Production and Operations Management MCQs

Which of the following is (are) important consideration(s) concerning activity times?

Activity time should be obtained from the person responsible for the completion of an activity
Activity time must be independent of any influence which the preceding or succeeding activity may have on it.
Activity time may assume that just the normal quantity of resources required to carry out the activity are available.
All of the above

Objective of Work Study is to improve ---------

Cycle time
Productivity
Production
All of the above

The following is not a major contributor in the development of Control Charts and Sampling plan

F H Dodge
H G Roming
Walter Schewhart
J M Juran

Organizational models are

multinational model
international model
global organizational model
All of the above

The ––––––––– is the defect level for which lots are regarded as bad lots.

Acceptable quality level
Consumer risk
Producer risk
Lot Tolerance Percentage Defective

What are the advantages of templates over diagrams?

Can be conveniently moved on the graph paper
Less laborious
Saves time
All of the above

Attack strategies are

Frontal attack
Flank attack
Encirclement attack
All of the above

Which of the following are assignable cause?

Large variations in hardness of material
Tool wear
Errors in setting
All of the above

Which of the following are activities of corrective maintenance?

Overhauling
Emergency repairs
Modifications and improvements
All of the above

Limitations of Traditional cost accounting are

Assumes factory as an isolated entity
It measures only the cost of producing
both (A) and (B)
none of the above

Which kind of defect can be called as minor defect?

Which does not reduce the usability of the product for its intended use
The cost of repairing the defect is less
Both (A) and (B)
None of the above

General Electric Matrix is divided into how many cells

4
9
16
25

What is the reason of excessive friction between parts?

Improper or lack of lubrication
Material of parts
both (A) and (B)
None of above

Capacity decisions have a direct influence on performance of production system in respect of –––––––––

Delivery performance
Quality control
Plant size
Manpower

Business is rated on which dimensions

Market attractiveness
Business strength
both (A) and (B)
none of the above

Which of the following policies is advisable in case of low product variety and large volumes?

Skilled labour, special purpose machines
Low skilled labour, general purpose machine
Low Skilled Labour, Special Purpose Machines
Any of the above

In an organization there may not be a formal PPC department if

Work is highly repetitive in nature
Planning activities are performed by the line staff
Number of workmen is not very large
All of the above

W in SWOT stands for

What do you do well?
What could you improve?
What doors are open to you?
What threats could harm you

Which kind of labour force is required in case of Jobbing Production?

Highly Skilled
Semi skilled
Unskilled
Any of the above

Which of the following is not the characteristic of Project Production?

Continuous flow of material
Highly mechanized material handling
Virtually zero manufacturing cycle time
All of the above

Like roots of a tree, ––––––––– of organization is hidden from direct view.

goodwill
core competence
Higher management
Capital investment

Fixed position layout is adopted when

Products are of different variety
Product is very heavy involving assembly of large number of parts
Products are in large numbers
All of the above

Which of the following is not a type of specification?

Material specifications
Dimensional specifications
Manpower specification
Performance specifications

––––––––– should have the ability to develop a vision to see patterns into the future.

Leaders
Workers
Management
None of the above

What is the location of lower control limit in the X bar-R control chart?

3 standard deviations below central line
2 standard deviations below central line
1 standard deviations below central line
Any of the above

Which of the following Principles of Management is not advocated by F W Taylor?

Selection of best worker for each particular task
Division of work between worker and management
Training and development of the workmen
Involvement of workers in strategy planning

Scale model used for layout analysis have following advantages

Nontechnical person finds it easy to comprehend
Overhead facilities can be shown
Models can be shifted easily
All of the above

Which are three different bases to establish an activity time?

Past experience
Judgment
Historical data
All of the above

Which photographic technique is used to record path of motions of the members of the body during method study?

Acrograph
Cyclograph
Cyclogram
Cycloscope

Control should involve ––––––––– amount of information.

Minimum
Sufficient
Maximum
Any of the above

The term ––––––––– implies the foregone profit due to inability of company to produce.

Opportunity cost
Marginal cost
Overhead cost
All of the above

OC curve of ideal sampling plan suggests that all lots less than 3% defectives have the probability of acceptance of –––––––––.

0.25
0.5
0.75
1

Which of the following are the objectives of a good maintenance system?

Minimization of wear and tear of machines
Ensuring maximum plant availability
Both (A) and (B)
None of the above

Inherent Safety is one of the principle of good layout. In context of layout, this can be achieved by the following

Clear gangway
Location of material and material handling system
Both (A) and (B)
None of the above

In case of an OC curve, the risk of rejecting a good quality lot may vary between –––––––––.

0.01 to 5%
0.01 to 10%
0.01 to 15%
0.01 to 20%

How does structure reduce external uncertainty arising out of human behaviour

Research and planning
Forecasting
both (A) and (B)
none of the above

Inadequate production capacity ultimately leads to

Poor quality
Poor Customer Service
Poor inventory control
All of the above

What do you understand by the inspection conducted on all nonreworkable jobs prior to their movement to the scrap yard?

Final inspection
Endurance inspection
Functional inspection
Salvage inspection

A/An ––––––––– history card is the record of all repairs, replacements and engineering changes carried out in the equipment during i...

Service
Equipment
Repair
None of the above

Which of the following are assignable cause?

Large variations in hardness of material
Tool wear
Errors in setting
All of the above

A strategy which aims to produce a perfect product which will suit everybody is called:

Marketing orientation.
Production orientation.
Product orientation.
Perfection orientation.

Someone who is responsible for finding out what individual customers need, and explaining how the firm products meet those needs, is a ______________....

Brand manager
Salesperson
Sales manager
Market research manager

Which of the following best describes strategic planning?

Time horizon: Long-term
Level of detail: Summarised
Source: Mainly internal
Level of detail: Summarised
Source: Mainly external
Degree of certainty: Certain
Time horizon: Long-term
Level of detail: Summarised
Degree of certainty: Uncertain
Time horizon: Long-term
Level of detail: Highly detailed
Source: Mainly external

Psychologists use the term_________________ to describe the way that individuals absorb information.

Cognitive style
Intelligence Quotient
Human-Computer Interaction
Data Processing

In a business continuity plan which of the following notification directories is the MOST important?

Equipment and supply vendors
Insurance company agents
Contract personnel services
A prioritized contact list

An expansionist capacity strategy is NOT indicated when:

A preemptive marketing strategy is used.
Expansion will lead to economies of scale.
Expansion is made in large increments.
Capacity expansion is consistently ahead of demand.

Costs that continue even if no units are produced are called

Variable costs.
Mixed costs.
Marginal costs.
Fixed costs.

Which of the following actions would be best if a firm faced highly seasonal demand for a perishable product?

Hire and fire employees as demand fluctuates.
Build up inventory when demand is low.
Add warehouse and production building space to accommodate the highest period of demand.
Offer a product with a complementary demand pattern.

Which of the following is not a measure of utilisation?

Uptime in a factory
Number of hours available for production
Room occupancy level in hotels
Load factor for aircraft

A strategy which aims to produce the maximum amount of goods at the lowest possible price is called:

Production orientation.
Selling orientation.
Societal marketing.
Cost orientation.

Someone who has responsibility for marketing decisions concerning a group of products is:

A marketing manager
A brand manager.
A sales manager.
A product manager.

The paradigm that leads to more complex products at ever-increasing prices is ______________.

Product orientation
Production orientation
Marketing orientation
Sales orientation

Which of the following best describes the decision-making required in dealing with customer enquiries?

Unstructured, strategic
Unstructured, operational
Structured, strategic
Structured, operational

Two systems are described as_________________ if a change in the outputs of one causes a substantial change in the state of the other.

Highly decoupled
Highly coupled
Black boxes
Sub-systems

Chang and Chang observe that the competition is increasing the size of its warehouses. They have decided to do the same. They are following a ________...

Theory of Constraints
Follow the leader
Expansionist
Wait-and-see

A facility with a design capacity of 1,000 units, an actual average of 800 units, and effective capacity of 850 units has a utilization of ___________...

85%
80%
125%
94%

Yield management is not especially useful where:

The service/product can be stored
Capacity is relatively fixed
The service cannot be sold in advance
The market can be fairly clearly segmented

Which of the following is true?

Value is always lower than price.
Value is what consumers are prepared to pay.
Cost is always lower than price.
Price is always lower than value.

A specific satisfier for a need is called a______________.

Product
Demand
Want
Market

Structured decisions are also called_________________ decisions.

Strategic
Programmable
Read-intensive
Non-programmable

Inputs come from and outputs are transferred to the_________________ of a system.

Environment
Sub-system
Comparator
Effector

When evaluating alternative capacity decisions, qualitative concerns exclude:

Cash flow.
Uncertainties about demand.
Competitive reaction.
Technology change.

When demand exceeds capacity, a firm should

Lower prices.
Add workers.
Temporarily lay-off workers.
Advertise.

The marketing concept should be central to business strategy because:

Business strategy is aimed at customers.
Companies have a moral responsibility to care for their customers.
Marketing enables firms to persuade their customers to buy things they do not really need.
Customers will only spend money with firms that look after their needs.

One way to decouple the production system and the sales system is:

To introduce a feedback loop
To treat the systems as black boxes
To decrease sales
To introduce an inventory

Long-term capacity planning deals with which of the following factors?

Overtime budgets
Workforce size
Inventories
Investment in new facilities

Efficiency is given by

Actual output divided by design capacity.
Capacity divided by utilization.
Effective capacity divided by actual output.
Actual output divided by effective capacity.

The most aggressive and risky approach to capacity planning is

Capacity lags with incremental expansion.
Leading demand with one-step expansion.
Leading demand with incremental expansion.
Attempts to have an average capacity that straddles demand with incremental expansion.

Demand is created when:

A need is identified.
A significant group of people want to buy something.
People who can afford something want to buy it.
Marketers persuade people to want something.

Input measures of capacity are preferred when there is/are:

Service processes.
High-volume processes.
Flexible flow processes.
Low customization.

In general, a less capital-intensive industry such as a hotel chain would do well with a utilization rate of:

Approximately 18%.
30-40%.
60-70%.
100%.

A facility with a design capacity of 1,000 units, an actual average of 800 units, and effective capacity of 850 units has an efficiency of ___________...

80%
50%
85%
94%

The first steps of capacity planning and control do not include:

Identifying the alternative capacity plans?
Measuring aggregate demand and capacity?
Studying the effect of queueing theory
Choosing the most appropriate capacity plan?

Someone who controls media purchases and deals with advertising agencies is ____________________.

An advertising manager
A brand manager
A public relations manager
A sales manager

A measure of the reserve capacity a process has to handle in unexpected increases in demand is the:

Capacity utilization rate.
Capacity cushion.
Capacity bottleneck.
Capacity constraint limit.

The maximum output of a system in a given period is called the

Efficiency.
Effective capacity.
Design capacity.
Break-even point.

The multiple product case of determining breakeven in dollars

Weights the variable cost of each product.
Weights the selling price of each product.
Weights the fixed cost attributable to each product.
Weights the contribution of each product.

The basic break-even model

Demonstrates that the break-even point increases as output volume increases.
Demonstrates that fixed costs remain constant as output volume increases.
Demonstrates that total revenue is fixed as output volume increases.
Demonstrates that per unit variable costs vary as output volume increases.

Which of the following provides the best definition of information?

Computer hardware
Data processed for a purpose
Computer software
Transaction Data

Which of the following decision is least likely to be supported by a management information system?

Company reorganisation
Analysis of performance
Allocating budgets
Dealing with customer enquiries

What are the four stages of Simon model of decision making?

Intelligence, design, choice, implementation
Intelligence, design, computation, implementation
Information, design, choice, implementation
Intelligence, data, choice, implementation

Which of the following best describes formal information?

Produced by standard procedures. Passed by word of mouth
Produced by standard procedures. Objective
Objective. Passed by word of mouth
Subjective. Based on estimates

MRP stands for:

Master Resources Production
Management Reaction Planning
Materials Requirements Planning
Manufacturing Resource Planning

A master production schedule contains information about

Quantities and required delivery dates of all sub-assemblies
Quantities and required delivery dates of final products
Inventory on hand for each sub-assembly
Inventory on hand for each final product

Optimized production technology (OPT) is a computer-based technique and tool which helps to schedule production systems. Which of the following are no...

Capacity is "king"
Balance flow is what is required
Process batch should be variable
Bottlenecks govern throughput

MPS stands for:

Master Planning System
Master Production Schedule
Material Production Schedule
Material Planning System

A master production schedule contains information about

Quantities and required delivery dates of all sub-assemblies
Quantities and required delivery dates of final products
Inventory on hand for each sub-assembly
Inventory on hand for each final product

Dependent demand and independent demand items differ in that

For any product, all components are dependent-demand items
The need for independent-demand items is forecasted
The need for dependent-demand items is calculated
All of the above are true

A master production schedule specifies

The financial resources required for production
What component is to be made, and when
What product is to be made, and when
The labor hours required for production

Closed Loop MRP means:

Actual inventory is counted regularly and adjustment made to the inventory records
Capacity and resource planning is included in the MRP logic
Unused materials are returned to stores and recorded back into the system
Actual sales are netted off the forecasts in the MPS

Enterprise Resource Planning (ERP) has been criticized on a number of grounds. Which of the following is not a common criticism of ERP?

It does not allow decisions and databases from all parts of the organization to be integrated
Implementation is expensive
The effect it has on businesses is disappointing
It can have a disruptive effect on the organization operations

Demand for a given item is said to be dependent if

the item has several children
there is a deep bill of materials
the finished products are mostly services (rather than goods)
there is a clearly identifiable parent

In MRP (Materials Requirements Planning) the Bill of Materials is:

The required output from a process over time
A list of required safety stock items
The sum of stock-on-hand and work-in-progress
The product structure showing where common parts are used

What is measurementship?

Trying to agree low objectives so as to look good later
Discussing "the numbers" at every opportunity
Surveying by naval architects.
Collecting too much performance data

The outputs of a MRP II system are:

Sales order priorities / Bills of Materials / Material Requirement Plans
Material Requirement Plans / scheduled purchase orders / capacity requirement plans
Stock quantities / Bills of Materials / Master Production Schedule
Capacity requirement plans / stock quantities / stock locations

Three levels of planning. What are they?

Top, middle and bottom
Headquarters, divisional and local
Operational, intermediate and strategic
None of these

Three inputs for every MRP system are:

Sales forecast, delivery costs, capacity plan
Average replenishment time, re-order point, economic order quantity
Stock on hand, Master Production Schedule, Bill of Materials
Bill of Materials, sales forecast, sales history

What three problems commonly hindering successful planning did we identify?

An oversized planning department; poor co-operation between managers and planners; managers with little time to gather information.
Procedures unsuited to change; negative organisational culture; poor interpersonal relationships.
Lack of planning expertise; little top management support; misuse of planning specialists.
Conflict among objectives; impossibility of measuring outcomes; confusion between means and ends.

What is the more formal term for what is known as Plan B?

A contingency plan
A circumstantial plan
A catastrophe plan
A convergence plan

What is the planning horizon?

The time ahead for which there is no information.
The time period within which uncertainty is very low.
The maximum time for which managers can make plans.
The time between making a plan and putting it into effect.

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Production and Operations Management MCQs