Multiple Choice Questions - Operations ManagementN.Rajan

Answer All the Questions:Part A

1. The strategic decisions are long – term in nature and are concerned with _____________

a. Process designb. Inventoryc. Reordering leveld. Production scheduling

2. The tactical decision is taken by an operation manager is followed by ______________

a. strategic decisionb. operational decisionc. evaluation decisiond. action decision

3. The evaluation of operations management started after industrial revolution by the identification of division of labor in manufacturing, which was proposed by ___________

a. F.W.Taylorb. Elton Mayoc. Adam Smithd. Henry Fayol

4. The computerization of operations began when the first computer was installed in ________________________ organization

a. General Motorsb. General Electricc. Ford Motorsd. Western House

5. The banks in India went for the computerization in their process is mainly to increase ___________________

i. Data Processingii. efficiencyiii. Number of customersa. ib. i&iic. i&iiid. ii&iii

6. __________________________ always starts wit the idea generation and have it sources from employee, customers, vendors etc.,

a. New process developmentb. New methodology developmentc. New Product developmentd. Quality development program

7. In the element of operations strategy, after the production design and product / service development which of the following components is to be planned?

a. Allocation of resourcesb. Facility planningc. Technology selectiond. Human resource planning

8. Forecasting involves making calculated predictions that can be used in the planning and ______________________ process

a. Decision makingb. Qualityc. Productiond. Controlling

9. The forecasting methods, that are based on the judgment and opinions are ______________

a. Causal modelsb. Time Seriesc. Delphi Methodd. Regression analysis

10. The selection of forecasting method is based on the long term decisions like product planning, facility location and expansion is depend on the factor like ______________

a. Time spanb. Data availabilityc. Costd. Accuracy

11. Which of the following is NOT used to measure the accuracy of the forecasting?a. Mean Absolute Deviationb. Mean Forecast Errorc. Mean Standard Errord. Mean Square Error

12. ___________________ method can be used when there are three variables to which the decisions has to be taken in Linear programming problems.

a. Graphical methodb. Simplex Methodc. Least Cost methodd. VAM

13. In the transportation problem, a dummy variable is added either to the source or to the destination due to __________________________

a. Balancedb. Variationc. Differentiationd. Unbalanced

14. The stepping stone method is used in the transportation model to find out the ___________________

a. Initial costb. Initial basic solutionc. Optimal solutiond. Balanced or unbalanced one

15. ________________________ forms the basis for designing factory buildings, facility layout and selecting production equipment.

a. Product planningb. Process planningc. Tactical planningd. Action planning

16. ____________________ refers to the extent to which the production and the distribution chain is brought under the ownership of the organization.

a. Horizontal integrationb. Vertical integrationc. Forward integrationd. Backward integration

17. Which chart contains the symbols likea. Assembly chartsb. Process chartsc. Gantt chartsd. Simultaneous charts

18. The objective of an ________________________ is to minimize production costs, make appropriate changes in production rates and work force level and to improve profits, customer service and utilization of resources.

a. Business planningb. Product planningc. Aggregate planningd. Action planning

19. The EOQ method is used to identify the order quantity that would minimize the total cost ie _____________________

a. Ordering cost and carrying costb. Purchase cost and carrying costc. Ordering cost and stock out costd. Purchase cost and ordering cost

20. The process of determining how much time an average worker takes to complete a job under standard work condition is known as ____________________

a. Job Analysisb. Work Measurementc. Work Enrichmentd. Work Description

21. ____________________ is a technique of analyzing work by taking several observations, usually at random to see the relative frequency with which various elemental activities takes place.

a. Time Studyb. Standard Datac. Work Samplingd. Historical Analysis

22. In automation to counter the problem in handling day-to-day situations in the operations, a rule base system was conceptualized, which employ human logic in evaluation of different situation. This system is known as _______________________

a. CIMb. FMSc. Expert systemd. Robotics

23. The material management is given more importance in an organization, because materials normally account for _____ percent of the total capital invested.

a. 40b. 50c. 60d. 75

24. The Kanban system was developed by __________________ companya. Toyota Motorb. General Motorc. Fordd. Suzuki

25. When the product is complex and the production process involves many components and sub-assemblies, to manage the inventory __________________ systems was used.

a. FMSb. MRPc. EOQd. EDI

26. The file containing information about when and how many units of finished products are required have the information of purchasing, receiving fabrication and assembling is known as ______________________

a. Bill of Materialsb. Inventory Record Filec. Master Production scheduled. Material Resource Allocation

27. The second step in the MRP system information processing is to develop a materials requirement plan for each item in the BOM file for each time bucket is known as ________________

a. Explosionb. Nettingc. Offsettingd. Inventing

28. _______________________ is the fundamental rethinking and radical redesign of business process to achieve dramatic improvements in critical, contemporary measures of performance such as costs, quality, service and speed.

a. Reengineeringb. Outsourcingc. Benchmarkingd. Strategic Process

29. In the implementation of the ERP package which step is following after the mapping of business process onto the package?

a. Test Runsb. Parallel Runc. Customizationd. Gap Analysis

30. There are ______ number of supply chain management which represents business processes and practices.

a. Fiveb. Sixc. Sevend. Eight

31. The approach in which employees are given the option of choosing their work, work timings, provided that a specific number of hours are complete in a week is known as _________________

a. Flexi Timeb. Flex tourc. Part Timed. Staggered Times

32. The display of resources like machines, tanks, pipes, operators and products in graphical method to schedule the operations process. This technique is known as ________________

a. Gantt Chartsb. Job sequencing Rulesc. Assembly Chartsd. Process Charts

33. Which of the following are NOT the characteristics of JIT system?a. Small Lot Sizeb. Closer Supplier Tiesc. Random Workstation Loadd. Continuous Improvement

34. The features of a product which indicates the operational life of a product or in other words, how long the product can be used without replacements is known as ___________________

a. Reliabilityb. Durabilityc. Conformanced. Aesthetics

35. If the maintenance activity are carried out based on time frame like once a week or one a month or based on the usage of the machines like after every 40 hrs of operation is known as ____________________

a. Irregular Preventive Maintenanceb. Predictive maintenancec. Periodic maintenanced. Remedial Maintenance

36. The activity is a task or an item of work to be done in a project and is represented by _____________

a. Circleb. Arrowc. Squared. Rectangle

37. The Critical Path Method is used to determine _______________________ path in a project.

a. Longestb. Shortestc. Averaged. Negative

38. What is LPG?a. Liquid Petroleum Gasb. Liberty Prosperity Gratitudec. Liberalization Privatization Globalizationd. Longer Period Grievance

39. Economics of scales is achieved in the production process by when the _________________________

a. People experience with the workb. Management introduce new technologyc. Reengineering process is adoptedd. Customization of the product

40. The company AtoZ, is following a master production schedule,a. Translate aggregate planb. Evaluate alternate schedulesc. Cost analysisd. Effective utilization capacity

Part B

41. The Mercedes Benz car was manufactured usually for the top level people those who want to show their status. What type of product design the manufacturer follow?

a. Standard product designb. Customized product designc. Quality product designd. Quantity product design

42. The Alpha engineering limited is having the annual production volume ranging between 2 to three lakhs. What type of process design can be selected?

a. Product – focusedb. Process – focusedc. Cellular manufacturingd. Group technology

43. The general manager of Kiran group of steel industries have decided to start a steel manufacturing company in kerala, but his project manager opposes the plan, because of the _________________________ factor.

a. Site costb. Available of Skilled workerc. Available of raw materialsd. Availability of services

44. The Ajay industries in nagpur is planning a process design, which follows a linear path without backtracking or side tracking. This process design is known as ___________________

a. Cellular manufacturingb. Group technologyc. Process focusedd. Product focused

45. The ABC Ltd company manufacturing spare parts for automobile industry is selecting a location for starting a new branch. The manager had selected a site using ________________, because the BEP analysis had given approximately equal values.

a. Point rating methodb. Qualitative methodc. Causal methodd. Nominal group method

46. The New Age Ship building industry, the product is kept stationery and all the machine and men move to complete the product. This type of layout is known as ______________

a. Process layoutb. Product layoutc. Fixed layoutd. Hybrid layout

47. The Helix Company is storing the glass plates in the ware house and when the product was to be transported to a retailer, it was found some of them was damaged. Find out what type of cost is incurred?

a. Purchase costb. Ordering costc. Stock out costd. Carrying cost

48. In the Kumar Industries, all the departmental heads purchase the materials required accordingly, which gives the flexibility to alter its purchasing policy.The Kumar industries followed a ______________________ system

a. Centralized purchasingb. Decentralized purchasingc. Collective purchasingd. Integrated purchasing

49. The P.V Industries allotted the work load for each worker within the reasonable limits of his skills, physical and mental ability. This type of job design followed by the P.V industries is known as _____________

a. Technical feasibilityb. Economic feasibilityc. Behavioral feasibilityd. Basic feasibility

50. The Kumar Industries went for the automation in their operations and they implemented a automatic materials handling system with several machines tools fixed to perform various operations. What type of automation system they used?

a. CAMb. CNCc. FMSd. CAD

51. The General Motors automobile plant at Flint, Michigan uses a type of computer controlled materials handling equipment called _________________

a. Fixed Sequence Robotsb. Numerical Control Robotsc. Automatic Guided Vehiclesd. Conveyance System

52. The Anand associates Ltd, in their organization they had a network covering stages which includes manufacturing, supplying, transport, warehousing, distributors etc., the system which they are following are ________________

a. Supply Chain Managementb. Enterprise Resource Planningc. Material Resource Planningd. Electronic Data

53. The ABC Ltd, company incurs a cost that is associated with evaluating the quality and performance of the products and machines. This cost is known as ________________

a. Prevention Costb. Appraisal Costc. Failure Costd. Interference Cost

Answer the questions from 54 to 56 based on the following problem.

The Alpha Enterprise Ltd produces a generator and has the following demand for the past seven months from January to July are

Month January February March April May June JulyDemand 265 280 245 260 275 300 285

54. Identify the demand of the generators for the month of august?a. 286b. 287c. 288d. 290

55. If the actual demand for the august is 285, then check the forecast accuracy?a. Less accurateb. More deviationc. More accurated. More positive

56. The type of forecasting technique used in the above problem is ________________a. Qualitative modelb. Time series modelc. Causal modeld. Chart model

57. The cost of transportation between the factory and its warehouses & the demand at each ware houses are given in the table below:

W1 W2 W3 SupplyF1 1 2 6 7F2 0 4 2 12F3 3 1 5 11Demand 10 10 10

Find out the solution for the transporting the goods at a minimum cost for the given problem using NWCR.

a. 91b. 92c. 93d. 94

Answer the questions from 58 and 59 based on the following problem.

A T.V Stabilizer manufacturer selects four locations for installing their production unit and the information regarding the locations are given below:

Location Fixed Cost Variable CostA 25,000/- 135/-B 45,000/- 120/-C 70,000/- 110/-D 80,000/- 100/-

The T.V Stabilizer manufacturer is planning to produce 1000 units/year of a piece of the product will be sold at around Rs. 500/- per unit.

58. On the basis of the information provided, identify the location that would be most economical for the T.V Stabilizer manufacturer.

a. Ab. Bc. Cd. D

59. What will be estimated profit of the most economical location?a. 4,75,000/-b. 4,61,500/-c. 4,43,500/-d. 4,50,000/-

60. A manufacturer requires 500 units of product ‘A’ per annum. The firm purchases each unit of ‘A’ for Rs. 50/- and spends Rs. 250/- on each order. The inventory carrying cost of item of A is 25% of the unit price. Determine the EOQ.

a. 135b. 141c. 146d. 150

Answer the questions from 61 and 62 based on the following problem.

The activity precedence diagram for five assembly activities is shown in the figure given below. The element time required (in min) is also shown. The assembly line operational for 10 hrs a day and its expected output is 1000 units per day.

B 0.3

A 0.25 D 0.2 E 0.35

C 0.4

Precedence Diagram

61. Calculate the cycle time for the above problem?a. 0.4b. 0.5c. 0.6d. 0.7

62. Calculate the theoretical minimum number of stations required to carry out the activities to generate required output?

a. 2b. 3c. 4d. 5

Answer the questions from 63 and 64 based on the following problem.

In the Maruthi Udyog ltd, a time study of an assembly line worker in the Maruthi 800 segment had the following results:Worker performance rating: 90%Cycle time; 3.5 minAverage allowance for the activity: 1.5% of the job time.

63. Calculate the normal time?a. 3.05b. 3.10c. 3.15d. 3.20

64. Calculate the standard time?a. 3.6b. 3.7c. 3.8d. 3.9

Answer the questions from 65 and 66 based on the following problem.

The western Printers were involved in printing and binding works. The company has got orders from four of its customers A, B, C and D at the beginning of the work.The processing time and due date of these jobs is given below:

Job (in order of arrival)

Processing time (days)

Due date

A 4 6B 5 7C 3 5D 2 4

65. Find out the sequence of the jobs according to their earliest due date?a. A-B-C-Db. D-C-A-Bc. A-B-D-Cd. D-A-B-C

66. What is the average delay of the job according to the earliest due date?a. 2.5b. 3c. 3.5d. 4

Answer the questions from 67 to 69 based on the following problem.

The ABC Ltd, was assigned to complete a project which consists of six activities and the network path with the duration of each activity is given below.

8 2

4 3

5

67. Find out the critical path for the above network?a. 1-2-5b. 1-2-4-5c. 1-3-4-5d. 1-2-3-4-5

68. Find out the duration of the project assigned to the company?a. 10b. 12c. 21d. 32

69. What is the shortest duration in the project?a. 10b. 20c. 21d. 32

1

3

2

4

5

Answer the questions from 70 to 73 based on the following problem

Bill of Materials for product A is given below and the quantity required are also given. Use this information to answer the following questions.

70. How many units of C’s are needed to make 20 units of A?a. 270b. 280c. 290d. 300

71. How many units of D’s are needed to produce 20 units of A’s?a. 20b. 30c. 40d. 50

72. How many units of G’s are needed to make 20 units of A?a. 500b. 510c. 520d. 530

73. How many units of C’s are needed to make 20 units of A?a. 350b. 360c. 370d. 380

C2

B3

G3

H3

F2

G2

C3

E4

D2

A

Answer the questions from 74 to 76 based on the following problem

In a job work company, there are five jobs each of which is to be processed through two machines M1 and M2 in the order M1M2. Processing hours are as follows:

Job 1 2 3 4 5M1 3 8 5 7 4M2 4 10 6 5 8

74. Find the total elapsed time of the above problem?a. 31b. 36c. 38d. 42

75. Calculate the idle time for the machine 1?a. 6b. 9c. 12d. 15

76. Calculate the idle time for the machine 2?a. 3b. 6c. 9d. 12

Answer the questions from 77 and 78 based on the following problem

A Modern Industries have achieved actual sales of 900 units in the month of July, when the forecast was for 800 units. Use a smoothing constant of 0.1.

77. Calculate the sales for the month of august? a. 800b. 810c. 820d. 830

78. The above method of calculating the demand forecast belongs to which of the following?

a. Qualitative methodb. Time seriesc. Causal methodd. Delphi Method

79. The Universal Motors, while measuring the accuracy of their forecast by using the Tracking signal method, they got a value of T.S is -0.428, this indicates that their forecast is ______________________________

a. Actualb. Under estimatedc. Over estimatedd. Average

80. The Sigma Industries have designed a product of the following arrangements.

Identify the name of the method of design.a. Straight Lineb. U-shapec. Convolution Shaped. Main assembly Line