NPTEL POMS Assignment: Week 1

1. Which of the following concept is not part of Scientific Management era?

A. Standardized Parts
B. Gantt Chart
C. Motion and Time Study
D. Process Analysis
2. Who among the following was a pioneer of “Statistical Quality Control (SQC)” concept
in operations management?
A. Eli Whitney
B. F W Taylor
C. Henry Ford
D. Walter Shewhart
3. Which of the following concept is not related with “Lean Philosophy” of Production?
A. JIT
B. EOQ
C. TQM
D. Kanban
4. The main difference between a manufacturing system and a service system is:
A. Use of raw materials
B. Tangibility of the output
C. Degree of automation
D. Level of customer interaction
5. Which of the following product is not an example of “To order” type of finished goods
inventory policy in a “Product Focused System”?
A. Television
B. Buses
C. Trucks
D. Wire and Cables
6. Which of the following product is an example of “To stock” type of finished goods
inventory policy in Process Focused System?
A. Ships
B. Medical instruments
C. Machine tools
D. Camera
7. Productivity can be improved by-
A. Increasing inputs while keeping output constant
B. Reducing output while keeping inputs constant
C. Increasing output while keeping inputs constant.
D. None of the above
8. In which type of services there is virtually no contact between customer and production
labor?
A. Stagnant personal services
B. Substitutable personal services
C. Progressive services
D. Explosive services
9. Services which offer low innovation potential and are difficult to standardize are called-
 A. Substitutable personal services
B. Stagnant personal services
C. Progressive services
D. Explosive services
10. Productivity can be measured as:
A. Output/Input
B. Input/Output
C. Total cost/Total units produced
D. Profit margin
 NPTEL POMS Assignment: Week 2
1. Concurrent engineering emphasizes:
A. Simultaneous consideration of design, manufacturing, and other functions
B. Sequential development of product components
C. Cost-cutting measures in the design process
D. Repetitive testing and prototyping
2. Which of the following does not feature in ‘house of quality’?
A. Customer Requirements
B. Type of defects
C. Engineering Characteristics
D. Metrics
3. Sales for each month is given in the table below. What is the forecast for month 5 as
per weightage moving average method-
Weights: (t-1) =0.35; (t-2) =0.3; (t-3) =0.25; (t-4) =0.1
Month 1 2 3 4
Demand 95 110 125 85
A. 95.7
B. 106
C. 97.5
D. 103
Solution:
Forecast for month-5 would be:
F5 = (0.35*95) + (0.3*110) + (0.25*125) + (0.1*85) = 106
4. The forecast method which considers the error in forecasting of recent data-
A. Simple average method
B. Moving average method
C. Weighted moving average method
D. Exponential smoothing method
5. ___________ seeks to determine the point in units produced (and sold) where we will
start making profit on the process or equipment.
A. Process flow design
B. Break even analysis
C. Product flow mapping
D. Bathtub curve
6. In Value engineering value is defined as
A. Revenue per unit of cost
B. Utility per unit of revenue
C. Utility per unit cost
D. Profit per unit of utility
7. The demand for two-wheeler was 900 units and 1030 units in April 2020 and May 2020,
respectively. The forecast for the month of April 2020 was 850 units. Considering a
smoothing constant of 0.6, the forecast for the month of June 2020 is
A. 850 units
 B. 927 units
C. 965 units
D. 970 units
Solution:
DApr2020= 900, FApr2020= 850
DMay2020= 1030
α=0.6
FMay2020= 0.6*900+(1-0.6)*850 = 880
FJun2020= 0.6*1030+(1-0.6)*880 = 970
8. The demand of a product during the last four years were 860, 880, 870 and 890 units.
The forecast for the fourth year was 876 units. If the forecast for the fifth year, using
simple exponential smoothing, is equal to the forecast using a three-period moving
average, the value of the exponential smoothing constant is-
A. 0.14
B. 1.2
C. 0.29
D. 0.4
Solution:
Forecast using a three-period moving average = (880+870+890)/3 = 880
Now according to question-
880 = Forecast using exponential smoothing
= Old forecast + α (Actual Demand-Old Forecast)
 880 = 876 + α* (890-876)
α = 4/14 =0.29

9. What is correct sequence of typical phases involved in Product Design and

Development?
A. Product Planning-Pilot Production-Concept Development-Product Engineering
B. Product Engineering-Product Planning-Concept Development-Pilot Production
C. Concept Development-Product Planning-Product Engineering-Pilot Production
D. Product Planning-Concept Development- Pilot Production-Product Engineering
10. Continuous, process-oriented manufacturing is best suited for:
A. Low-volume, customized products
B. Standardized, high-volume products
C. Perishable goods
D. Services
 POM Assignment: Week 3 Solutions
1. The demand and forecast of an item for five months are given in the table. The Mean
absolute percentage error (MAPE) in the forecast is________% (Round off to nearest
integer value)

Month Demand Forecast

1 225 200
2 220 240
3 285 300
4 290 270
5 250 230

A. 8%
B. 7%
C. 5%
D. 9%
Solution:

MAPE = (11.11+9.09+5.26+6.89+8)/5 = 8.07%

2. The demand and forecast of an item are shown in the table below. What will be the
mean square error (MSE)?

Month Demand Forecast

March 200 195
April 202 197
May 205 210
June 210 199
July 207 220

A. 78
B. 65
C. 73
D. 63

MSE= (25+25+25+121+169)/5=73
3. The demand and forecast for five periods are shown in the table below. What will be
the tracking signal at the end of 2016?

Year Demand Forecast

2011 490 500
2012 495 500
2013 515 500
2014 500 510
2015 525 510
2016 540 510

A. +4.5
B. -3.5
C. -1.5
D. +2.5
Solution:
TS=(RSFE/MAD)
RSFE= (-10-5+15-10+15+30) = 35
MAD= 85/6 = 14.5
TS = 35/14.2 = 2.46
4. A steel company faced the following demand for its products during the past few
months; the company is using last year’s corresponding monthly sales as this year’s
forecast. What is the Mean absolute deviation (MAD) for the forecasted demand-

Month Forecasted Demand Actual demand

(In metric tons) (In metric tons)
July 21100 20000

August 22000 23600

September 22400 21000

October 27500 26500

A. 1075
B. 1325
C. 1025
D. 1275

MAD= (1100+1600+1400+1000)/4 = 1275

5. If the value of the smoothing constant (α) is taken as 0, what is the meaning of it?
A. 50% of fluctuations of the current period are considered.
B. 25% of fluctuations of the current period are considered.
C. 100% of fluctuations of the current period are considered.
D. No fluctuations of the current period are considered.
6. The age of the truck (in years) and repair expense (in $) are given in the table below.
Calculate expenses for a 4-year-old truck (in $) using the regression method-
Age (x) Repair expenses (y)
5 700
3 700
3 600
1 400

A. 675
B. 525
C. 765
D. 875
Solution:

On solving
a=375
b = 75
Now repair expenses for a 4-year-old truck
Y = 375+(75*4) =675
7. For a canteen, the actual demand for disposable cups was 500 units in January and 600
units in February. The forecast for the month of January was 400 units. The forecast for
the month of March considering the smoothing coefficient as 0.75 is___________.
(Round off to nearest integer value)
A. 569
B. 479
C. 453
D. 543
Solution:
Forecast for February
F2 = 0.75*500+(1-0.75)*400 = 475
Forecast for March
F3 = 0.75*600+(1-0.75)*475 = 568.75
8. The demand and forecast for February are 12000 and 10275, respectively. Using single
exponential smoothing method (smoothing coefficient= 0.25), forecast for the month
of March is:
A. 431
B. 9587
C. 10706
D. 11550
Solution:
Smoothing coefficient= 0.25
Forecast for March
FMar = 0.25*12000+(1-0.25)*10275 = 10706 (approx.)
9. In a forecasting model, at the end of period 13, the forecasted value for period 14 is 75.
Actual value in the periods 14 to 16 are constant at 100. If the assumed simple
exponential smoothing parameter is 0.5, then the MSE at the end of period 16 is:
A. 820.31
B. 273.44
C. 43.75
D. 14.58
Solution:
F15 = 0.5*100+(1-0.5) *75 = 87.5
F16 = 0.5*100+(1-0.5) *87.5 = 93.75

MSE= (100-75)2+(100-87.5)2+(100-93.75)2/3= 273.44

10. The sales data of a product for 5 years are shown in the table below. Assume the forecast
for the year 2014 as 260 units. Using an exponential smoothing method with smoothing
constant 0.5, the sales forecast (units) for the year 2019 is-
Year 2014 2015 2016 2017 2018
Sales (Units) 280 268 259 270 287

A. 269
B. 267
C. 277
D. 264
Solution:
F2015 = 0.5*280+(1-0.5) *260 = 270
F2016 = 0.5*268+(1-0.5) *270 = 269
F2017 = 0.5*259+(1-0.5) *269 = 264
F2018 = 0.5*270+(1-0.5) *264 = 267
F2019 = 0.5*287+(1-0.5) *267 = 277
 NPTEL POM Assignment: Week 4 Solutions
1. The term ‘Setup Cost’ in EOQ analysis is analogous to-
A. Ordering Cost
B. Carrying Cost
C. Shortage Cost
D. Transportation Cost
2. In the EOQ model, the total inventory cost is minimized when:
A. Ordering cost is equal to holding cost per unit per time period
B. Ordering cost is greater than holding cost per unit per time period
C. Holding cost per unit per time period is zero
D. Ordering cost is zero
3. A particular item has a demand of 2500 units/year. The cost of one procurement is Rs
2500 and the holding cost per unit is Rs 200/year. The replacement is instantaneous,
and no shortages are allowed. What is the optimum number of orders /years?
A. 15
B. 20
C. 10
D. 30
Solution:
D = 2500 units/year
Co = 2500
Ch = 200/year
EOQ = SQRT ((2 *2500 *2500)/ 200) = 250
EOQ = 250 units/order
Optimum number of order = Demand/EOQ = 2500/250 = 10 orders/year
4. Which of the following statements is correct regarding inventory holding cost?
A. It decreases as the inventory holding period increases.
B. It increases as the inventory holding period increases.
C. It has no impact on the EOQ calculation.
D. It is constant regardless of the inventory holding period.
5. What are some limitations of the EOQ model?
A. It assumes constant demand and cost
B. It does not consider the effects of inflation.
C. It does not account for price changes.
D. All options are correct.
6. When the ordering cost is increased to 4 times, the EOQ will be-
A. Doubled
B. Halved
C. Tripled
D. Unchanged
 Solution: EOQ is directly proportional to SQRT (ordering cost)
7. An item can be purchased for Rs.200. The ordering cost is Rs 400 and the inventory
carrying cost is 5% of the item cost per annum. If the annual demand is 8000 units,
the economic ordering quantity is____________-
A. 700
B. 800
C. 900
D. 1000
Solution:
D = 8000, Cu = Rs 200 per unit, Cc = 5% of Cu = 0.05 * 200 = Rs 10 per unit per
year, Co = Rs 400 per order, Q =?
So, EOQ = sqrt(2DCo/Cc) = sqrt ((2 *8000*400)/ 10) = 800 units.
8. A specific product has demand during lead time of 250 units, with a standard
deviation of 32 units. What safety stock (approximately) provides a 99% service
level? (At 99% service level, z= 2.80)
A. 75
B. 85
C. 90
D. 105
Solution:
Safety Stock = z*σdLT =2.8 *32 = 89.6 ~ 90
9. Demand for a water purifier is 15 units per day. The standard deviation of demand is
4 units per day, and the order lead time is 6 days. The service level is 95%. What
should the reorder point be? (At 95% service level, z= 1.64)
A. About 105
B. About 80
C. About 84
D. About 97
Solution:
Given: d=15, σ= 4, L= 6, z = 1.64
ROP = dL + SS = 15*6 + 4 * 1.64 = 96.56
10. A company uses 4,000 units of a component per year, with an ordering cost of Rs.
100 per order and a carrying cost of Rs. 5 per unit per year. What will be the EOQ and
total annual inventory cost?
A. 200 units, Rs. 10,000
B. 400 units, Rs. 11,000
C. 300 units, Rs. 11,000
D. 200 units, Rs. 13000
Solution:
D = 4000, Cc = Rs 5, Co = Rs 100
EOQ = sqrt(2DCo/Cc) = sqrt ((2 *4000*100)/ 5) = 400 units.
Total Cost= (D/EOQ)* Co + (EOQ/2)* Co = (4000/400)*100 + (400/2)*5 = 11000
 NPTEL POMS Week 5 Solutions
1. The manager at a retail store, has to decide on the number of items to purchase for the
upcoming season. Each item costs Rs. 25 and is sold for Rs. 75. Any unsold item at
the end of the season is disposed of for Rs. 12. The inventory holding cost for the
season is Rs. 5. What is the cost of understocking per item (in Rs.) for this manager?
A. 100
B. 50
C. 42
D. 18
2. The manager at a retail store, has to decide on the number of items to purchase for the
upcoming season. Each item costs Rs. 25 and is sold for Rs. 75. Any unsold item at
the end of the season is disposed of for Rs. 12. The inventory holding cost for the
season is Rs. 5. What is the cost of overstocking per item (in Rs.) for this manager?
A. 37
B. 50
C. 42
D. 18
Solution:
s = 12 – 5 = 7 Rs.; Cu = p – c = 75 - 25 = 50 Rs.; Co = c – s = 25 - 7 = 18 Rs.
3. The manager at a retail store, has to decide on the number of items to purchase for the
upcoming season. Each item costs Rs. 25 and is sold for Rs. 75. Any unsold item at
the end of the season is disposed of for Rs. 12. The inventory holding cost for the
season is Rs. 5. Determine the optimal stocking level for this manager:
A. 0.58
B. 0.63
C. 0.73
D. 0.88
Solution: CSL = Cu/ Cu+Co = 50/(50+18) = 0.73
4. What is a two-bin system?
A. A system in which orders are placed when only one complete bin of stock is
remaining.
B. A system in which suppliers deliver two bins at a time.
C. A system in which everything is split between two storage bins.
D. A system in which two full bins of an item are always held in stock.
5. VED analysis of inventory management stands for____________.
A. Vital-essential-desirable
B. Valuable-easy-disposable
C. Very-easily-delivered.
D. Valuable-effective-dispensable
6. The ABC analysis classifies items based on their-
A. Lead Time
B. Demand Variability
 C. Unit Cost
D. Storage Requirements
7. The following table is an example of-
Week 1 Week 2 Week 3 Week 4
Clothes dryer 300 80 120 100
Upright freezer 200 500
Clothes washer 200 200
A. Aggregate plan
B. Master Production Schedule
C. Load report
D. Inventory record
8. Product A is made of three units of B. B is made of one units of C and four units of D.
D is made of two unit of E and three units of F. If 45 A are required, how many units
of ‘E’ component are needed (without lead time consideration)?
A. 540
B. 830
C. 1620
D. 1080
Solution:
A (1)
For 1 unit of A, requirement of E

B (3) = 1*3*4*2 = 24 units

For 45 A, requirement of E

D (4) C (1) = 45*24 = 1080 units

E (2) F (3)

9. Each M requires 4 of component N; each N requires 3 of part O. The lead time for the
assembly of M is 3 weeks. The lead time for the manufacture of N is 4 weeks. The
lead time for the procurement of O is 3 weeks. The cumulative lead time for M is
_______ weeks).
A. 10
B. 12
C. 36
D. 16
Solution: Cumulative lead time = 3+4+3 = 10 weeks
10. _______________contains a listing of all of the assemblies, subassemblies, parts, part
costs, and raw materials that are needed to produce one unit of a finished product.
A. Forecast Sheet
B. Inventory Record
C. Bill of Materials
D. Purchase Order
 NPTEL POM Week 6 Solutions
1. Consider the following data for an MRP lot sizing problem-
Item cost per unit Rs. 100
Carrying cost 5% of Unit cost/ per week
Set up cost Rs. 500 per set up
Week 1 2 3 4 5 6 7 8 9 10
Net 50 68 42 - 33 30 32 - 30 35
Requiremen
t
What is lot size if we follow the EOQ method?
A. 80
B. 85
C. 70
D. 90
Solution:
Ordering cost = Rs. 500
Carrying cost = 0.05 *100 = Rs 5
Demand = 320
Avg. Demand = 320/10 = 32
EOQ = SQRT (2*32*500)/5) = SQRT (6400) = 80
So, LOT SIZE = 80
2. In Material requirement planning, if the inventory holding cost is very high and the
setup cost is zero, which one of the following lot-sizing approaches should be used?
A. Economic Order Quantity
B. Lot-for-Lot
C. Base Stock Level
D. Fixed period Quantity
3. Consider the following data for an MRP lot sizing problem-
Item cost per unit Rs. 100
Carrying cost 5% of unit cost/ per week
Set up cost Rs. 500 per set up
Week 1 2 3 4 5 6 7 8 9 10
Net 50 68 42 - 33 30 32 - 30 35
Requiremen
t
After how many weeks an order should be placed as per the POQ method? (Assume
52 weeks in a year)
A. 5
B. 7
 C. 6
D. 2
Solution:
Ordering cost = Rs. 500
Carrying cost = 0.05 *100 = Rs 5
Demand = 320
Avg. Demand = 320/10 = 32
EOQ = SQRT (2*32*500)/5) = SQRT (6400) = 80
Demand for 10 weeks = 320
Demand for 1 week = 32
Demand for 52 weeks = 32 * 52 = 1664
Annual Demand = 1664
Number of orders = 1664/80 = 21 orders
Period = 52/ 21 = 2.47 = 2 weeks (approx.)
4. In order to use the "level capacity strategy," variations in demand are met by-
A. Varying output during the regular time without changing employment levels
B. Varying output during regular time by changing employment levels
C. Using a combination of inventories, overtime, part-time, and back orders
D. Price adjustments

5. ____________________ of aggregate planning attempt to alter demand so that it

matches capacity.
A. Proactive Strategies
B. Reactive Strategies
C. Mixed Strategies
D. Marketing Strategies
6. In using the “chase strategy” variations in demand could be met by:
A. Varying output during regular time by changing workforce levels.
B. Varying output during the regular time without changing workforce levels
C. Using a combination of inventories, overtime, part-time, and back orders
D. Price adjustments
7. Which aggregate planning technique is most suitable for a company with predictable
demand and high setup costs?
A. Chase Strategy
B. Level Strategy
C. Mixed Strategy
D. None of the above
8. What is the main benefit of using Closed-Loop MRP?
A. Provides real-time feedback on inventory levels
 B. Reduces planning complexity
C. Improves purchasing accuracy
D. Eliminates the need for forecasting
9. Which lot sizing technique minimizes total setup and inventory holding costs?
A. Fixed lot size
B. Economic order quantity
C. Lot-for-lot
D. Silver-Meal heuristic
10. Lot sizing in MRP systems refers to:
A. Determining the number of units to produce in each production run
B. Calculating the reorder point for inventory replenishment
C. Evaluating the optimal number of suppliers to engage
D. Estimating the demand forecast for future periods
 NPTEL POM Week 7 Solutions
Q1: Which of the following is NOT a constraint in developing a linear programming problem for
aggregate planning.

a) The subcontracted production

b) Inventory storage limit
c) The available overtime capacity
d) Regular production capacity

Q2: In aggregate production planning problem the objective is to:

a) Minimizing total cost of production

b) Maximizing profit
c) Minimizing Inventory
d) Maximizing regular time production

Q3: Consider the following forecast for 6 consecutive days

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6

Forecast 900 1200 1400 1300 1300 1100
and Unit cost of production 10
Inventory cost on Average inventory 2
Backorder cost 6
No. of workers 20
Considering a steady output production plan without overtime and subcontracting, what is the total
cost associated with the production plan

a) 72000
b) 73400
c) 74000
d) 70000

Solution:

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Total

900 1200 1400 1300 1300 1100 7200

Output
Regular 1200 1200 1200 1200 1200 1200 7200
Inventory
Beginning 0 300 300 100 0 0
Ending 300 300 100 0 0 0
Average 150 300 200 50 0 0
Backorder 100
Cost
Regular 12000 12000 12000 12000 12000 12000
Inventory Cost 300 600 400 100 0 0
Back order 600
Total 12300 12600 12400 12100 12600 12000 74000
Q4: Consider the following forecast for 6 consecutive days.

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6

Forecast 900 1200 1400 1300 1300 1100
and Unit cost of production 10
Inventory cost on Average inventory 2
Backorder cost 6
No. of workers 20
Considering a steady output production plan without overtime and subcontracting, which of the
following days will witness a backorder.

a) Day 2
b) Day 3
c) Day 4
d) Day 5

Solution:

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Total

900 1200 1400 1300 1300 1100 7200

Output
Regular 1200 1200 1200 1200 1200 1200 7200
Inventory
Beginning 0 300 300 100 0 0
Ending 300 300 100 0 0 0
Average 150 300 200 50 0 0
Backorder 100
Cost
Regular 12000 12000 12000 12000 12000 12000
Inventory Cost 300 600 400 100 0 0
Back order 600
Total 12300 12600 12400 12100 12600 12000 74000
There is a backorder of 100 units on Day 5

Q5: Consider the following forecast for 6 consecutive days

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6

Forecast 900 1200 1400 1300 1300 1100
and Unit cost of production 10
Cost of hiring 600
Cost of layoff 900
Workers at the beginning 12
Considering a chase production plan without inventory and backlog, what is the total cost of laying
off?

a) 4500

b) 7200
c) 3000

d) 11700

Solution:

10 Unit cost of production

2 Inventory cost on average inventory

6 Backorder cost

20 No. of workers

60 Daily production per worker

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6

900 1200 1400 1300 1300 1100 7200
Output
Production 900 1200 1400 1300 1300 1100 7200
Worker 23.3333 21.6666 21.6666 18.3333
required 15 20 3 7 7 3
Rounding up* 15 20 24 22 22 19
Inventory
Beginning 12 15 20 24 22 22
Ending 15 20 24 22 22 19
Hiring 3 5 4 0 0 0
Laying off 0 0 0 2 0 3
Cost
Production 9000 12000 14000 13000 13000 11000
Hiring 1800 3000 2400 0 0 0 7200
Laying off 0 0 0 1800 0 2700 4500
Total 10800 15000 16400 14800 13000 13700 83700
*as the number of workers can’t be in decimal rounding off to closest integer bigger than the
number.

Q6: Consider the following forecast for 6 consecutive days.``

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6

Forecast 900 1200 1400 1300 1300 1100
and Unit cost of production 10
Cost of hiring 600
Cost of layoff 900
Workers at the beginning 12
Considering a chase production plan without inventory and backlog, which of the following days
witnesses the second highest total cost

a) Day 4

b) Day 3
c) Day 4 and Day 5

d) Day 6

Solution:

10 Unit cost of production

2 Inventory cost on average inventory

6 Backorder cost

20 No. of workers

60 Daily production per worker

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6

900 1200 1400 1300 1300 1100 7200
Output
Production 900 1200 1400 1300 1300 1100 7200
Worker
required 15 20 23.33333 21.66667 21.66667 18.33333
Rounding up 15 20 24 22 22 19
Inventory
Beginning 12 15 20 24 22 22
Ending 15 20 24 22 22 19
Hiring 3 5 4 0 0 0
Laying off 0 0 0 2 0 3
Cost
Production 9000 12000 14000 13000 13000 11000
Hiring 1800 3000 2400 0 0 0 7200
Laying off 0 0 0 1800 0 2700 4500
Total 10800 15000 16400 14800 13000 13700 83700
*as the number of workers can’t be in decimal rounding off to closest integer bigger than the
number.

Q7: Considering the level and chase plans given in the previous questions which of the following is
not true?

a) The cost using level strategy is 73400.

b) The cost of using chase is more than that of level strategy.
c) Total cost of hiring is more than that of layoff.
d) d) The total number of hiring is 12 during the six days.

Q8: Which of the following is not the correct consideration for optimizing the total cost of a
production plan:

a) Total Cost =inhouse production + subcontracting+hiring/layoff +inventory +backorder

b) Average inventory=(beginning inventory +ending inventory) /2

c) Average backorder=(beginning back order +closing backorder )/2

d) Total production=regular production+overtime

Q9: Customers’ view of quality is:

a) meeting the specification

b) more standardized than producers’
c) meeting the expectations
d) all of the above

Q10: Which of the following is not a dimension of product quality

a) Serviceability
b) Special features
c) Aesthetics
d) Price

Note: Questions 5, 6 and 7 had some missing information (highlighted in red), the marks for the
questions will be compensated in the final evaluation.
Week 8
Q1: A higher level of prevention costs generally leads to:

a) Increased risk of external failures

b) Lower appraisal and failure costs
c) A higher total cost of quality
d) Decreased customer satisfaction

Q2: Compared to TQM, Six Sigma is:

a) More broadly focused on continuous improvement across all aspects.

b) More statistically rigorous and data-driven for defect reduction.
c) Primarily suited for manufacturing processes, while TQM is broader.
d) Less demanding on organizational resources and easier to implement.

Q3: Shigeo Shingo, known for the "SMED" system, focused on:

a) Implementing statistical methods for quality control.

b) Applying customer-centric design principles through QFD.
c) Reducing setup times and improving changeover efficiency.
d) Developing leadership strategies for fostering employee engagement.

Q4: What is the difference between variable and attribute control charts?

a) Variable charts use data that can be counted, while attribute charts use data that can be
measured.
b) Variable charts use data that can be measured numerically, while attribute charts use data
that can be categorized.
c) Variable charts are used for continuous data, while attribute charts are used for discrete
data.
d) There is no significant difference between variable and attribute control charts.

Q5: Following are the 5 samples taken, each with 5 observations for the time taken in the machining
process. The process is known to have a standard deviation of 1 minute.

Observation Sample
1 20 23 19 21 23
2 18 22 21 18 24
3 21 21 23 22 19
4 20 24 18 23 18
5 18 19 18 18 24
Which of the following is not true:

a) The grand mean is 20.6

b) Upper control limit considering the given standard deviation is 21.9

c) Lower control limit considering the given standard deviation is 19.5

d) The process is within control

Solution 1. The grand mean is the average of all the observations.

2. UCL = 20.6 + 3*(1/sqrt(5)) = 21.9

3. UCL = 20.6 – 3*(1/sqrt(5)) = 19.26

4. As the average of individual samples are between the UCL and LCL the process is said to be within
control

Q6: Following are the 5 samples taken, each with 5 observations for the time taken in the machining
process.

Observation Sample
1 20 23 19 21 23
2 18 22 21 18 24
3 21 21 23 22 19
4 20 24 18 23 18
5 18 19 18 18 24
What is the value of R-bar

a) 2

b) 4.8

c) 5.2

d) 4.3

Solution

Observation Sample
1 20 23 19 21 23
2 18 22 21 18 24
3 21 21 23 22 19
4 20 24 18 23 18
5 18 19 18 18 24
Sample
Avg 19.4 21.8 19.8 20.4 21.6
Max 21 24 23 23 24
Min 18 19 18 18 18
Max-Min 3 5 5 5 6
Average 4.8

Q7. Data of few samples taken at regular interval in a company is as follows:

Sample No. Numbers Number of items found defective

Inspected

1 100 20
2 100 5
 3 100 8

4 100 11
5 100 16

What is the “p” value for the first sample?

(a) 0.20
(b) 0.16
(c) 0.80
(d) Cannot be determined
Solution p-value = no. of defect/ number inspected = 20/100 = 0.2

Q8: Which chart can plot the defective pieces (n number) in the output of any process?

(a) x bar chart

(b) R chart
(c) c chart
(d) p chart

Q9: Which of the following is not true:

a) Dispersion of measured data is plotted in x charts

b) Declaring a process to be out of control when it is in control is a type I error
c) P charts are used for measuring the variables
d) Assignable causes of variation are attributed to out-of-control processes

Q10: Which of the following charts is suitable for plotting the no. of cracks on a floor:

(a) x bar chart

(b) R chart
(c) c chart
(d) p chart
 POM Assignment: Week 9 Solutions
Q1: Match the following charts with their inherent probability distributions.

1. p – chart (i) Normal distribution

2. c – chart (ii) Binomial distribution
3. X bar chart (iii) Poisson distribution

a) 1 : (i), 2 : (ii), 3 : (iii)

b) 1 : (ii), 2 : (iii), 3: (i)
c) 1 : (iii), 2 : (ii), 3 : (i)
d) Any combination is possible

Q2. Data of printed sheets are taken at regular intervals using c-chart in a company is as follows:

Number of
Sample No.
defects
1 11
2 9
3 7
4 9
5 10
6 22
7 7
8 10
9 10
10 6

Considering a control chart using 3 standard deviation control limits what will be upper control limits
for the process:

a) 21.1
b) 24.4
c) 22.0
d) None of the above

Solution:

𝑐̅ = 10.1

𝑈𝐶𝐿 = 𝑐̅ + 3√𝑐̅ = 19.63

Q3: Acceptance sampling is suitable for all the following cases, except:
 a) Where, destructive inspection is required
b) Where, population is too large
c) Where, rate of production is high
d) Where, products of different specifications are being made.

Q4. A manufacturer compares the filling volumes of two different machines using separate
histograms. Machine A's histogram has a larger standard deviation than Machine B's histogram.
What can you conclude?

A. Machine A produces more bottles per hour.

B. Machine B is malfunctioning
C. Machine B's filling volume is more consistent than Machine A's.
D. The histograms don't provide enough information to compare machine performance.

Q5: Which of the following is not true

a) The shape of the histogram depends on the bin size

b) The horizontal axis of the Pareto chart represents continuous data of the number of defects
c) The Pareto chart has two Y-axis showing the numbers and percentage contribution
d) Vertical axis of the histogram shows the frequency of occurrence

Q6: In double sampling plan the value of C3 is:

A) C3 < upper limit

B) C3 > upper limit
C) Lower limit < C3 <Upper limit
D) C3 < Lower limit

Solution: Double sampling is done if the defects are found to be between the lower and upper limit
and the summation of the defects is done and compared with C3 if =it happens to be lower that C3
than the lot is accepted. Thus the value of the C3 should be more than upper limit.

Q7: A sampling plan with a low acceptance number (e.g., 0) and a high sample size is likely to have
an OC curve that:

A) Slopes quickly downwards, indicating a high probability of accepting bad lots.

B) Slopes slowly downwards, indicating a high degree of discrimination between good and bad lots.
C) Remains flat, suggesting no change in acceptance probability regardless of defect rate.
D) Cannot be determined without specific data.

Q8. A process manufactures bolts with a USL of 12.5 cm and an LSL of 11.5 cm. The sample data
shows a mean length of 12.2 cm and a standard deviation of 0.2 cm. What can you conclude about
the process capability based on the Cp value?

a) The process needs significant improvement.

b) The process is barely meeting the specifications.
c) The process has a good potential to meet specifications.
d) The Cpk value is needed for a definitive conclusion.

Solution:
12.5 − 11.5
𝐶𝑝 = = 0.8333 (𝑁𝑜𝑡 𝑐𝑎𝑝𝑎𝑏𝑙𝑒)
3 × 0.2
Based on the Cp value the process is not capable.
Since the mean of the observed sample not centered around the specification limits, even if we
consider Cpk value
12.5 − 12.2
𝐶𝑝𝑘 (𝑓𝑟𝑜𝑚 𝑈𝑆𝐿) = = 0.5 (𝑁𝑜𝑡 𝑐𝑎𝑝𝑎𝑏𝑙𝑒)
3 × 0.2
The index of 0.2 represents that the process needs significant improvement.

Q9. Which of the following is true about Central Limit theorem

A) It describes the relationship between sample size and standard deviation.

B) It predicts the behavior of the population mean as samples are drawn.
C) The sample distribution of the mean approaches a normal distribution as the sample size
increases, regardless of the population distribution.
D) It allows for the calculation of confidence intervals for any statistic.

Q10. A negative Cpk value indicates that:

A. The process mean is closer to the upper specification limit.

B. The process is performing exceptionally well.
C. The process mean is not centered between the specification limits, and there's a higher
chance of defects on one side.
D. More data is needed for calculation.
Week 10 Solution
Q1 The process of making a specific product involves molding, welding and machining. There is a
batch of 3000 such products made and among them six defects were found in molding, eleven in
welding and four in machining. What is the DPMO for the entire batch?

a) 2000

b) 6000

c) 1000

d) None of the above

Solution:

No. of defect opportunities = 3 (subprocesses) x batch size

6+11+4
DPMO = 1000000 × = 2333.33
3×3000

Q2 Consider a case of a high rework rate in the shirt stitching department, leading to delays and
production cost increase. Map the following activities with their corresponding DMAIC phases

Activities DMAIC Phases

1. Monitor the effectiveness of solutions through rework rate measurement. (D) Define

2. Develop clear pictorial instructions for sewing machines. (M) Measure

3. Brainstorm potential causes for high rework rates. (A) Analyze

4. Reduce rework rate by 30% within 3 months (I) Improve

5. Track daily rework rates for different shirt styles. (C) Control

a) 1:(C), 2:(D), 3:(A), 4:(I), 5:(M)

b) 1:(C), 2:(I), 3:(A), 4:(D), 5:(M)

c) 1:(D), 2:(M), 3:(A), 4:(I), 5:(C)

d) 1:(C), 2:(I), 3:(A), 4:(M), 5:(D)

Q3. A service industry project focuses on reducing the cycle time of a process, does it directly
contribute to the Six Sigma sigma level (DPMO)?

A. Yes, reducing cycle time always improves the sigma level.

B. No, Six Sigma primarily focuses on defect reduction, not directly on process speed.
C. The impact depends on the specific process and how cycle time reduction influences defect
rates.
D. Six Sigma only applies to manufacturing processes.
Q4. With the rise of automation and AI in manufacturing, what is a crucial aspect of quality
management to consider?

A. Ignoring human involvement entirely and relying solely on automation.

B. Implementing robust validation and verification procedures for AI-powered systems to
ensure their accuracy and reliability.
C. Reducing the focus on human quality control due to increased automation.
D. Manual oversight remains the primary method for quality control.

Q5: A widely used service quality model is SERVQUAL. What do the five dimensions of SERVQUAL
represent?

A. Price, features, brand, design, and functionality.

B. Reliability, maintainability, durability, safety, and serviceability.
C. Reliability, assurance, tangibles, empathy, and responsiveness.
D. Innovation, customization, value-added services, brand reputation, and marketing
effectiveness.

Q6: What is the role of benchmarking in QFD?

A. Setting arbitrary performance goals.

B. Comparing the product or service to the performance of competitors.
C. Focusing solely on internal historical data.
D. Ignoring industry standards.

Q7: A dine-in restaurant is an example of:

a) Low contact high customization service

b) High contact low customization service
c) Low contact low customization service
d) High contact high customization service

Q8. A hospital needs to arrange its departments for optimal patient flow and staff collaboration.
What layout approach would be most appropriate?

A. Product layout
B. Fixed-position layout
C. Process layout
D. Cellular layout

Q9: For a panel distributor the average daily demand is 4.5 panels per day and the shifts are 7.5
hours long. The total standard time required for all the tasks is 35025.1 seconds what is the cycle
time in minutes:

a) 450
b) 166.6
c) 100
d) None of the above

Solution:

Cycle time = Operating time per day/ Desired output rate = 450 Minutes/4.5 panels = 100 minute

Q10: A line with 3 tasks has the following processing times and assigned workstations:
Task A: 4 minutes (Station 1)

Task B: 2 minutes (Station 2)

Task C: 3 minutes (Station 3)

What is the idle time at Station 2 if the line operates at a cycle time of 6 minutes?

A. 0 minutes
B. 1 minute
C. 2 minutes
D. 4 minutes

Solution: Cycle time = 6 minutes

Operating time at station 2 = 2 minutes

Idle time at station 2 = 4 minutes

POM Assignment: Week 11 Solutions

Q1. Activities with the most slack are:

A. At the beginning
B. Towards the end
C. on the Critical Path
D. not on the critical path

Q2. Consider the following network:

Activity Precedence Time required

A - 6
B - 5
C A 8
D A 4
E A 3
F B,E 7
G C 5
H G,D,F 3
What is the critical time for the above network.

A. 15
B. 17
C. 18
D. None of the above

Solution:

Possible paths:

ACGH – 6+8+5+3 = 22

ADH – 6+4+3 = 13

AEFH – 6+3+7+3 = 19

BFH – 5+7+3 =15

Longest time taken by a path is 22.

Q3. Consider the following network:

Activity Precedence Time required

A - 6
B - 5
C A 8
D A 4
E A 3
F B,E 7
G C 5
H G,D,F 3

Which of the following paths has the most slack available

A. B-F-H
B. A-E-F-H
C. A-D-H
D. A-C-G-H

Solution:

Possible paths:

ACGH – 6+8+5+3 = 22

ADH – 6+4+3 = 13

AEFH – 6+3+7+3 = 19

BFH – 5+7+3 =15

Most slack is available for the smallest path i.e. ADH

Q4. Consider the following network:

Activity Precedence Time required

A - 6
B - 5
C A 8
D A 4
E A 3
F B,E 7
 G C 5
H G,D,F 3

Considering the time duration to be in days, what is the latest possible day to start activity G

A. 10
B. 11
C. 13
D. 14

Solution:

Possible paths:

ACGH – 6+8+5+3 = 22

ADH – 6+4+3 = 13

AEFH – 6+3+7+3 = 19

BFH – 5+7+3 =15

Since activity G is on the critical path, the latest and earliest date to start G will be 14th

Q5. Consider the following network.

Optimistic Pessimistic
Activity Precedence estimate Most Likely estimate
A - 5 6 10
B - 4 5 8
C A 6 8 12
D A 3 4 6
E A 2 3 5
F B,E 3 7 12
G C 2 5 8
H G,D,F 2 3 5
Which of the following is the expected critical path?

A. A-C-G-H
B. A-D-H
C. A-E-F-H
D. B-F-H
Solution:

Estimated
Most Likely time
Activity Precedence Optimistic est. (o) Pessimistic est. (p)
(m)
e=(o+4*m+p)/6
A - 5 6 10 6.5
B - 4 5 8 5.333333333
C A 6 8 12 8.333333333
D A 3 4 6 4.166666667
E A 2 3 5 3.166666667
F B,E 3 7 12 7.166666667
G C 2 5 8 5
H G,D,F 2 3 5 3.166666667

Path Time
ACGH 23.00
ADH 13.83
AEFH 20.00
BFH 15.67
As the estimated time is maximum for path ACGH, that is the critical path in this problem.

Q6. What is the standard deviation of the critical path in the above problem?

A. 1.85
B. 1.09
C. 1.71
D. None of the above

Solution:

Activity Precedence (o) (m) (p)

𝝈𝟐
A - 5 6 10 0.69
B - 4 5 8 0.44
C A 6 8 12 1
D A 3 4 6 0.25
E A 2 3 5 0.25
F B,E 3 7 12 2.25
G C 2 5 8 1
H G,D,F 2 3 5 0.25

Standard deviation of critical path = √0.69 + 1 + 1 + 0.25 = 1.71

Q7. What is the probability that the project will be completed within 25 days?

A. 0.8413
 B. 0.8781
C. 0.2023
D. 0.7022

Solution: For calculating the probability for the project to be completed within 25 days
25−23
𝑧= = 1.1655
1.7159

Calculating probability by using the Excel formula: =NORM.S.DIST(z,1) = 0.8781

Q8. There are 3 components in series being used in a machine with respective reliability of 80%,
95%, and 90%. If another component for finishing is being added in the series with reliability of
99%. The reliability of the system will

A. Increase
B. Decrease
C. Remain unchanged.
D. Cannot be determined.

Solution: Adding a new component in the series will reduce the reliability as the initial reliability
will be multiplied with the reliability of the newly added component.

Q9. A machine being used in the system takes on average 2 hours of maintenance time for every
30 hours of working, what is the total availability of the machine?

A. 1
B. .98
C. .9375
D. 1.067
𝑀𝑇𝐵𝐹 30
Solution: 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑖𝑙𝑖𝑡𝑦 = = = 0.9375
𝑀𝑇𝐵𝐹+𝑀𝑇𝑇𝑅 30+2

Q10. An asset that has been operational for 4,000 hours in a year. For that year, that asset broke
down eight times. And total time spent in repair was 200 hours, what were the MTTR and MTBF
respectively?

A. 25,500
B. 50,250
C. 30, 475
D. 25,525

Solution: MTTR = Repair time/ No. of Repairs = 200/8 = 25

MTBF = Total Time/ No. of Failures = 4000/8 = 500