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FINALTERM EXAMINATION
FALL 2007 Marks: 60
MGT613 - PRODUCTION / OPERATIONS Time: 150min
MANAGEMENT (Session - 4 )

StudentID/LoginID: ______________________________

Student Name: ______________________________

Center Name/Code: ______________________________

Exam Date: Wednesday, March 05, 2008

Please read the following instructions carefully before attempting any question:
ƒ All questions are compulsory.
ƒ This exam consists of 15 Multiple Choice Questions (MCQs) carrying 1 mark each; 5
True/False statements carrying 1 mark each;5 Fill in the Blanks carrying 1 mark each; 1
Short Question carrying 5 marks; 2 Numerical Problems carrying 10 marks each; and 1
descriptive question carrying 10 marks.
ƒ For each MCQ, read the available choices carefully and choose the most appropriate choice
which you consider is the correct answer.
ƒ To answer fill in the blanks questions, write the word which you think is the most suitable by
comprehending the whole phrase.
ƒ Attempt numerical problems with complete working (calculations). Failure to show
complete working will result in deduction of marks.
ƒ Remember not to spend too much time on any one objective type question since all objective
type questions carry equal marks; it is important to manage your time according to the marks
allocated to each question.
ƒ Save your answer before proceeding to the next question.
ƒ Do not click the “Finish” button while solving your paper. Once you clicked the “Finish”
button, you will not be able to access your paper again. Click it at the end of your paper. That
means you have submitted your complete paper.
ƒ A clock is given in the exam software. Software will automatically close at the end of given
time.
ƒ Use of mobile phone is strictly prohibited. Switch off your mobile phone during the exam.
ƒ Calculators are allowed to solve numerical problems. Mobile phones are not allowed for the
same purpose.
Failure to comply with the Supervisor’s directions will result in your test being cancelled. Please
comply with supervisor’s directions to avoid any unpleasant event.
 For Teacher's use only
Question 1 2 3 4 5 6 7 8 9 10 Total
Marks
Question 11 12 13 14 15 16 17 18 19 20
Marks
Question 21 22 23 24 25 26 27 28 29
Marks
Question
Marks

Question No: 1 ( Marks: 1 ) - Please choose one

The purpose of _________ is to avoid having one or a few employees stuck in monotonous jobs.

► Job enlargement

► Job rotation

► Job enrichment

► Job description

Question No: 2 ( Marks: 1 ) - Please choose one

Which of the following factors should a company consider while deciding upon a certain process
choice?

► Capital requirements, leadership skills, technology and labor

► Technology, capital requirements, leadership skills and market conditions

► Labor, raw materials, market conditions and capital requirements

► Capital requirements, labor, technology and market conditions

Question No: 3 ( Marks: 1 ) - Please choose one

The focus of ___________ is customer satisfaction by incorporating quality into all phases of the
organization.

► SWOT analysis

► Quality based strategies

► Operations strategies

► Organizational strategies
Question No: 4 ( Marks: 1 ) - Please choose one

A disadvantage of __________ forecasts is the induction of personal biases.

► Qualitative

► Quantitative

► Associative

► All of the given options

Question No: 5 ( Marks: 1 ) - Please choose one

Applied research appeals to a wide spectrum of business organizations mainly because:

► It deals with a huge number of variables

► It has potential for achieving commercial applications

► It does not involve high costs

► It is relatively easy to conduct

Question No: 6 ( Marks: 1 ) - Please choose one

Cycle time can be calculated as:

► D/OT

► OT/D

► D+OT

► D-OT

Question No: 7 ( Marks: 1 ) - Please choose one

The four "costs of quality" include all of the following except:

► Internal failure costs

► External failure costs

► Supply chain failure costs

► Prevention costs
Question No: 8 ( Marks: 1 ) - Please choose one

Numerous quality improvement strategies exist. Which of the following is not a strategy discussed
by the author?

► ISO 9000

► PPM Matrix approach

► Statistical process control

► Six Sigma approach

Question No: 9 ( Marks: 1 ) - Please choose one

The popular "seven tools of quality control" include all of the following except:

► Pareto chart

► Cause and effect (fishbone) diagram

► Scatter diagram

► Brainstorming

Question No: 10 ( Marks: 1 ) - Please choose one

Which of the following statements about Six Sigma is incorrect?

► Six Sigma employs structured process improvement technique.

► Six Sigma programs employ full time specialists called Black Belts.

► Six Sigma approach is best suited for manufacturing process.

► Data and metrics are vital in a Six Sigma approach

Question No: 11 ( Marks: 1 ) - Please choose one

A key supply chain management strategy for some firms is to rely upon outsourcing of tasks.
Identify the incorrect statement concerning outsourcing of tasks or functions from the following.

► Outsourcing entails contracting with another firm to perform certain tasks or

functions.

► A primary incentive for firms outsourcing various functions is the desire to focus on
core competencies.

► Firms that perform the outsourced tasks are specialists and are able to achieve
 economies of scale with the greater volume of business.

► All firms that outsource various activities achieve benefits including enhanced
productivity, reduced cycle times, greater inventory turns, and higher customer
service levels.

Question No: 12 ( Marks: 1 ) - Please choose one

Which of the following statements concerning differences between continuous review (Q systems)
and periodic review (P systems) inventory systems is false?

► In periodic review systems, orders are placed after an elapsed period of time, P, has
passed for a variable quantity of units.

► In continuous review systems, orders are placed for a fixed quantity of goods after a
variable length of time has passed.

► Higher than normal demand during the order cycle leads to a shorter time between
orders for Q Systems while in P Systems it leads to larger order sizes.

► P systems require a perpetual inventory count while Q systems require a periodic

inventory counting system.

Question No: 13 ( Marks: 1 ) - Please choose one

Which one of the following is not an element of MRP System?

► Inventory Record

► Capacity Planning System

► Master Scheduling

► Sales and Operations Planning System

Question No: 14 ( Marks: 1 ) - Please choose one

Which one of the following is not an element of lean thinking?

► Value stream mapping

► Specifying value from customer’s point of view

► Striving for perfection

► Increasing the production capacity

Question No: 15 ( Marks: 1 ) - Please choose one

Which of the following statements is incorrect about lean thinking approach?

 ► Lean thinking approach can be extended beyond the production process including
finance, marketing and accounting functions

► Lean thinking approach was popularized by Womack and Jones

► Lean thinking approach can be easily applied to service operations

► Lean thinking approach takes an internal perspective of the firm starting with the
production process.

Question No: 16 ( Marks: 1 ) - Please choose one

The measures of quality used in manufacturing processes can be readily transferred to service
operations.

► TRUE

► FALSE

Question No: 17 ( Marks: 1 ) - Please choose one

Parabolic trends are concaved upwards and downwards.

► TRUE

► FALSE

Question No: 18 ( Marks: 1 ) - Please choose one

A Histogram is a simple chart that differentiates the vital few causes from trivial many causes.

► TRUE

► FALSE

Question No: 19 ( Marks: 1 ) - Please choose one

The basic idea behind the ABC classification is to separately manage the inventories on the basis
of the annual demand patterns.

► TRUE

► FALSE

Question No: 20 ( Marks: 1 ) - Please choose one

Just-In-Time manufacturing approach is well suited for a job-shop type of production process.
 ► TRUE

► FALSE

Question No: 21 ( Marks: 1 )

Precedence diagram is used in _________ to display elemental tasks and sequence requirements.

Question No: 22 ( Marks: 1 )

Operational strategies mostly function on two dimensions of quality management and

____________ .

Question No: 23 ( Marks: 1 )

_____________is planning the tasks from the due date to determine the start date and/or any
changes in capacity required.

Question No: 24 ( Marks: 1 )

__________ refers to a system that renders unit or small lot production or service with varying
specifications according to customer needs.

Question No: 25 ( Marks: 1 )

__________ is the systematic study of the human motions used to perform an operation.

Question No: 26 ( Marks: 5 )

Mr. Ali is the team leader at an organization ABC. While undertaking a project, he gave briefing to
the team members about acceptance sampling. What could be the purpose of acceptance sampling
in your view? How does acceptance sampling differ from process control?

Question No: 27 ( Marks: 10 )

What are Gantt charts? How are they used in scheduling? What are the advantages and
disadvantages of using Gantt charts?

Question No: 28 ( Marks: 10 )

Given the following data:

Period No. of complaints

1 34
2 39
3 25
4 22
5 40
Prepare a forecast using each of these approaches:
a) A three period moving average
b) A weighted average using weights of 0.50 (most recent), 0.30 and 0.20
c) Exponential smoothing with a smoothing constant of 0.40
Note: Give the answers with complete working (calculations). Failure to show complete
working will result in deduction of marks.

Question No: 29 ( Marks: 10 )

The Dine Corporation is both a producer and a user of brass couplings. The firm operates 180 days
a year and uses the couplings at a steady rate of 40 per day. Couplings can be produced at a rate of
200 per day. Annual storage cost is $1 per coupling and machine setup cost is $30 per run.
a. Determine the economic run size
b. Approximately how many runs per year will there be?
c. Compute the maximum inventory level
Note: Give the answers with complete working (calculations). Failure to show complete
working will result in deduction of marks.
 WWW.vujannat.ning.COM
Connecting VU Students
MIDTERM EXAMINATION
FALL 2007 Marks: 40
MGT613 - PRODUCTION / OPERATIONS Time: 120min
MANAGEMENT (Session - 5 )

StudentID/LoginID: ______________________________

Student Name: ______________________________

Center Name/Code: ______________________________

Exam Date: Wednesday, November 21, 2007

Please read the following instructions carefully before attempting any question:
ƒ All questions are compulsory.
ƒ This exam consists of 10 Multiple Choice Questions (MCQs) carrying 1 mark each; 5 Fill in
the Blanks carrying 1 mark each; 3 Short Questions carrying 5 marks each; and 1 descriptive
question –carrying 10 marks.
ƒ For each MCQ, read the available choices carefully and select the most appropriate choice
which you consider is the correct answer, by clicking on the appropriate check box.
ƒ To answer fill in the blanks questions, write the word which you think is the most suitable by
comprehending the whole phrase.
ƒ Remember not to spend too much time on any one objective type question since all objective
type questions carry equal marks; it is important to manage your time according to the marks
allocated to each question.
ƒ Calculators are allowed to solve numerical problems. Mobile phones are not allowed for the
same purpose.
ƒ Save your answer before proceeding to the next question.
ƒ Do not click the “Finish” button while solving your paper. Once you clicked the “Finish”
button, you will not be able to access your paper again. Click it at the end of your paper. That
means you have submitted your complete paper.
ƒ A clock is given in the exam software. Software will automatically close at the end of given
time.
ƒ Use of mobile phone is strictly prohibited. Switch off your mobile phone during the exam.
Failure to comply with the Supervisor’s directions will result in your test being cancelled. Please
comply with supervisor’s directions to avoid any unpleasant event.

For Teacher's use only

Question 1 2 3 4 5 6 7 8 9 10 Total
Marks
Question 11 12 13 14 15 16 17 18 19
 Marks
Question
Marks

Question No: 1 ( Marks: 1 ) - Please choose one

Operations manager is responsible for all of the following except:

► Forecasting

► Capacity planning

► Inventory management

► Distribution of organizations’ goods

Question No: 2 ( Marks: 1 ) - Please choose one

The sources of competitive advantage include :

► Price

► Quality

► Location

► All of the given options

Question No: 3 ( Marks: 1 ) - Please choose one

External factors include all of the following except:

► Economic conditions

► Political conditions

► Competitive forces

► Human resources

Question No: 4 ( Marks: 1 ) - Please choose one

A 35% chance of demand of 3000 units, 40% chance of demand of 2000 units and 25% chance of
demand of 1000 units represent a state of:

► Certainty

► Uncertainty

► Risk
 ► None of the given options

Question No: 5 ( Marks: 1 ) - Please choose one

_________ is an optimistic approach.

► Maximin

► Maximax

► Laplace

► Minimax regret

Question No: 6 ( Marks: 1 ) - Please choose one

Using a simple three-period moving average forecast model, what would the forecast of demand be
for the upcoming week 6? The historical demands are shown below:
Week Demand
1 21
2 25
3 20
4 13
5 15

► 22 units

► 18.25 units

► 18.8 units

► 16 units

Question No: 7 ( Marks: 1 ) - Please choose one

Technique for fitting a line to a set of points is called ____________.

► Least square line

► Mean Squared Error (MSE)

► Mean absolute Deviation (MAD)

► Regression

Question No: 8 ( Marks: 1 ) - Please choose one

Availability can be calculated by the formula:

► (MTBF)/(MTBF+MTR)
 ► MTR/MTBF

► (MTBF)/(MTBF-MTR)

► (MTR)/(MTR-MTBF)

Question No: 9 ( Marks: 1 ) - Please choose one

The formula to calculate breakeven quantity is:

► FC+ R+VC

► R/(FC-VC)

► FC/ (R-VC)

► VC / (R-FC)

Question No: 10 ( Marks: 1 ) - Please choose one

_________ is a user of resources to transform inputs into some desired outputs.

► Productive system

► Production system

► Supply chain management

► Lean production system

Question No: 11 ( Marks: 1 )

________ is an elaborated and systematic plan of action with defined resources.

Question No: 12 ( Marks: 1 )

________ is a long term upward or downward movement in data.

Question No: 13 ( Marks: 1 )

________ refers to a situation in which a product, part or system does not perform as intended.

Question No: 14 ( Marks: 1 )

____________strategy is longer in terms of time horizon.

Question No: 15 ( Marks: 1 )

OSHA stands for__________________.

Question No: 16 ( Marks: 5 )

Justify the statement “Both qualitative and quantitative techniques should be used together to
generate a realistic forecast.”

Question No: 17 ( Marks: 5 )

The manager of a crew that installs carpeting has tracked the crew’s output over the past several
weeks, obtaining theses figures:

Week Crew size Yards installed

1 6 962
2 4 870
3 5 940
4 3 820

Compute the labor productivity for each of the weeks. On the basis of your calculations, what can
you conclude about crew size and productivity?

Question No: 18 ( Marks: 5 )

A small building contractor has recently experienced two successive years in which work
opportunities exceeded the firm’s capacity. The contractor must now make a decision on capacity
for next year. Estimated profits under each of the two possible states of nature as shown in the
table below:

Alternative Next year’s demand

Low High
Do nothing $40,000 $30,000
Expand $60,000 $40,000
Subcontract $20,000 $10,000

Now if probabilities of low and high demand are: P (low) = 0.3 and P (high) = 0.7, determine the
expected profit of each alternative. Which alternative is best? Why?

Question No: 19 ( Marks: 10 )

What are the key reasons for poor competitiveness of some companies?