Nayan Question Bank of Production and Operations Management 1 Mark

8/9/2019 Nayan Question Bank of Production and Operations Management 1 Mark

1/32

PRODUCTION AND OPERATIONSMANAGEMENT

Unit1 -1 Mark Quiz Questions

1.A measure of productivity which reflects a combination of some or all of the resourcesused to obtain a certain output is:a. machine productivityb. materials productivityc. labor productivityd. multi-factor productivity2.An operations strategy is developed using many sources of input - which is theleastlikely to have input?

a. Planningb. Qualityc. Suppliersd. Top Management3.Distinctive competencies in organizations seldom relate to:.

a. facilities layoutb. price costc. qualityd. time4.For this set of errors: -1, -4, 0, +2, +3, MAD is:

.

a. 1.6b. 2.5c. 2.0d. 1.0


2/32

5. Many factors impact productivity, one factor not generally stated as having anegativeimpact on productivity is:a. Government regulationsb. Increased emphasis on servicesc. Liability claims

d. Emphasis on short-term performance6.Productivity is calculated by:.

a. Adding inputs to outputsb. Dividing outputs by inputsc. Dividing inputs by outputsd. Multiplying inputs by outputs7.Which is the correct hierarchy of operations management decisions (highest first)?

a. Operating, strategic, tacticalb. Goals, missions, productivityc. Strategic, tactical, operatingd. Operating, tactical, strategic8.Which of the following forecasting techniques generates trend forecasts?

r.a. Delphi methodb. Sales force compositesc. None of the aboved. Moving averages


3/32


1.Building a total quality culture does not entail which one of the following?

a. Initiating quality training for most employees and stressing prevention of

mistakes rather than inspection and immediate correction of mistakesb. Unequivocal management commitment to total quality and continuousimprovement, along with articulation of a quality vision and establishment ofspecific, measurable objectives for boosting quality and making continuousimprovementsc. Hiring only those job applicants with the attitudes and aptitudes conducive toquality-based performanced. Building core competencies in quality control2.Creating strategy-supportive policies and procedures

a. is an important strategy-implementing tool because good strategy execution ca

nseldom be achieved by giving employees Ieeway to do tasks the way they think best(without carefully prescribed policies and procedures, management loses controlover how tasks are being performed).b. aids the implementation process by channeling actions, behavior, and daily jobperformance along avenues that are calculated to improve strategy execution.

c. generally means having many policies rather than few policies (because it usuallytakes many policies and procedures to adequately spell out and fully explain how

things are to be done correctly).d. is the most reliable way to motivate employees to do things in a first-rate fashion(because very few employees will knowingly violate company policies).3.Identifying and adopting best practices

a. is essential if a company is to effectively and efficiently implement and execute itsstrategy.b. is a prerequisite to effective reengineering of core business processes and to creatingstrong core competencies.c. starts with benchmarking how well a company performs specific tasks and activitiesagainst best-in-industry or best-in-world performers.

d. needs to be directed chiefly at manufacturing and customer service activities, sincethese two areas are generally the most critical to successful strategy implementationand execution.


4/32

4.Motivational and incentive compensation practices that contribute to high levels ofemployee performancetypically

a. incorporate a blend of positive and negative motivational features and also utilize

both monetary and non-monetary rewards.

b. entail paying the highest wages and salaries in the industry to high-performingemployees and stressing non-monetary rewards for low-performing employees.c. emphasize making employees happy and secure in their jobs through both hardtimes and good times, involve extensive job rotation to expand employee skill sets,and provide all employees (but especially those on the low end of the performancescale) with job training and professional development opportunities throughout t

heircareers.d. incorporate only positive motivational approaches and are carefully designedtoavoid subjecting employees to job insecurity, stress, or anxiety.5.Prescribing policies and operating procedures aid the task of implementing strategy by

a. helping managers determine the appropriate size of departmental staffing andoperating budgets in order for organizational units to carry out their assignedpieceof the strategy in a competent fashion.b. indicating how reengineering needs to be accomplished and paving the way for

instituting TQM, best practices, and internal support systems.c. providing personnel with top-down guidance on how certain things are to be doneand what behavior is expected, placing limits on independent action and channelingindividual and group efforts along the intended path, and helping enforce neededconsistency in how particular strategy-critical activities are performed ingeographically scattered operating units.

d. helping empower product champions and work teams and helping prevent thecorporate culture from being unhealthy and weak.6.Total quality management (TQM)

a. generally works better than reengineering because of quicker employee buy-in,lower implementation costs, and easier-to-achieve results.b. is a term used to describe companies that are best-in-industry in most of therelevant performance indicators.c. is a philosophy of managing that emphasizes continuous improvement in allphases of company operations, 100% accuracy in performing activities,involvement and empowerment of employees at all levels to improve on how things

are done, team-based work design, benchmarking, and efforts to fully satisfy


5/32

d. is a philosophy of managing that involves convincing employees that superiorproduct quality is the most reliable key to competitive success in the marketplace.


6/32

7.Which of the following statements regarding the role and importance of internalsupport systems is inaccurate?

a. State-of-the-art support systems typically have the effect of raising a firm's unit

costs because of the high dollar outlays required to develop and install suchsystems.

b. Well-conceived, state-of-the-art support systems can help a company mobilizeinformation, use knowledge effectively, redeploy resources quickly, and respondfaster.c. Well-conceived, state-of-the-art support systems reduce the need for rigidlyprescribed policies and procedures.d. Well-conceived, state-of-the-art support systems can strengthen organizationalcapabilities enough to provide a competitive edge over rivals.8. Which one of the following is not a valid reason why strategy-implementers ne

ed to bedeeply involved in the budget-making process?a. Implementation of a new or revised strategy usually entails budget reallocation.b. Too little funding of strategy-critical organizational units impedes their ability toexecute their pieces of the strategic plan proficiently.c. Without budget reallocations it is hard, if not impractical, to match organizationstructure to the chosen strategy; moreover, aggressive resource reallocation isaprerequisite to creating needed core competencies and organizational capabilities.

d. The funding requirements of any change in strategy need to drive capitalallocations and the size of each unit's operating budget.Unit4 -1 Mark Quiz Questions

1.Among the following, all are advantages of specialization except:

a. high productivityb. simplifies trainingc. relatively low wagesd. difficult to motivate quality


7/32

2.Analysis of therbligs is most closely related to:

a. learning curve effect.b. motion study.c. methods analysis.

d. simo chart.3.Increasing the level of responsibility of an employee is known as:

a. Ergonomicsb. Job enrichmentc. Job enlargementd. Specialization4.The need for methods analysis might come from any of these sources except:a. new products or services.b. changes in tools and equipment.c. government regulations.

d. changes in seasonal demanchanges in product design.5.The symbols of a flow process chart stand for:

a. inspection, delay, transportation, storage, operation.b. release, transport. store, grasp, search.c. circle, arrow, pentagon, square, trianglinput, processing and outputd. transportation loaded, search, grasp, store, perform operation.6.When performing a time study, the analyst converts the observed time into thetime anaverage worker would require working at an acceptable pace by using which of thefollowing?

a. MTMb. performance ratingc. methods analysisd. allowance factors


8/32

7.Which of the following statements should not characterize an operations strategytoward the design of work systems?

a. A spirit of cooperation can contribute to success.

b. Workers can be a valuable source of insights.c. Robotics should be used whenever possible to replace most workersd. Workers can make or break a business.8.Which one of the following statements concerning work sampling is not true?

a. A detailed description of activities and times is obtaineMultiple observations arenecessary.b. There is little or no disruption of work.c. It can be used to estimate the percentage of delay.d. Observations are made at random intervals.


1. A production line is to be designed for a job with three tasks. The task times are 0.3minutes, 1.4 minutes, and 0.7 minutes. The maximum cycle time in minutes is:a. 1.4b. 0.7c. 0.3d. 2.42. An operations strategy for process selection should recognize that:a. process selection is easily changedb. engineering is solely responsible for choosing what process is bestc. flexibility may not the best choice

d. there is little need to manage technology


9/32

3. Heuristic rules are usually used when:a. a problem has only two possible solutions.b. no optimizing routine is availablec. a computer program isn't available,d. an optimum solution is necessary.4. if a line is balanced with 90 percent efficiency, the balance delay would be:

a. 90 percentb. unknown, since balance delay is not related to efficiencyc. 10 percentd. 100 percent5. In a job shop, volume is low, and product variety tends to be:a. lowb. very lowc. highd. moderate6. In a product layout, the process of deciding how to assign tasks to work stations is

referred to as:a. station balancingb. process balancingc. line balancingd. task allocation7.The system that has the highest equipment flexibility is:

a. repetitive productionb. a batch systemc. a job shopd. continuous processing


10/32

8. Which one of the following is not generally regarded as an advantage of productlayouts?a. The system is fairly flexible to changes in volume of output.b. Labor costs are low per unit.c. unit costs may be lower than with other processes

d. Material handling costs per unit are low.Unit6 -1 Mark Quiz Questions

1. Although closely associated with quality, this name is not on the list of quality gurus:a. Edwards Demingb. Malcolm Baldrigec. M. Jurand. Philip Crosby2. The guru associated with the phrase quality is free is:a. Crosby

b. Baldrigec. Demingd. Juran3. The purpose of the Malcolm Baldrige National Quality Award is to:a. all of the aboveb. stimulate efforts to improve qualityc. recognize quality achievements of U.S. companiesd. publicize successful quality programs


11/32

4. Which name is associated with a list of 14 points?a. Baldrigeb. Crosbyc. Jurand. Deming5. Which one of these is the conceptual basis for continuous improvement?

a. The plan-do-check-act cycleb. Cause-and-effect diagramc. Benchmarkingd. Pareto analysis6. Which one of these is the conceptual basis for continuous improvement?a. Benchmarkingb. The plan-do-check-act cyclec. Pareto analysisd. Cause-and-effect diagram7. Which one of these would not be considered a determinant of quality Warrantyservice,processing of complaints, and costs of litigation are examples of: { ~internal f

ailure costs=external failure costs ~appraisal costs ~prevention costs }a. Focus groupsb. Ease of usec. Designd. Service after delivery


12/32


1. A companys competitive strategya. consists mainly of offensive actions.b. consists of the business approaches and initiatives it undertakes to attractcustomers and fulfill their expectations, to Withstand competitive pressures, an

d tostrengthen its market position.

c. consists mainly of defensive actions.d. typically is broader and more wide-ranging than a companys business strategy,involves offensive actions, defensive actions, tactical maneuvers designed to dealwith immediate conditions, and actions calculated to have longer-term impact.2. Companies pursuing a low-cost provider strategy can open up a cost advantageoverrivals by

a. using a high-volume/high-quality strategy keyed to first-mover advantages,having a more technologically-sophisticated value chain than rivals, reducing thenumbers of cost drivers, and having world-class suppliers.b. creating altogether new, lower-cost value chain systems or revamping theexisting value chain to bypass some cost-producing activities that produce littlevalue added insofar as customers are concerned.c. doing a better job than rivals of controlling the cost drivers.d. lowering buyers switching costs, creating a state-of-the-art value chain, andhaving fewer cost drivers than rival firms.

3. Creating buyer value via differentiationa. can be achieved anywhere along the industry value chain.b. can involve incorporating product attributes and user features that lower thecostsof switching to substitute products and is an attractive competitive strategy whenthere are few ways to achieve differentiation that have value to buyers.

c. can involve incorporating product attributes and user features that lower buyers'overall costs of using the product or that raise the performance a buyer gets fromthe product or that enhance buyer satisfaction in noneconomic or intangible ways.d. has to be grounded in providing buyers with unique extras that deliver real valuerather than perceived value.


13/32

4. Differentiation strategiesa. are an attractive competitive approach whenever buyers needs and preferencesare too diverse to be satisfied by a product that is essentially identical fromseller toseller; moreover, a differentiation strategy can produce sustainable competitive

advantage if the differentiating features possess strong buyer appeal and can not becopied or easily matched by rivals.

b. typically result in much greater buyer loyalty than low-cost provider strategies.c. usually win out over a low-cost provider strategy unless buyers are inclinedtoshop solely on price.d. work best when the basis for differentiation is superior quality or superiorcustomer service.

5. To succeed in building a competitive advantage, a companys strategy musta. aim at becoming the market share leader and having more distinctivecompetencies than rivals.

b. aim at charging a premium price for a superior product/service.c. aim internally at performing value chain activities differently than rivals andbuilding resources and capabilities that they cannot readily match.d. aim externally at providing buyers with what they perceive as superior value.16.which of the following characterize a best-cost provider strategy?

a. The marketing emphasis is on matching the prices of rival brands havingcomparable features and attributes .b. A product line consisting of wide selection, many product variations, andemphasis on differentiating featuresc. A competitive advantage based on more value for the money.d. The strategic target is price-conscious buyers.


14/32


15/32

2. DIN 69901 is a standardization froma. Indian organizationb. British organizationc. German organizationd. American organization3. It consists of the various activities of operations, resources and the limita

tions imposedon them.a. Project Cycleb. Managementc. Productd. Process4. It is a part of the project which consists of simple and routine instructionsto achieve adesired result of any activity of the project.a. Processb. Project Cyclec. Management

d. Product5. Management is the technique of understanding the problems, needs and controlling theuse of resources, such as cost, time, manpower, materials, etc.a. CPMb. Managementc. PERTd. Project


16/32

6. Project management is the application of knowledge, skills, tools and techniques toproject activities to meet project requirements. This definition of Project Management isas per :a. PMBOK

b. BISc. DIN 69901d. ISO7. Project management is the complete set of tasks, techniques, tools applied duringproject executiona. ISOb. DIN 69901c. PMBOKd. BIS8. Projects bring form or function to____a. ideas or needs

b. items or necessity.c. item or necessityd. product or necessityUnit9 -1 Mark Quiz Questions

1.In this phase information is collected from the customer pertaining to the projectand the requirements are analyzed.a. Marketingb. Designc. Execution

d. Analysis


17/32

2. In this phase the project manager and the teams members work on the projectobjectives as per the plan.a. Designb. Analysisc. Executiond. Marketing

3.One can estimate the start time and the finish time for every event of the project in itsWBS using the __

a. CPMb. PERTc. ICTd. CPM4. One can find out the variance and use the variance to analyze the various probabilisticestimates pertaining to the project in ___ method.

a. CPMb. CPMc. ICTd. PERT5. SRA stands fora. supprt requirement analysis.b. systems requirement analysisc. software requirement analysisd. speficificaiton requirement analysis


18/32

6.. The methods used to analyze the project are :

a. ICTb. PERT and SRAc. CPM and PERT

d. CPM and SRA7. This phase involves the study of inputs and outputs of the various project stages.a. Marketingb. Evaluationc. Designd. Analysis8. This proposal contains the strategies adopted to market the product to the customers.a. Marketingb. Evaluationc. Analysis

d. DesignUnit10 -1 Mark Quiz Questions

1. An information system dealing with project management tasks is known as _____a. Decision Support Systemb. Transaction Processing Systemc. Knowledge Management Systemd. Project Management Information System


19/32

2.Assist the team members, stakeholders, managers with necessary information andsummary of the information shared to the higher level managers is one of theaspects of ___a.PMIS

b. EISc. DSSd.KBS3. Assists the managers in doing what if analyses about project staffing, proposed staffingchanges and total allocation of resources is one of the aspect of ____a. KBSb. PMISc. EISd. DSS3.

Help organizational learning by helping the members of the organization learnabout project management is one of the aspects of ___a. KBSb. DSSc. PMISd. EIS4. Provide information to the major stakeholders i.e. the right information at the righttime is one of the aspects of ____a. KBSb. PMISc. DSSd. EIS


20/32

4. The perception of a manager in current trends in project management is to____a. analyse projectb. obtain result obtain approvalc. analyse product feature6. involves using various analysis techniques and procedure to identify major ex

ternalfactors or forces which could affect development process.a. Management Assurance Measureb. Continusous Business Process Improvementc. Force field analysisd. Information Risk Management7 . _ is a process through which a project team passes on the details of any system asrecommendation for standardization. It acts as a business process element for thecompany as a whole.a. Management Assurance Measure

b. Force field analysisc. Information Risk Managementd. Continusous Business Process ImprovementUnit11 -1 Mark Quiz Questions

1. Better utilization of resources men, material, equipment and money.a. SCMb. MRSc. EISd. TPS


21/32

2.Effective integration of multiple systems like ERP, communication systems ,documentation system and secure is an objective of __a. TPSb. SCMc. MRS

d. EIS3.Enhancement of participation level and empowerment level is one of theobjectives of ___a. SCMb. TPSc. DSSd. KBS4.Increase in functional effectiveness of existing systems like ERP, AccountingSoftware and Documentation like Financial reports/ Statements/ ISO 9000Documents etc. is one of the objectives of ___

a. SCMb. TPSc. KBSd. DSS5.Increase in functional effectiveness of existing systems like ERP, AccountingSoftware and Documentation like Financial reports/ Statements/ ISO 9000Documents etc. is one of the objectives of ___a. KBSb. TPSc. DSSd. SCM6.

One of the objectives of ____ is enhancement of coverage and accuracy ofmanagement information systems.a. EISb. TPS


22/32

c.MRSd.SCM7. Reduction of inventory is one of the objectives of ___a. SCM

b. DSSc. KBSd. TPS8. _____ is considered by many experts worldwide as the ultimate solution towardsefficient enterprise management.a. KBSb. SCMc. TPSd. DSSUnit12 -1 Mark Quiz Questions

1. A point that is outside of the lower control limit on an Rchart:a. is an indication that no cause of variation is presentb. should be ignored because it signifies better than average qualityc. should be ignored unless another point is outside that limit2. An x-bar chart is best suited for this type of data:a. AttributMeasurement.b. Population enumerationc. Count.d. Pass/Fail


23/32

3. In which instance would acceptance sampling not be appropriatea. The cost consequences of passing defectives is low.b. Destructive testing is requiredc. A large number of items must be processed in a short period.d. All are situations not suggesting that we use acceptance sampling5. Process capability calculations take into account the process width and

a. Control limitsb. Process standard deviationc. Process dispersion.d. Specifications.6. The number of runs up and down in the data set 8 9 12 10 11 12 is:a. 5b. 2c. 4d. 37. What type of control chart would be used to monitor the number of defects intheoutput of a process for making rope?

a. c chart.b. x-bar chart.c. p chart.d. R chart8. Which of the following quality control sample statistics indicates a qualitycharacteristic that is an attribute?a. varianceb. standard deviationc. meand. proportion


24/32


1. A basic requirement for operating with low inventories in JIT systems is:a. Inventory investment must be saved.b. Major problems must have been solved.c. Adequate space is available to store inventory

d. Major problems must be uncovered.2. In the JIT philosophy, the ideal lot size is:a. the capacity of the standard containerb. the economic order quantityc. one unitd. the economic run size3. Inventory management requires two questions to be answered: How many and when.JIT answers those two questions with:a. economic run sizes, reorder pointb. economic order quantities, reorder pointc. exact quantities, when orders are received

d. exact quantity, first of each month4. JIT II can be described briefly as:a. empowering suppliers.b. placing the buyers representatives in the suppliers factory.c. replacing one supplier with many suppliers for the same supplies to assureavailability.d. a lower cost replacement for JIT I.


25/32

5. Which is not a benefit of JIT?a. Lower Inventoriesb. Work Cellsc. Flexibilityd. Lower total setup costs6.Which of these groups would be least likely to resist conversion from a ROP/EO

Qinventory management systems to a JIT system?

a. Managementb. Workersc. Customersd. Vendors7. Which one of these is not generally associated with JIT?a. Low inventoriesb. A push systemc. Preventive maintenance

d. Problem solving8. Which one of these is not usually associated with JIT?a. Manufacturing cellsb. Preventive maintenancec. Large lot sizesd. Multifunctional workers


26/32


1.A queuing system has four crews with three members each. The number ofservers is:

a. 4b. 3c. 7d. 122.A system with an arrival rate of two per hour, a service time of 20 minutes, andone server, would have a utilization of.a. 10%b. 40%c. 67%d. 33%

3. A three-step repair service with one server at each step would be an exampleof a:a. multiple-phase, multiple-channel system.b. single-phase, multiple-channel system.c. multiple-phase, single-channel system.d. solo server, trio channel4.For an infinite-source system with an arrival rate of 6 per hour (Poisson) andservice time of 6 minutes per customer (exponential), the average number beingserved is:a. .60b. none of thesec. .10

d. 1.0


27/32

5. The term queue discipline refers to:a. the order in which customers are processedb. having multiple waiting lines without customers switching from line to linec. the willingness of customers to wait in line for serviced. the reason waiting occurs in underloaded systems6.Waiting lines tend to form in underloaded systems because:

a. demand sometimes exceeds supply.b. capacity always exceeds demand.c. capacity sometimes exceeds demand.d. demand always exceeds supply.7. When the cost incurred by all customers is not the same, an appropriate queuing modelis:a. multiple channel, single priorityb. single channel, multiple phasec. multiple channel, multiple priority

d. single channel, single phase8.Why is there waiting in an infinite source queuing system?

a. low utilizationb. poor schedulingc. variability in arrival and service ratesd. slow service


28/32


1.A decrease in the firms receivable turnover ratio means that __________a. it is collecting credit sales more quickly than before

b. it is collecting credit sales more slowly than before2.A firms inventory turnover (IT) is 8 times on a cost of goods sold (COGS) of$800,000. If the IT changes to 5 times while the COGS remains the same, asubstantial amount of funds is either released from or additionally invested ininventory. In fact, __________a. $100,000 is additionally investedb. $160,000 is releasedc. $60,000 is releasedd. $60,000 is additionally invested3.If EOQ = 1,000 units, order costs are $200 per order, and sales total 5,000 unit

s,what is the carrying cost per unit?a. ~$10b. ~$100c. ~$1,000d. =$24.If EOQ = 40 units, order costs are $2 per order, and carrying costs are $.20 perunit, what is the usage in units?a. ~40 units.b. =80 units.c. ~16 units.

d. ~10 units


29/32

5.Sixty percent of Basket Wonders annual sales of $900,000 is on credit. If its yearendreceivables turnover is 4.5, the average collection period and the year-endreceivables are, respectively __________ Assume a 365day yeara. 81 days and $120,000

b. 73 days and $120,000c. 73 days and $108,000d. 81 days and $108,0006.The credit policy of Milwaukee Brewski Breweries is 1/10, net 30. At present25% of the customers take the discount. What would accounts receivable be if allcustomers took the cash discount?a. Unable to determine without more information.b. Account receivable would be higher than the present levelc. No change from the present level.d. Account receivable would be lower than the present level.

7. Which of the following statements hold true for safety stock?a. The greater the uncertainty associated with forecasted demand, the lower thelevel of safety stock neededb. The greater the risk of running out of stock, the larger the safety stock needed.c. The lower the opportunity cost of the funds invested in inventory, the smaller thesafety stock needed.d. The higher the profit margin per unit, the lower the safety stock necessary.8.Which ratio might you be the most concerned with in analyzing a firms financialleverage position?a. Inventory turnover.

b. Return on equity.c. Debt-to-total assets.d. Acid-test.


30/32


31/32


32/32

Nayan Question Bank of Production and Operations Management 1 Mark

Documents

Transcript of Nayan Question Bank of Production and Operations Management 1 Mark