Quality and cost control should be given a lot of importance in the production industry.

Select one:
True

False

The following are retrenchment strategies for the corporate level except for
Select one:
a. Turn around
b. Divestment
c. Liquidation

d. Strategic alliance

Which of the following does not belong to the importance of production management to business
organization?
Select one:
a. It helps to minimize the production costs.
b. It facilitates the optimum resource utilization
c. It helps in introducing old products.

d. It helps in the expansion of business.

The first step in the strategic management process is ________ .

Select one:
a. Strategic implementation
b. Evaluation and control
c. Strategy formulation

d. Environmental scanning

It refers to the value that each worker or employee creates per unit of his input.
Select one:
a. System productivity
b. Labor productivity
c. Capital productivity
d. Personnel productivity
Production management decreases the reputation, goodwill and image of business organization.
Select one:
True

False

It is an act of creating something useful.

Select one:
a. Advertising
b. Production management
c. Production

d. Productivity

To match the demand for the product, right production capacity must be selected by production
management.
Select one:
True

False

Planning is not needed in production management.

Select one:
True

False

Production management facilitates the optimum resource utilization

Select one:
True

False

Production management is not related to operations management.

Select one:
True
 False

Strategy formulation for in corporate, business and functional levels are the same.
Select one:
True

False

Production management helps in the expansion of business.

Select one:
True

False

Which of the following steps should be done after measuring the performance and informing the
managers that the outcomes are outside the limits?
Select one:
a. From the accepted limits, analyze deviation.
b. Modifications will be executed, if necessary.
c. Measuring the performance and managers will be informed if the outcomes are outside the limits.

d. Performance targets, standards, and tolerance limits for the objectives are established.

No business organization could exist without operations management and supply chain.
Select one:
True

False

Organization's unit cost of production can fall as it expands because _________.

Select one:
a. It becomes financially advantageous to adopt no technology at all.
b. It becomes financially advantageous to adopt existing technologies.
c. It becomes financially advantageous to adopt obsolete existing technologies.

d. It becomes financially disadvantageous to adapt existing technologies.

It refers to evaluating how the manufacturing of goods was done and if there is a need to take
corrective actions.
Select one:
a. Process evaluation
b. Logistics
c. Purchasing

d. Inventory control

Functional area in an organization which is responsible for the production of goods and services to
customers.
Select one:
a. Marketing area
b. Finance area
c. Management area

d. Operations area

Which of the following does not belong to advanced manufacturing technology?

Select one:
a. Packaging
b. Micro and nano factories
c. Mechatronics and automation

d. Additive manufacturing robotics

Monitoring performance and providing feedback means to check progress towards a objective is
being provided by the measurement system.
Select one:
True

False

Which of the following does not include in the time series models in quantitative forecasting?
Select one:
a. Moving average
b. Exponential smoothing
c. Trend models
d. Regression

Demand forecasting plays a critical role in budget making by estimating the cost and expected
income or revenues.
Select one:
True

False

Demand forecasting aids in fulfilling the post-decided objectives of any business organization.
Select one:
True

False

Demand forecasting is a sales estimate during a specified time in the future based on the proposed
_________ plan and a set of a specific uncontrollable and competitive force.
Select one:
a. Production
b. Auditing
c. Administrative

d. Marketing

It means prediction the future as accurately as possible. , available information which includes
historical data and knowledge of any future events that might impact the forecasts should be given.
Select one:
a. Planning
b. Organizing
c. Forecasting

d. Directing

Demand forecasting is not important in deciding for business expansion.

Select one:
True

False
Most of the business organization's decisions are made under no risk and certainty conditions.
Select one:
True

False

A business firm may not make demand forecasts for different regions and fix sales targets for each
accordingly.
Select one:
True

False

A qualitative forecasting method wherein ideas and opinion of group of high level managers or
experts is pooled.
Select one:
a. Delphi method
b. Sales force composite
c. Market research

d. Executive judgment

Forecasting can play a relevant role in many areas in business.

Select one:
True

False

Which of the following does not affect the process of demand forecasting?
Select one:
a. Price of goods
b. Competition level
c. Caprices of management

d. Types of goods

Demand forecasting helps in the long-term planning.

Select one:
True
 False

Useful forecast about future uncertain events are not essential.

Select one:
True

False

Demand forecasting also enables the government to coordinate activities related to import and
export and plan international trade.
Select one:
True

False

The business operations of a certain business firm and the industry where the business belongs are
_________ of variation in forecast accuracy.
Select one:
a. Factors
b. Effects
c. Causes

d. Determinants

A time series model of forecasting which refers to weighted average procedure wherein weights
decline exponentially as the data become older.
Select one:
a. Regression
b. Moving average
c. Exponential smoothing

d. Trend model

Demand forecasting aims to help the business organization to estimate its financial requirements.
Select one:
True

False
Qualitative approach in forecasting include the methods consisting mainly of inputs which are
_______ and often defy precise numerical description.
Select one:
a. Common
b. Subjective
c. Objective

d. Prevalent

It is a systematic process which involves demand anticipation for the organization's products in
future under set of uncontrollable and competitive forces.
Select one:
a. Business planning
b. Directing
c. Controlling

d. Demand forecasting
Check

Forecast or time estimates are past oriented.

Select one:
True

False

A more sophisticated and detailed business analysis are required for a new product idea that
survives the new product development screening stage:
Select one:
True

False

In screening ideas, business firm should consider _________.

Select one:
a. Competition, company's existing products , needs of the market and their shortcomings
b. Competition only
c. Competition, company's existing products and needs of the market .
d. Competition and company's existing products

Understanding one's competitor is a bad idea.

Select one:
True

False

Success of business usually never lies on the goods and services they offer in the market.
Select one:
True

False

In prototype and market testing, which of the following should be considered?

Select one:
a. Let all the members be in charge of the prototype testing.
b. Refrain from protecting intellectual property
c. Consult the experts.

d. Never test the product.

These consumer products are bought most frequently by final consumers.

Select one:
a. Shopping products
b. Convenience products
c. Unsought products

d. Specialty products

Which of the following steps to follow in the product and service designing should be done after
translating the needs and wants of customers into product and service requirements.
Select one:
a. Formulate objectives with regards to quality
b. Develop new products - products and services
c. Formulate targets with regards to costs

d. Refine existing products and services.

Which of the following does not belong to the ways on how to get information on the needs of
customers?
Select one:
a. Utilize research and development processes
b. Review quality assurance processes
c. Estimate the price of the product

d. Brainstorm on product issues

The fourth step in generating new products.

Select one:
a. New product prototypes and market testing
b. Launching and commercializing new products
c. Business analysis of new products

d. Generating and screening ideas for new products

Success of business usually lies on the goods and services they offer in the market.
Select one:
True

False

Which of the following should be the first thing to do in generating new products?
Select one:
a. Business analysis of new products
b. Launching and commercializing new products
c. New product prototypes and market testing

d. Generating and screening ideas for new products.

The main objective of any business firm in designing its product and service is to earn more profit.
Select one:
True

False
Issues in designing products and services become important when there is a potential harm to the
environment.
Select one:
True

False

Release of products with defects should be considered by a manufacturing firm.

Select one:
True

False

Documenting the specification of products should be done in product and service designing.
Select one:
True

False

The consumer products which costumers usually compare on the price, quality and style in the
process of their selection and purchase of goods and services.
Select one:
a. Unsought products
b. Convenience products
c. Shopping products

d. Specialty products

These are industrial products used in operations and production.

Select one:
a. Supplies and services
b. Capital items
c. Unsought products

d. Materials and parts

All products follow all five stages of product life cycle.

Select one:
 True

False

In new product prototype and market testing, assign a team member who has a strong skill in project
management to coordinate or manage the development and delivery process of the product.
Select one:
True

False

When, how and where to launch the product should be decided because these will determine its
early market impact.
Select one:
True

False

Which of the following is not a cause of variation in forecast accuracy?

Select one:
a. Accounting factors can be another link in the relationship between accuracy and industry.
b. Instability of operations among industries is varied.
c. Certain industries may have greater aggregate analyst coverage, which can lead to better
marginal information gathering and more accurate consensus estimates.

d. Forecast accuracy is likely to be affected by the innate skill of the analyst.

Which of the following does not belong to the right production process that should be selected in
managing the production?
Select one:
a. Material handling system
b. Type of technology
c. Type of machines

d. Marketing strategies

Which of the following factor affecting demand forecasting is described in this sentence: If a rapid
technology change is present, the existing technology or product may become obsolete.
Select one:
a. Competition level
b. Level of technology
c. Price of goods

d. Economic viewpoint

Without the cost data, productivity analysis helps in the evaluation of proposed changes to existing
processes or products and introduction of new ones.
Select one:
True

False

To satisfy the demands of _______ which is to have a good quality products at cheapest prices,
production manager should continuously improve quality of products.
Select one:
a. Customers
b. Stockholders
c. Supervisors

d. Managers

It refers to something that is being made and with a purpose to be sold to consumers.
Select one:
a. Construction
b. Product
c. Sales

d. Advertisement

The size of the plant should conform to the organization's sales requirement.
Select one:
True

False

Services are the tangible form of product.

Select one:
True
 False

Managers must act in the present to control and monitor the project phase evolution with a
comparison on the milestones to targeted dates of completion.
Select one:
True

False

Product design should be according to the ________ requirements.

Select one:
a. Supervisor's
b. Customer's
c. Employer's

d. Manager's

Human resource requirements are met easily through demand forecasting.

Select one:
True

False

Marketing area is responsible for securing resources related to finances at favorable price as well as
the allocation.
Select one:
True

False

Level of competition influence the demand forecasting process.

Select one:
True

False

Service is not highly visible to consumers.

Select one:
True

False

In conducting preliminary analysis, graphing the data should be the end point.
Select one:
True

False

Producing ineffective products ensure success in business.

Select one:
True

False

Prices of goods acts as a minor factor which influences the process of demand forecasting.
Select one:
True

False

A type of productivity wherein many of the resource inputs are available within the business
organization, while few others are purchase are present in the production process.
Select one:
a. Total productivity
b. System productivity
c. Total factor productivity

d. Partial productivity

Which of the following is not true in routing?

Select one:
a. It is deciding the work path and the operation sequence.
b. Deciding when to start and when to complete a particular production activity is included in routing.
c. Main objective or routing is to find out the best and the most economical operation sequence to
be followed in the process of manufacturing.

d. It ensures smooth flow of work.

Which of the following should not be considered in using the best forecasting models?
Select one:
a. The way the forecast are to be used should be considered in using the best model.
b. Personal benefits that a production manager can get.
c. Availability of historical data

d. The strength of forecasts variable an explanatory variable relationship

Alignment of product mix is not needed in developing new products.

Select one:
True

False

In scheduling process, forecasts of demand are also required.

Select one:
True

False

Business organization could exist without operations management and supply chain.
Select one:
True

False

Products should be planned and produced effectively because they are key to success for a
manufacturing business.
Select one:
True

False

Businessmen should realize the importance of integrated production management system.

Select one:
True

False
By making own estimates called guess estimate or taking the help of market research agencies or
specialized consultants, business organization can forecast demand.
Select one:
True

False

Product may be in the form of product or service.

Select one:
True

False

Production is an act of creating something _______.

Select one:
a. Unusable
b. Inapplicable
c. Impractical

d. Useful

Aside from the physical item, customers buy satisfaction.

Select one:
True

False

The right production process must be selected.

Select one:
True

False

In this principle of total quality management, all employees participate in all activities in the business
organization towards the achievement of common goals.
Select one:
a. Total employee involvement
b. Process-centered
c. Integrated system

d. Continual improvement

Poor planning can hinder total quality management.

Select one:
True

False

The policy in quality is authorized by top management and but not forms an element of the corporate
policy.
Select one:
True

False

"Quality circle" is a _________ group of employees with the same work, in the same work area or
doing similar work type who meet voluntarily in regular basis , for about an hour every week to
identify, analyze and resolve work-related problems, leading to improvement in the total performance
and work life enrichment.
Select one:
a. Hidden
b. well-known
c. Big

d. Small

Performance, features and warranty are not part of product quality.

Select one:
True

False

With the objective to fulfill requirements for quality, _________ are used as operational techniques
and activities.
Select one:
a. Quality management
b. "Quality circles"
c. Quality assurance
d. Quality controls

Total quality management (TQM) is an overnight process.

Select one:
True

False

It refers to an improvement to the traditional way of doing business

Select one:
a. Strategic management
b. Production management
c. Operations management

d. Total quality management

Quality is sum of characteristics and features of products which bear on its ability to satisfy implied
or stated _________ needs.
Select one:
a. Customers'
b. Sellers'
c. Manager's

d. Suppliers'

Quality assurance serves as tool for management so as to provide confidence in

manufacture/supplier in contractual situation.
Select one:
True

False

Transformation includes _________ .

Select one:
a. Creating competition and fear from the classroom and workplace
b. Increasing costs by reducing waste, rework, staff litigation and attrition.
c. Providing a new and outside view
d. Transforming leaders to managers.

He is the one who buys or patronizes products and services.

Select one:
a. Supervisor
b. Customer
c. Supplier

d. Manager

It is the process of influencing an organized group towards accomplishing its goals.

Select one:
a. Management
b. Leadership
c. Supervision

d. Organization

Employees in the business organization should be empowered.

Select one:
True

False

Statistical process control is one of the best technical tools for improving the quality of products and
services.
Select one:
True

False

Performance appraisal with an objective to improve employees' performance let them know how
they are doing and provide a basis for_________ and other purposes related to the future of
employees.
Select one:
a. salary increase, promotions
b. salary increase, promotions, counseling
c. salary increase, counseling
d. promotions , counseling

The following are the barriers of total quality management except for
Select one:
a. Lack of effective measurement of quality improvement
b. Deficiency of cultural dynamism
c. Lack of management commitment

d. Presence of leadership for quality

Check

It is when there is a long-term commitment between two or more business firms with a purpose of
specific goal and objective attainment by maximizing the participant's resource effectiveness.
Select one:
a. Partnering
b. Agreement
c. Organization

d. Management

Deciding on what to benchmark is the last step in the process of benchmarking.

Select one:
True

False

Which is true with regards to employee involvement?

Select one:
a. Employees with the use of their expert knowledge of the process, make better decisions.
b. Employees implement and support decisions wherein they are not a part in the making process.
c. Employees are able to take corrective actions in the latter part.

d. Employees are able to spot but failed to pinpoint areas that need improvement.

A process dynamic view wherein order of activities is the focus of this dynamic view.

Select one:

a. Agent-related workflow
b. Workflow

c. Input/output flow

d. State-flow

It refers to a coordinated effort to achieve product or service that did not exist before a given
level of quality.

Select one:

a. Service

b. Product

c. Project

d. Performance

Entity relationship diagram demonstrates the _________ between the different data categories
and shows the different data categories required for the database development.

Select one:

a. disaffiliation

b. difference

c. commonality

d. relationship

These are utilized to find non-compliances to requisites or defects.

Select one:

a. Response metrics

b. Quality metrics

c. Efficiency metrics

d. Productivity metrics

Business process develops in time but do not focus on dynamics.

Select one:

True

False
The business content of a data model is created in the physical data model.

Select one:

True

False

Project management decisions should be based on a concrete basis of quantitative data and
objective fact measurement which should only be influenced by experiences and intuition at
the later date and should be applied to that specific context.

Select one:

True

False

When all the business requirements have been gathered, logical database models are basically
determined by the logical database models.

Select one:

True

False

If the system mission is to introduce a strict order in production-like processes, the best
process view to use is the workflow.

Select one:

True

False

For compiling business requirements and representing the requirements as a model, physical
database modeling is required.

Select one:

True

False

For compiling business requirements and representing the requirements as a model, logical
database modeling is required.

Select one:
 True

False

Which of the following is included in the activities of business process management?

Select one:

a. Establishing processes and assigning ownership.

b. Standardizing only one process in the enterprise.

c. Building radically new or "perfect" ones

d. Disorganizing around outcomes.

Logical database modeling deals with the actual database designing which is based on the
requirements gathered during logical database modeling.

Select one:

True

False

In the data collection, the collected data will be filtered, grouped together and processed.

Select one:

True

False

It is utilized in assessing the available resource use.

Select one:

a. Quality metrics

b. Response metrics

c. Efficiency metrics

d. Productivity metrics

Which of the following can be done to transform performance management?

Select one:

a. Create a new mental model of business.

b. Create nothing at all.

c. Stay on the previous design of the business management processes

d. Refrain from Equipping and holding people accountable for managing themselves.

Which of the following is not example of output quantification?

Select one:

a. Person who will manage the findings

b. Frequency of defects found and solved

c. Added functions to an application

d. Frequency of use cases developed and tested

Which is not included in the physical database modeling?

Select one:

a. Server model diagram

b. Database design documentation

c. Attributes

d. Feedback documentation of users

Check

Which of the following does not belong to the group?

Select one:

a. Center flow

b. State-flow

c. Workflow

d. Input/output flow
It is data-driven strategy utilized to improve processes.

Select one:

a. Logical database modeling

b. DMAIC process

c. Physical database modeling

d. Logical and physical database modeling

This should also be considered especially when the business where specialist skills are
required.

Select one:

a. Customer service

b. Labor skills

c. Site suitability

d. Expansion potential

It is the place where the business is situated

Select one:

a. Structure of the business

b. Location of the business

c. Design of the business

d. Layout of the business

A factor that may influence the choice of business location which refers to cost with regards to
getting the raw materials for the business production or stocks for sale

Select one:

a. Labor cost

b. Transport cost

c. Land cost

d. Energy cost

In choosing a location, it is a good idea to find out about the vicinity or area and if there are
_________.

Select one:

a. planned and future development and rates in the area.

b. planned and future development, rates and zoning in the area.

c. planned and future development.

d. planned and future development, rates, zoning and business activity in the region.

Which of the following business premises is not suited for production operation business?

Select one:

a. A small office

b. Manufacturing plant

c. Storage facility

d. Warehouse

To minimize material handling and transport during manufacturing, effort should be made
because they are just no value added activities.

Select one:

True

False

To minimize material handling and transport during manufacturing, effort should be made
because they are just no value added activities.

Select one:

True

False

In choosing a location, there is only one option and that is to buy the place for the business.

Select one:

True

False

In choosing a location, consider the present but not the future needs of the business.

Select one:

True

False
In choosing a location, there is a need to research on the future competitors.

Select one:

True

False