following?
► Total cost of inventory
► The number of orders placed
► The safety stock
► The risk of being stock out

In a factory systems has 20 containers for holding an item, each container holds 350 units. Which of the
following is the exact amount of total planned inventory?
► 6000 Units
► 3500 Units
► 6999 Units
► 7000 Units
Calculation: 350*20 = 7000

Which of the following provides the best solution for the problem of "too much scrap" in Just-In-Time
philosophy?
► Better Inventory management
► Effective Material requirement planning MRP
► Improving work methods
► Master production schedule
Given the table:

Medium 12,000 20,000
facility
Which one of the following is the correct payoff under MAXIMIN approach?
► Rs. 8,000
► Rs. 12,000
► Rs. 18,000
► Rs. 20,000
Ref Determine the worst possible payoff for each alternative, and choose the alternative that has the
“best worst.” Which is 1800 in this table.
Small facility 10,000
Medium 12,000
facility
Large facility 18,000

In labor-limited environment, in which resource constraint is the amount of worker available, which of the
following is the best option for effective scheduling in a manufacturing firm?
► Hire more skilled labor for the job to be completed
► Workers should be trained to work on a variety of machines
► Assign labor to the next workstation irrespective of their skills
► More machines should be installed for flexibility of operations
Reference provided by Fawad Waseem: In manufacturing, the purpose of scheduling is to minimize the
production time and costs, by telling a production facility what to make, when, with which staff, and on which
equipment

Which of the following is a cause of development of waiting lines?
► Customer arrival rate varies through out the day
► Time required to process a customer may vary
► Some transactions are complicated and require above average process time
Ref: The arrival of customers at random times and variability of service times combine to create temporary
overloads. When this happens, waiting lines appear.(Page no.218)

Scheduling of materials is the primary focus of which of the following systems?
► Inventory management
► Supply chain management
► Big Just-In-Time
► Little Just-In-Time

Which of the following accounts for loss of good will of an organization?
► Hiring and layoff costs
► Over-time costs and regular time costs
► Backlogs and stock outs
► Backorders and stock outs

Question No: 49 ( Marks: 3 )
How would you justify the reduced set up times and delivery lead times in a JIT system?

PERT analysis helps you to schedule and manage complex projects. List down the benefits of PERT analysis.

What is service level? Generally speaking, how is service level related to the amount of safety stock held?

Organizations use an integrated information system that supports many enterprise processes and data
storage needs. Which information system here is referred to and what are its strategy considerations?

Prior knowledge of job flow times is essential to effective planning, control and management of customer
relationships. Explain job flow time and identify various components of job flow time. (1+4 marks)
Spring 2010
MGT613- Production / Operations Management
Solved By Usman Aslam< usmanbest786@gmail.com>
For More Contents visit www.vuzs.net

Which one of the following is a measure of productivity that involves measuring inputs and outputs using a
common unit of measurement?
► Multifactor
► Partial
► Single
► Total

Which of the following is NOT usually considered a general characteristic of a service?
► Production and sales cannot easily be separated functionally
► Many services involve both tangible and intangible outputs
► Production and consumption can always be separated
► Degree of customer contact is high

Which of the following statements corresponds to an order-winning characteristic?
► A factor which may be significant in other parts of the organization
► A factor which gives an organization a competitive edge
► A factor which serves as a minimum standard for purchase
► A factor which increases the profitability of the organization
REFRENCE: An order winner is a criterion that differentiates the products or services of one firm from
another. It can be the product’s price, quality, technology, speed, or any other product mix or
characteristics. ( Order Qualifiers would meet customer requirements and Order Winners would satisfy
customers)

Which one of the following correctly explains the elements of a good forecast?
► Timely, having a purpose, accurate, written, reliable, meaningful
► Timely, accurate, judgmental, correctness, verbal, simple to use
► Timely, accurate, reliable, meaningful, written, simple to use
► Timely, accurate, reliable, consistent, meaningful, written, simple to use
REFRENCE:Timely.Reliable.AccuracyMeaningfulForecastWritten/Documented,Simple to understand
and use

Which one of the following factors provides a basis for comparing alternative forecasting techniques?
► Time dimension
► Reliability factor
► Degree of accuracy
► Measuring units
REFRENCE: Accuracy. Forecasts should be accurate. In fact it should carry the degree of accuracy, so the
users are aware of the limitations of the forecast. This will also help the end users to plan for possible errors and
provide a basis for comparing the forecast with other alternative forecasts.


Which one of the following is an outcome of MINIMAX regret?
► The best of the worst possible payoff
► The best possible payoff
► The best average payoff
► The least of the worst regret
Referece: By www.vuzs.net
REFRENCE: This approach seeks to minimize the difference between payoff that is realized and best payoff
for each state of nature

Which one of the following is NOT a step of decision making process?
► Develop alternatives
► Monitor results
► Consider risk averseness strategies
► Specify criteria for decision
REFRENCE:
1. Specify Objectives and the Criteria for decision making
2. Develop Alternatives
3. Analyze and compare alternatives.
4. Select the best alternative.
5. Implement the chosen Alternative
6. Monitor the results to ensure the desired results are achieved

Effective capacity is influenced by all of the following factors EXCEPT:
► Facilities
► Product mix
► Processes
► Operations
REFERENCE: There are 7 determinants of effective capacity
1 Facility. The design of facilities includes the size as well as the provision of expansion.
2 Product and service factors can have a tremendous influence on capacity.
3 Process factors refer to the quantity and quality requirements of a process. Quantity always
Refers to capacity.
4 Human factors include skill, craftsmanship, training and qualification
5 Operational factors with respect to effective capacity always refer to scheduling
6 Supply chain factors relate to any short coming to suppliers, warehouse processing, operational hick up.
7 External factors include product standards, safety regulations, unions and pollution control
Standards.

Which one of the following defines the range of the smoothing constant (Alpha)?
► 2 and -2
► 1 and -1
► 0 and -1
► 0 and 1


In exponential smoothing model, α denotes:
► Smoothing constant
► Actual forecast
► Forecast error
► Previous forecast
REFRENCE = Alpha smoothing constant

Which one of the following refers to using some of the components of old products in the manufacturing of
new products?
► Manufacturability
► Remanufacturing
► Robust design
► Automation
REFRENCE: Design for Remanufacturing: Using some of the components of the old products in the
manufacture of new products. Remanufactured products are sold at 30 to 50% of the price of new product.

Which one of the following refers to a team having representatives from different functional areas of the
organization?
► Traditional work group
► Self-directed team
► Cross-functional team
► Self motivated team

Who introduced the use of statistical control charts to Japanese manufacturers?
► Edwards Deming
► Joseph Juran
► Kaoru Ishikawa
► Philip Crosby
REFERENCE: The PDSA Cycle (shewhart Cycle/Deming Wheel) ( The concept of the PDCA Cycle was first
introduced by Walter Shewhart, the leading statistician, who also developed statistical process control)

Mr. Ali purchased a TV set. After a period of a year, the picture quality started deteriorating. He went to the
company and complained and the company responded subsequently. Which of the following dimensions of
quality would come into play?
► Reliability
► Conformance
► Serviceability
► Aesthetics
REFERENCE: Handling of complaints and/or requests for information

Who proposed the concept of “total quality control” in the mid 1950s?
► Armand Feigenbaum
► G.S Radford
► W. Shewhart
► David Gravin
REFERENCE: Walter Shewhart is also known as “Father of statistical quality control”

Which of the following is a pair of service quality dimensions?
► Reliability and Responsiveness
► Uniqueness and Universality
► Specification and Security
► Reliability and Reputation
REFERENCE: Both are term are used for services in quality dimensions, Reliability: Perform promised
service dependably and accurately.
Responsiveness: Willingness to help customers promptly.

Which of the following best describes the ISO?
► International Organization for Statements
► International Operations for Statements
► International Organization for Standardization
► International Operations for Statements

Which of the following stage of Deming's wheel involves evaluating the improvement plan?
► Plan
► Do
► Check/Study stage
► Act
STUDY Evaluate the data collection during this phase. Check how closely the results match the original goals
of the plan phase.

What would be the total cost of inventory, if a firm holds 1000 units of a product ‘A’, where the carrying cost
is Rs. 5 per unit?
► Rs. 995
► Rs. 5000
► Rs. 1050
► Rs. 200
REFERENCE: Total cost of inventory = total units * carrying cost per unit = 1000*5=5000

The optimal order quantity shows a trade-off between which one of the following sets of costs?
► Carrying costs and shortage costs
► Carrying costs and ordering costs
► Carrying costs and stockout costs
► Carrying costs and setup costs
REFERECNE: Optimal order quantity a point where carrying cost and ordering cost intersects.

Which one of the following mathematical expressions can be employed to compute annual carrying cost?
► (Q-2)H
► (Q+2)H
► (Q÷2)H
► (Q×2)/H
REFERECNE: Total cost = Annual carrying cost + Annual ordering cost
TC = (Q/2) H + (D / Q) S
Which of the following is used to store information about the status of each item with respect to time period?
► Master schedule
REFERENCE: Inventory Records
One of the three primary inputs in MRP
Includes information on the status of each item by time period
Gross requirements
Scheduled receipts
Amount on hand
Lead times
Lot sizes
And more Assembly Time Chart

Which of the following compares the known and estimated future capacity requirements?
► Capacity reports
► Operations reports
► Load reports
► Inventory records
REFERENCE: Load reports: Department or work center reports that compare known and expected future
capacity requirements with projected capacity availability.

Which of the following is the first step of Capacity planning?
► Initial feasibility report is prepared
► Master schedule is tested for feasibility
► Adjustments are made in master schedule before it finalizes
► Material requirements are ascertained
REFERENCE: Steps in Capacity Planning
.Estimate future capacity requirements
Evaluate existing capacity
Identify alternatives
Conduct financial analysis
.Assess key qualitative issues
.Select one alternative
.Implement alternative chosen
.Monitor results

Which of the following are the priorities emphasized most often in JIT system?
► High quality and minimal wastage
► Low cost and consistent quality
► Low inventory and consistent material supply
► Low cost and low inventory
REFERENCE: JIT/Lean Production Features by eliminating waste (muda), quality is improved, production
time is reduced and cost is reduced.


Just in Time system maintains inventory with which of the following lot size/sizes?
► Small
► Medium
► Large
► Can be small and medium both
REFERENCE: JIT systems are a pull method to manage material flow, consistently high quantity, small lot
sizes, uniform work station loads.

Which of the following statements is TRUE about a Gantt chart?
► It represents an important event in the completion of a project
► It relates interdependent activities to their completion time
► It arranges events in order of importance
► It is used to schedule independent activities

Network activities are used to determine all of the following EXCEPT:
► Critical path
► Budgeted cost
► Slack time
► Expected project duration
REFERENCE: Used to determine
1. Expected project duration
2. Slack time
3. Critical path

With reference to Network activities, what does the term ‘EF’ stand for?
► Equal Finish
► Economic Finish
► Early Finish
► Easy Finish
REFERENCE: Network activities
1. ES: early start
2. EF: early finish
3. LS: late start
4. LF: late finish

Which one of the following is NOT an element of a queuing system?
► Population source
► Waiting line
► Order processing
► Logistics
REFERENCE: Elements of Queuing System
Population Source, Arrivals, Waiting Lines, Processing Order, Service, System and Exit are the
common identifiable elements of a Queuing System.


Which one of the following refers to translating the voice of the customer into technical design requirements?
► Concurrent design
► Design for manufacture
► Robust design
► Quality function deployment
REFERENCE: Quality Function Deployment is. Two common answers being that it is the voice of the
customer (which always sets a standard for the service organization to follow) and the second one being that it
should be in the form of a house of quality

Which one of the following is the goal of work sampling?
► Studying Individual human motions that are used in a job task
► Determining the length of time it will take to undertake a particular task
► Determining the amount of time a worker spends on various activities
► Specifying the content and methods to perform a job

Training program and quality audits come under which type of costs that an organization has to bear as cost of
service quality?
► Recovery cost
► Prevention cost
► Detection cost
REFERENCE: Prevention costs Quality planning, Training program, Quality audits, Data acquisition and
analysis, Recruitment and selection, Supplier evaluation

Which one of the following is the most important criteria in selecting winners for a quality award?
► Strong motivation
► Quality management practices
► Employee empowerment
► Business performance results

Which of the following is NOT a disadvantage of excessive overtime?
► Decline quality of work
► Work schedules become well-defined
► 150 percent expensive of the regular time-pay rate
► Low Productivity

A company mostly involved in transportation and shipping costs than construction and land costs is probably
part of which of the following industries?
► Heavy manufacturing
► Retail and service
► Warehouse and distribution
► Light industry
REFERENCE: Manufacturing
Favorable Labor Climate
Proximity to markets.
Quality of Life
Proximity of Suppliers and Resources.
Proximity to the Parent Company’s facilities.
Utilities, Taxes and Real estate costs.
Other factors (expansion, construction costs, and location near the highway or main railways)

A company is operating under a continuous review system. It has an average demand of 50 units per week for
the item it produces. The lead time for the item is 6 weeks, and it costs the company $30 to process each order.
The holding cost for each unit is $10 per year. The company operates 52 weeks per year. What is the economic
order quantity (EOQ) for this item?
► Greater than 175 units but less than or equal to 200 units
► Less than 175 units
► Greater than 200 units but less than or equal to 230 units
► Greater than 230 units
REFERENCE: QOPT = 2DS/H whole square = 2*2600*30 / 10 = 124.89
Annual demand = 50* 52 = 2600
Cost per order = 30
Holding cost = 10

Perpetual system of inventory management is also known as which of the following?
► First-in-first-out
► Probability model
► Fixed-order quantity
► Periodic review
REFERENCE: Perpetual Inventory System( CONTINUAL)
System that keeps track of removals from inventory continuously, thus
monitoring current levels of each item

If a manager wants to see the effect of change in Master Production Schedule (MPS) on purchasing
requirements for certain suppliers, which of the following system would help in this regard?
► Material Resource Planning system (MRP)
► Enterprise Resource Planning system (ERP)
► Capacity Requirement Planning system (CRP)
► Manufacturing Resource Planning system (MRPII)

If alpha = 0, how many containers are needed with the given data?
K = 1500 (0.8 + 0.2) (1 + 0)
270
► 6.5 Containers
► 7 Containers
► 6 Containers
► 9 Containers

Eliminating disruptions and excess inventory are _____________ in Just-In-Time production systems.
► Tactical goals
► Strategic goals
► Secondary goals
► Primary goals
REFERENCE: Secondary Goals
1. Eliminate disruptions
2. Make system flexible
3. Eliminate waste, especially excess inventory

In supply chain management Electronic Data Interchange (EDI) and Bar coding is a characteristic of which of
the following?
► Logistics
► Technology
► Autonomation
► Just-In-Time System

In labor-limited environment, in which resource constraint is the amount of worker available, which of the
following is the best option for effective scheduling in a manufacturing firm?
► Hire more skilled labor for the job to be completed
► Workers should be trained to work on a variety of machines
► Assign labor to the next workstation irrespective of their skills
► More machines should be installed for flexibility of operations
Reference provided by Fawad Waseem: In manufacturing, the purpose of scheduling is to minimize the
production time and costs, by telling a production facility what to make, when, with which staff, and on which
equipment.

Tasks are easily scheduled in which of the following production environments?
► Intermediate-volume-systems
► Low-to-medium volume production (Job shop)
► Medium-to-high volume production (Flow shop)
► Optimal production mixes

Which of the following is the necessary qualification for a project manager?
► PMP certification
► PMD certification
► FMA certification
► CMP certification

REFERENCE: Project Manager is normally considered to have qualification such as
PMP certification CFM, CFA and CFP certification

Queuing analysis aims to minimize which of the given costs?
► Both customer waiting cost and service capacity cost
► None of the given options
► Customer waiting cost
► Service capacity cost


Which of the following is a cause of development of waiting lines?
► Customer arrival rate varies through out the day
► Time required to process a customer may vary
► Some transactions are complicated and require above average process time
REFERENCE:
Average number of customers waiting
1. Average time customers wait
2. System utilization
3. Implied cost
4. Probability that an arrival will have to wait

During the period of high unemployment or when low-skilled labor is acceptable, which of the following
strategy would be cost effective?
► Chase demand strategy
► Level capacity strategy
► Mixed or hybrid strategies

As an operations manager of a firm what significant issues you have to consider while implementing
supply chain management?

How would you reveal the importance of maintaining good relationship with suppliers in a JIT system?

As operations manager of a manufacturing firm, how can you judge the effectiveness of inventory
management?

What is bullwhip effect? What are its consequences?

In the above bill of materials, if existing inventory =0, then how many units of G, E, F, H and B must be
purchased to produce 4 units of A?
Capacity Planning The initial schedule may or may not be feasible given the limits of production or availability
of materials.
u An over view of the capacity planning process.
u The Master schedule is first tested for feasibility and possibly adjusted before it becomes permanent.
u The proposed schedule is processed using MRP to ascertain the materials requirements the schedule would
generate.
u These are then translated into capacity requirements in the form of load reports for each departments or
work centers
Fall 2009
Time: 120 min

Which one of the following correctly explains the quantitative forecasting technique?
► It consists mainly of numerical descriptions and resist subjective inputs of managers.
► It consists mainly of subjective inputs and resist particular numerical descriptions.
► It consists mainly of subjective inputs and resist human factor, personal opinions.
► It consists mainly of analyzing objective and hard data and resist human factor, opinion.

Which one of the following is an outcome of MINIMAX regret?

Given the table:

Medium 12,000 20,000
facility

Which one of the following is the correct payoff under MINIMAX regret approach?
► Rs. 12,000
► Rs. 6,000
► Rs. 5,000
► Rs. 16,000

Which one of the following refers to the volume of output at which total cost equals total revenue?
► Optimal operating rate
► Break even point
► Feasible volume
► Utilization

ABC Corporation has planned to purchase a new machine. Total annual fixed cost is Rs. 10,000, variable cost
is Rs. 5 per unit and revenue is Rs. 7 per unit. What would be the break even point?
► 833 units
► 2000 units
► 5000 units
► 1012 units

Which one of the following designs resists modifications?
► Frozen design
► Product design
► Service design
► Robust design

Which one of the following is the final stage of product life cycle?
► Growth
► Decline
► Maturity
► Planning

organization?

How many dimensions are used for determining service quality?
► Four
► Five
► Six
► Seven

Which of the following is NOT an element of TQM?
► Continuous improvement
► Perceived quality
► Employee empowerment
► Customer focus

Which of the following represents a specified range of values in which individual units of output must fall in
order to be acceptable?
► Tolerance
► Run test
► Process variability
Which of the following refers to the upper limit on the percentage of defects that a customer is willing to
accept?
Which of the following require intermediate plans?
► Job assignments
► Machine loading
► Subcontracting
► Layout design

Which of the following is the costs of carrying an item in inventory for a specific period of time?
► Ordering cost
► Holding cost
► Shortage cost
► Stock out cost

Which of the following is a schedule that specifies the timing and size of production quantities for product in
the product families?
► Master production scheduling
► Aggregate plan
► Inventory management scheduling
► Master rescheduling

Which of the following contains a listing of all the assemblies, sub-assemblies, parts and raw materials needed
to produce one unit of a finished product?
► Master schedule

Which of the following statements is CORRECT about master schedule?
► It is visible to all levels of management
► It include only demand from production areas
► It is notIt is notI influenced by the aggregate plan
► It is not concerned with customer order processing

Which of the following refers to the planned amount to order in each time period?
Which of the following reports compares known and expected future capacity requirements with projected
capacity availability?
► Performance control report
► Exception report
► Load report
► Planned order report
Big JIT includes all of the following EXCEPT:
► Vendor relations
► Scheduling materials
► Technology management
► Human relations

Which should be one of the selection criteria if two potential suppliers can deliver a part with the same quality
and prices?
► Size of the firm
► A coin flip
► External evaluation
► Flexibility of the firm

Scheduling is a function of which of the following?
► Volume of systems’ output
► Nature of systems’ output
► Timing of systems’ output
► Value of systems’ output

Which of the following refers to an area where a person works with special equipment on a specialized job?
► Workshop
► Work area
► Workplace
► Workstation

Which of the following refers to the total time needed to complete a group of jobs from the beginning of the
first job to the completion of the last job?
► Job lateness
► Job flow time
► Makespan
► Slack time

Which of the following is TRUE about a project activity?
► It is a unique, one-time activity
►It is static in nature
► It is often simple to outline
► It is a set of unrelated tasks

Which of the following relates to an organizational structure based on teams formed specifically for projects?
► Project matrix structure
► Project structure
► Functional structure
► Balanced matrix structure
REF:In the Product or Project structure, specialists from various disciplines, instead of being scattered across
a number of separate and distinct functional offices are gathered into offices by logic of product lines, or
customer type, or the very nature of the project. Sometimes a Project Office disbands when its mission
achieved.

Which of the following is NOT a limitation of PERT?
► Omission of critical activities
► Correct precedence relationships
► Sole reliance on critical path
► Inclusion of a fudge factor

With reference to Network activities, what does the term ‘LS’ stand for?
► Late Start
► Long Start
► Lazy Start
► Low Start

With reference to Network activities, what does the term ‘LF’ stand for?
► Late Finish
► Long Finish
► Lazy Finish
► Low Finish

Forecasting for groups tend to be more accurate than forecasting for individual items because:
► A group is composed of a number of items
► A group exhibits a uniform behavior
► A group cancels the forecasting errors among items
► A group behavior is relatively less uncertain

Which one of the following is a possible disadvantage of a moving average forecast?
► The method is unable to forecast the demand accurately
► The method is easy to compute and easy to understand
► All the values in the average are weighted equally
► The most recent values are given the more weightage

Which of the following determinants of effective capacity is taken into account by operations manager at
macro level?
► Supply chain
► Process factors
► Product and service factors
► Operational factors


Which of the following is true about the design process?
► Concurrent design has proven to be the more effective method for design
► The design process involves four basic steps, if followed in sequential order, ensure success
► Only representatives from design department should work together on the design
► It is better to separate marketing, engineering, and production personnel from each other in a
design process

Which of the following initiated "Just-In-Time" inventory management system?
► Germany
► United States
► United Kingdom
► Japan

In the environment where material flow is complex and demand is highly variable, which of the following
system will NOT be feasible?
► Material Requirement Planning (MRP)
► Just-In-Time Production Systems
► Manufacturing requirement planning (MRPII)
► Enterprise Resource planning (ERP)

Which of the following elements of supply chain prevent organization from bull-whip effect?
► Predicting quantity and timing of demand
► Incorporating customer’s wants in manufacturing
► Controlling quality and scheduling work
► Determining what customers want

Difference between length of a path and critical path gives which of the following values?
► Critical activities
► Slack activities
► Activity on node
► Activity on arrow

During the period of high unemployment or when low-skilled labor is acceptable, which of the following
strategy would be cost effective?
► Chase demand strategy
► Level capacity strategy
► Mixed or hybrid strategies


What are the salient features of six sigma quality management?
ANS: following are the 4 salient features of sigma quality management
1. Selecting and training appropriate people.
2. Providing strong leadership.
3. Selecting projects likely to succeed.
4. Defining performance merits.
.
How would you illustrate the problems that you may encounter in scheduling the service operations?
ANS: there are many problem of scheduling like flight schedules, reservation system, and control costumer
services, scheduling the workforce etc.

What would happen if customer’s expected quality and perceived quality do not match? Explain by
giving an example.
Differences between Expected and Perceived Quality
ANS: Customers expect certain things from certain companies so that is called costumer expected quality.
Everyone has perception of service quality
The perceived quality is the quality after the perceptions of costumer.

What is the importance of Material Requirement Planning (MRP)? Why companies should invest in the
implementation of MRP system? (3+2)
A material requirement planning is a computer based information system that translates master schedule
requirements for end items into time-phased requirements for raw materials, components, subassemblies.
Company should invest to improve the implementation of MRP SYSTEM because it is very important tool for
the future planning of material needs. By MRP systems a company can improve its costumer services and
reduce its cost. Also companies can controlinventories, improved scheduling, and Productive relationships with
suppliers.

Differentiate Big vs Little Just-In-Time System. Which one of the both answers the most pressing questions
that an organization faces? 4+1
1. Big JIT: it has broad focus in, vendor relations, materials and inventory management, technology
management, human relations
2. Little JIT: it has narrow focus Internal to organization, Scheduling materials, and Scheduling services of
production.
By JIT systems organization can achieve a balanced smooth flow of production, it will flexible their system
with reduction in wastes and lead time.

How would you compare a TV set (a product) and TV repair (a service) in terms of at least five
dimensions of quality?
I will compare it with the following dimensions of quality.
1. Performance: as we know the performance of new TV set if very good with high quality but when it is
repaired its performance and quality is reduced because of repairing services.
2. Aesthetics: it is the appearance of TV set. As new TV set is looking very nice from every angle but when it is
repaired its looking is affected by poor services.
3. Special Features: a TV set has many extra features in it. But when it is repaired most of its features will be
disabled due to repairing process. For example some times its sound will be change some times its colors or
buttons not working.
4. Conformance - how well product/service conforms to customer’s expectations
5. Reliability - consistency of performance
6. Durability - useful life of the product/service
7. Perceived Quality: is the quality which will be accepted after repairing services of TV. While a new TV
has its expected quality.
8. Serviceability: this is the service after sale. When you buy a new TV set, you will get a warranty for that
TV. And also some changeable service. But when it is repaired for one time then its warrant as well as
guarantee will be finished and there is no service ability for that repaired TV.

Long waiting lines and long waiting times force customers to balk or renege. What mathematical and non-
mathematical ways and techniques management should take in order to avoid such kind of problems?
ANS: Some times there are long lines of people in offices for example for interviews, customer’s centers,
banks etc. it is due to the poor management system and poor.
But there are some mathematical as well as non mathematical methods due to those methods we can control
these long waiting lines problems.
Queuing theory:
This is a Mathematical method use for the analysis of waiting lines.
Its main goal is to minimize the sum of two costs Customer waiting costs and
Service capacity costs.
Its main points about waiting lines are as following.
Waiting lines are non-value added occurrences implications of waiting lines.
To provide space for waiting it will cost.
There is a threat of Loss of business due to long waiting lines.
Because of these problems most of costumer will leave.
Customers always refuse to wait.
Overcrowding can disrupt other business operations.
Long waiting lines reduces in customer satisfaction.

By queuing analysis organizations minimizes these types of threats and can manage their business in a very
pleasant way.Some of Non Mathematical Approaches are the following which are also used to reduce long
waiting lines problems.

1. There should be Magazines or newspapers in waiting rooms for people who are waiting because of this they
will not become bore.
2. Also if there is Radio or a television set so the waiting costumers be wait easily.
3. In-flight movies.
4. By Filling out forms we can reduce waiting times of people.
5. Derive benefits from waiting
6. By Placing impulse items near checkout so people will see and analyze it for some time.
7. Reduce perceived waiting time
8. If there is advertisement of other goods or services in waiting place, people will study that so they can wait
easily
Fall 2010
Within the operations function, which one of the following is a long-term management decision?
► Control decision
► Non-operational decision
► Strategic decision
► Tactical decision
Question No: 2 ( Marks: 1 ) - Please choo

Which one of the following forms of productivity is expressed as dollar value of output per kilowatt hour?
► Capital
► Energy
► Labor
► Machine
Question No: 3 ( Marks: 1 ) - Please choos

Which one of the following is an implication of laplace approach of decision making?
► The least of the worst regrets

Which one of the following is an outcome of Maximax?

► Delphi method
► Naïve forecast

Which one of the following is a possible disadvantage of a moving average forecast?
► The method is unable to forecast the demand accurately
► The method is easy to compute and easy to understand
► All the values in the average are weighted equally
► The most recent values are given the more weighted

Which of following statement is true about effective capacity?
► It is the actual output achieved
► It is always less then actual output
► It is the maximum output that a firm can produce
► It is always less than designed capacity
Which one of the following is the correct order of layout types from low volume/high variety to high
volume/low variety?
► Fixed position, process, cell, product
► Fixed position, cell, process, product
► Fixed position, process, product, cell
► Process, fixed position, cell, product

Which one of the following designs resists modifications?
► Frozen design
► Product design
► Service design
► Robust design

Which one of the following is correct about the range of availability on a measuring index?
► 0.1 to 1.0
► 0 to 1.0
► 0.5 to 1.0
► 0.01 to 1.0

Which one of the following operating levels is best with respect to capacity?
► The maximum point of the cost curve
► The level of capacity for which average unit cost is minimized
► The level of capacity for which average unit cost is maximized
► The level of capacity for which total cost is minimized
Question No: 12 ( Marks: 1 ) - Please choose on

organization?

Who emphasized quality in terms of inspection and gauging?
► G.S. Radford
► W. Shewhart
► F.W. Taylor
► W.E. Demig

If you go to dine out at McDonalds and you observe a very cool and pleasant atmosphere over there. It depicts
which of the following dimensions of quality?
► Performance
► Aesthetics
► Reliability
► Conformance

Which of the following is NOT true about TQM?
► Focused on worker’s activity rather than management
► Meeting the needs and expectations of customers
► Inclusion of every person in the organization
► Covering all the functional areas of the organization

Which of the following involves incremental changes within the organization whose cumulative effect is to
deliver an increased rate of performance enhancement?
► Continuous improvement
► Competitive benchmarking
► Business process re-engineering
► Statistical process control

Which of the following terms reflects Japanese view of continuous improvement?
► Kaizen
► Poka-yoke
► Six sigma
► Inspection

Problem solving is an example of which of the following?
► External failure cost
► Prevention cost
► Appraisal cost

Which of the following statement defines process analysis?
► It is collecting information, identifying each step and finding inputs and outputs of process
► It is collecting information about cost reduction and improving the defects
► It relates to asking questions about process flow and identifying missing or duplicating activities
► It relates with taking a fresh approach to solve an issue on hand

The well-known Deming wheel is also referred to as:
► Juran’s cycle
► Crosby’s cycle
► Ishikawa’s cycle
► Shewhart’s cycle

Which of the following refers to the upper limit on the percentage of defects that a customer is willing to
accept?

Aggregate planning usually covers time span of how many months?
► 2 – 12 months
► 2– 15 months
► 2 – 16 months
► 2 – 17 months

Identify the mathematical expression to determine the number of workers in a given period. Where a =
Number of workers at the end of previous period, b = Number of new workers at the start of the period, c =
Number of laid-off workers at the start of the period
► a + b - c
► a + b + c
► a - b + c
► a - b - c
What would be the total cost of inventory, if a firm holds 200 units of a product ‘A’, where the carrying cost is
Rs. 2 per unit?
► Rs. 202
► Rs. 100
► Rs. 198
► Rs. 400

Which of the following time fences in a Master Production Schedule (MPS) allows many variations in products
with multiple changes?
► Fixed time fence
► Moderately firm time fence
► Frozen time fence
► Flexible time fence

Which of the following mathematical expressions can be employed to compute inventory cost?
► Carrying cost per unit + average inventory cost
► Carrying cost per unit × average inventory cost
► Carrying cost per unit ÷ average inventory cost
► Carrying cost per unit – average inventory cost

The cost of a particular plan for a given period can be computed by using which one of the following
expressions?
► Output cost + hire/layoff cost + inventory cost – backorder cost
► Output cost + hire/layoff cost + inventory cost + backorder cost
► Output cost - hire/layoff cost + inventory cost + backorder cost
► Output cost + hire/layoff cost - inventory cost + backorder cost

Which of the following is the costs of carrying an item in inventory for a specific period of time?
► Ordering cost
► Holding cost
► Shortage cost
► Stock out cost
Which one of the following mathematical expressions can be employed to compute annual carrying cost?
► (Q-2)H
► (Q+2)H
► (Q÷2)H
► (Q×2)/H

In which of the following systems an item’s inventory is stored at two different locations?
► Optional replenishment system
► Base stock system
► Two bin system
► Universal bar code system method

Which of the following is known as a visual representation of the requirements in a bill of materials having all
the components listed in levels?
► Master production schedule
► Material requirements planning
► Product structure tree
► Inventory status record

Which of the following refers to the quantity expected to be received by the beginning of the period in which it
is shown?

ERP stands for which of the following?
► Enterprise Resource Planning
► Enterprise Requirements Planning
► Equal Resource Planning
► Equal Requirements Planning

Which kind of production system is undertaken by JIT (Just In Time) production?
► Intermittent processing
► Job shop processing
► Repetitive processing
► Batch processing
Which of the following refers to a card or device that communicates demand for work or materials from the
preceding station?
► Kanban
► Kaizen
► Inventory file
► Master schedule

DRP stands for which of the following?
► Demand Requirements Planning
► Distribution Requirement Planning
► Dividend Requirements Planning
► Data Resource Planning

Which one of the following is a condition for a successful supply chain?
► A large number of suppliers
► Many short-term contracts
► Trust among trading partners
► Continuous competitive bidding

Which of the following refers to the length of time, a job is in the shop at a particular workstation?
► Slack time
► Lead time
► Job flow time
► Make-span

Which one of the following is focused to reduce the incidence of failures in the plant or equipment to avoid the
associated costs?
► Reactive maintenance
► Total productive maintenance
► Preventive maintenance
► Predictive maintenance

Successful project management includes all of the following factors EXCEPT:
► Interchangeable staff
► Competent team members
► Responsiveness to clients
► Control mechanisms

Which of the following relates to delegation of responsibility to an organizational department for a project?
► Project structure
► Functional structure
► Balanced matrix structure
► Project matrix structure

Which of the following refers to the longest path taken for the project to complete?
► Sensitive path
► Coverage path
► Critical path
► Permanent path

Being the head of a quality control team of ABC company, what considerations would you take into
account for using control charts?

Comment on the statement “Labor flexibility can be an advantage in services.”

What are the various causes of disruptions and why is it important to eliminate disruptions in a JIT
system?

What is service level? Generally speaking, how is service level related to the amount of safety stock held?

ABC Company is a textile manufacturer. Why is it needed to implement supply chain management in
this particular case?

ABC Company is an automobile manufacturer. How can you evaluate the significance of inventory
management for this company? What is the role of inventory management?

JIT is the modern concept in production management and many people believe that it is better than the
traditional system. How would you compare JIT with traditional production system?

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