MCQs

On
Operations Management-KMBN205/KMBA205
By
Dr. Ajay Singh

1. A ______________________ is a form of product that consists of activities, benefits, or

satisfactions offered for sale that are essentially intangible and do not result in the ownership
of anything.

a. Service

b. Demand

c. Need

d. Physical object

2. Distinct characteristic of services is_____________

a.Intangibility

b. Inseparability

c. Variability

d. Perishability

3. All of the following are examples of services EXCEPT:

a. banking.

.b. hotels and motels.

c. tax preparation.

d. computer software.

4.Services are typically produced and consumed simultaneously. This is an example of the
_______characteristic of services.

a.Intangibility

b. Variability
c. Inseparability

d. Simultaneously

e. Perishability

5.Services can not be stored. This describes the ___________characteristic of services.

a. Intangibility

b. Variability

c. Inseparability

d. Inconsistency

e. Perishability

6. Examples of pure tangible goods include all of the following EXCEPT:

a. Soap.

b. Tax preparation.

c. Toothpaste.

d. Salt.

7.__________ describes the employees skills in serving the client.

a. Internal Marketing
b. External Marketing
c. Relationship marketing
d. Interactive marketing
e. Communication Marketing

8.SSTS refers to __________

a. Service Standards Testing
b. Self-Service Technologies
c. Standard Service Technologies
d. Self Service Treatments

9._____________ occurs when a company intentionally uses services as the stage, and goods
as the props, to engage individual customers in a way that creates a memorable event.
a. Hybrid offer
b. Core service
c. Augmented or ancillary product
d. Experience

10.Top firms audit service performance by collecting _________measurements to probe

customer satisfiers and dissatisfiers.
a. Customer satisfier
b. Customer complaint
 c. Voice of the customer
d. Psychological

11.The services a customer expects are called the ______service package.

a.Expected
b.Augmented
c.Primary
d.Perceived

12.The fact that a business traveller may have one very positive check-in experience at a
hotel and then a very negative check-in experience with a different employee on a subsequent
visit is evidence of service:
a.intangibility.
b.inseparability.
c.variability.
d.perishability.

13.Added features to an offering are called _________service features.

a.Expected
b.Augmented
c.Primary
d.Secondary

14.The intangibility of services has implications for the choice of _________

a .Brand elements
b. Location
c. Product features
d. Channels of distribution

15.__________cost refers to the product’s purchase cost plus the discounted cost of
maintenance and repair less the discounted salvage value
a.Total
b.Variable
c.Net
d.Out of pocket

16.Successful service companies focus their attention on both their customers and their
employees. They understand ___________________, which links service firm profits with
employee and customer satisfaction.
a.Internal marketing
b.Service-profit chains
c.Interactive marketing
d.Service differentiation

17.If a firm is practicing ____________________, the firm is training and effectively

motivating its customer-contact employees and all of the supporting service people to work
as a team to provide customer satisfaction.
a. Double-up marketing
b. Internal marketing
c. Interactive marketing
d. Service marketing

18.According to Parasuraman, Zeithaml & Berry , the most important determinant of service
quality is :
a. Responsiveness
b. Reliability
c. Assurance
d. Empathy

19.The extended marketing mix for services includes: People, Processes and 3_________
a.Product
b.Place
c.Physical Evidence
d.Promotion

20.Which of the following is not an element of physical evidence?

a.Employee Dress
b.Employee Training
c.Equipment
d.Facility Design

21.Which of the following is not an element of people?

a. Motivation
b. Teamwork
c. Flow of activities
d. Customer training

22. Standardized and customized flow of activities , simple and complex number of steps
and customer involvement by which a service is delivered is called –
a.Place Mix
b.Physical evidence mix
c.Process mix
d.People mix

23._ _________ is the environment in which the service is delivered and where the firm and
customer interact and any tangible components that facilitates performance or communication
of the service.
a.Physical evidence
b.Process
c.Place
d.People

24.All human actors who play a part in service delivery and thus influence the buyers
perceptions : namely , the firms personnel,, the customer and other customers in the service
environment.

a.Process

b.Physical environment
c.People

d.Place

25.____________ is a tool for simultaneously depicting the service process , the points of
customer contact and the evidence of service from the customers point of view

. a.Front of Planning

b.Service Blueprinting

c.Service standardization

d.None of these

26.__________ is the physical surroundings or the physical facility where the service is
produced, delivered and consumed.

a.Servicespace

b.Servicescape

c.Serviceplace

d.Servicescope

27.___________ are the only service distributors which do not require direct human
interactions.

a.Electronic channels

b. SST‟s

c.Direct Service channels

d.Speculative channels

28.In the absence of a physical product, service providers need to consider the use of
______________ that enable customers to make a judgment on the service quality.

a. Intangible clues

b. Tangible clues

c. Blueprint

d. Performance measures
29. Compared with low-contact services, customers of high-contact services are more likely
to judge service quality on the basis of:

a. Price of the service

b. Processes used in carrying out the service

c. Intangible outcomes eg. The performance of an investment portfolio

d. Tangible outcomes

30.Which of the following is not generally accepted as being part of the marketing mix for
services?

a. Product

b. Price

c. Process

d. Practice

31. Location where firm set up their operations is simply called as _______________?

a) Product Location

b) Warehouse

c) Facility Location

d) Storage House

32. Which of the following is the characteristics of continuous production system?

a) Volume of production is small

b) Identical items

c) Make the order

d) Flow of production is not continuous

33. Production may be referred as the process concerned with the conversion of inputs in
outputs such as ___________

a) Semi- Finished Goods

b) Finished Goods

c) Both 1 & 2

d) None of above
34. Operations management is concerned with

a. Production of goods

b. Providing services

c. None

d. Both

35. Objectives of production management are –

a) delivery of right quality product

b) delivery of right quantity of product

c) delivery of product in right time

d) all of above.

36. What are the qualities of production manager

a) resourcefulness

b) communication ability

c) flexibility and self-control

d) all of above.

37. If all the processing equipment and machines are arranged according to the sequence of
operations of a product the layout is known as

a) Product layout

b) Process layout

c) Fixed position layout

d) Combination layout

38. In ship manufacturing, the type of layout preferred is

a. Product layout

b. Process layout

c. Fixed position layout

d. Combination layout

39. Objective of Work Study is to improve _______

(A) Cycle time

(B) Productivity

(C) Production

(D) All of the above

40. Which one is NOT an index of Productivity?

(A) Man-hour output

(B) Productivity ratio

(C) TQM

(D) Use of Financial Ratios

41. Raw Materials and WIP can be classified under ________

a. Indirect Material

b. Direct Material

c. Finished Material

d. Standard Parts

42. _________ are the basic materials which have not undergone any conversion since
their receipt from suppliers.

a. WIP

b. Raw Material

c. Finished Parts

d. Work Made Parts

43. ________ is the time that elapses between issuing replenishment order and receiving
the material in stores.

a. Replenishment time

b. Lead time

c. Idle-time

d. None of the above

44. _________ is the scientific technique for planning the ordering and usage of
materials at various levels of production and for monitoring the stocks during these
transactions.

a. MPS

b. MRP

c. BOM

d. None of the above

45. _________ is the task of buying goods of the right quality, in the right quantities, at
the right time and at the right price.

a. Supplying

b. Purchasing

c. Scrutinizing

d. None of the above

46. Which of the following functions of the production planning and controlling is
related to the time table of activities?

a. Routing
b. Scheduling
c. Dispatching
d. Expediting
47. Which of the below is not a popular production system?

a. Continuous production
b. Job order production
c. Batch production
d. Project production

48. The correct sequence of operations in production planning and control is

a. Routing-Scheduling-Dispatching-Follow up
b. Scheduling-Routing- Dispatching-Follow up
c. Dispatching-Routing-Scheduling- Follow up
d. Routing-Scheduling-Follow up-Dispatching

49. Aggregate planning is concerned with determining

a. the production level, sales level, and capacity for each period.
 b. the demand level, inventory level, and capacity for each period.
c. the production level, inventory level, and capacity for each period.
d. the production level, staffing level, and capacity for each period.

50. The aggregate plan should be communicated to

a. all supply chain partners who will be affected by it.

b. only downstream partners.
c. only the local firm.
d. only upstream partners

51. The ______ is(are) the MRP input detailing which end items are to be produced,
when they are needed, and in what quantities.

a. master production schedule

b. gross requirements
c. inventory records
d. assembly time chart
52 – A master production schedule contains information about

a. quantities and required delivery dates of all sub-assemblies

b. quantities and required delivery dates of final products
c. inventory on hand for each sub-assembly
d. inventory on hand for each final product

53. __________ involves identifying the manpower requirements, machine capacity, and
materials required to meet the planned production targets.
a. Routing
b. Estimating
c. Scheduling
d. Dispatching
54. The process of determining the operation sequence is known as_____________

a. Routing
b. Loading
c. Scheduling
d. Dispatching

55. Detailed day to day planning of operation is called__________

a. Routing
b. Loading
c. Scheduling
d. Dispatching
56. ________ helps to determine that which job will be performed on which machinery.

a. Routing
b. Loading
c. Scheduling
d. Dispatching
57. Aggregate planning is concerned with determining the quantity and timing of production
in the

a. intermediate term.
b. next term.
c. short term.
d. long term.

58. Managers typically do not use sophisticated planning models for aggregate planning
because

a. research has demonstrated that such models seldom work well.

b. they view these models as overly complex and do not fully understand them.
c. these models do not provide information pertinent to the decision at hand.
d. the time periods addressed by such models are too long.

59. Which of the following aggregate planning strategies requires employing relatively
unskilled personnel to be most effective?

a. varying production rates through overtime or idle time

b. using part-time workers
c. back-ordering during high-demand periods
d. subcontracting

60. Which of the following aggregate planning strategies is likely to have the least impact on
quality?

a. changing inventory level

b. subcontracting
c. using part-time workers
d. varying production rates through overtime or idle time

61. The aggregate planning strategies of (1) varying inventory level or (2) back ordering
during periods of high demand have which of the following disadvantages in common?

a. Quality of output may suffer.

b. holding costs
c. Customers may go elsewhere.
d. It is difficult to exactly match supply with demand.

62. In the service sector, aggregate planning for the production of high-volume intangible
output is directed toward

a. finding the size of the workforce to be employed.

b. attempting to manage demand to keep equipment and employees working.
c. planning for human resource requirements and managing demand.
d. smoothing the production rate.
63. Which of the following is NOT a mathematical approach to aggregate planning?

a. management coefficients model

b. graphical and charting methods
c. linear decision rule (LDR)
d. transportation method

64. Which of the following is NOT a capacity option of aggregate planning?

a. back ordering during high-demand periods

b. changing inventory levels
c. subcontracting
d. varying production rates through overtime or idle time

65. Yield management is of interest in organizations having the characteristic of

a. high variable costs.

b. low fixed costs.
c. stable demand.
d. demand can be segmented.

66. A master production schedule contains information about

a. Quantities and required delivery dates of all sub-assemblies

b. Quantities and required delivery dates of final products
c. Inventory on hand for each sub-assembly
d. Inventory on hand for each final product

67. A master production schedule specifies

a. The financial resources required for production

b. What component is to be made, and when
c. What product is to be made, and when
d. The labor hours required for production

68. The master production schedule is the schedule of production for what level
product/material?

a. Level 0
b. Level 1
c. Level 2
d. Level 3

69. Aggregate planning typically covers a time interval of:

a. a couple of months.
b. eighteen months.
 c. a few weeks.
d. five to 10 years.

70. The feasibility of the proposed master schedule is assessed using the:

a. aggregate plan.
b.material plan.
c. rough-cut capacity plan.
d.available-to-promise inventory.

71. Which of the following is not an inventory?

a. Machines
b. Raw material
c. Finished products
d. Consumable tools

72. The following classes of costs are usually involved in inventory decisions except
a. Cost of ordering
b. Carrying cost
c. Cost of shortages
d. Machining cost

73. The cost of insurance and taxes are included in

a. Cost of ordering
b. Set up cost
c. Inventory carrying cost
d. Cost of shortages

74. „Buffer stock‟ is the level of stock

a. Half of the actual stock
b. At which the ordering process should start
c. Minimum stock level below which actual stock should not fall
d. Maximum stock in inventory
e.
75. The minimum stock level is calculated as
a. Reorder level – (Normal consumption x Normal delivery time)
b. Reorder level + (Normal consumption x Normal delivery time)
c. (Reorder level + Normal consumption) x Normal delivery time
d. (Reorder level + Normal consumption) / Normal delivery time

76. Which of the following is true for Inventory control?

a. Economic order quantity has minimum total cost per order
b. Inventory carrying costs increases with quantity per order
c. Ordering cost decreases with lo size
d. All of the above

77. Re-ordering level is calculated as

a. Maximum consumption rate x Maximum re-order period
b. Minimum consumption rate x Minimum re-order period
c. Maximum consumption rate x Minimum re-order period
d. Minimum consumption rate x Maximum re-order period

78. Average stock level can be calculated as

a. Minimum stock level + ½ of Re-order level
b. Maximum stock level + ½ of Re-order level
c. Minimum stock level + 1/3 of Re-order level
d. Maximum stock level + 1/3 of Re-order level

79. The Economic Order Quantity (EOQ) is calculated as

a. (2D*S/h)^1/2
b. (DS*/h)^1/2
c. (D*S/2h)^1/2
d. (D*S/3h)^1/2
Where, D=Annual demand (units), S=Cost per order, h=Annual carrying cost per unit

80. The order cost per order of an inventory is Rs. 400 with an annual carrying cost of
Rs. 10 per unit. The Economic Order Quantity (EOQ) for an annual demand of 2000
units is
a. 400
b. 440
c. 480
d. 500

81. Which of the following statements about ABC analysis is false?

a. ABC analysis is based on the presumption that controlling the few most important items
produces thevast majority of inventory savings.
b. In ABC analysis, "A" Items are tightly controlled, have accurate records, and receive
regular review
by major decision makers.
c. In ABC analysis, "C" Items have minimal records, periodic review, and simple controls.
d. ABC analysis is based on the presumption that all items must be tightly controlled to
produce
important cost savings.

82. ABC analysis divides on-hand inventory into three classes, generally based upon

a. item quality
b. annual dollar volume
c. the number of units on hand
d. annual demand

83. The two most basic inventory questions answered by the typical inventory model are

a. timing and cost of orders

b. quantity and cost of orders
c. timing and quantity of orders
d. order quantity and service level
84. A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual
demand is 10,000 units, and the order cost is $150 per order. What is the approximate
economic order quantity?

a. 70
b. 110
c. 250
d. 12,000

85. Most inventory models attempt to minimize

a. the likelihood of a stockout

b. the number of items ordered
c. total inventory based costs
d. the number of orders placed

86. In the basic EOQ model, if the cost of placing an order doubles, and all other values
remain constant, the EOQ will

a. increase by about 41%

b. increase by 100%
c. increase by 200%
d. either increase or decrease

87. In the basic EOQ model, if D = 6,000 per year, S = $100, H = $5 per unit per month,
the Economic Order Quantity is approximately

a. 527
b. 100
c. 490
d. 142

88. Which of the following statements about the basic EOQ model is true?

a. If the ordering cost were to double, the EOQ would rise.

b. If annual demand were to double, the EOQ would increase.
c. If the carrying cost were to increase, the EOQ would fall.
d. All of the above statements are true.

89. Which of the following statements about the basic EOQ model is false?

a. If the setup cost were to decrease, the EOQ would fall.

b. If annual demand were to increase, the EOQ would increase.
c. If the ordering cost were to increase, the EOQ would rise.
d. If annual demand were to double, the EOQ would also double. 3

90. A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to
$10. The revised
EOQ is
a. three times as large
b. one-third as large
c. nine times as large
d. one-ninth as large

91. A product whose EOQ is 400 experiences a 50% increase in demand. The new EOQ is

a. unchanged
b. increased by less than 50%
c. increased by 50%
d. increased by more than 50%

92. For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model
was 200 units and the total annual inventory cost was $600. The inventory carrying cost per
unit per year for this item is

a. $1.50
b. $3.00
c. $2.00
d. $6.00

93. The EOQ model with quantity discounts attempts to determine

a. what is the lowest amount of inventory necessary to satisfy a certain service level
b. what is the lowest purchasing price
c. whether to use fixed-quantity or fixed period order policy
d. how many units should be ordered

94. ).While you select an item for inventory control, a number of selection criteria you may
opt for. When functional value of the item is the selection criterion, which classification
system is suggested?
a. H-M-L
b. A-B-C
c. V-E-D
d. None of above

95. S-D-E analysis is not carried out, the negative impacts are:

a. Out-of-stock situation and high demand

b. High demand and low lead time
c. Disruption in production and out-of-stock situation
d. None of above

96. For A-class or V-class item, it is essential that

a. Existing inventory control system continues
b. Existing inventory control system needs to be revisited
 c. Number of such items is minimum
d. Criticality of the item needs to be redefined

97. The purchasing system for S and D items should be

a. As simple as possible
b. An elaborate system with many control points
c. A system with minimum number of control points
d. As simple as possible with minimum lead time

98. Reasons for consumption rate of an inventory item are many. The main reason is :

a. Change in product design

b. Change in demand levels
c. Aggressive purchasing
d. All of the above

99. For ‘desirable’ items under V-E-D classification, there is

a. More than one substitute available

b. Only one substitute available
c. No substitute available
d. Use value to be considered

100. Non-moving or ‘dead’ stock determination and control is an important aspect in

materials management of an organization. The main factor affecting the amount of dead stock
is:

a. F-S-N analysis
b. Inventory control policy
c. Purchasing system
d. Waste management system

101. Which of the following is true for supply chain management?

a. The physical material moves in the direction of the end of chain
b. Flow of cash backwards through the chain
c. Exchange of information moves in both the direction
d. All of the above

102. The sequence of a typical manufacturing supply chain is

a. Storage–Supplier–manufacturing–storage–distributor–retailer–customer
b. Supplier–Storage-manufacturing–storage–distributor–retailer–customer
c. Supplier–Storage-manufacturing– distributor–storage–retailer–customer
d. Supplier–Storage-manufacturing–storage– retailer–distributor–customer

103. The purpose of supply chain management is

a. provide customer satisfaction
b. improve quality of a product
c. integrating supply and demand management
d. increase production

104. Due to small change in customer demands, inventory oscillations become

progressively larger looking through the supply chain. This is known as
a. Bullwhip effect
b. Netchain analysis
c. Reverse logistics
d. Reverse supply chain

105. VMI stands for

a. Vendor material inventory
b. Vendor managed inventory
c. Variable material inventory
d. Valuable material inventory

106. The major decision areas in supply chain management are

a. location, production, distribution, inventory
b. planning, production, distribution, inventory
c. location, production, scheduling, inventory
d. location, production, distribution, marketing

107. Reverse logistics is required because

a. Goods are defective
b. Goods are unsold
c. The customers simply change their minds
d. All of the above

108. Activities associated with storing and physically distributing the products to the buyers
are included in which logistics
a)inbound
b)outbound
c)3PL
d)4PL

109. The following is not a part of logistics functions of any organization

a)procurement
b)payment follow-up
c)storage
d)distribution

110. Which is the systematic, strategic coordination of the traditional business functions
a)SCM
b)Logistics
c)Transportation
d)Dispatching

111._________are networks that can span across multiple continents and countries for the
purpose of sourcing and supplying goods and services
a.Global Supply Chain
b. Forward Supply chain
 c. Backward supply chain
d. None

112. __________involves receiving goods from the manufacturing plant or product creator.

a. Outbound Logistics

b. Inbound Logistics

c. Both

d. None

113. __________ products are pushed through the channel from production up to the
retailers.

a. Push Based Supply

b. Pull Based Supply

c. Demand base supply

d. None

114. __________procurement, production, and distribution are demand-driven rather than

based on predictions.

a. Push Based Supply

b. Pull Based Supply

c. Demand base supply

d. All above

115. Which of the following is not true for forecasting?

a. Forecasts are rarely perfect
b. The underlying casual system will remain same in the future
c. Forecast for group of items is accurate than individual item
d. Short range forecasts are less accurate than long range forecasts

116. Which of the following is not a forecasting technique?

a. Judgemental
b. Time series
c. Time horizon
d. Associative

117. In which of the following forecasting technique, subjective inputs obtained from
various sources are analyzed?
a. Judgemental forecast
b. Time series forecast
c. Associative model
d. All of the above

118. In which of the following forecasting technique, data obtained from past experience
is analyzed?
a. Judgemental forecast
b. Time series forecast
c. Associative model
d. All of the above

119. Delphi method is used for

a. Judgemental forecast
b. Time series forecast
c. Associative model
d. All of the above

120. Short term regular variations related to the calendar or time of day is known as
a. Trend
b. Seasonality
c. Cycles
d. Random variations

121. The demand for period t-2 and t-1 is 10 and 12 cases respectively. As per naïve
method, the demand for next period „t‟ is
a. 10
b. 11
c. 12
d. 14

122. Calculate four periods moving average forecast from the last six periods
Period Demand
1 38
2 40
3 42
4 40
5 44
6 38
a. 40
b. 41
c. 42
d. 43
 123. Calculate a weighted average forecast using a weight of .50 to the most recent
period, .40 for the next recent period and .30 for the next period
Period Demand
1 38
2 40
3 42
4 40
5 44
6 38

a. 46.6
b. 47.6
c. 48.6
d. 49.6

124. A linear trend equation has the form

a. F=a-bt
b. F=a+bt
c. F=2a-bt
d. F=2a+bt

125. If the actual demand for a period is 100 units but forecast demand was 90 units.
The forecast error is
a. -10
b. +10
c. -5
d. +5

126. forecast that projects a company's sales is:

a. economic forecast.
b. technological forecast.
c. demand forecast.
d. associative model.

127. Quantitative methods of forecasting include

a. jury of executive opinion.
b. consumer market survey.
c. exponential smoothing.
d. sales force composite.
128. Forecasts are usually classified by time horizon into three categories
a. short-range, medium-range, and long-range
b. finance/accounting, marketing, and operations
c. strategic, tactical, and operational
d. exponential smoothing, regression, and time series

129. A forecast with a time horizon of about 3 months to 3 years is typically called a
a. long-range forecast
b. medium-range forecast
c. short-range forecast
d. weather forecast

130. Time-series data may exhibit which of the following behaviors?

a. trend
b. random variations
c. seasonality
d. all of the above

131. Gradual, long-term movement in time-series data is called

a. seasonal variation

b. cycles

c. trends

d. exponential variation

132. Which time series model below assumes that demand in the next period will be equal to
the most recent period's demand?

a. naive approach

b. moving average approach

c. weighted moving average approach

d. exponential smoothing approach

133. Given an actual demand of 61, a previous forecast of 58, and an à of .3, what would the
forecast for the next period be using simple exponential smoothing?

a. 45.5

b. 57.1

c. 58.9
d. 61.0

134. For a given product demand, the time-series trend equation is 25.3 + 2.1 X. What is
your forecast of demand for period 7?

a. 23.2

b. 25.3

c. 27.4

d. 4

135. The primary purpose of the mean absolute deviation (MAD) in forecasting is to

a. estimate the trend line

b. eliminate forecast errors

c. measure forecast accuracy

d. seasonally adjust the forecast

136. Given an actual demand of 103, a previous forecast value of 99, and an alpha of .4, the
exponential smoothing forecast for the next period would be

a. 94.6

b. 97.4

c. 100.6

d. 101.6

137. A six-month moving average forecast is better than a three-month moving average
forecast if demand

a. is rather stable

b. has been changing due to recent promotional efforts

c. follows a downward trend

d. follows an upward trend

138. Increasing the number of periods in a moving average will accomplish greater
smoothing, but at the expense of

a. manager understanding

b. accuracy

c. stability

d. responsiveness to change

139. Given forecast errors of -1, 4, 8, and -3, what is the mean absolute deviation?

a. 2

b. 3

c. 4

d. 8

140. Given an actual demand of 61, a previous forecast of 58, and an smoothing coefficient
of .3, what would the forecast for the next period be using simple exponential smoothing?

a. 45.5

b. 57.1

c. 58.9

d. 61.0

141. The percent of variation in the dependent variable that is explained by the regression
equation (independent variable) is measured by the

a. mean absolute deviation

b. slope

c. coefficient of determination

d. correlation coefficient
142. Given an actual demand of 103, a previous forecast value of 99, and an alpha of .4, the
exponential smoothing forecast for the next period would be

a. 94.6

b. 97.4

c. 100.6

d. 101.6

143.__________Production process based on an ideology of maximising productivity while

simultaneously minimising waste within a manufacturing operation.

a. Lean Manufacturing

b. Agile Manufacturing

c. Both

d. None

144. _____ is a term applied to an organization that has created the processes, tools, and
training to enable it to respond quickly to customer needs and market changes while still
controlling costs and quality.

a. Lean Manufacturing

b. Agile Manufacturing

c. Both

d. None

145. Which of the following is NOT a W. Edwards Deming theory?

a. Plan-Do-Act-Check Cycle
b. The 14 points
c. The Seven Deadly Diseases
d. Six Sigma
146. Which of the following is NOT one of the 14 points in Deming's 14 Points theory?
a. Specify a clear goal and accept zero variance from that goal
 b. Institute training on the job
c. Drive out fear so that everyone may work effectively for the company
d. Put everybody in the company to work to accomplish the transformation; the
transformation is everybody's job
147. Where and in what industry did W. Edwards Deming introduce most of his theories?

a. The automobile industry in the United States.

b. The automobile industry in Japan.
c. The railroad industry in the United States.
d. The fishing industry in Japan.

148. TQM stands for ______________

a. Total Quality Management

b. Total Quantity Management
c. Total Qualitative Management
d. To question management

149. Deming's 4 step cycle for improvement is______________

a. plan, do, check, act

b. schedule, do, act, check
c. do, act, check, monitor
d. plan, control, act, sustain

150. In Six Sigma, a ______________ is defined as any process output that does not meet
customer specifications

a. error
b. cost
c. quality
d. defect

151. Plan-do-study-act cycle is a procedure to ______________

a. Overall improvement
b. Continuous improvement
c. Permanent improvement
d. Immediate improvement
152. Quality practices must be carried out ______________

a. at the start of the project

b. throughout the life of the project
c. at the end of the project
d. no need to carry out quality practices

153. –––––––– are the charts that identify potential causes for particular quality problems.

a. Control Chart
b. Flow chart
c. Cause and Effect Diagram
d. Pareto chart

154. Quality circles work best if employees are initially trained in ______________

a. Group dynamics
b. Motivation principles
c. Communications
d. All of the three. (Not sure)

155. Quality Trilogy includes

a. Quality planning
b. quality improvement
c. quality control
d. All the three

156. What is the English equivalent of the Japanese word ‘Seiri’?

a) Sorting out

b) Systematic arrangement

c) Standardizing

d) Self-discipline

157. What is the English equivalent of the Japanese word ‘Seiton’?

a) Sorting out

b) Systematic arrangement

c) Standardizing

d) Self-discipline
158. . Which of the following from the 5S technique means ‘to separate out all unnecessary
things and eliminate them’?

a) Seiri

b) Seiton

c) Seiso

d) Seiketsu

159. Which of the following from the 5S technique means ‘to arrange the essential things in
order, so that they can be easily accessed’?

a) Seiri

b) Seiton

c) Seiso

d) Seikets

160. What is the English equivalent of the Japanese word ‘Seiso’?

a) Sorting out

b) Systematic arrangement

c) Scrub, shine, sweep

d) Self-discipline

161. Which of the following is not an advantage of implementing 5S technique?

a) To improve work efficiency

b) To standardize work practices

c) To improve work discipline

d) To create a dirty workplace

162. 10. Which of the following from the 5S technique means ‘to clean the workplace,
everything, everyday, without fail’?

a) Seiri

b) Seiton

c) Seiso
d) Seiketsu

163. Which of the following is not a type of loss examined by TPM?

a) Down-time loss

b) Speed loss

c) Defect loss

d) Forecasting loss

165. MP in Total Productive Maintenance refers to ______

a) Main program

b) Main part

c) Maintenance prevention

d) Major part

166. Which of the following is not a loss that TPM focuses on reducing?

a) Equipment breakdown

b) Defects and rework

c) Idling and minor stoppages

d) Optimized equipment cycle time

167. Which of the following is not a goal shared by TPM?

a) Zero defects

b) Maximum productivity

c) Minimum productivity

d) Zero breakdowns

168. Which pillar of TPM focuses on routine maintenance?

a) Training and Education

b) Just-in-time

c) 5S
d) Autonomous maintenance

169. Which of the following is not an advantage of autonomous maintenance?

a) Sense of ownership in operators

b) Increases operator knowledge of equipment

c) Ensures clean and lubricated equipment

d) Demotes customer satisfaction

170. Which of the following is the most reasonable time taken by an organization to
implement TPM?

a) Two days

b) Three years

c) Five days

d) Fifty years

171. Six Sigma strategies seek to improve the quality of the output of a process by
(A) identifying the causes of defects
(B) removing the causes of defects
(C) minimizing variability in manufacturing
(D) all of the above

172. -Processes that operate with “six sigma quality” over the short term are assumed to
produce long-term defect levels below ___ defects per million opportunities (DPMO)
(A) 2.4
(B) 3.4
(C) 4.4
(D) 5.4

173. The aim of Six Sigma initiative is to

(A) reduce cost
(B) improve quality
(C) both (A) and (B)
(D) none of the above

174-Combination of Six Sigma and Lean manufacturing is known as

(A) Advanced Six Sigma
(B) Lean Six Sigma
(C) Operational Six Sigma
(D) None of the above

175 The first standard published by the International Standard Organization (ISO)
defining a Six Sigma process.
(A) ISO 13053:2009
(B) ISO 13053:2010
(C) ISO 13053:2011
(D) ISO 13053:2012

176. Six Sigma project follows the following project methodology(ies)

(A) DMAIC
(B) DMADV
(C) Both (A) and (B)
(D) None of the above

177. ______________ is about supplying customers with what they want when they want it.

a. JUT
b. HET
c. JAT
d. JIT

178. “DMAIC” is used for projects aimed at

(A) improving an existing business process
(B) creating new product or process designs
(C) Both (A) and (B)
(D) None of the above

179. In “DMAIC”, M stands for

(A) Method
(B) Measure
(C) Machine
(D) Manpower

180. The percentage yield in Six Sigma is

(A) 93.3
(B) 99.38
(C) 99.977
(D) 99.99966

181. Six Sigma is applicable to

(A) Finance
(B) Supply chain
(C) Healthcare
(D) All of the above
182. "Quality is defined by the customer" is

a. An unrealistic definition of quality

b. A user-based definition of quality
c. A manufacturing-based definition of quality
d. A product-based definition of quality

183. Check Sheet is used during ______________ stage of DMAIC.

a. Define
b. Measure
c. Analyze
d. Improve

184. ______________ is the set of activities that ensures the quality levels of products and
services are properly maintained and that supplier and customer quality issues are properly
resolved.

a. Quality Assurance
b. Quality Planning
c. Quality Control
d. Quality Management

185. Identify the cost not likely to reduce as a result of better quality.

a. Maintenance costs
b. Inspection costs
c. Scrap costs
d. Warranty and service costs