Production Operation Management

MCQS
CHAPTER1
In Craft Production, economies of scale was easy to achieved.

Select one:
True
False

IN CRAFT PRODUCTION,SEMI SKILLED WORKERS USE SPECIAL TOOLS

Select one:
True

False

DO IN TIME ---- THIS PHRASE IS ASSOCIATED WITH

Select one:
a. PARETO
b. JAPANESE
c. NONE
d. TAYLOR

e. FORD
The Father of Scientific Managmenet:

Select one:
a. FORD
b. PARETO
c. HAWTHRONE

d. TAYLOR

The operations function is that part of every business organization that produces products and/or
delivers services.

Select one:
True

False

A key goal of business organizations is to achieve a matching of supply and demand.

Select one:
True

False

The operations and sales functions are line functions, and all other functions are support functions.

Select one:
True

False

Sustainability refers to the ability of a firm to "keep its head above water."

Select one:
True

False

JUST IN TIME ---- THIS PHRASE IS ASSOCIATED WITH

Select one:
a. FORD
b. TAYLOR
c. PARETO
d. GILBRETH

e. JAPANESE

MATCH THE DESCRIPTION WITH THE APPROPRIATE DEFINITION

Buying goods or services instead of producing or providing them Answer 1

in-house. OUTSOURCING

The application of scientific discoveries to the development and Answer 2

improvement of goods and services. TECHNOLOGY

The breaking up of a production process into small tasks, so that Answer 3

each worker performs a small portion of the overall job. DIVISION OF LABOUR

System in which highly skilled workers use simple, flexible tools to Answer 4
produce small quantities of customized goods. SYSTEMS

System in which low-skilled workers use specialized machinery to Answer 5

produce high volumes of standardized goods. CRAFT PRODUCTION

The management of systems or processes thatcreate goods and/ Operation Management

or provide services.

Although there are some basic differences between services and products that must be taken into
account from a managerial standpoint, there are also many similarities between the two.

Select one:
True

False

CHAPTER 2
Increased emphasis on pollution control and the environment has caused companies to adopt
environmental scanning.

Select one:
True

False
A company that processes fruits and vegetables is able to produce 400 cases of canned
peaches in half hour with four workers. What is the labor productivity?

Select one:
a. 200 CASES PER LABOR HOUR
b. 100 CASES PER LABOR HOUR

c. 800 CASES PER LABOR HOUR

Mance Fraily, the Production Manager at Ralts Mills, can currently expect his
operation to produce 1000 square yards of fabric for each ton of raw cotton.
Each ton of raw cotton requires 5 labor hours to process. He believes that he
can buy a better quality raw cotton, which will enable him to produce 1200
square yards per ton of raw cotton with the same labor hours.
What will be the impact on productivity (measured in square yards per
labor-hour) if he purchases the higher quality raw cotton?
Select one:
a. Productivity improves 100%
b. Productivity improves 200%
c. Productivity improves 120%

d. Productivity improves 20%

Productivity is particularly important for organizations that use a strategy of low cost, because the
higher the productivity, the lower the cost of the output.

Select one:
True

False

A company can compete with other companies manufacturing a similar product only by
reducing its price.

Select one:
 True

False
MATCH THE ITEMS WITH THE APPROPRIATE DESCRIPTION

States the purpose of an organization.

Answer 1
MISSION STATEMENT

How effectively an organization meets the wants and needs of Answer 2

customers relative to others that offer similar goods or services. COMPETITIVENESS

The monitoring of events and trends that present threats or Answer 3

opportunities for a company. STRATEGY

The methods and actions taken to accomplish strategies.

Answer 4
TACTICS

A measure of the effective use of resources, usually expressed as Answer 5

the ratio of output to input. PRODUCTIVITY

Strategy that focuses on quality in all phases of an organization.

Answer 6
QUALITY BASED STRATEGY

The reason for the existence of an organization.

Answer 7
MISSION

Productivity can be measured only on workers.

Select one:
True

False

When measuring productivity, it is important to only include the output that is acceptable.

Select one:
True

False

A mission should support the goals of an organization.

Select one:
True

False
CHAPTER 4
Serviceability is the capability of an organization to provide a service at an acceptable cost or profit.

Select one:
True

False

RELIABILITY CAN BE IMPROVE BY USING BACK UPS.

Select one:
True

False

MAJOR OBJECTIVE OF PRODUCT AND SERVICE DESIGN IS :CUSTOMER SATISFACTION

DFR stands for: DESIGN FOR RELIABILITY

PAPER CLIPS ARE IN THE THIRD STAGE OF PRODUCT LIFE CYCLE

Select one:
a. THEY ARE IN LAST STAGE
b. THEY ARE IN SECOND STAGE
c. NO

d. YES

Manufacturability is not a key consideration in product design.

Select one:
True

False
Phases in product Development Process
Match the phases step by step

7 Market test

9 Follow up Evaluation

8 Product Introduction

2 Feasibility Analysis

3 Product Specifications

6 Design Review

5 prototype Development

1 Idea Generation

4 Process Specifications

A major consideration in product design is manufacturability.

Select one:
True

False
MATCH THE FOLLOWING

the incubation, growth, maturity, saturation and decline of a Answer 1

product or service. life cycle

all activities connected with bringing a new product to market.

Answer 2
product design

making it easier to take apart used products by using fewer Answer 3

parts and snap-fits where possible.
design for disassembly

designing products with manufacturing capabilities in mind, so

as to make them easy to produce, and to make it easy to avoid
Answer 4
mistakes. design for manufacturing

reducing the number of parts in an assembly as simplifying the Answer 5

assembly methods that will be employed in its manufacture. design for assembly
requires that every product be usable for its intended purposes.
Answer 6
Uniform Commercial Code

the set of conditions under which an item's reliability is

specified Answer 7
normal operating conditions

product design using computer graphics.

Answer 8
computer aided design

the absence of variety in a product, process, or service. The

extent to which all of the products are similar to each other, or
Answer 9
the extent to which every customer receives the same service. standardization

designing products to allow for disassembly in order to recover Answer 10

components and materials for reuse. design for recycling

The process of dismantling and examining a competitor's product to get design ideas
would be regarded as

Select one:
a. ILLEGAL
b. BENCH MARKING
c. UNETHICAL
d. REVERSE ENGINEERING

e. NONE

Reduction in variety is an advantage of standardization.

Select one:
True

False

CHAPTER5
The breakeven point occurs at an output where total cost and total profit are equal.

Select one:
True

False
Answer 1
process factors
quantity capabilities or quality characteristics of the product that affect
performance and output.

Different levels of planned output having different cost structures for a Answer 2
range of outputs. capacity alternatives

scheduling problems, bottlenecks, equipment failures, or breakdowns in

Answer 3
communication between different sections of the plant that affect
performance and output. operational factors

the upper limit or ceiling on the load that an operating system can Answer 4
handle. capacity

circumstances that affect the plant capacity and the rate of output,
Answer 5
which are either externally imposed, such as health and safety
regulations, or else negotiated, such as by union work rules. external factors

the output level at which total cost = total revenue. Answer 6

breakeven point

characteristics of the design or location of the plant that affect the Answer 7
capacity of the plant. facilities factors

focuses on relationships between cost, revenue, and volume of output.

cyclical factors: factors that affect the rate of output, based on the Answer 8
business cycle. Design capacity a specified rate of output that the plant cost-volume analysis
is theoretically capable of producing.

those expenses which do not increase (or decrease) when the volume FIXED COST
of output increases (or decreases).
variable costs

the ratio of actual output to effective capacity, expressed as a

percentage.

Effective capacity is always less than design capacity.

Select one:
True

False

Design capacity is the maximum output rate or service rate an

operation is designed for.

Select one:
True

False

Efficiency can be defined as the ratio of actual output to effective

capacity.

Select one:
True
 False

Given the following information:

Design Capacity = 90 units per week
Effective Capacity = 70 units per week
Actual Output = 65 units per week
Compute the following :

Efficiency Answer 1
= 93%

Utilization Answer 2
= 72%

ncreasing quality will cause an increase in productivity, and hence, and

increase in capacity.

Select one:
True

False

Effective capacity is always greater than design capacity.

Select one:
True

False
he volume of output at which total cost and total revenue are equal is known as BEP.

Select one:
True

False
If a monthly fixed cost is $1000 and an item sells for $20 more than it costs to produce, the
breakeven point is 50 units.

Select one:
True

False
Utilization can be defined as the ratio of design capacity to actual output.

Select one:
 True

False

fficiency can be defined as the ratio of actual output to design capacity.

Select one:
True

False

Demand forecasr: is the primary input in capacity planning.

ASSIGNMENT :
An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced. What is
the potential increase in labor productivity that could be achieved by eliminating the scrap?
Select one:
a. 80
b. 10%
c. 11.1 %
(80-72) / 80 *100

Year Time Period Sales (Units) X 2

XY
(X) (Y)
2006 1 100 1 100
2007 2 110 4 220
2008 3 122 9 366
 2009 4 130 16 520
2010 5 139 25 695
2011 6 152 36 912
2012 7 164 49 1148

TOTAL

b= 10.46
Answer 1
a= 89.16
Answer 2
Predicted value for 2013 sales is 173
Answer 3
∑XY = 3961
Answer 4
A manager checked production records and found that a worker produced 160 units while
working 40 hours. In the previous week, the same worker produced 138 units while working 36
hours. did the worker's productivity increase, decrease, or remain the same? Explain.

Select one:
a. DECREASE
b. INCREASE
c. REMAIN SAME

d. CANNOT BE DETERMINED FROM THE GIVEN INFORMATIO

A company can compete with other companies manufacturing a similar product only by
reducing its price.

Select one:
True

False
Productivity can be measured only on workers.

Select one:
True

False
THE ABOVE IS A LINEAR REGRESSION
FALSE
Mance Fraily, the Production Manager at Ralts Mills, can currently expect his
operation to produce 1000 square yards of fabric for each ton of raw cotton.
Each ton of raw cotton requires 5 labor hours to process. He believes that he
can buy a better quality raw cotton, which will enable him to produce 1200
square yards per ton of raw cotton with the same labor hours.
What will be the impact on productivity (measured in square yards per
labor-hour) if he purchases the higher quality raw cotton?
Select one:
a. Productivity improves 20%
b. Productivity improves 100%
c. Productivity improves 120%

d. Productivity improves 200%

Delphi method is a forecasting technique

Select one:
True

False
The diagram shown below represents a positive trend

Select one:

True
False

MAKE A TREND LINE FOR THE FOLLOWING DATA

X Y

1 60
2 65
3 55
4 58
5 64
Answer 1
b= 0.1

comment on r Answer 2
= positive and w eak

coefficient of Answer 3
0.14%
determination 0.14%
=
Answer 4
r= 0.038

Answer 5
a= 60.1

The regression equation for predicting number of speeding tickets (Y) from
information about driver age (X) is Y = -.065(X) + 5.57. How many tickets
would you predict for a twenty-year-old?

A. 6
B. 4.27
C. 5.57
D. 1

Select one:
D
A
C

B
A wrapping paper company produced 2,000 rolls of paper one day. Standard
price is $ 1/roll. Labor cost was $ 160, material cost was $ 50, and overhead
was $ 320.
Determine the multifactor productivity.

Select one:
a. 3.77 rolls per dollars
b. $ 3.77 per rolls
c. 3.66 rolls per labor
d. $ 0.265 per roll

e. $ 1per roll

MIDTERM:
GRADES OF 5 STUDENTS ARE GIVEN.
THE STATISTICS TEST GRADES ARE DEPENDENT ON APTITUDE TEST GRADES

APTITUDE
STATISTICS
S.NO TEST
TEST GRADES
GRADES

1 95 85
2 85 95
3 80 70
4 70 65
5 60 70

Slope = 0.64
Answer 1
Intercept = 26.78
Answer 2
CORRELATION 0.69
Answer 3
COMMENT ON CORRELATION Answer 4 POSITIVE & AVERAGE

Is Slope Positive ? YES

Answer 5
Calculate a three - quarter moving average for forecasting sales of 2002 (QUARTER 3)

Select one:
a. 40 UNITS
b. 40
c. 40,000 UNITS

d. 40,000
Increasing quality will cause an increase in productivity, and hence, and
Answer 1
increase in capacity.
TRUE

When using EOQ ordering, the order quantity must be computed in Answer 2
every order cycle. FALSE

When measuring productivity, it is important to only include the output

Answer 3
that is acceptable.
TRUE

Reduction in variety is an advantage of standardization. Answer 4

FALSE

COMPANIES RECYCLE FOR COST SAVINGS RATHER THAN

Answer 5
ENVIRONMENTAL REGULATIONS.
FALSE

Efficiency can be defined as the ratio of actual output to design capacity. Answer 6
TRUE

One of the reasons for re manufacturing is that the process requires

Answer 7
mostly unskilled and semiskilled workers.
FALSE

Answer 8
Effective capacity is always less than design capacity.
FALSE

Using the EOQ model, if an item's holding cost increases, its order quantity will
Answer 9
decrease.
TRUE

IN CRAFT PRODUCTION,SEMI SKILLED WORKERS USE SPECIAL TOOLS

tilization can be defined as the ratio of design capacity to actual output.

Select one:
True

False

The Friendly sausage Factory (FSF) can produce hot dogs at a rate of
5000 per day. FSF supplies hot dogs to local restaurants at a steady
rate of 250 per day. The cost to prepare the equipment for producing
hot dogs is $66. Annual holding costs are 45 cents per hot dogs. The
factory operates 300 days a year. Find The number of runs per year.
Select one:
a. 20 RUNS/YEAR
b. 48 RUNS PER YEAR
c. 16 RUNS/ YEAR

d. 18 RUNS PER YEAR

If average demand for an item is 21 units per day, safety stock is 4 units, and lead
time is 2 days, the ROP will be:

84 B. 46 C. 42 D. 40
Select one:
B
C
A

MATCHING:
ANNUAL DEMAND OF TOYS = 32000.
THE PLANT OPERATES 240 DAYS A YEAR
ANNUAL HOLDING COST = $ 3 PER TOY
ORDERING COST = $ 120

EOQ = 1600 TOYS

Answer 1
NUMBER OF ORDERS PER YEAR = Answer 2 20 ORDERS

LENGTH OF ORDER CYCLE = 12 DAYS

Answer 3

A truck manufacturer builds 23 big rigs a day in an assembly plant that was designed
to produce 25 trucks a day. Their efficiency is 92%.

Select one:
True

False

Efficiency can be defined as the ratio of actual output to effective capacity.

Select one:
True

False

Given the following information:

Design Capacity = 90 units per week
Effective Capacity = 70 units per week
Actual Output = 65 units per week
Compute the following :

Efficiency 93%
= Answer 1
Utilization = Answer 2 72%

It is usually a good idea to keep capacity planning separate from product and service
design so that the issues in each area don't become intertwined.

Select one:
True

False