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Production & Operations Management

PART A (Descriptive Type) = 32 PART B (Case Study) = 4 PART C (Objective Type) = 143
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PART A Descriptive Type Question

Question 1(a) Define Production Management and discuss its scope and functions. Question 1(b) Production Management deals with decision-making related to co-production process so that the resulting goods or services are produced according to the specifications, in the amounts and by the schedules demanded and a t a minimum cost." Discuss. Question 2a) Define production operations management. What are its objectives and functions? Question 2b) What are the operations management strategies? Question 3 Define production and operations management. Explain strategic, technical and operational decisions involved in production operations management. Question 4 Discuss the changing philosophy of operations management. What are the new trends in operations management? Question 5(a) Compare and Contrast the Continuous and Intermittent Production systems. Question 5(b) What do you understand by the term Flexible Manufacturing System? Do you think it necessary for our country; discuss highlighting the examples from our industries? Question 6(a) What is Production Planning and Control? Question 6(b) State main elements or functions of PPC. Question 6(c) Define Aggregate Planning and State its importance. Question 7 For different types of manufacturing systems, we definitely have different Production Planning & Control (PPC)." Do you agree with the statement? Explain your viewpoint. Also explain the PPC for Intermittent & Continuous manufacturing systems. Question 8(a) Plant layout is the physical arrangement whether existing or in plans, of industrial facilities". In the light of above statements discuss various types of layouts commonly found in different industries. Question 8(b) What are the benefits that accrue due to a good plant layout?

Question 8(c) Mention the guiding principles in designing a layout of production facilities. Question 9(a) Explain how Work Study (Work Measurement & Method Study) leads to higher productivity? Question 9(b) How Standard Time per unit is calculated? Calculate the Standard Time per piece in the following case. The worker working on the machine has been given average performance rating as 110%. The total allowance for the job under given conditions of working is 15%. Question 10(a) Solve the following Transportation Problem and Find the Minimum Transportation Cost. Question 10(b) A company makes two kinds of leather belts. Belt A is a high quality belt, and B is of lower quality. The respective profits are Rs. 40 and Rs 30 per belt. Each belt of type A requires twice as much time as a belt of type B, and, if all belts were of type B, the company could make 1000 per day. The supply of leather is sufficient for only 800 belts per day (both A and B combined). Belt A requires a fancy buckle, and only 400 per day are available. There are only 700buckles a day available for belt B. Set up the linear programming equations for the problem and use Graphical Method for solving the same Question 10(c) The workmen in an Engineering company are expected to work for 400 minutes in a shift of 8 hrs. The remaining time is meant for rest and personal needs. I. Determine the Standard Time per piece of a job whose normal time is 2 minutes. II. Calculate the no. of pieces to be produced per day. III. If the workmen engaged on the above job produce 180 pieces in the shift, what is their efficiency? Question 11(a) What is material Requirement Planning? Describe briefly the MRP Process (preferably diagrammatically). Question 11(b) The product structure of an item (A) is as given below: (1) Show by a diagram, when production of each component or assembly must be carried out in order to complete the final assembly by week 15? (2) Work out the number of components or subassemblies required to produce 1250 Nos. of the product "A" required in 15 week, assume that all scheduled receipts are zero. Question 12a) Explain the concept of product design and development. Question 12b) What are the various production systems? Question 13a) What is capacity planning? Explain the various methods of altering capacity. Question 13b)What are the factors affecting facility location? What are the techniques for facility location? Question 13c) What are the various facility layouts? Enumerate the advantages and disadvantages. Question 14a) What is meant by master production schedule? Question 14b) Explain the activities involved in production planning and control.

Question 14c) Discuss MRP. What are the inputs and outputs of an MRP system? Question 15a) Explain JIT manufacturing Question 15b) Explain acceptance sampling Question 15c) What do you understand by maintenance policy? Explain various categories of spares. Question 16a) What is economic order quantity? What are the assumptions of EOQ? Question 16b) If the annual demand for a product is 3,50,000 units. The annual carrying cost rate is 25 percent of the cost of the unit the product costs Rs 14.75 per unit to purchase, and each time the product is ordered the related ordering cost is Rs 53.00. i) What is EOQ? ii) What is total cost at EOQ? iii) How much would be the total cost if the order quantity is 2500 units due to standard packing? Question 17a) Operations scheduling is one of the most important function of production planning and control. Discuss. Question 17b) Seven jo bs are to be carried out on three machines M1, M2, M3 in the order of M1, M2, M3. The processing time in hours of various jobs are tabulated below. Job A B C D E F G M1 1 3 7 9 4 5 2 M2 7 3 8 2 8 6 1 M3 8 1 8 11 9 14 12

Question i) What are the conditions for using Johnson's rule to sequence jobs on three machines? Question ii) What is the make span for these jobs? Question iii) What is the idling time? Question 18a) A company that produces mixer gr inder has the follo wing orders over the next six months. Period Demand 1 2000 2 5000 3 8000 4 4500 5 2000 6 8000

Monthly production capacities are 5000 units on regular time, 1000 units on over time, and 2000 units can be sub contracted each month. Production costs are Rs20/- per unit on regular time, Rs 25/- per unit on over time, and Rs 28/- for sub contracted quantities. Inventory holding costs are charged @ Re 1/- per u nit per month. Use transportation mode! to develop a production plan for next six months. Question 18b) Five jobs are to be assigned to five mac hinists. The following matrix shows the time taken by each of the machinist for reach of the jobs. Jobs Machinist 1 A B C D E 10 9 7 3 9 2 5 7 5 5 10 3 3 8 6 8 9 4 2 2 2 2 6 5 8 7 4 4 10

Using Hungarian method find out the optimum assignment and processing time. Question 19 What are the two basic production systems? Explain their characteristics ad vantages and disadvantages. Question 20 Explain with a suitable example the factors that are to be taken into account for plant location. Question 21 What are the principles of plant layout? Explain the different layouts used in industries. What are the advantages of each type of layout? Question 22 Write short notes on any three of the following: (a) JIT production systems (b) Network analysis (c) Production planning and control (d) TQM (e) Value Engineering Question 23a) What is a sequencing problem? What are the assumptions generally made in solving sequencing problems? Question 23b) There are six jobs that must go through two machines A and B in the order A, B. Process time in hours is given below. Job 1 Machine- A Machine- B Job 2 6 8 Job 3 10 15 Job 4 5 9 Job 5 11 14 Job 6 12 13 8 11

Find out the job sequence that reduces total processing time. Also find out the idling time.

Question 24a) What is economic order quantity? Derive the EOQ formula. List the assumptions and limitations of EOQ. Question 24b) The annual demand for an item is 25,000. The cost of placing an order is Rs. 100/- and the inventory carrying cost is 25 percent. The unit price of the item is Rs. 10/-. Find the EOQ. Question 25 An electric fan company manufactures both ceiling and table fans. Resource requirements for both these two items with corresponding revenues are indicated in the following table. Product Table Fan Ceiling Fan Labour hour per Unit 2 4 Raw material per unit (kg) 8 6 Profit per unit in Rupees 80 100

The company can make available 80 hours of labour and 240 kgs. of raw material. How many table and ceiling fans are to be produced to maximize profit? Question 26 What is the difference in strategy in developing an initial layout for a new facility as compared to the strategy in improving the layout of an existing facility? Question 27 Discuss the various factors to be considered to decide the location of a cement plant? How do the factors differ in case of a nuclear plant? Question 28 Write short notes on: [a] Capacity requirement plans [b] Rough cut capacity plans [c] Resource requirement plans Question 29 Actual demand differs from forecasted demand. How to adjust the aggregate plan to meet this situation? Question 30 Why is materials planning needed? Discuss the various aspects of materials planning. Which other departments contribute to materials planning and in what way? Question 31 What do you understand by the term corrective maintenance? In what way is corrective maintenance different from preventive maintenance and predictive maintenance? Support your answer with examples. Question 32 What do you understand by 'Total quality Management'? Discuss the objectives of total quality management. In what way the approach to Total Quality Management has changed over the last ten years?


Case Study 1
An Electric Company produces MCBs. The demand forecast for MCBs for the next 12 months is as follows: The cost of holding the inventory of MCBs, each costing Rs.40 are 2 % per month. If there are shortage of MCBs , the enterprise has a loss of customer goodwill and the loss of opportunity costs is estimated at Rs. 60 per MCB. a) Estimate the relevant costs of producing 2,50,000 MCBs every month. Take initial inventory as 30,000 MCBs. b) If the production is carried our @2,00,000 MCBs per month for Jan , Feb. , March , April; @2,00,000 MCBs per month for Ma y , June , July & Aug ; and @ 3,00,000 MCBs per month for Sept , Oct , Nov , Dec. Calculate the total costs for this alternative plan. Assume cost of producing in over-time costs @Rs. 6 per MCB, costs if undertime(production below full capacity)@Rs. 3 per MCB and Rs 5 per MCB being the setup cost(cost of changing production rate). Compare the two plans and find the better one. Hint: Alternate-1: Calculation sheet for Average Inventory and Lost Sale (units)

Case Study 2
a) An electronic goods company produces radio s and calculators. The radios generates a profit of Rs10/- per unit while calculators generates a profit of Rs 15/- per unit. Each radio requires four diodes and four resistors, while each calculator requires ten diodes and two resistors. The radio takes 12 minutes and calculators take 9,6 minutes on the testing machine. The production manager estimates that 160 hours of testing time are available. The firm has 8000 diodes and 3000 resistors in stock. Formulate the linear programming problem and solve it graphically. b) Systems Software (P) Ltd. is planning to develop new software. It has identified the activities in the in the table below for this software development project and has calculated three time estimates in days for each of the activity.




Optimistic time 1 3 6 4 8 2 1

Most likely time 2 5 10 6 9 4 3

Pessimistic time 3 7 14 8 10 6 5


Create objectives Choose system Generate algorithm Choose a suitable Operating

A A A B, C, D E for F

programming Write the programme Test the software Get approval


Question i) Draw the network diagram; find out the critical path and the expected duration of the project. Question ii) Calculate the slack time for each of the activities. Question iii) Calculate the probability of completing the project in 30 days.

Case Study 3
WASHDRY COMPANY The Washdry Company manufactures several models of washers and dryers. The projected monthwise requirements over the next year for their automatic washers are:

Month Demand Month Demand

1 800 7 1100

2 1030 8 1210

3 810 9 600

4 900 10 580

5 950 11 890

6 1340 12 1000

Current inventory is 100 units. The firm current capacity is 960 units per month. The average salary of production workers is Rs. 1200/- per month. Each production worker accounts for 30 units per month. Overtime is paid at one and half up to 20% additional time. Additional labour can be hired for a training cost of Rs. 250/- and existing workers can be laid off at a cost of Rs. 500/-. Any increase o r decrease in production rate costs Rs. 5000/- for tooling, set up and line charges. This does not however apply to overtime. Inventory ho ld ing costs are Rs. 25/- per unit per month. Back order cost is Rs. 75/- per unit short. Question 1. Using chase or level plan determines the next year production plan that minimizes total production cost.

Case Study 4
Paradise Land Management Company Paradise Land Management owns and operates hotels and apartment complexes near a major metropolitan area. They want to expand operations in the near future, the goal being to increase net earnings before taxes. Two alternative expansion opportunities are under considerations: the Densmore complex and the Highgate project. Both projects involve the purchase of land on which apartment building would be constructed and operated. The site for the Densmore complex is situated in a respectable, quite, sparsely populated residential neighborhood. Land for the 70-unit complex can be purchased for $60,000. Building costs are estimated at $1,680,000. Anuual maintenance costs would amount to $30,000. Apartment units would rent for $410 per month. Paradise is also

conidering constructing a recreation facility nearby. It would cost $100,000 and would service both Densmore residents and the residents of the company owned Paradise west, the only existing apartment complex in the neighborhood. Paradise west, with 120 units renting for $290 per month, has had an average occupancy rate of 84% for the past three years. The addition of Densmore and the recreation facility are expected to increase Paradise West's occupancy rate to 90% (probability 0.6) or 95% (probability 0.4). Densmore's occupancy rate is expected to be 90% (probability 0.5), 85% (probability 0.3), or 80% (probability 0.2). The highgate project calls for 400 units to be constructed on land costing $220,000 in a high density population neighborhood with many competing apartments. Building costs would be $4,200,000. Rental revenue per unit would be $240 per month; anuual operating costs would be $150,000. Highgate's occupancy rate is expected to be 90% (probability 0.2), 80% (probability 0.5), or 70% (probability 0.3). Q) What factors should be analyzed in making this capacity decision?

PART C Objective Type - Set 1

1. The transportation cost and the labour cost are the two most important factors in determining the site location. (a) True (b) False 2. Locational break-even analysis can be employed for determining the site location decision. (a) True (b) False 3. Brown and Gibsons Model for location measure has nothing to do with annual turnover. (a) True (b) False 4. The Continuous Production system is that where facilities are standardized as to routing and flow. (a) True (b) False 5. 6. The Mass production is one in which large variety of products are produced. (a) True (b) False The Intermittent process is based on functional type of layout. (a) True (b) False

7. The fixed type of layout is one where all facilities like manpower, equipment and materials are brought to the place of working. (a) True (b) False 8. 9. FMS stands for Flexible Manufacturing System. (a) True (b) False Batch Production is an example of Continuous Production System. (a) True (b) False

10. The Continuous Production System employs General Purpose Machines and Intermittent Production System employs Special Purpose Machines. (a) True (b) False 11. Fredrick Taylor is called the Father of Motion Studies and B.Gilbreth is called the Father of Scientific Management. (a) True (b) False 12. Wilson gave formula for determining the Economic Order Quantity. (a) True (b) False

13. In case of components in series, the reliability is higher than the highest of any component in the system and in case of components in parallel, the reliability is less than the least in the system. (a) True (b) False 14. If F (t1) and F (t2) are the probability of failures of two components in the parallel system, then the reliability of the system is given by 1-(1-F(t1) x (1-F(t2). (a) True (b) False 15. In ABC analysis, a items are those which consume 70% by value and are hardly 10% of the total items whereas C items are those which consume 10% by value and are more than 70% of total items. (a) True (b) False 16. A quality circle is a small group of employees in a company who discuss and try to improve the quality of the output and other work related matters. (a) True (b) False 17. P system of inventory control is basically Fixed Order Quantity System and Q system of inventory control is Fixed Periodical Review System. (a) True (b) False 18. In P type of inventory control system the average inventory is more than Q type of inventory control system. (a) True (b) False 19. Integrated approach towards material management is not necessary for inventory Control. (a) True (b) False 20. A good management is one which starts on Incentive Scheme right from the start of the factory. (a) True (b) False 21. 22. 23. A forklift can be used for horizontal as well as vertical movements. (a) True (b) False Mobile cranes cannot move from one place to another. (a) True (b) False Hand trollies are used for handling larger loads over small distances. (a) True (b) False

24. Line layouts generally involve low investments by way of equipment and machinery. (a) True (b) False 25. Plant layout and material handling are closely inter related.

(a) 26. 27.




Material handling cost is directly proportion to the size of unit load. (a) True (b) False EOQ strikes a balance between inventory carrying cost and ordering costs. (a) True (b) False

28. Measure of Central tendency is a data set refers to the extent to which the observations are scattered. (a) True (b) False 29. The value of all observations in the data set is taken into account when we calculate its mean. (a) True (b) False 30. If the curve of a certain distribution tails off towards the right end of the measuring scale on the horizontal axis, the distribution is said to be positively skewed. (a) True (b) False 31. Extreme values in a data have a strong effect upon the Mode. (a) True (b) False

32. If the value of mean = 35.4 and value of median = 35 the shape of the curve skewed is right. (a) True (b) False 33. It gives equal weightage to all previous months. (a) Exponential Smoothing (b) Moving Average

Objective Type Set 2

1. Organizations that produce something other than physical products are called a) Transformation organizations b) Data transfer groups c) Service organizations d) Cultural organizations Which of the following is NOT a characteristic of service operations? a) Intangible output b) Perishable products c) Labor intensive d) Low customer contact Decisions that tend to focus on the entire organization, cutting across departmental lines, and have long consequences are called a) Departmental b) Tactical c) Strategic d) Routine Competing on differentiation is a) Concerned with uniqueness c) Based on flexibility b) Based on cost leadership d) Reliability of scheduling





Which of the following is NOT important in globalization? a) Product design b) Culture and ethics c) Facility location d) Facility lay out

6. Which of the following conditions are NOT generally associated with a job process? a) Work force with highly specialized skills b) Low product volume c) Relatively high customization d) High resource flexibility 7. Low volume, high variety production is best suited for a) Process focus b) Repetitive focus c) Product focus d) Mass customization

8. Which of the following automatically place parts into a warehouse a) ASRS b) AGV c) FMS d)SGV 9. The planning and scheduling of production only against specific production order is a) Make-to-Stock b) Make to-Order c) Assemble-to-Order d) Mass Customization 10. Which of the following is NOT a characteristic during the introductory phase of the product life cycle? a) Research b) Process modification c) Supplier development d) Capacity utilization 11. Which of the following is a characteristic of the maturity phase? a) Products are 'line tuned" b) Product designs begin to stabilize

c) Competitors are well-established d) Products are considered for termination 12. Benefits of design for manufacturability and value engineering include all of the following except a) Reduced complexity of the product b) Additional standardization of the components c) Improved job design and safety d) Compromise quality 13. a) b) c) d) 14. a) b) c) d) 15. a) b) c) d) 16. a) b) c) d) Modular design Offers flexibility to both production and marketing Means that small variations in production do not adversely affect the product Uses computers to interactively design the products Are environmentally friendly Which of the following is NOT a concept of green manufacturing? Make products recyclable Standardization of components Use less harmful ingredients Use lighter components Design effectiveness is NOT measured by Percentage of standard parts & processes Number of revisions in the design Cost of field repairs Time taken from concept to market Which of the following is NOT a benefit of concurrent engineering? Enables early supplier involvement Promotes consensus decision making Reduces developmental lead-time Eliminates design changes after product introduction

17. Which of the following is NOT a method for evaluating location alternatives, a) The transportation model b) Factor rating c) Center of gravity method d) Waiting line analysis 18. Which of the following is NOT a mathematical technique used for finding the best location for a single distribution point that services several stores or areas a) Factor rating . b) Center of gravity c) Transportation model d) Hungarian method

19. The system that has the highest equipment flexibility is a) Job shop b) Batch c) Repetitive production d) Continuous processing

20. In a product layout the process of deciding how to assign tasks to work stations is referred to as: a) Process balancing b) Task allocation c) Line balancing d) Factor rating 21. The advantages NOT associated with a U shaped assembly line over a straight one are a) Fewer workers are needed b) Workers can reach more of the work area c) Work area can be efficiently balanced d) Automated material handling 22. All of the following statements about using the transportation model to develop an acceptable aggregate plan are true EXCEPT a) The least expensive alternatives often are those in which the output is produced and sold in the same period b) It is possible to disallow backorders by making the back-order cost an impossibly high number c) The transportation model is less useful for chase strategies d) A period's overtime capacity is generally a percentage of its regular time capacity Which of the following statements about a linear programming model is NOT An optimal production plan is desired The values of decision variables are fractional A set of linear constraints might be defined Cross-product relationships exist between two or more decision variables

23. true a) b) c) d)

24. The limitations that restrict the permissible choices for decision variables are called a) Parameters b) Objective function c) Decision variables d) Constraints 25. The total cost for a continuous review system with uncertain demand excludes consideration of a) Cycle inventory holding cost b) Product cost c) Ordering cost d) Safety stock holding cost 26. Select the characteristic that is not indicative of a job shop environment a) Low to medium volume production b) Job or batch processes

c) Consistent, sequential process flow d) Continual introduction of new jobs to be processed 27. The priority -sequencing rule for job shop scheduling that relies ieast on time based data is a) Critical ratio b) Earliest due date c) First come, first served d) Shortest processing time 28. Which statement about capacity requirements planning (CRP) is not true a) CRP systems adjust the order release time to prevent a workstation fro exceeding its capacity b) CRP systems access inventory records to determine when planned orders or scheduled receipts will reacr a workstation c) CRP systems enable the identification of critical workstations d) The purpose if CRP is to match the material requirements plan with the plant's production capacity 29. a) b) c) d) Materials handling includes all of the following activities except Moving an assembly Drilling a hole Storing a product Handling materials

30. 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 31. a) b) c) d) 32. a) b) c) d) 33. Attribute inspection measures The range of a characteristic If product responsiveness is adequate If cause and effect are present If the product is good or bad One hundred percent inspection Will always catch all of the defective parts Means that only good parts will be shipped to the customer Is always practical and generally a good idea Means that every part is checked to see whether or not it is defective

Process capability a) Means that the natural variation of the process must be small enough to produce products that meet the standards

b) Exists when Cpk is less than 1 c) Exists when the process is perfectly centered d) Cannot be measured 34. The R-chart a) Is used to measure changes in the central tendency b) Is always in control if the X-bar chart is in control c) Generally uses control limits set at plus or minus 2 standard deviations of the distribution, rather than plus or minus 3 which is commonly used on the X-bar chart d) Is used to indicate gains or losses in uniformity 35. A customer service hotline has received an average of 7 complaints a day for the last 25 days. What type of control chart should be used to monitor this hotline a) C-chart b) P-chart c) X-bar chart d) np-chart The maximum output of a system in a given period is called the Break-even point Design capacity Effective capacity Efficiency Methods analysis focuses on The design of the machines used to perform a task How a task is accomplished The raw materials that are consumed in performing a task Reducing the number of steps required to perform a task

36. a) b) c) d) 37. a) b) c) d)

38. Which of the following doesn't relate to work scheduled? a) flex time b) flexible c) work week d) part time system e) ergonomics 39. a) b) c) d) A good maintenance facility should have on the following except Well train personnel availability to identify the cause of break down availability to extend MTBF availability to increase MTTR

40. The process that is intended to find potential failure and make change or repair is known as a) break down maintenance

b) failure maintenance c) preventive maintenance d) reactive maintenance

Objective Type Set 3

1. Which one of the following is not a typical question dealt with any operations manager? (a) How much capacity will be needed in the months ahead? (b) What is a satisfactory location for a new facility? (c) How to motivate employees? (d) All of the above Which of the following would not be generally considered as an aspect of operations management? (a) Schedule work (b) Secure financial resources (c) Maintain quality (d) Observe the transformation process The Operations Manager decides to buy a CNC machine to improve quality of components produced. This decision falls in which of the following category: (a) Strategic decision (b) Tactical decision (c) Routine decision (d) None of above Product variety in a job shop tends to be: (a) High (b) Moderate







Very low


Which one of the following is not generally regarded as an advantage of product layouts? (a) Material handling costs per unit are low (b) Labour costs are low per unit (c) The system is fairly flexible to changes in the design of the product (d) Accounting, purchase and inventory control are fairly routine In an ABC classification, A items typically represent about what percentage of the items? (a) 15% (b) 30% (c) 50% (d) 80% Which of the following is to be included in a list of assumptions of the basic EOQ? (a) Lead time does not vary (b) There are no quantity of discounts (c) Demand is uniform throughout the year ( d ) All of above Which of the following is a true statement concerning the relationship between holding costs and ordering costs in the basic EOQ Model? (a) The two are always equal at EOQ (b) Holding cost is sometimes equal to ordering cost and sometimes greater at EOQ (c) Holding cost is sometimes equal to ordering cost and sometimes less at EOQ (d) Holding cost is always greater than ordering cost at EOQ Which one of the following is not a basic option for altering capacity? (a) Hire and fire workers (b) Use overtime (c) Use subcontracting (d) Use backorders Aggregate planners balance: (a) Demand and inventories





10 .


Capacity and costs

(c) 11 .

Capacity and inventories


Capacity and demand

In a general sense, Quality may be defined as meeting or exceeding the expectations of the customer. Identify which one of the following is a typical customer expectation? (a) Conformance to specification (b) Value (b) Support (d) All of the above The application of statistical techniques to determine whether a quantity of material should be accepted or rejected based on inspection or test of a sample is known as: (a) Specification review (b) Acceptance sampling (c) Deming wheel (d) Benchmarking A control chart typically does NOT show which of the following values: (a) Central line (b) Outer line (c) Upper control limit (d) Lower control limit Acceptance sampling is used for all but which one of these: (a) Incoming raw material (b) Work-in-process (c) Finish goods (d) Incoming purchased parts All of the following are true statements about using Johnsons rule except: (a) Idle time on second machine is minimized (b) The sequence of jobs at the two workstations should be identical (c) Capacity utilization is minimized (d) Jobs must have known processing time Which of the following is an example of dependent demand: (a) Pick up truck (b) Refrigerators (c) Hotel rooms sold (d) Hospital bed sheets The Key inputs to a MRP include: (a) Engineering drawing of the product (c) Inventory records

12 .

13 .

14 .

15 .

16 .

17 .

(b) (d)

Product structure file Both b and c

18 .

The work measurement method that is NOT usually used for setting standards for repetitive well defined job is: (a) The elemental standard data approach ( b ) The work sampling method (c) None of ( a ) & (b) ( d ) Both (a) & (b) If inputs decrease while out put remains constant, what will happen to productivity? (a) It will increase (b) It will decrease (c) It is impossible to tell (d) It will remain same Which one of the following is not a characteristic of a project? (a) Uniqueness (b) Defined goal (c) Interdependencies of tasks (d) Continuity Which of the following is not a characteristic of service provider operations?

19 .

20 .

21 .

(a) (c) 22 .

Intangible Labour intensive

(b) (d)

Perishable products Low customer contact

Decisions that tends to focus on the entire organization, cutting across departments, and have long-term consequences are called: (a) Departmental (b) Tactical (c) Strategic (d) Operational __________ are the fundamental activities that organizations use to do work and achieve their goal. (a) Processes (b) Operations (c) Methods (d) Procedures Long-term capacity planning deals with what of the following factors: ( a ) Invest in new facilities (b) Work force size (c) Inventories (d) Overtime budgets When production volume is low and customization is high a _____ layout is indicative. (a) Flexible flow (b) Line flow (c) Fixed position (d) Cycle time There are four major phases in a project life cycle. Which of the following is not a phase? (a) Termination (b) Execution (c) Planning (d) Maturity The operations areas input to the aggregate plan includes: (a) Demand forecasts (b) Cost data (c) Work force capacities (d) Product design changes An appliance manufacturer initiates a production plan that gets translated into an operational plan is called: (a) Business plan (b) Staffing plan (c) Master production schedule (d) Work force schedule Safety stock inventories protects against uncertainties in: (a) Demand (b) Lead time (c) Supply (d) All of the above The existence of learning curve is suggested by: (a) A reduction in the price of a product as the product reaches the maturity stage of its life cycle (b) A reduction in product costs due to lower raw material costs (c) A reduction of unit cost as cumulative product volume increases (d) None of the above All of the following are true of time study EXCEPT: (a) Time study offers the ability to set standards for new jobs before production begins (b) Time study is not appropriate for non routine jobs

23 .

24 .

25 .

26 .

27 .

28 .

29 .

30 .

31 .

(c) (d) 32 .

Time study is appropriate only when the person conducting the time study is experienced in selecting work elements Time study can provide a satisfactory tool for setting equitable time standards

Which of the following is not a method of determining time standards: (a) Time study (b) Historical experiences (c) Predetermined time standards (d) Flow diagrams The critical path of a network is the: (a) Shortest time path through the network (b) Path with the fewest activities (c) Path with the most activities (d) Longest time path through the network Which of the following is a limitation of PERT and CPM: (a) Graphical displays using networks help to quickly perceive relationships among project activities (b) They are applicable to a wide variety of projects and industries (c) There is inherent danger of too much emphasis being placed on the critical path (d) They are useful in monitoring not only schedules, but costs as well A route sheet: (a) Is an instruction to make a given quantity of a particular item (b) Shows in schematic form how a product is assembled (c) Lists the operations necessary to produce a component (d) Is a correction/modification of an engineering drawing or bill of materials Which of the following automatically places parts into a warehouse: (a) ASRS (b) AGV (c) FMS ( d )

33 .

34 .

35 .

36 .


37 .

The transportation method: (a) Uses both qualitative and quantitative factors (b) Performs a cost volume analysis (c) Determines the best pattern of shipments from several points of supply to several points of demand (d) Finds location of a distribution center that minimizes distribution costs Generally the goal of assembly line balancing is to: (a) Minimize imbalance between machines or persons while meeting a required out put from the line (b) Maximize the number of workstations (c) Is to determine the maximum time that an item remains at a work station (d) Minimize the efficiency of the line Method analysis focuses on: (a) The design of the machines used to perform a task (b) How a task is accomplished (c) The raw materials that are consumed in performing a task

38 .

39 .

(d) 40 .

Reducing the number of steps required to perform a task

In process-oriented and fixed-position layouts, it is important to minimize the costs of: (a) Raw material (b) Material handling (c) Special purpose machinery (d) Skilled labour

Objective Type - Set 4

1. Which of the following methods best considers intangible costs related to a location decision? a) Weighted method b) Location break-even analysis c) Transportation method d) Assignment method e) None of the above 2. What is the major difference in focus between location decisions in the service sector and in the manufacturing sector? a) There is no difference in focus b) The focus in manufacturing is revenue maximization, while the focus in service is cost minimization c) The focus in service is revenue maximization, while the focus in manufacturing is cost minimization d) The focus in manufacturing is on raw materials, while the focus in service is on labour 3. Service / retail / professional location analysis typically has a: a) Cost focus b) Revenue focus c) Labor focus d) Environmental focus 4. Efficiency is calculated as: a) Efficiency= Standard time * Actual time b) Efficiency= Standard time/ Actual time c) Efficiency= Actual time/ standard time d) None of the above 5. The factors involved in location decisions include a) Foreign exchange b) Attitudes c) Labor productivity d) All of the above e) None of the above 6. Industrial location analysis typically has a a) Cost focus b) Revenue focus c) Labor focus d) Environmental focus 7. Hotel chain find regression analysis useful in site location a)True

b)False 8. The telemarketing industry seeks locations that have a) Good electronic movement of data b) Low cost labour c) Adequate availability of labour d) All of the above 9. Factors affecting location decisions include a) Proximity to markets, proximity to suppliers, proximity to athletic facilities b) Site costs, transportation availability, labour availability c) Average age of labour force, labour costs, and number of females in college d) Utility costs, zoning, altitude of city e) All of the above

10. An aggregate plan for a manufacturing firm includes consideration of: a) Production rates b) work-force levels c) Inventory holdings 11. A service firm's aggregate plan links the firm's strategic goals and objectives with detailed operational plans called: a) Production plan b) Staffing plan c) Work-force schedule d) None of the above 12. Utilization is calculated as: a) Utilization = Actual hours*Scheduled available hours b) Utilization = Actual hours/ Scheduled available hours c) Utilization = Actual hours+Scheduled available hours d) None of the above 13. Which of the following statements does NOT apply to a production plan? a) Plans are consistent with company's 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 14. The time horizon for an aggregate plan is typically: a) 0 - 3 months b) 3 -18 months c) 24 - 60 months d) None of the above 15. A for-profit service 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 16. The operations area input to the aggregate plan includes: a) Demand forecasts b) Cost data c) work-force capacities d) Product design changes 17. Aggressive alternatives for coping with demand requirements include: a) Anticipation inventory b) Creative pricing c) Employee hiring and layoffs d) Use of subcontractors 18. 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 19. Planned capacity is: a) Planned capacity = Demonstrated capacity * Efficiency * Utilization factor b) Planned capacity = Designed capacity * Efficiency / Utilization factor c) Planned capacity = Designed capacity * Efficiency * Utilization factor d) None of the above 20. 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 21. A linear programming model CANNOT be used when which of the following are true? a) An optimal production plan is desired b) The values of decision variables are fractional c) A set of linear constraints may be defined d) Cross product relationships exist between two or more decision variables 22. Basic element of operations Management is: a) Customer demand b) Operating system/Process c) Process capacity

d) All of the above 23.The transportation method may be used to determine the costs of alternative strategies for anticipation inventory when which of the following data are available? a) work-force capacity per planning period b) Aggregate demand per planning period c) Beginning inventory d) All of the above 24.Which of the following statements are true about 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 25.When following a utilization strategy, which alternative relies on external sources of production? a) Overtime/undertime b) Subcontracting c) Back orders d) Stock outs 26.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 27.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 28. Which one is not a factor for make or buy decisions: a) Cost b) Quality c) Labor d) Plant location 29.Which one is correct? a) Designed capacity > Planned capacity > Demonstrated capacity b) Designed capacity > Demonstrated capacity > Planned capacity c) Designed capacity = Demonstrated capacity > Planned capacity d) All of the above

30. Plant Productivity is: a) Productivity = Inputs/Outputs b) Productivity = lnputs*Outputs c) Productivity = Outputs//lnputs d) None of the above 31. A service encounter includes a) Face-to-face interaction b) Customers and a building c) Customers and advertising d) All of the above 32. Which function typically employs more people than any other functional area? a) Information Systems b) Finance c) Operations d) Marketing 33. The inputs to a transformation process include all of the following except a) Materials b) People c) Assembly d) Information 34. An assembly line is an example of a) A product layout b) A process layout c) A fixed position layout d) An intermittent organization 35. Which of the following characteristics is most typical of a continuous manufacturing organization? a) The firm manufactures customized product. b) The firm has a low volume of production c) The firm has a relatively low unit cost of production d) The firm creates many different products with many different characteristics 36. Which type of processing system tends to produce the most product variety? a) Assembly b) Job shop c) Batch d) Continuou 37. Buying on the basis of price alone risks problems in each of the following categories except a) Capacity

b) Quality c) Quantity d) Supplier 38.Which one is not a factor for make or buy decisions: a) Cost b) Quality c) Labor d) Plant location 39JITisa a) Push system b) Pull system c) Both d) None of these 40. The word management in quality assurance describes many different functions, encompassing a policy management a) HRM, Safety control b) Component control & management of other resources c) None of the above Instant Downloadable Solution from