OM Question Bank

Course Code: BM125
Course Title: Operations Management
Operations Overview Chapter-I
Sl no 1
Question Which of the following is a characteristic of Operations Research (OR)? a) computer aided design b) cellular manufacturing c) automated assembly d) model building Which of the following led to the widespread substitution of machine power for human and waterpower and the establishment of the factory system? a) the steam engine b) interchangeable parts c) scientific management d) the industrial revolution Characteristics of operations research (OR) include all of the following EXCEPT: a) OR approaches problems from the total systems perspective b) ORs primary focus is intuitive decision making c) ORS methodology is model building and mathematical manipulation d) OR is interdisciplinary, drawing on techniques from numerous sciences The Hawthorne Studies were aimed at getting the most production from by workers by determining: a) the optimal level of lighting b) the optimal work period between rest breaks c) the optimal number of different tasks assigned to a worker
d) the optimal number of hours in a work shift 5 Which of the following is an example of an operational level decision? a) the launch of a new-product development project b) scheduling weekly production c) the allocation of scarce materials among new and existing business opportunities d) the design of a production process for a new product Which of the following activities of Operations Managers is an example of a planning decision? a) Inspect the quality levels b) Arrange supplier and subcontractor networks c) Encourage through praise, recognition, and other intangibles d) Generate a master schedule of what products to make and when Which of the following is not generally seen as a decision area in operations management?1 a) Capacity management b) Supply chain management c) Process technology d) Financial reporting Which of the following are developments in Operations in the correct historical order? a) JIT, Operations Research, Mass Production, BPR b) Mass Production, JIT, Operations Research, BPR c) Mass Production, Operations Research, JIT, BPR d) Operations Research, Mass Production, JIT, BPR Which of the following are not inputs into the operations transformation process? a) Information b) Services c) Facilities d) Materials
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The service sector includes: a) Transportation b) Farming c) Construction d) Mining Which of the following are transforming resources a) Materials b) Customers c) Facilities d) Finished goods Which of the following divides the value of output by the value of input resources consumed? a) Activity Based Costing b) Business process Reengineering c) Balanced Scorecard d) Productivity Which of the following is not one of the four levels of the systems view? a) Events b) Underlying structures c) Mental models d) Surface Which of the following is not a perspective of the balanced scorecard? a) Financial b) Quality c) Stakeholder d) Business process In Activity Based Costing which of the following relates to the number of times a process occurs? a) Cost driver b) Resource deriver c) Activity driver Which of the following substitutes machinery for human labor in transforming inputs into outputs. a) Technology b) Management information systems c) Operations management d) Management science
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Which of the following is the area covering the study and application of the transformation process. a) b) c) d) Technology Management science Operations management Productivity management
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Manufacturers that make products to customer specifications in low volumes tend to a) remain unprofitable. b) use a make-to-stock strategy c) use a slow growth strategy. d) use a make-to-order strategy Operations strategy translates service or product plans and competitive priorities for each market segment into: a) static decisions that guide the product during its life cycle. b) decisions that are the same for each firm in an industry. c) decisions affecting the processes that support those market segments d) (a) and (b) ________________ are the fundamental activities that organizations use to do work and achieve their goals. a) Processes b) Operations c) Inputs d) Outputs Which of the following statements about productivity are correct? a) The value of the outputs produced divided by the values of the input resources used. b) Index of the output per person or hours worked. c) The value of the input resources used divided by the values of the outputs produced. d) both a) and b)
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Decisions that tend to focus on the entire organization,
cutting across departmental lines, and have long-term consequences are called a) Departmental b) Tactical c) Strategic d) Operational 23 In market analysis, the needs assessment step identifies: a) demographic factors b) product/service attributes c) psychological factors d) environmental factors The inputs to the transformation process include all of the following except a) raw material b) labor c) capital d) product Which of the following is not considered a valueadding activity? a) physical change b) storage/distribution c) information d) rework The primary purpose of all organizations is to meet customer needs and satisfy customer expectations because a) profit is not the prime motive of business for most of the organizations b) profit is a reward from satisfying customer needs c) long-term profit comes from sustained competitive advantage that is derived from consistently satisfying customers d) both b) and c) To satisfy the ultimate customer, an organization must a) define a product-service bundle to meet a targeted set of customer expectations b) develop a value-adding system capable of meeting the customer' expectations s c) develop a short-term goal of achieving
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higher sales turnover at the expense of product quality d) both a) and b) above 28 Which of the following is not typical of high-contact operations? a) quality standards are in the eye of the beholder b) facility should enhance production c) operations must be clear to customer d) customer is in the production schedule and must be accommodated Operations management is directly responsible for the satisfaction of customers through activities that include a) the design of the physical transformation process that provide the specific value a customer desires b) the design of systems for planning, scheduling, and controlling the physical work and materials flow within transformation processes c) concentrate more on sales and less on after sales service d) both a) and b) above Which of the following is not considered a valueadding activity? a) transportation b) exchange c) inspection d) duplication of efforts Which of the following is not typical of low-contact operations? a) customer is not in the service environment b) operations must be near the customer c) direct workforce need only have technical skills d) quality standards are generally measurable and hence fixed
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All of the following are criticisms of scientific management except a) it leads to increases in productivity b) it is more suited to a time when physical labor was the prominent means of production c) work is not fulfilling from a human perspective d) it was better suited for a period when the level of education of the work force was extremely limited Which of the following is not a current trend influencing the field of Operations Management? a) growth and dominance of services b) internationalization c) environmental quality d) increasing trade barriers Who among the following is credited with the development of Scientific Management? a) Frederick W. Taylor b) Walter Shewhart c) W. Edwards Deming d) Taiichi Ohno Who among the following is credited with the development of the control chart? a) Frederick W. Taylor b) Walter Shewhart c) W. Edwards Deming d) Taiichi Ohno Which of the following is not helping organizations support cross-functional decision making and communication? a) business process reengineering b) information systems c) co-locating workers d) subordinating organizational goal to individual goal achievement
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Course Code: BM125
Operations Strategy Chapter-II
Which of the following would NOT be considered an important factor affecting todays global business conditions? a) increasing global competition b) an increased presence of protected markets c) rapid expansion of high-tech production methods d) scarcity of production resources Which of the following is a characteristic of service operations? a) output can be inventoried b) capital intensive c) quality is determined with ease d) long lead times Small service firms can successfully compete with large corporations by carving out a specialty niche and having a positioning strategy that includes: a) high customer contact b) physical goods dominating intangible services c) a service design that is highly standardized d) a produce-to-order inventory policy Start-up and small manufacturers usually prefer positioning strategies with: a) standardized product, process-focused system, produce-to-stock inventory policy b) standardized product, product-focused system, produce-to-order inventory policy c) custom product, process-focused system, produce-to-order inventory policy d) custom product, product-focused system, produce-to-stock inventory policy Which of the following is NOT a major component of Operations strategy? a) allocation of resources to strategic alternatives b) technology selection and process development c) facility planning: capacity, locations, and layout planning d) employee training and education
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No
Which of the following is a characteristic of manufactured products? a) outputs cannot be inventoried b) short lead times c) low customer contact d) quality is determined with difficulty Which term describes a strategy in which operations is the long-term driver of strategy? a) External neutrality b) Externally supportive c) Internal neutrality d) Internally supportive Which of the following is not one of the five performance objectives? a) Quality b) Speed c) Flexibility d) Price Which of the following is not a type of flexibility? a) Cost b) Mix c) Volume d) Product Which of the following is an example of the benefits of excelling at a performance objective from an external perspective? a) Meet the design specification b) Reduce queues and inventories c) Minimise disruption d) Cope with changing demand Which category of costs in Operations is generally the highest? a) Part-time Staff b) Utilities c) Materials d) Full-Time Staff Which step in the Hill methodology for Operations Strategy deals with any mismatch between the
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requirements of the organizations strategy and the operations capability? a) Define corporate objectives b) Determine marketing strategies to meet these objectives c) Assess how different products win orders against competitors d) Establish the most appropriate mode to deliver these sets of products Which of the following is not a zone in the importance/performance matrix? a) Maximise b) Improve c) Appropriate d) Excess?
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Which one of the following is not one of the main stages 1 of the product/service lifecycle? a) Maturity b) Decline c) Differentiate d) Growth Which is not a characteristic of the market-based 1 approach to operations strategy? a) The organisation makes a decision regarding the markets it intends to target b) The organisation makes a decision regarding the customers within those markets it intends to target c) An assessment of the operations tangible and intangible resources and processes leads to a view of the operations capability d) The market position is translated into a list of criteria or performance objectives Which of the following is a category of process technology for operations? a) Customer b) Front office c) Mass d) Professional 1
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Which one of the following is not a strategy for achieving focus? a) Cell layout b) Process design c) Operation-within-an-operation d) Process layout A firm is productively efficient when a) it is producing its product or service at the lowest unit cost that it can. (b) it is selling at the lowest price possible. (c) it has the highest labour productivity that it can. (d) it is making what its customers want.
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All of the following are examples of economies of scale, except a) being able to employ specialist staff efficiently. (b) the effective division of labour. (c) having better communications. (d) bulk buying.
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In which of the following layout types are the valueadding resources arranged in the order in which materials and/or customers must flow to complete the product-service bundle? a) fixed-position b) product c) process d) cellular In which of the following layouts are the value-adding resources arranged in groups based on what they do? a) fixed-position b) product c) process d) cellular The disadvantage of a product layout is a) low cost per unit
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b) lack of flexibility c) low efficiency d) all of the above are disadvantages 23 In simplified systematic layout planning (SSLP), the "E" 1 stands for a) adjacency is absolutely necessary b) adjacency is especially important c) adjacency is important d) ordinary closeness is ok On an assembly line, the time allowed for each workstation to complete its portion of the work on one unit is called the a) cycle time b) production lead time c) workstation utilization d) none of the above To help visualize the line, planner often draw or print out a a) precedence diagram b) line balancing c) elemental task d) assignment rule Which one of the following DOES NOT pertain to Mass Customization? 1 b 2 No
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a) Modular design b) Standardization c) Reverse Engineering d) Delayed differentiator Which of the following is NOT one of the dimensions of 1 customer satisfaction? a) Quality b) Flexibility c) Product line d) Timeliness Which of the following is not a structural decision of 1 Operations Management? a) facilities b) quality assurance c) division of responsibilities among the value-
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adding activities d) product and service designs 29 Which of the following is not a competitive priority. a) quality b) flexibility c) timeliness d) strength of the workforce Using the service process matrix model, which of the following would describe a low customer interaction and customization, and a high degree of labor intensity? a) service factory b) service shop c) mass service d) professional service Which of the following is not a problem associated with a job shop. a) conformance quality b) flexibility c) delivery speed d) unit cost Which of the following layout types is typically used for repetitive manufacturing? a) fixed-position b) process-oriented c) product-oriented d) functional layout Which of the following layout types is typically used by a batch production process? a) fixed-position b) process-oriented c) product-oriented d) line layout 1 d 2 No
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Which of the following is an order-winning criteria for a job shop? a) high-flexibility b) reasonably low cost c) satisfactory conformance to design d) established delivery reliability
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Which of the follow is an order-winner for continuous processes? a) sufficient flexibility b) tight conformance to product design c) established design capability d) reasonable delivery speed Using the service process matrix model, which of the following would describe a low degree of customer interaction and customization, and a low degree of labor intensity? a) service factory b) service shop c) mass service d) professional service A job shop would tend to use a a) make-to-order policy b) make-to-stock policy c) assembly-to-order policy d) assembly-to-stock policy
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Course Code: BM125
Forecasting Chapter-III 1 c 1 No
1 Which of the following is a Time-Series forecasting technique? a) regression analysis b) market research c) exponential smoothing d) Delphi method 2 Which of the following models will have the least noise (random fluctuation)dampening ability when there is random variation in the data? a) moving average with number of periods = 3 b) moving average with number of periods = 4 c) moving average with number of periods = 5 d) moving average with number of periods = 6 3 Which of the following is an important operations decision area for which medium-range forecasts are the source of information? a) the level of inventory for a particular product that should be
a 4 No
d 2 No
carried in the next month b) the level of raw material that should be ordered for delivery next week c) how many maintenance workers should be scheduled to work next weekend d) how much to pay for raw materials that we expect to use early next year 4 Which of the following concepts are fundamental to short-range forecast performance? a) high cost and high quality b) high efficiency and low cost c) noise (random fluctuation) and impulse response (response to changes in historical data) d) capital and labour intensive 5 Which of the following is not used to measure how closely forecasts are matching the actual data? a) mean squared error ( MSE) b) averaging period (AP) c) mean forecast error (MFE) d) mean absolute deviation (MAD) 6 The exponential smoothing demand forecast for time period 10 equals the demand forecast for time period 9 plus: a) (the demand forecast for time period 8) b) (the observed demand in time period 8) c) (the error in the demand forecast for time period 9) d) (the observed demand in time period 9) 7 Which of the following smoothing constants ( values) would make an exponential smoothing model equivalent to a nave (simple) forecast? a) 1.00 b) 0.01 c) 0.50 d) 0.00 8 Which of the following is not a component of a time series a) Trend b) Seasonal c) Moving average d) Cyclical Which of the following is not a qualitative forecasting method? a) Delphi study 1 c 3 No
b 1 No
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b 1 No
b) Time series decomposition c) Expert judgement d) Market surveys 10 Statistical techniques that use historical data collected over a period of time to forecast the future demand for a product is called a) Delphi metnods. b) Time-series methods. c) Historical analogy. d) Linear regression method. 11 What will be the forecast for the month of April, given the actual sales for previous three months i.e January, February and March are 122, 126 and 120 respectively. Assume a three monthly weighted moving average method with weights 20%, 30%, and 50% respectively. a) 122.2 b) 122.8 c) 122.67 d) 120 12 A firm achieved actual sales of 1000 units in the month of August when the forecast was for 900 units. Calculate the sales for the month of September by using an exponential smoothing constant of 0.2 a) 980 b) 800
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c) 920
d) 1100 13 Match the following time periods and forecasting techniques employed in the most appropriate manner. A) short-range decisions B) long range decisions C) medium range decisions a) A-II, B-I, C-III b) A-I, B-III, C-II c) A-III, B-I, C-II d) A-II, B-III, C-I I. regression analysis II. time series techniques III. Delphi technique 1 d 2 No
14 A repeatable pattern of increases or decreases in demand, depending on periods of time of one year or less is a time series pattern called: a) cyclical b) trend c) seasonal
c 1 No
d) random 15 The least predictable pattern of time series variation is called: a) horizontal b) trend c) seasonal d) random 16 The least predictable pattern of time series variation is called: a) horizontal b) trend c) seasonal d) random 17 When deciding what to forecast, which of the following factors are key to an accurate forecast? a) value of product or service b) level of aggregation c) units of measurement d) both b and c above 18 Quantitative forecasting techniques include:] a) manager opinions b) consumer surveys c) exponential smoothing d) Delphi method 19 Time series analysis is most effective when used in _______ term forecasts. a) short b) medium c) long d) indefinite 20 Long term is the time horizons used for which of the following decisions? a) master production planning b) staff planning c) inventory management d) facility location 21 Judgment methods are least likely to be indicated in which of the following situations? a) a new product is being introduced b) short-term forecasts of a product with stable demand c) the underlying product technology is in transition 1 d 1 No
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d) the Delphi method is necessary 22 Data on the weekly sales of room air conditioning units were matched with the average temperature and calculations produced sample correlation coefficients, r, in the range of -0.75 and -0.83. Which of the following statements best express a conclusion that may be drawn from the values of "r"? a) as the temperature decreases, the number of room air conditioners sold decreases. b) as the temperature increases, the number of room air conditioners sold decreases c) there is no relationship between temperature and sales d) cannot be determined from the information given 23 Dave' Bar-B-Q operated a mobile kitchen that serviced construction s sites, office buildings, and public parks. Beginning in June, snow cones were added to the menu. The weekly sales figures for the previous year are given below. Assuming a weighting of 3,2,1, determine the three-period weighted moving average forecast for the 2nd week in July. 1 b 3 No
c 3 No
a) b) c) d)
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24 Linear regression was used to develop the slope and intercept values for a forecast equation in Y (sales volume) and X (customer traffic) using the data below (Sales in million dollars; Customers in thousands). Forecast the sales volume when the customer level is 22. a= -0.158; b= 0.131
a) b) c) d)
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25 Dave' Bar-B-Q operated a mobile kitchen that serviced construction s sites, office buildings, and public parks. Beginning in June, snow
cones were added to the menu. The weekly sales figures for the previous year are given below. Use exponential smoothing, a smoothing coefficient of 0.3, to forecast demand for the third week of June.
a) b) c) d)
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26 Forecasts of time series patterns that display regularly repeating upward or downward movements in demand measured in periods of less than one year (hours, days, weeks, months, or quarters) are accomplished by which of the following methods.] a) Delphi method b) exponential smoothing with trend method c) nave method d) multiplicative seasonal method 27 If for a demand process suited to =0.1 we try to fit a forecasting procedure with =0.25, the forecast will a) show large swings up and down b) follow the demand better, consequently reducing forecast errors c) show a pronounced leveled behaviour d) both (b) and (c)
a 3 No
Course Code: BM125
Allocating Resources to Strategic alternatives Chapter-IV 1 c 2 No
The opportunity cost to a business of an investment is (a) the amount of capital that has to be borrowed to be able to make the investment.
(b) the cost of all the fixed assets that are to be purchased. the next best investment now foregone. (d) the amount by which the project will have risen due to inflation, on a monthly basis.
Course Code: BM125
Process design Chapter-V
The relationship between between batch size and product variety exhibits that: a) as batch size increases and the number of product designs increases, a process-focused production system is more appropriate b) as batch size decreases and the number of product designs increases, a product-focused production system is more appropriate c) as batch size increases and the number of product design decreases, a product-focused production system is more appropriate d) as batch size increases and the number of product designs decreases, a process-focused production system is more appropriate Which of the following activities is NOT part of process planning and design? a) equipment studies b) product information surveys c) production procedure studies d) facilities studies Other things held constant, a high degree of operating leverage implies: a) a relatively small percentage change in sales will result in a small percentage change in operating income b) a relatively small percentage change in sales will result in a large percentage change in operating income c) a relatively large percentage change in sales will result in a small percentage change in operating income
1 c 2 No
1 a 2 No
1 b 2 No
d) a relatively large percentage change in sales will result in a large percentage change in operating income 4 If a subassembly company expands its operations to include assembly 1 d 1 No and marketing of finished goods, it has engaged in: a) horizontal expansion b) backward integration c) quality assurance d) forward integration Which of the following would one expect to find in a service organization with high customer contact? a) high production volume of services b) the customer is the central focus of the design of the production process c) the benefits of automation far outweigh any changes in the fundamental nature of the service d) customer is a secondary consideration in all process planning Which of the following is not used to classify services and the delivery of services? a) Vertical Integration b) Perishability c) Simultaneity d) Degree of Customer Contact Which characteristic of service systems implies heterogeneity? a) Degree of customer contact b) Back office c) Front Office d) Simultaneity Standardization is associated with which type of service? a) Professional b) Mass c) Shop d) Front office Which describes the manufacturing process types in order from high variety/low volume to high volume/low variety. a) jobbing, project, mass, batch, continuous b) mass, batch, continuous, jobbing, project c) project, jobbing, mass, batch, continuous 1 b 2 No
1 a 2 No
1 d 2 No
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1 d 1 No
d) project, jobbing, batch, mass, continuous 10 Which manufacturing process type is used to make one-off or low 1 d 1 No volume products to a customer specification? a) Mass b) Continuous c) Project d) Jobbing Which describes the service process types in order from high variety/low volume to high volume/low variety a) professional, shop, mass b) shop, mass, professional c) mass, professional, shop d) shop, professional, mass Which is not a category in the service process matrix? a) Factory b) Shop c) Customer d) Professional Which manufacturing process type would you associate with high volume car manufacture? a) Continuous b) Mass c) Batch d) Jobbing Which manufacturing process type would you associate with an oil refinery? a) Continuous b) Mass c) Batch d) Project Which service process type would you associate with a supermarket? a) Mass b) Shop c) Professional d) Project 1 a 1 No
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16 Which service process type would you associate with a restaurant? a) Mass b) Shop c) Professional d) Project 17 Which describes the category in the service process matrix which has a low degree of labour intensity and a low degree of interaction and customisation? a) Professional b) Mass c) Factory d) Service If a manufacturer uses a jobbing process type for a volume and variety market position which demands a batch process type what combination of flexibility and cost would they experience?
1 b 1 No
1 c 1 No
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b) Too much flexibility, low cost c) Too little flexibility, high cost d) Too little flexibility, low cost 19 A firm is capital intensive if (a) it is based in the capital cities of the countries it operates in. (b) it has borrowed a lot of capital from the bank. (c) it has a high proportion of fixed costs in its cost structure, rather than variable costs. (d) has a very steep total cost line on its break-even chart. 20 When a firm in the secondary sector of the economy takes over a related business in the tertiary sector, this is an example of (a) horizontal integration. (b) backward integration. (c) Forward vertical integration. (d) Forward horizontal integration 21 Which of the following is not considered an aspect of Business
1 c 3 No
1 c 2 No
1 b 2 No
Process Management?
a) ISO9000 b) Product design c) Workflow systems d) BPR 1 d 1 No
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Which of the following comes under the Simplify area of process design? a) Jobs b) Data capture c) Inspection d) Flows
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Which of the following comes under the Integrate area of process design? a) Jobs b) Data capture c) Inspection d) Flows
1 a 1 No
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Which of the following comes under the Automate area of process design? a) Jobs b) Data capture c) Inspection d) Flows Which shape represents storage in a process activity chart? a) Circle b) Square c) Arrow d) Triangle
1 b 1 No
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1 d 1 No
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Which shape represents a decision point in a process mapping diagram?
1 b 1 No
b) Diamond c) Circle d) Arrow 27 In a service blueprint which line separates the customer and service provider? 1 d 2 No
d) 28 The validation stage in using business process simulation concerns: a) Debugging the simulation b) Scenario analysis c) Process mapping d) Ensuring the simulation adequately represents the real world 29 In a service blueprint which line separates the activities of frontline personal who carry out actions not in the view of the customer and support personnel who contribute materials or services required for the service? a) Line of implementation b) Line of internal interaction 1 d 2 No
1 b 2 No
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Which of the following comes under the Eliminate area of process design? a) Jobs b) Data capture c) Inspection d) Flows 31 Which of the following is not one of the elements of the service package? a) Explicit services b) Product c) Facilitating goods
1 c 2 No
1 b 1 No
d) Implicit services 32 Which of the following is the correct sequence of steps in the design process? a) Feasibility study, idea generation, preliminary design, final design b) Feasibility study, preliminary design, idea generation, final design 1 d 2 No
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Which element of the cost-volume-profit equation refers to the number of units produced? a) TC b) FC c) Xs d) Xp
1 d 2 No
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1 a 1 No Which of the following ensures that the design meets the performance characteristics that are specified in the product concept? a) Functional design b) Form design c) Production design d) Service design Which of the following ensures that the design takes into consideration the ease and cost of manufacture of the product? a) Functional design b) Form design c) Production design d) Service design Which of the following takes into consideration the design of the aesthetics of the product? a) Functional design b) Form design c) Production design d) Service design 1 c 1 No
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1 b 1 No
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Which of the following is a systematic approach to identifying the 1 b 2 No cause and effect of product failures? a) Concurrent design b) Failure mode and effect analysis c) Value engineering d) Quality functional deployment
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Which of the following aims to eliminate unnecessary features and functions of the product? a) Concurrent design b) Failure mode and effect analysis c) Value engineering d) Quality functional deployment
1 c 2 No
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Which of the following is a structured process that translates the voice of the customer into technical design requirements? a) Concurrent design b) Failure mode and effect analysis c) Value engineering d) Quality functional deployment
1 d 2 No
39 External economies of scale are (a) savings that are made possible by outside agencies. (b) savings that can be made in distribution and selling. (c) savings that are available to a firm as a result of the concentration of an industry in a region. (d) savings that can be made in export markets only. 40 Outsourcing achieved by companies that contract with other firms for most of their production and for many of their other functions result in: a) virtual corporations b) network companies c) electronic commerce d) vertical integration 41 Which of the following conditions are not generally associated with
1 c 3 No
1 b 1 No
1 a 2 No
a job process? a) workforce with highly specialized skills b) low product or service volume c) relatively high customization d) processing of jobs on relatively general-purpose machinery 42 Low service volumes typically dictate the following process decisions. a) Less resource flexibility b) More vertical integration c) Less capital intensity and automation. d) Relatively low customization 43 When a company decides to make a component that requires raw materials (make or buy decision), the company has engaged in: a) backward integration b) forward integration c) horizontal integration d) outsourcing 44 Outsourcing provides certain advantages to some companies. Which of the following factors would not support outsourcing? a) low volume of product b) high demand in areas of core competencies c) global competition d) information technology 1 c 2 No
1 a 2 No
1 b 2 No
45 E-commerce has intensified customer involvement in production/service process in which of the following ways? a) automation b) product selection c) workforce reduction d) both a) and c) 46 The result of a firms splitting large plants, which produced all the companys products, into several specialized smaller plants is a) focused factories b) plants within plants c) work cells d) modular production
1 b 2 No
1 a 2 No
47 Reengineering is the fundamental rethinking and radical redesign of processes to improve performance dramatically in terms of: a) cost b) employee turnover c) speed d) both a and c 48 Which of the following techniques are not a systematic approach to analyzing a process? a) flow diagrams b) venn diagrams c) process charts d) simulation 49 A high volume process typically indicates which of the following decisions? a) less vertical integration b) a line or continuous process c) more resource flexibility d) both a and c 50 Mass customization challenges the manager to balance factors of volume and customization in a cost effective manner. Which approach will help resolve the issues? a) highly trained specialists b) outsourcing c) flexible automation d) fixed automation 51 What would be the likely process choice for serving lunch in a typical fast-food restaurant? a) project b) job c) continuous d) line
1 d 2 No
1 b 2 No
1 b 1 No
1 c 2 No
1 d 1 No
Course Code: BM125
Location and Layout Chapter-VI 1 C 1 No
1 Which of the following is a characteristic of product layouts? a) workers must be highly skilled b) products are in the production system for relatively long periods
of time c) can accommodate only one or two product designs d) machines are arranged according to the type of process being performed 2 Which of the following is not an operations layout type? a) Shop b) Process c) Product d) Cell Which of the following layout types is associated with a restaurant? a) Fixed Position b) Process c) Product d) Cell 1 a 1 No
1 a
1 No
Which of the following layout types is associated with the technique of line 1 c balancing? a) Fixed Position b) Process c) Product d) Cell Which of the following layout types is associated with a supermarket? 1 b a) Fixed Position b) Process c) Product d) Cell Which of the following layout types is associated with a cafeteria with multiple serving areas? a) Fixed Position b) Process c) Product d) Cell Which of the following techniques would you use to identify families of parts? a) Line balancing b) Process mapping c) Relationship charts 1 d
2 No
1 No
2 No
1 d
2 No
d) Production flow analysis 8 Which of the following layout types is associated with car assembly? a) Fixed Position b) Process c) Product d) Cell 1 c 1 No
Which of the following layout types is also called a line layout? a) Fixed Position b) Process c) Product d) Cell 10 Which is the correct order of layout types from low volume/high variety to high volume/low variety a) Fixed position, process, cell, product b) Fixed position, cell, process, product c) Fixed position, product, process, cell d) Process, fixed position, cell, product Economies of Scale is defined as: b) The expansion of a facility until the lowest average c) The equalising of the capacity of a number of sequential
1 c
1 No
1 a
2 No
11
1 b
2 No
unit cost is met processes
d) Long-term contractual arrangements made with suppliers to supply goods and services
12
Balancing capacity is defined as: a) The ability to produce many products in one highly flexible facility b) The expansion of a facility until the lowest average unit cost is met c) The equalising of the capacity of a number of sequential processes d) Long-term contractual arrangements made with suppliers to supply goods and services Supply-side influences on the facility location decision include:
1 c
2 No
13
1 d
2 No
a) Distribution costs
d) 14 Demand-side influences on the facility location decision include: a) Distribution costs b) Labour costs c) Energy costs d) Labour skills Which of the following techniques can be used to determine the location of a distribution centre by minimising distribution costs. a) Weighted scoring b) Centre of gravity method c) Locational cost-volume analysis d) (a) and (c) 16 Which of the following techniques can be used to indicate when a particular location is superior for a particular volume level by analysing a mix of fixed and variable costs. a) Weighted scoring b) Centre of gravity method c) Locational cost-volume analysis d) (a) and (b) 1 c 2 No 1 d 2 No
15
1 b
2 No
17 A systems software expert and an applications software expert have been assigned as a team to design, implement, and test the interface for a new software product. Which economic activity center location dimension should receive highest priority? a) relative location b) absolute location c) temporary location d) permanent location
1 a
2 No
18 When a company creates assemblies from raw materials and subsequently assembles them into products with other parts and assemblies, its layout will be which of the following (select the best answer)?
1 d
3 No
a) b) c) d) 19
process product fixed hybrid 1 a 2 No
Economies of Scope is defined as: a) The ability to produce many products in one highly flexible facility b) The expansion of a facility until the lowest average unit cost is met c) The equalising of the capacity of a number of sequential processes d) Long-term contractual arrangements made with suppliers to supply goods and services
20 A disadvantage of global operations is which of the following? a) sharing proprietary technology b) telecommunication technology c) nationalization d) a and c above
1 d
3 No
21 Which of the following factors would be a performance consideration in facility layout planning? a) access to finished goods inventory b) proximity to external suppliers c) process capability d) labor skill level 22 The two most important factors that dominate location decisions for manufacturing are: a) proximity to markets and favorable labor climate b) quality of life and proximity to suppliers c) infrastructure costs and proximity to parent company facilities d) favorable labor climate and proximity to suppliers
1 a
3 No
1 a
3 No
23 The concept of critical mass is associated with which of the following service location factors: a) proximity to customers
1 b
3 No
b) location of competitors c) Transportation costs d) site visibility
24 Which of the factors below might be a potential disadvantage of on-site expansion? a) onset of diseconomies of scale b) hiring of new labor c) reduced construction time and cost d) keeping management together
1 a
3 No
25 A quantitative method used to evaluate single locations based primarily on proximity is called: a) Break-even analysis b) transportation method c) preference matrix d) load-distance method
1 d
3 No
26 A quantitative method used to evaluate multiple locations based on total cost of 1 a product or service operations is called: [Hint] a) Break-even analysis b) transportation method c) preference matrix d) load-distance method
3 No
27 The transportation method is a technique for location analysis that is categorized as which type of computer-based model? a) heuristics b) simulation c) optimization d) artificial intelligence 28 A fixed position layout is best for: a) assembling an automobile b) oil refinery c) laundering a shirt d) building a battleship
1 c
2 No
1 d
2 No
Course Code: BM125 1
Aggregate Planning Chapter-VII 1 c 1 No
Which of the following shows how many products or services are planned for each time period: a) Aggregate plan b) Demand profile c) Master production schedule d) Rough-cut capacity plan Which of the following takes information from the MPS to evaluate the feasibility of the MPS? a) Aggregate plan b) Demand profile c) Master production schedule d) Rough-cut capacity plan Which of the following specifies such aspects as overall production rate and size of the workforce required to meet the demand profile? a) Aggregate plan b) Demand profile c) Master production schedule d) Rough-cut capacity plan Which of the following takes information from the MRP system to calculate workloads for critical work rganiz or workers? a) Aggregate plan b) Master production schedule c) Rough-cut capacity plan d) Capacity requirements plan Which of the following identifies all the components necessary to produce a scheduled quantity of an assembly? a) Master production schedule
No
No
No
No
b) Bill of materials c) Inventory status file d) Demand profile 6 Which of the following provides a plan for the quantity and timing of when orders are required? a) Master production schedule b) Bill of materials c) Inventory status file d) Demand profile 7 Which of the following provides information on the identification and quantity of items in stock? a) Master production schedule b) Bill of materials c) Inventory status file d) MRP reports Which of the following provides a single solution from a single supplier for resource planning? a) MRP b) MRP II c) DRP d) ERP 1 c 1 No 1 a 1 No
No
10
Which of the following manages the linkages between elements of the supply chain beginning with an analysis of demand at each customer service location? a) MRP b) MRP II c) DRP d) ERP If the cycle time for a process is 3 minutes what is the output rate? a) 10 units/hour b) 20 units/hour c) 30 units/hour d) 40 units/hour
No
No
11
In small batch manufacturing which is usually the largest element in the process lead-time? a) b) c) d) Transportation time Setup time Process time Queue time
No
12
1 In OPT, the drum refers to: a) The bottleneck resource that determines the rate of demand b) Inventory c) Production schedule determining the rate of output from the bottleneck machine d) Time buffer In OPT, the rope refers to: a) The bottleneck resource that determines the rate of demand b) Inventory c) Production schedule determining the rate of output from the bottleneck machine c) Time buffer Long-term capacity planning deals with which of the following factors? a) investment in new facilities b) work-force size c) inventories d) subcontracting 1
No
13
No
14
No
15
Input measures of capacity are preferred when: a) high volume processes b) flexible flow processes c) low customization d) line flow processes
No
16
The maximum output that a process or facility could achieve under ideal conditions is called: a) rated capacity b) effective capacity c) peak capacity d) normal capacity Operation at peak capacity involves: a) sustained low utilization rates b) marginal methods of production c) maximum output under normal conditions d) stockless production Economies of scale are achieved when: a) fixed costs are spread over more units b) cubic volume of facility construction increases in proportion to its surface area c) levels of managerial control are added d) a and b above Larger capacity cushions, to buffer against uncertainty in demand, may be avoided by: a) high levels of production quality b) high levels of skill specialization in the workforce c) high levels of inventory d) both b and c above A systematic approach to capacity decisions includes which of the following steps? a) identification of capacity gaps b) identification to alternatives to the base case c) match each of the top competitors in product features, functions and costs d) both a and b above Which of the following tools are of least use in capacity planning in the presence of uncertainty and variability? a) process flowchart b) simulation models c) waiting line models d) decision trees When evaluating alternative capacity decisions, qualitative concerns excludes: a) technology change
No
17
No
18
No
19
No
20
No
21
No
22
No
b) cash flow c) uncertainties about demand d) competitive reaction 23 Under ideal conditions, a picture frame manufacturing 1 facility can produce 480 frames per day. Under normal conditions, the company schedules 135 frames per day. Current market conditions and production strategy have combined to limit production to 120 frames per day. What is the approximate utilization relative to effective capacity? a) 25% b) 75% c) 89% d) 112% Under ideal conditions, a picture frame manufacturing 1 facility can produce 480 frames per day. Under normal conditions, the company schedules 135 frames per day. Current market conditions and production strategy have combined to limit production to 120 frames per day. If the production manager sets the effective capacity at 100 frames per day, what is the resulting capacity cushion? a) 11% b) 26% c) 74% d) 44% When the Gantt Chart is used for monitoring jobs, it displays a) job identifier b) scheduled activity time c) job cost data d) both a and b A service firms aggregate plan links the firms strategic goals and objectives with detailed operational plans called: a) production plan b) staffing plan c) work-force schedule d) master production schedule Which of the following statements does NOT apply to a production plan? 1 c 5 No
24
No
25
No
26
No
27
No
a) plans are consistent with companys strategic goals and objectives b) enables the assessment of financial and physical resource needs without excessive detail c) serves as a bridge between the strategic and operational plans d) provides a view of detailed work-force schedules 28 A for-profit service firm may expect to encounter which of the following sequence of plans? a) business plan; staffing plan; work-force schedule b) business plan; production plan; work-force schedule c) financial plan; staffing plan; master production schedule d) Annual plan; production plan; master production schedule The operations area input to the aggregate plan includes: a) demand forecasts b) cost data c) work-force capacities d) product design changes Aggressive alternatives for coping with demand requirements include: a) anticipation inventory b) creative pricing c) employee hiring and layoffs d) use of subcontractors A reactive strategy that is sometimes called the capacity strategy may be characterized as: a) Chase #1: vary work-force level to match demand b) Chase #2: vary output rate to match demand c) Level #1: constant work-force level d) Level #2: constant output rate The aggregate planning strategy that is most likely to impact the productivity of manufacturing workers, adversely, is:] a) hiring of temporary workers b) use of overtime c) layoff of workers d) building anticipation inventory 1 a 3 No
29
No
30
No
31
No
32
No
33
Identify the most desirable customer service strategy for a hospital emergency room, from an organizational perspective. a) appointments b) reservations c) backlogs d) greatest need (triage)
No
34
Which of the following statements are true about 1 anticipation inventory? a) inventory increases during periods of light demand b) use of anticipation inventory is a reactive alternative to arrive at an acceptable aggregate plan c) increase in anticipation inventory leads to increases in pipeline inventory d) both a and b When following a utilization strategy, which alternative relies on external sources of production? a) overtime/undertime b) subcontracting c) back orders d) stockouts A major department store initiates a business plan that gets translated into an operational plan called a _______________. a) production plan b) staffing plan c) master production schedule d) work-force schedule An appliance manufacturer initiates a business plan that gets translated into an operational plan called a _______________. a) production plan b) staffing plan c) master production schedule d) work-force schedule Which of the following items represents independent demand? a) radiators b) hub caps c) cars 1
No
35
No
36
No
37
No
38
No
d) axles 39 Which of the following is not a benefit of an MRP system? a) reduce inventory levels b) utilize labor and facilities better c) improve customer service d) forecast finished goods demand Which of the following is an example of dependent demand for manufactured goods? a) Pick-up truck b) refrigerators c) hotel rooms sold d) hospital bed sheets The total demand for a component item is derived from: a) the calculation of demand based of the demand of the parent item. b) the statistical forecast of the component demand. c) both a and b d) the lead time in days multiplied by the average daily demand for that component An MRP system provides which of the following advantages? a) automatic update of the dependent demand and replenishment schedules of components when parent schedules change. b) statistical forecast of component demand c) smoothing of lumpy demand d) speedier new product introduction into the market The key inputs to an MRP include: a) engineering drawing of the product b) process chart c) inventory record database d) both a and b 1 d 3 No
40
No
41
No
42
No
43
No
44
An item that is assembled from two or more 1 components and is also categorized as WIP is described as a(n) _________________. a) end item b) intermediate item c) subassembly d) purchased item
No
45
A component that has one or more parents and no components is most likely to be a(n) ________________. a) end item b) intermediate item c) subassembly d) purchased item Which of the following is NOT an inventory transaction? a) scheduled receipts b) canceled orders c) verifying scrap losses d) storage space limitations
No
46
No
47
In a facility using a make-to-order strategy, the 1 planning lead-time factor with the greatest variability is _________________. a) setup time b) process time c) materials handling time between operations d) Waiting time The listed lot sizing method that best minimizes the inventory levels is: a) Economic Order Quantity b) Periodic Order Quantity c) Lot for Lot d) Not enough information given 1
No
48
No
49
Which of the following statements are true about action 1 notices? a) They automatically trigger electronic release of orders. b) They are issued when there is a nonzero quantity in the action bucket. c) They are generated each time the MRP system is updated. d) both b and c Which statement about capacity requirements planning (CRP) is NOT true? a) CRP systems adjust the order release time to prevent a workstation from exceeding its capacity. b) CRP systems access inventory records to 1
No
50
No
determine when planned orders or scheduled receipts will reach a workstation. c) CRP systems enable the identification of critical workstations. d) The purpose of CRP is to match THE material requirements plan with the plants production capacity. 51 Which of the following statements is not true regarding developing an MPS? a) The on-hand inventory for the beginning of the period must be known. b) The on-hand inventory must be prevented from becoming negative. c) When customer orders booked are known, it will always be used in the on-hand inventory calculation. d) Order policy and lead-time must be known. Which of the following is not needed to develop an MPS? a) Bill of materials b) Beginning inventory of hand c) Projected requirements d) Order policy Which of the following information can be obtained from an MPS?] a) Dependent demand b) Planning time fence c) Demand time fence d) Available-to-promise quantities The product lead-time is used to determine the: a) forecast b) MPS start c) MPS quantity d) projected on hand inventory 1 c 4 No
52
No
53
No
54
No
Course Code: BM125
Fundamentals of Inventory Control Chapter- IX
Which of the following is NOT a fundamental reason to
No
keep inventory levels low? a) it costs to insure, finance, store, and manage inventories b) high inventories result in higher pilferage costs c) inventories represent a form of waste d) high in-process inventories hide production problems 2 In fixed order period systems, order quantity is equal to: a) inventory level upper inventory target + estimated demand during lead time b) inventory level upper inventory target estimated demand during lead time c) upper inventory target + inventory level + estimated demand during lead time d) upper inventory target inventory level + estimated demand during lead time Which inventory model is useful when products are ordered from a production department within the organization itself? a) basic economic order quantity model b) economic order quantity for production lots model c) economic order quantity with quantity discounts model d) fixed order period model 1 d 2 No
No
One of the basic assumptions underlying the EOQ model is 1 that: a) The demand pattern follows a normal distribution over the order cycle. b) The purchase price per unit varies depending upon the quantity ordered. c) Replenishment is instantaneous at the expiration of the lead time. d) The model makes allowance for stockout by including an understocking cost. Which of the following inventory is created when material is being transported between production stages? a) Anticipation b) Pipeline 1
No
No
c) Cycle d) De-coupling 6 Which of the following inventory is created when producing to stock for an increase in demand due to seasonal factors a) Anticipation b) Pipeline c) Cycle d) De-coupling Which of the following inventory is created when producing multiple products from one operation in batches? a) Anticipation b) Pipeline c) Cycle d) De-coupling In the ABC inventory classification system which category of items account for the largest proportion of expenditure a) A items b) B items c) C items d) (b) and (c) Which of the following inventory models can be used to calculate the order amount in a fixed order quantity inventory system? a) ROP b) EOQ c) FOI d) JIT Which of the following inventory models can be used to calculate the order amount in a fixed order period inventory system? a) ROP b) EOQ c) FOI 1 a 1 No
No
No
No
10
No
d) JIT 11 Which of the following is not taken into account when calculating the safety stock level? a) Order level b) Cost due to stock-out c) Variability in rate of demand d) Variability in delivery lead time Which of the following is not an assumption of the EOQ inventory model? a) Constant demand b) Variable ordering cost c) Delivery lead time does not vary d) The item cost does not vary with the order size The equation for annual ordering costs in the EOQ model is: a) Q/2*CH b) D/Q*CO c) Q/ CO*Q d) Q/D*CH 14 In a fixed order period inventory system orders for: a) Fixed quantities are placed at fixed time intervals b) Fixed quantities are placed at variable time intervals c) Varying quantities are placed at fixed time intervals d) Varying quantities are placed at variable time intervals 1 c 1 No 1 a 2 No
12
No
13
No
15 Aall of the following are justifications for holding large stocks of raw materials, except (a) the seasonal supply of materials such as
No
coffee beans or even garden peas. (b) in anticipation of a future shortage and rapid rise in price. large quantities are available on the market. (d) to take advantage of significant bulk buying reductions.
Purchase Management Chapter IX 1 d 2 No
Subcontracting networks is defined as: a) The ability to produce many products in one highly flexible facility b) The expansion of a facility until the lowest average unit cost is met c) The rganizati of the capacity of a number of sequential processes d) Long-term contractual arrangements made with suppliers to supply goods and services
Course Code: BM125
Job design Chapter-X 1 b 3 No
Which of the following is NOT a sign that labour shortages are hitting a company. (a)The need to outsource part of its production. (b) A lack of accurate records as to staff training.
The introduction of university place sponsorship. (d) An increase in basic rates of pay for current employees. 2 In the job characteristics model which of the desirable characteristics of a job leads to a desirable mental state in terms of responsibilities for the outcomes of work? a) Skill variety b) Task identity c) Task significance d) Autonomy In the job characteristics model which of the desirable characteristics of a job leads to a desirable mental state in terms of knowledge of the results of work? a) Skill variety b) Task identity c) Task significance d) Feedback Which of the following involves the horizontal integration of tasks in a job? a) Job rotation b) Job enlargement c) Job enrichment d) Job evaluation Which of the following involves the vertical integration of tasks in a job? a) Job rotation b) Job enlargement c) Job enrichment d) Job evaluation 6 Which of the following involves a worker changing job roles with another worker? a) Job rotation b) Job enlargement 1 a 1 No 1 d 2 No
No
No
No
c) Job enrichment d) Job evaluation 7 Which of the following relate to the implementation of empowerment in terms of the degree to which an employee can influence outcomes of their direct work environment? a) Competence b) Self-determination c) Strategic autonomy d) Impact Anthropometric data concerns: a) Excessive noise levels b) Level of illumination c) Physical attributes of a human being d) Humidity Which of the following job design techniques results in high-speed and low-cost production for high volume repetitive type of operations? a) job rotation b) job enrichment c) job specialization d) job enlargement 1 d 3 No
No
10
Hotel Ritz is known all over the world for its excellent 1 customer service. The management allows its workforce a degree of freedom to make decisions on courses of action and allowances that might be required to heed to reasonable requests from its customers. In short we can say that Ritz practices: a) Job enlargement b) Employee empowerment c) Employee participation d) Changing of work schedules
No
Course Code: BM125
Work Measurement Chapter-XI 1 a 2 No
Method study concerns: a) Dividing and rganizat a job b) Individual human motions that are used in a job task c) Determining the amount of time a worker spends on various activities d) Providing standard times for micromotions such as reach, move and release
The predetermined motion time system concerns: a) Dividing and rganizat a job b) Individual human motions that are used in a job task c) Determining the amount of time a worker spends on various activities d) Providing standard times for micromotions such as reach, move and release Work sampling concerns: a) Dividing and rganizat a job b) Individual human motions that are used in a job task c) Determining the amount of time a worker spends on various activities
No
No
d) Providing standard times for micromotions such as reach, move and release A time study of an assembly line worker in a two 1 wheeler plant produced the following results: Cycle time of 2.50 minutes; worker performance rating of 90%; average allowance for the activity 10% of the job time. What is the standard time in minutes? a) 2.50 b) 2.25
1.5
No
c) 2.03 3.08. 5 Under which of the following broad categories of work measurement methods does Maynard Operations Sequence Technique (MOST) fit into? a) Work sampling b) Standard data c) Predetermined Motion Time Study Employee self-timing The output of a particular worker or department over a specific period of time, is divided by the number of work hours expended, to arrive at the normal time. What is this method of work measurement called? a) Work sampling b) Standard data c) Employee self-timing Historical analysis Formal methods of work measurement excludes which of the following? a) time study method b) systems approach c) predetermined data approach d) work sampling method When implementing the time study method, all observed times for the processing of a work element are averaged to create the select time except: a) the smallest value b) the largest value c) an irregular occurrence d) most frequently occurring value The work measurement method that is most often used for setting time standards for a job is: a) the elemental standard data approach. b) the work sampling method. c) the time study method. d) the predetermined data approach. The work measurement method that eliminates the need for time studies is: a) the elemental standard data approach. b) the work sampling method. 1 c 2 No
No
No
No
No
10
No
c) the time study method. d) the predetermined data approach. 11 Disadvantages of the predetermined data approach includes: a) the ability to set standards for new jobs before production begins. b) the need to break work into micromotions. c) the reduction of the sources of error inherent in time studies. d) the reduction of the need for performance ratings. The work measurement method that is not usually used for setting standards for repetitive, well-defined jobs is: a) the elemental standard data approach. b) the work sampling method. c) the time study method. d) the predetermined data approach 1 b 3 No
12
No
Course Title: Operations Operations Technology Management Chapter- XI Which of the following are NOT a benefit thought to 1 b 2 accompany the introduction of technology. (a) Improved efficiency and reductions in waste. (b) Increased strains in industrial relations. The introduction of new and better products. (d) Advances in communication.
No
Which of the following are systems that integrate individual items of automation to form an automated manufacturing system? a) CAD b) CAPP c) CIM d) FMC
No
Which of the following transmit a process plan of how parts will be manufactured to a machine tool? a) CAD b) CAPP c) CIM d) FMC Which of the following are systems that transport material on driverless vehicles to various locations in a factory? a) CAD b) CAPP c) CIM d) AGV Which of the following allows a designer to create drawings on a computer screen to assist in the visual design of a product or service? a) CAD b) CAPP c) CIM d) FMC
No
No
No
Which of the following automates product and process design, planning and control and manufacture of a product? a) CAD b) CAPP c) CIM d) FMC Which of the following is an example of an operational information system: a) Transaction processing systems b) Information reporting systems c) Expert systems d) Decision support systems Which of the following represents web-based transactions between an rganization and consumers? a) B2B
No
No
No
b) B2C c) C2B d) C2C 9 Buy-side e-commerce refers to: trading with customers b) Transactions involving selling products to an organizations customers c) All electronically mediated transactions between an organization and third parties d) Transactions to procure resources needed by an organization from its suppliers 10 M-business refers to: trading with customers a) When consumers initiate 1 C 2 No a) When consumers initiate 1 D 2 No
11
12
Which of the following is not an application within a CRM system? a) Sales force automation b) Product and process design c) Customer data analysis d) Sales order processing Developing countries have a vested interest in stimulating _____, because without it, a country can be stuck in labor-intensive industries. a) b) c) d) flexible manufacturing neural networking management science technology transfer
No
No
13
Architects and interior designers can reduce time needed for manual drafting and design by using a) CAD.
No
b) JIT. c) MBO. d) TQM. 14 _____ use(s) computer software to imitate the structure of brain cells and connections between them and can distinguish trends too subtle or complex for human beings. a) Expert systems b) Neural networks c) Groupware d) Shareware 15 Group decision making can be facilitated by a) neural systems. b) expert networks. c) groupware. d) robotics. All of the following are characteristics of a management information system except a) b) c) d) 17 focus on data. arrangement. provides information. purpose. 1 D 1 No 1 c 1 No 1 b 1 No
16
No
In _____, a single machine can use computer software to produce different products at competitive prices. a) b) c) d) reengineering computer-aided design expert systems flexible manufacturing
18
Technologies reflect what people are working on and 1 what they are using to do work. Which of the following is not a typical classification of technology? a) product technology b) information technology c) exotic technology d) process technology
No
19
Rapidly changing technology necessitates intelligent, informed decisions about adopting new technologies. Which of the following considerations should be applied to the adoption decisions? a) a new technology should have the potential to increase the value of a product or service b) create a first-mover advantage of large market share c) a new technology should have the potential to increase the lead time for delivery of a product or service d) both a and b above The Distribution process, in the supply chain, includes which of the listed process technologies? a) materials handling b) media technology c) CIM d) CAD Which of the following is not a benefit resulting from the adoption of process technology? a) reduced human error b) improved product quality c) quicker delivery time d) larger, higher quality inventories
No
20
No
21
No
22
The ability to perform various tasks independent of human control has been attributed to which of the following? a) blue-collar workers b) contract workers c) steel-collar workers d) highly skilled workers Materials handling covers the following processes except which of the following? a) moving an assembly b) drilling a hole c) unloading a heavy package from the trailer d) stacking the pallets When encountering bottlenecks in a process, the AGV
No
23
No
24
No
generally responds in what manner? a) re-routes materials to alternative workstations b) halts the process and sounds an alarm c) fixes the problem causing the bottleneck d) both b) and c) 25 Which of the statements is/are true regarding the flexible manufacturing cell (FMC)? a) does not have a computer-controlled materials handling system. b) employs workers as substitutes for scaled-down FMS operations. c) scaled-down version of a FMS. d) both a and c Recent studies in the metalworking industry show the largest investment in CIM technology is in which class of systems? a) CAD b) AGV c) robots d) NC machines CAD is a component of CIM, which facilitates what activities? a) design of new parts of products b) design of production processes c) controls the functions of AGVs d) programming industrial robots Which of the following are not true about CAD/CAM systems? a) less error-prone than humans b) eliminates need to build prototypes c) requires duplicate effort between engineering and manufacturing d) translates design specifications into manufacturing machine instructions Which of the following are true about numerically controlled machines? a) NC machines are pre-programmed to drill, turn, bore and mill b) NC machines are the most commonly used form of flexible automation c) both a and b 1 d 3 No
26
No
27
No
28
No
29
No
d) NC machines are cheaper, easier to operate and maintain
Course Code: BM125
Inventory Management Dependent demand Chapter- XIII 1 c 3 No
1 Which one of the following is NOT a desirable characteristic for a production system when considering an MRP system? a) relatively short and reliable lead times for materials purchased from suppliers b) accurate computerized bills of material and inventory status files for all end items and materials c) production processes requiring short processing times d) an effective computer system 2 A system built around material requirements planning that also includes production planning, master production scheduling, and capacity requirements planning is: a) closed-loop MRP b) MRP II c) Modular MRP d) Manufacturing resource planning 3 The use of EOQ in MPS and MRP is costly because: a) only period order methods are appropriate in situations where lumpy demands exist b) although often applied, all assumptions of EOQ model are truly met c) EOQ uses gross requirements in its calculations instead of net requirements d) Lumpy demands usually make EOQ less cost effective than other methods 4 MRP results in reduced labour, material, and variable overhead costs for all of the following reasons EXCEPT: a) increased efficiency of physical movement of materials b) reduced number of stockouts c) increasing production capacity by decreasing
a 1 No
d 3 No
c 3 No
throughput
d) reduced confusion and planning delays 1 a 1 No
5 The end result of lot-sizing decisions is the: a) planned order receipt line of the MRP schedule b) purchase commitment report c) net requirements line in the MRP schedule d) purchase order 6 When demand is dependent which of the following is the most appropriate planning policy? a) Resource-to-order b) Make-to-order c) Make-to-stock d) Assemble-to-order Which of the following has the highest P:D ratio? a) Resource-to-order b) Make-to-order c) Make-to-stock d) Assemble-to-order Why would finite loading not be used? constraints a) The upper limit of capacity is fixed by physical b) It is not possible to limit demand c) d) There is a policy of limiting availability to the
a 2 No
c 2 No
b 2 No
market
What is an advantage of using a push system over a pull production 1 system? a) Eliminates buffers between production stages b) Motivates people to find the root cause of problems c) Outputs only in response to demand d) Enables production to continue even if a major disruption in the supply chain 1
d 2 No
10 Periodic review systems are referred to as: a) periodic reorder system b) fixed interval reorder system
c 2 No
c) both a and b d) fixed quantity order system 11 Which of the following are not advantages of a periodic review system? a) lower safety stock b) convenient administration of inventory control c) may permit combining orders to common suppliers d) the cost involved in constant review can be saved 12 Inventory position involves consideration of: a) scheduled receipts b) backorders c) both a and b d) order lead time 1 a 2 No
c 2 No
13 For What percentage of the time will the condition of "no safety stock" 1 adequately cover the demand for the item? a) 10% b) 50% c) 90% d) 70% 14 Inventory holding (or carrying) cost is the variable cost of keeping items on hand, including: a) term negotiation b) interest c) shrinkage d) both b and c 15 Potential consequences of a backorder are: a) loss of future sales b) need to compensate customer for the inconvenience c) both a and b d) increased customer satisfaction level 16 Potential consequences of a backorder are: a) loss of future sales b) need to compensate customer for the inconvenience c) both a and b d) increased customer satisfaction level 17 Which of the following statements apply to the time between orders (TBO) for a particular lot size (Q)? a) TBO is the average elapsed time between receiving (or placing) 1
b 4 No
d 2 No
c 2 No
c 3 No
d 4 No
replenishment orders of Q units b) TBO is the demand per period divided by Q c) TBO is the reciprocal of the number of orders per period d) Both a) and c) 18 The inventory position (IP) measures the item' ability to satisfy future s demand. The calculation of IP excludes consideration of: a) On-hand inventory b) Scheduled receipts c) Backorders d) Market demand for the product 19 In addition to safety stock, the safety time and the safety capacity are also being used in the industry. With respect to the latter two, which of the following is TRUE? a) Safety capacity, while it is an alternative to safety stock, may also add to the inventories. Use of safety time may also lead to an addition to the inventories. b) Use of safety time never adds to inventories, but the use os safety capacity may increase the inventories. c) Use of safety capacity does not add to inventories, but the use of safety time may result in additional inventories. d) Neither the use of safety capacity nor the use of safety time ever adds to the inventories. 20 Period order quantity is a) the quantity to be ordered every period b) the order quantity expressed in number of periods of supply c) the number of periods, at the end of which the order for the calculated quantity is placed d) the economic order quantity 1 d 2 No
1.5 c 5 No
b 3 No
Course Code: BM125
ERP Chapter-X
Identify the statement that does not typify e-commerce. a) the paperless exchange of business information b) the application of information and communication technology anywhere along the entire supply chain of business processes
No
c) encompasses business-to-business as well as business-to-consumer d) limited to the Internet and Web-based systems to perform transactions 2 Identify the statement(s) that are not true regarding an 1 intranet. a) Contained within a firewall b) forms an internal, corporate-based Internet network c) enables general access by net surfers d) connects an organizations various electronic systems Which of the following statements is contrary to the design principles of an ERP? a) revolves around a single comprehensive database b) business transactions must be entered in each of the relevant application modules c) used by both service providers and manufacturers d) both a) and c) The benefits of e-commerce include a) reduced transparency b) improved decision making c) reduced inventory requirements d) both b) and c) Which of the following is an example of the use of Ecommerce for making operational decisions? a) allowing vendor companies to access production schedules to determine what they need to supply b) allowing vendor companies access to sales information for forecasting purposes c) allowing customers to meet capacity shortages with trading partners by exchanging skilled workforce in critical areas d) both a) and b) Which of the following is not typically of information shared by either EDI or ERP? a) demand b) price c) profits d) available capacity 1 c 2 No
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No
Supply Chain Management Chapter-XV 1 d 2 No
Which of the following is used to describe the activity of moving materials out to customers? a) Procurement b) Physical Distribution Management c) Inbound Logistics d) Outbound Logistics Which of the following is used to describe the acquisition of materials needed by the rganization? a) Procurement b) Physical Distribution Management c) Inbound Logistics d) Outbound Logistics Which of the following refers to the movement of materials from the operation to the customer? a) Procurement b) Physical Distribution Management c) Inbound Logistics d) Outbound Logistics Which of the following is used to describe the activity of moving materials in from suppliers? a) Procurement b) Physical Distribution Management c) Inbound Logistics d) Outbound Logistics Which of the following is in order of degree of supply chain integration (from low to high)? a) Strategic partnerships, vertical integration, market relationship, virtual rganization b) Market relationship, strategic
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No
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No
partnerships, virtual
rganization, vertical integration c) Strategic partnerships, virtual rganization, vertical integration, market relationship d) Vertical integration, strategic partnerships, market relationship, virtual rganization 1 b 3 No
Which of the following involves the use of ebusiness to outsource supply chain activities to third parties? a) Market relationship b) Virtual rganization c) Strategic partnership d) Vertical integration Which of the following describes the process of disintermediation? a) Electronically mediated information exchanges within an rganization b) The creation of new intermediaries between customers and suppliers in the supply chain c) The use of e-business to alter the supply chain structure by by-passing some of the tiers d) The use of e-business to outsource supply chain activities to third parties Electronically mediated information exchanges between rganizationa Which of the following describes the process of reintermediation? a) Electronically mediated information exchanges within an rganization b) The creation of new intermediaries between customers and suppliers in the supply chain c) The use of e-business to alter the supply chain structure by by-passing some of the tiers d) The use of e-business to outsource supply chain activities to third parties Which of the following is an advantage of multi-
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No
No
sourcing over single sourcing when choosing suppliers? between partners a) Stronger relationship
b) Opportunities for savings due to economies of scale c) Facilitates better communication d) Provides more flexibility in meeting changes in demand 10 Which of the following is not an area of physical distribution management? a) Procurement b) Materials handling c) Warehousing d) Transportation The effective capacity of an operation does not includes: a) Maintenance b) Equipment breakdown c) Machine setups d) Training Utilisation is defined as: a) The capacity remaining after loss of output due to planned factors b) The capacity remaining after loss of output due to both planned factors and unplanned factors c) The proportion of time a process is in actual use compared to its design capacity d) The proportion of time a process is in use compared to its effective capacity Which capacity planning strategy seeks to match output to the demand pattern over time? a) Level Capacity b) Chase Capacity c) Demand Management d) Inventory Management 1 a 2 No
11
No
12
No
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14
Which capacity management strategy is associated with the use of part-time staff, subcontractors and customer self-service? a) Level Capacity b)
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15
Which capacity management strategy is associated with the use of advertising, use of an appointment system and delayed delivery? a) Level Capacity b) Chase Capacity c) Demand Management d) Inventory Management Cumulative representations are used to evaluate which capacity planning strategy? a) Level Capacity b) Chase Capacity c) Demand Management d) Inventory Management Which of the following is not an assumption made by queuing theory equations? a) Poisson distribution for arrival rates b) exponential distribution for service times c) limited queue length d) Infinite population Traditional distribution technology relied heavily on sales agents or brokers, wholesalers, and retailers. _____ is the process of cutting out people between producer and consumers. a) b) c) d) Reengineering TQM Disintermediation Process value analysis
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16
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19
If an organization has a more efficient distribution system than its competitors, its distribution system is a) b) c) d) an expert system. a kanban system. a reengineering system. a distinctive competency.
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20
If an organization reduces the number of vendors it uses in order to oversee their operations, the organization is using a variation of a) micromanaging. b) supply chain management. c) management by objectives. d) JIT systems. Some of the commonly employed forms of structural change of a supply chain include each of the following EXCEPT a) longer term contracts. b) forward and backward integration. c) major process simplification. major product redesign. Finished goods (FG) in manufacturing plants, warehouses, and retail outlets are: a) inventories needed for the production of goods or services b) items sold to the firms customers c) Both a and b d) Spare parts needed for maintenance of production machinery An internal materials management structure includes the integration of what internal departments into an internal supply chain? a) purchasing b) distribution c) a and b above d) personnel An internal materials management structure includes the integration of what internal departments into an internal supply chain? a) purchasing
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b) distribution c) a and b above d) personnel 25 Supplier control options include: a) backward integration b) written agreements with first-tier suppliers c) a and b above d) outsourcing Under a competitive orientation to supplier relations, the relationship does not include which of the following? a) value short-term gain b) ones gain is the others loss c) long-term commitments d) suspicion and mutual distrust Design features for efficient supply chains include: a) frequent new-product introduction b) predictable demand c) customization d) high capacity cushion Traditionally, organizations have divided the responsibility for managing the flow of materials and services among which three departments? a) procurement, manufacturing support, physical distribution b) procurement, finance, marketing c) marketing, manufacturing support, finance d) personnel, finance, marketing Which functions are not part of Distribution? a) finished goods inventories b) flow from firm to customer c) transportation of products d) raw materials inventories A firm has the least amount of control over external causes of supply-chain dynamics. External causes include: a) product promotions b) engineering changes to the product c) unexpected changes in customer demand d) differencial product pricing 1 c 2 No
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37
Which of the following lead to the division of the supply chain? a) technology b) economies of scale c) monopoly conditions d) both a) and b) Which of the following is not a type of activity in the supply chain management? a) functional orientation b) coordination c) improvement d) both b) and c) Configuration activities of the supply chain include all of the following except a) what the product-service bundle will include b) where facilitates will be located c) how communication between customers and suppliers will be handled d) communicating demand, performance expectations and performance results with suppliers and customers
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40
Coordination activities of the supply chain include all 1 of the following except a) ensuring that suppliers are able to effectively provide the value required of them in the appropriate levels of quality, cost, and timeliness b) setting appropriate levels for capacity, inventory, and lead time in light of supply and demand uncertainty c) streamlining the channels of supply by working with suppliers and/or customers to eliminate capacity imbalances between their processes and yours d) communicating demand, performance expectations, and performance results with suppliers and customers When should the vertical integration decision primarily be based upon the competitiveness of the internal supplier? a) high exclusivity of use, low consistency with current business focus b) high exclusivity of use, high consistency with current business focus c) low exclusivity of use, low consistency with 1
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41
No
current business focus d) low exclusivity of use, high consistency with current business focus 42 When is the obvious decision is to purchase from an outside supplier? a) high exclusivity of use, low consistency with current business focus b) high exclusivity of use, high consistency with current business focus c) low exclusivity of use, low consistency with current business focus d) high exclusivity of use, high consistency with current business focus Which of the following is the most vertically integrated? a) hallow corporation b) original equipment manufacturer c) subsidiary supplier d) subsidiary distributor 44 Which of the following is not a problem associated with vertical integration? a) increased financial risk b) loss of expertise c) failure to recognize external market opportunities d) loss of control Which of the following is not a benefit of vertical integration. a) greater control over product quality b) greater coordination of operations across the value chain c) potential for larger aggregate profit d) maintain multiple source policy 1 d 3 No 1 c 5 No
43
No
45
No
46
Which of the following is not a benefit of outsourcing? 1 a) allows a company to focus on its core competencies b) it reduces capacity c) it supports corporate growth without large capital investments d) allows taking advantage of knowledge and expertise of suppliers
No
47
Which of the following is not one of the seven principles of improving supply chains? a) segment customers based upon service needs b) listen to the signals of the marketplace and plan accordingly c) differentiate products closer to the customer d) develop customized modules to fit into standard products
No
Operations Scheduling Chapter- XVIII 1 d 1 No
Which of the following is NOT a criterion for evaluating sequencing rules? a) average flow time b) average job lateness c) changeover cost d) earliest due date Which of the following sequencing rules requires the most information about a job? a) shortest processing time b) ]earliest due date c) least slack d) first-come first-served Which of the following sequencing rules performs best at minimizing average job lateness? a) shortest processing time b) earliest due date c) least slack d) critical ratio Which of the following is NOT an implication of scheduling in process-focused operations? a) much pre-production planning is necessary to establish routing, job instructions, processing plans, and product designs b) the predominant scheduling concerns
No
No
No
are timing of production line changeovers and production lot sizes c) a complex production control system must be developed to plan, execute, and follow up the movement of orders through the production system d) great flexibility is present in shifting workers and machines from order to order 5 Which of the following is not a sequencing priority rule? a) DOD b) FCFS c) SPT d) LPT 6 Which of the following is not an assumption of Johnson?s Rule a) All jobs flow through 2 work centres b) All jobs flow through each machine centre in the same order c) Setup times are included in job process times d) The number of jobs is limited to five 14. A planning tool developed to show output, both planned and actual, over a period of time is the a) PERT chart. b) decision tree. c) critical path analysis. d) Gantt chart. The performance measure that gives the amount of time required for a job to traverse the shop is the: a) makespan b) utilization c) job flow time d) processing time A performance measure that might be used to monitor improvements in queue reduction is: a) processing time 1 d 2 No 1 a 1 No
No
No
No
b) total inventory c) utilization d) work-in-process inventory 10 The priority sequencing rule for job shop scheduling 1 that relies least on time-based data is ________________. a) critical ratio b) earliest due date c) first come, first served d) shortest processing time The priority sequencing rule for job shop scheduling 1 that does not require knowledge of job due date is _____________________. a) shortest processing time b) slack per remaining operations c) critical ratio d) earliest due date Which of the following statements is NOT true regarding the Shortest Processing Time rule for the single machine case? a) SPT tends to minimize mean flow time b) SPT tends to minimize WIP inventory c) SPT tends to minimize the percentage of jobs past due. d) SPT tends to minimize the variance in past due hours. Multiple-dimensional rules include: a) Earliest due date b) Critical ratio c) Shortest processing time d) longest processing time 1 c 2 No
11
No
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13
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17
Advanced planning and scheduling (APS) systems seek to accomplish which of the following goals? a) provide an updated methodology for producing a master production schedule (MPS) b) enable the sharing of demand forecasts with companies in the supply chain. c) optimize resources across the supply chain
No
d) both b and c above 20 A scheduling technique aimed at identifying bottleneck machines and making the best use of these critical resources, is: a) MRP ( Materials Requirement Planning) b) MRP II c) OPT ( Optimized Production technology) d) CRP ( Capacity Requirements Planning) 1 c 4 No
Course Code: BM125
Just-in-Time Chapter-XVII
Which of the following is not one of the service wastes? a) Over-production b ) Duplication c) Delay d) Unclear communication What is the name of the system developed by Shigeo Shingo to drastically reduce machine setup times? a) Visual control b) Kanban production system c) SMED d) Pull production Andon lights are used as part of: a) Visual control b) Kanban production system c) SMED d) Pull production One advantage of Just-In-Time (JIT) management of stocks is a) it reduces the need to plan and organize. b) it removes the need for delivery Quality Control. c) it reduces the costs of holding stock within the factory.
No
Nof
No
No
(d) it works very well with competitive tendering. 5 ' Kaizen' is (a) a word meaning ' continuous improvement' . (b) a method of stock control. (c) a modern way of operating a production line. (d) another word for Quality Circles. 6 A system that uses cards to authorise the production and movement of material is termed: a) Visual control b) Kanban production system c) SMED d) Pull production A schedule that attempts to produce the smallest number of units of each product at a time is termed: a) Kanban production system b) SMED c) Pull production d) Levelled scheduled 8 A production system that produces output at each stage only in response to demand is termed: a) Visual control b) Kanban production system c) SMED d) Pull production What stage of the PDCA cycle involves evaluating the improvement plan? a) Plan b) Do c) Check d) Act 1 d 1 No 1 b 1 No 1 a 1 No
No
No
10
Which of the following uses the idea of holism to study the whole before the parts? a) Continuous Improvement
No
c) Systems thinking d) Balanced Scorecard 11 Which of the following aims to create an environment which builds knowledge within the organisation and can utilise that to improve performance? a) Continuous Improvement b) The Learning Organisation c) Business Process d) Systems thinking 12 Which of the following involves incremental changes within the organisation whose cumulative effect is to deliver an increased rate of performance improvement? a) Continuous Improvement b) The Learning Organisation c) Business Process d) Systems thinking 13 1 Which of the following can be defined as a continuous measurement of an organisation?s products and processes against a company recognised as a leader in that industry? a) Benchmarking b) Activity Based Costing c) Business Process Reengineering d) Balanced Scorecard Which of the following best characterizes JIT systems? 1 a) annual review of operation methods b) push method of material flow a 1 No 1 a 1 No 1 b 1 No
Reengineering
Reengineering
14
No
c) pull method of materials flow d) build inventory at a modest rate 15 The pull method is illustrated by: a) build it and they will come b) made-to-order computer systems c) automobile assembly d) farm products Which of the following are NOT a benefit of small lot size for JIT systems? a) reduction of cycle inventory b) reduction in product lead times c) enables a uniform system workload d) potential increase in process setups The advantages of part commonality include: a) larger work-in-process volume b) reduction in the number of unique inventory items c) increased productivity due to greater repetition d) both b and c One of the least effective supplier strategies for JIT systems is a) use of local suppliers b) short-term, competitive relationship between the company and the supplier c) smaller, more frequent stock shipments d) include suppliers during the product design phase The line flow that accommodates families of components with common attributes is: a) product layout b) process layout c) group technology d) fixed-position layout Which of the following situations are least likely to be discovered as the result of reduced inventory in JIT systems? a) product distribution delays b) capacity imbalance c) unreliable suppliers d) excessive scrap In JIT service operations, problems that need 1 b 2 No
16
No
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21
No
improvement are identified by: a) buying new equipment for all operations and measuring the improvements b) waiting for customer complaints c) contracting for a detailed analysis of service production processes d) reducing the number of staff assigned to an operation or series of operations 22 "Kanban" is a Japanese word that means: a) pull b) inventory c) visible record d) unending improvement 1 c 2 No
23
Which of the following is NOT characteristic of a 1 Kanban system? a) at least one card is associated with a container of process input material b) it serves as a push mechanism c) controls the movement of containers source/storage to the production process d) each container contains equal numbers of nondefective parts The number of containers in the Kanban system is: a) two b) the ratio of the adjusted average demand during lead-time to the container capacity in units of components. c) sufficient to accommodate a full day' production. s d) equal to the EOQ The JIT II concept offers which of the following benefits for the supplier? a) eliminates sales effort b) reduction of purchasing administrative work c) direct access to product design d) both a and c It has been determined that 25 containers are necessary to adequately support the workstation that uses component "Y." Each container used has a capacity for 90 components. What is the planned daily supply of component "Y" to the next workstation? a) 900 1
No
24
No
25
No
26
No
b) 1,750 c) 2,250 d) 3,000
Course Code: BM125
Quality Management Chapter- XVIII 1 a 1 No
Inputs and outputs of production system are analyzed by: a) acceptance plans b) control charts c) sampling plans d) QC tables Which of the tools are generally used together to monitor the quality of services? a) bar x hart and p chart b) bar x chart and R chart c) R chart and p chart d) Bar x chart and s chart Which one of the following tools is used extensively as a means of controlling quality in service organizations? a) sampling b) control charts c) single-sampling plans d) sequential-sampling plans Range points that fall below the lower control limit indicate that there is a high probability: a) the process being monitored has not changed b) the process being monitored has changed for the worse and needs correcting c) the process being monitored has changed for the better d) the process being monitored has changed for the better and needs correcting
No
No
No
Which of the following is NOT a common use of computers in quality control? a) used to store databases of product information to facilitate tracking of products in the event of product recalls b) testing of products as they come off the assembly line c) scheduling for maximum capacity utilization d) to directly control the quality of products while they are being made The sample result plotted in a p control chart is the: a) percent non-defectives b) number of units passing inspection c) percent defectives d) number of defectives Which of the following is a measure of how closely the product meets the specification required by the design? a) Quality of Conformance b) Total Quality Management c) Six Sigma d) ISO9000 Which of the following represents a group of quality standards? a) Total Quality Management b) Six Sigma c) Statistical Process Control d) ISO9000 Which of the following is not an example of an external failure cost? a) The rework cost of fixing defective parts b) The cost of handling and replacing poor quality products c) The litigation cost resulting from product liability d) The lost sales incurred because of customer goodwill affecting future business Which of the following represents a companywide
No
No
No
No
No
10
No
initiative to reduce costs through process efficiency and increase revenues through process effectiveness? a) Total Quality Management b) Six Sigma c) Statistical Process Control d) ISO9000 11 Which stage of the DMAIC methodology concerns the elimination of the root causes of nonrandom variation? a) Define b) Measure c) Analyse d) Improve Which of the following is not an example of an appraisal cost? a) The cost of testing and inspecting products b) The cost of designing processes which conform to quality specifications c) The cost of maintaining d) The time spent in gathering 1 d 2 No
12
No
testing equipment data for testing 13
Which of the following refers to the inherent variability in processes? a) Control limits b) Process capability c) Chance causes of variation d) Assignable causes of
No
variation 14
Which of the following represents a specified range of values in which individual units of output must fall in order to be acceptable? a) Tolerance b) Control limits c) Process capability
No
d) Chance causes of variation 15 Which of the following indicates how effective the sampling plan is in discriminating between good and bad lots? a) The Operating characteristics curve b) Producer?s Risk c) Consumer?s Risk d) Average Outgoing Quality Which of the following samples from a measure that can take a range of values? a) Single Sampling b) Double Sampling c) Multiple Sampling d) Variable Sampling 1 a 1 No
16
No
17
_____ are designed to constantly reduce variability in 1 order to increase the uniformity of the product or service. a) Continuous process improvement programs b) Management information systems c) Reengineering programs d) Work process engineering programs Identifying distinctive competencies, assessing core processes, and reorganizing horizontally by process are key elements in a) b) c) d) continuous improvement programs. work process engineering. management by exception. supply chain management. 1 1
No
18
No
19
Which one of these terms is associated with studying another organization' products or s operations? a) Brainstorming b) Benchmarking
No
c) d) 20
Pareto analysis Continuous improvement 1 d 1 No
Which one of these is a tool for gathering data? a) b) c) d) Fishbone diagram Scatter diagram Flowchart Check sheet
21
Which one of these is a tool for problem solving? a) Benchmarking. b) Cause-and-effect diagram. c) Histograms d) Scatter diagrams Total quality management (TQM) stresses three principles. Which of the following are not included? a) customer satisfaction b) strict managerial control c) continuous improvements in quality d) employee involvement
No
22
No
23
In a general sense, quality may be defined as meeting 1 or exceeding the expectations of the customer. Identify which of the following is not a typical customer expectation. a) Conformance to specification b) Value c) service support d) longer delivery lead time TQM involves which of the following processes or tools? a) benchmarking b) process design c) product design d) both a) and b) A control chart typically does not show which of the following values? a) target line b) design tolerance limits c) upper control limit d) lower control limit 1
No
24
No
25
No
26
While monitoring a production process under Statistical Process Control, a control chart that uses a large confidence interval reflects a) a process as out of control more frequently. b) a process as in control more frequently. c) more information is required for any decision. d) both (a) and (b). When plotting quality measures on a control chart, the first point that falls outside of the lower control limits means: a) a run has been encountered b) a type I error has occurred c) the cause should be investigated d) the control limits should be widened A firm' internal program in employee involvement s includes which of the following considerations? a) defining who is the customer b) supplier management c) product availability d) psychological impressions
No
27
No
28
No
29
Among the data analysis tools, the one used to record 1 the frequency of occurrence of certain product or service characteristics is: a) histogram b) Pareto chart c) checklist d) graphs The Pareto concept refers to: a) quality at the source b) competitive benchmarking c) the probability that a product will be functional when used d) 80 percent of the problems being caused by 20 percent of the factors The analysis tool for a quality problem that involves selecting the problem, identifying the major categories of potential causes, and associating likely specific causes is: a) Pareto charts 1
No
30
No
31
No
b) fishbone diagrams c) scatter diagrams d) checklists 32 The underlying statistical distribution for the P-chart is: a) binomial distribution b) Poisson distribution c) normal distribution d) beta distribution The costs incurred in assessing the level of quality attained by the operating system are: a) prevention costs b) appraisal costs c) internal failure costs d) external failure costs A Japanese concept called kaizen refers to: a) benchmarking b) product reliability c) the Deming Wheel d) continuous improvement 1 a 3 No
33
No
34
No
35
The proportion defective for 7-inch scissors had been 1 measured at 5%. Samples of size 175 provided control limits of 0.00575 to 0.0994. After a certain process improvement was applied, samples began a trend toward the lower control limit with the third point recorded at 0.0049. What would be your recommended action? a) Wait for at lest two more points to establish if a run exists. b) Ignore the points because the percent defective has been reduced. c) Investigate the cause to determine if a process fix has been found. d) Redefine and enlarge the control limits Which of the following statements is not true regarding the producer' risk? s a) A type I error disrupts the consumer' production s process. b) The producer prefers a larger producer' risk in s order to assure a higher quality of product used by 1
No
36
No
the customer. c) A type I error adds unnecessarily to the lead-time for finished products or services. d) Type I errors create poor relations with the producer. 37 The maximum value of the average outgoing quality over all possible values of the proportion defective is called: a) average outgoing quality limit (AOQL) b) average outgoing quality (AOQ) c) acceptable quality level (AQL) d) lot tolerance proportion defective (LTPD) The maximum value of the average outgoing quality over all possible values of the proportion defective is called: a) average outgoing quality limit (AOQL) b) average outgoing quality (AOQ) c) acceptable quality level (AQL) d) lot tolerance proportion defective (LTPD) The consumer' risk means the probability that the s consumer will: a) accept a bad lot b) reject a bad lot c) reject a good lot d) accept a good lot A decision rule to accept or reject a lot based on the results of one random sample is called a: a) single-sampling plan b) double-sampling plan c) sequential-sampling plan d) random-sampling plan A decision rule where items from a lot are randomly selected and an accept or reject decision is based on cumulative results is called: a) single-sampling plan b) double-sampling plan c) sequential-sampling plan d) random-sampling plan A graphic display of the performance of a sampling plan, showing the probability of accepting the lot for 1 a 2 No
38
No
39
No
40
No
41
No
42
No
a range of proportions is called: a) exponential curve b) binomial distribution c) normal distribution d) operating characteristic curve 43 A double-sampling plan: a) compares samples from two lots to determine lot acceptance b) assumes that extremely low or high rates of defective items permit acceptance decisions with a relatively small sample c) requires two sample sizes and two acceptance numbers d) both b and c above In computing control limits for fraction defectives or for the number of defects, sometimes negative values are encountered for the lower control limit. This occurs because a) theoretically, negative values are possible b) the control limits are too broad c) the Binomial and Poisson distributions are not symmetrical around the mean like the Normal distribution d) the Binomial and Poisson distributions used in these cases are only approximations Which of the following is not part of the Total Quality Approach? a) holistic thinking b) focus on short-term financial performance c) focus on desirability d) team thinking Which of the following is generally thought to be part of the TQM approach to thinking? a) analytical thinking b) focus on acceptability c) supply chain management d) class-conscious thinking Competitive sourcing involves or requires a) a large base of suppliers b) seller mandates c) short-term, contract focused 1 d 3 No
44
No
45
No
46
No
47
No
48
49
relationships d) both a) and c) above Which of the following is not part of supply chain management in TQM? a) select set of suppliers b) bidding for contracts c) supplier input in design decisions d) Just-in-time deliveries except Team thinking involves all of the following a) b) c) d) functional classification and competition focus on teamwork focus on system improvement focus on satisfying internal customers
No
No
50
51
52
53
Which of the following is not a benefit of long-term suppler relationships? a) supplier involvement in design b) information system linkages to customer facilities c) capacity and facility plans favorable to their customers d) quoting higher prices for quicker business gains Which of the following is not a benefit to the supplier of a cooperative supplier-purchaser relationship? a) more competitive customers b) better information for planning and control c) advance notice of new product design and technologies d) difficulties in forecasting requirements of materials and supplies Which of the following is not a part of the Deming cycle? a) plan b) do c) confront d) act Which of the following individuals believed that quality improvement issues should be presented in the language of management? a) W. Edwards Deming b) Joseph M. Juran
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No
No
No
54
c) Walter Shewhart d) Phillip Crosby Which of the following costs refers to expenditures associated with products, subassemblies, or components that are not fit for use, but have not yet been transferred to the customer a) internal failure cost b) external failure cost c) appraisal d) prevention
No
55
56
57
In manufacturing settings, the hidden costs of poor 1 quality include a) repeat orders b) lost goodwill c) process downtime d) both b) and c) Which of the following is not a linkage between 1 quality management and environmental management. a) quality management means fewer defective items, thus generating less environmental waste b) quality management means less durable products, therefore more items go to landfills c) quality management produces efficient operation, thus generating less environmentally damaging emissions. d) both b) and c) Which of the following is not one of the 1 commitments of Total Quality Management? a) technical quality b) understanding and improving the organization' processes s c) data-based decision making d) employee involvement Which of the following is not a possible outcome during the ongoing improvement stage of Quality Management? a) increasing product reliability b) enhancing appearance of product c) customizing the product or service to the needs of specific customers d) increase performance variability characteristics 1
No
No
No
58
No
59
60
61
62
Which of the following is not a tool for the detection of quality problems? a) testing and inspection b) poka yoke c) acceptance sampling d) statistical process control with attribute measures What is the level of quality that the customer would expect the sampling plan to accept very infrequently called? a) LTPD b) AQL c) OC d) n Which of the following control charts studies the proportion of nonconforming items? a) p b) c c) x-bar d) R What is the upper control limit (UCL) for a p-chart, where n=200, and is .01? a) 0.00 b) 0.01 c) 0.02 d) 0.03 What is the upper control limit (UCL) for a c-chart when is 3.2? a) 0.00 b) 3.20 c) 5.37 d) 8.57 The Cp index tells us a) whether the process is in control b) the potential quality of the process c) the actual quality of the process d) whether the process is centered between the specifications Which of the following is a tool used by quality improvement teams? a) checklists b) gantt charts c) cause and effect diagrams d) both a) and c)
No
No
No
1.5
No
63
1.5
No
64
No
65
No
66
67
68
Which chart is used to distinguish "the vital few from 1 the trivial many?" a) histogram b) flowcharts c) Pareto charts d) cause and effect diagram Which of the following categorizes the potential 1 reasons for a situation that is observed? a) cause and effect diagram b) Pareto charts c) run charts d) countermeasures matrix Kaizen workshops 1 a) are action-oriented events b) are held off-site c) focus on improving a specific process d) both a) and c) Which of the following is not one of the three stages of Quality Management? a) detection b) prevention c) ongoing improvement d) value engineering 1
No
No
No
69
No
Course Code: BM125
Course Title: Operations Management 1
Maintenance Management Chapter- XIX b 1 No
All of the following are secondary responsibilities of maintenance departments EXCEPT: a) painting services b) preventive maintenance inspections c) grounds keeping d) safety equipment maintenance. A programme developed to eliminate the
No
cause of a malfunction and the need for repairs in the future might include any of the following EXCEPT: a) removal of the machine operator b) redesign and modification of the machine that malfunctions c) redesign and modification of the part or product being processed d) more frequent adjustments, lubrication, and inspections 3 An approach in which machine operators are 1 trained to perform preventive maintenance on the machines that they operate is known as: a) predictive maintenance b) PM circles c) JIT PM d) total preventive (productive) maintenance Which of the following is NOT a policy that can be effected to reduce the frequency of malfunctions? a) over design machines for durability, precision, and redundancy b) replace machine parts early c) train operators and involve them in machine care d) increase supply of standby or backup machines Which of the following tools is LEAST appropriate for analyzing repair capacity issues? a) queuing theory b) computer simulation c) payoff table d) CPM/PERT Which of the following is a system of monitoring performance levels of equipment? 1 d 1 No
No
No
No
maintenance maintenance maintenance 7
a) Preventative b) Predictive c) Regular 1 d 4 No
d) Periodic inspection Equipment failures occurring immediately after start-up are characterized, usually by: a) negative exponential probability distribution b) poisson probability distribution c) normal probability distribution d) hyper-exponential probability distribution
Course Title: Operations Management Which of the following relates to planning for resources for a project? b) c) a) Project estimating
Project Management Chapter XXI 1 a 1
No
Which of the following relates to monitoring the objectives of cost, time and quality as the project progresses? a) Project estimating b) Project planning c) Project control
No
Which of the following relates to estimating both the level and timing of resources needed over the project duration? a) Project estimating b) Project planning c) Project control d) Project crashing Which of the following relates to when the project
No
No
completion date is set to ensure that highly rganizatio resources are not overloaded? a) Project estimating b) Time-constrained project c) Resource-constrained project d) Project crashing 5 Which of the following shows how much work has actually been done in terms of budgeted costs? a) Earned Value b) Gantt Chart c) Capacity Loading Graphs d) Project Cost Graphs 1 a 2 No
Which of the following provides an indication of the 1 type and level of capacity required at a point in time? a) Project Crashing b) Gantt Chart c) Capacity Loading Graphs d) Project Cost Graphs Which of the following relates to when an rganization has an rganizational structure based on teams formed specifically for projects? a) Project structure b) Functional structure c) Functional matrix structure d) Project matrix structure Which of the following relates to when the project manager manages the project jointly with functional heads? a) Project structure b) Functional structure c) Balanced matrix structure d) Project matrix structure Which of the following relates to when responsibility for a project is given to an rganizational department? a) Project structure b) Functional structure c) Functional matrix structure 1
No
No
No
No
10
d) balanced matrix structure Which of the following is not a key component of a PERT chart? a) Slack time b) Critical path c) Events d) Output A network diagram is used to visually display a project as a set of connected components which consists of: a) activities b) Nodes c) arcs d) both b and c In an environment where the planned activities have been accomplished previously, there are several ways of getting time estimates. Which of the following is the least useful? a) Random number generator b) Learning curve models c) Statistical methods d) Prior experiences The project duration in a network model can be determined by the largest value of which variable associated with the critical path? a) Activity time b) Earliest start time c) earliest finish time d) slack time There are four major phases in a project life cycle. Which of the following is not included? a) Close out b) Execution c) Planning d) Maturity When the latest start time is known, total slack for an activity may be determined using: a) activity time b) earliest start time c) earliest finish time d) crash time
No
11
No
12
No
13
No
14
No
15
No
16
When a resource is needed for tasks with overlapping schedules, the project manager is least likely to choose which of the following options to alleviate resource problems? a) task elimination b) resource acquisition c) resource leveling d) resource allocation The critical path may be identified by which of the following schemes? a) The activity with the shortest duration. b) The network path of longest duration. c) The network path that has zero slack. d) Both b and c A critical activity is defined as one whose a) total float is zero b) free float is zero c) duration is the longest d) duration is the shortest Crashing for a project a) reduces the cost and criticality complexion of the project b) increases the cost but reduces the criticality complexion of the project c) reduces time but increases criticality complexion of the project d) increases time and criticality complexion of the project PERT assumes the following statistical distribution for its individual activity times a) Poisson b) Normal c) Binomial d) Beta
No
17
No
18
No
19
No
20
No

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Course Code: BM125

Course Title: Operations Management

Operations Overview Chapter-I

Decisions that tend to focus on the entire organization,

Course Code: BM125

Course Title: Operations Management

Operations Strategy Chapter-II

Course Code: BM125

Course Title: Operations Management

5.3 6.3 7.3 8.2 3 d 5 No

2.06 2.30 2.46 2.72 2 c 3 No

4.0 4.7 5.1 6.4 1 d 4 No

Course Code: BM125

Course Title: Operations Management

Allocating Resources to Strategic alternatives Chapter-IV 1 c 2 No

Course Code: BM125

Course Title: Operations Management

Process design Chapter-V

a) ISO9000 b) Product design c) Workflow systems d) BPR 1 d 1 No

Which shape represents a decision point in a process mapping diagram?

Course Code: BM125

Course Title: Operations Management

Location and Layout Chapter-VI 1 C 1 No

unit cost is met processes

process product fixed hybrid 1 a 2 No

b) location of competitors c) Transportation costs d) site visibility

Course Code: BM125 1

Course Title: Operations Management

Aggregate Planning Chapter-VII 1 c 1 No

Course Code: BM125

Course Title: Operations Management

Fundamentals of Inventory Control Chapter- IX

Which of the following is NOT a fundamental reason to

Course Code: BM125 1

Course Title: Operations Management

Purchase Management Chapter IX 1 d 2 No

Course Code: BM125

Course Title: Operations Management

Job design Chapter-X 1 b 3 No

Course Code: BM125

Course Title: Operations Management

Work Measurement Chapter-XI 1 a 2 No

Course Code: BM125 1

d) NC machines are cheaper, easier to operate and maintain

Course Code: BM125

Course Title: Operations Management

Inventory Management Dependent demand Chapter- XIII 1 c 3 No

d) reduced confusion and planning delays 1 a 1 No

Course Code: BM125

Course Title: Operations Management

Course Code: BM125 1

Course Title: Operations Management

Supply Chain Management Chapter-XV 1 d 2 No

Course Code: BM125 1

Course Title: Operations Management

Operations Scheduling Chapter- XVIII 1 d 1 No

Course Code: BM125

Course Title: Operations Management

b) 1,750 c) 2,250 d) 3,000

Course Code: BM125

Course Title: Operations Management

Quality Management Chapter- XVIII 1 a 1 No

testing equipment data for testing 13