POM Set 4

QN1. 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

Answer

Ans: c) Service organizations

QN2. 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

Answer

Ans: c) Service organizations

QN3. 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

Answer

Ans: c) Service organizations

QN4. Product variety in a job shop tends to be:

( a ) High

( b ) Moderate

( c ) Low

( d ) Very low

Answer

Ans: c) Service organizations

QN5. 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

Answer

Ans: c) Service organizations

QN6. In an ABC classification, A items typically represent about what percentage of the items?

( a ) 15%

( b ) 30%

( c ) 50%

( d ) 80%

Answer

Ans: c) Service organizations

QN7. 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

Answer

Ans: c) Service organizations

QN8. 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

Answer

Ans: c) Service organizations

QN9. 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

Answer

Ans: c) Service organizations

QN10. Aggregate planners balance:

( a ) Demand and inventories

( b ) Capacity and costs

( c ) Capacity and inventories

( d ) Capacity and demand

Answer

Ans: c) Service organizations

QN11. 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

Answer

Ans: c) Service organizations

QN12. 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

Answer

Ans: c) Service organizations

QN13. 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

Answer

Ans: c) Service organizations

QN14. 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

Answer

Ans: c) Service organizations

QN15. All of the following are true statements about using Johnson’s 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

Answer

Ans: c) Service organizations

QN16. Which of the following is an example of dependent demand:

( a ) Pick up truck

( b ) Refrigerators

( c ) Hotel rooms sold

( d ) Hospital bed sheets

Answer

Ans: c) Service organizations

QN17. The Key inputs to a MRP include:

( a ) Engineering drawing of the product

( b ) Product structure file

( c ) Inventory records

( d ) Both b and c

Answer

Ans: c) Service organizations

QN18. 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)

Answer

Ans: c) Service organizations

QN19. 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

Answer

Ans: c) Service organizations

QN20. Which one of the following is not a characteristic of a project?

( a ) Uniqueness

( b ) Defined goal

( c ) Interdependencies of tasks

( d ) Continuity

Answer

Ans: c) Service organizations

QN21. Which of the following is not a characteristic of service provider operations?

( a ) Intangible

( b ) Perishable products

( c ) Labour intensive

( d ) Low customer contact

Answer

Ans: c) Service organizations

QN22. 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

Answer

Ans: c) Service organizations

QN23. ____ are the fundamental activities that organizations use to do work and achieve their goal.

( a ) Processes

( b ) Operations

( c ) Methods

( d ) Procedures

Answer

Ans: c) Service organizations

QN24. 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

Answer

Ans: c) Service organizations

QN25. 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

Answer

Ans: c) Service organizations

QN26. 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

Answer

Ans: c) Service organizations

QN27. The operations area’s input to the aggregate plan includes:

( a ) Demand forecasts

( b ) Cost data

( c ) Work force capacities

( d ) Product design changes

Answer

Ans: c) Service organizations

QN28. 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

Answer

Ans: c) Service organizations

QN29. Safety stock inventories protects against uncertainties in:

( a ) Demand

( b ) Lead time

( c ) Supply

( d ) All of the above

Answer

Ans: c) Service organizations

QN30. 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

Answer

Ans: c) Service organizations

QN31. 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

( c ) Time study is appropriate only when the person conducting the time study is experienced in selecting work elements

( d ) Time study can provide a satisfactory tool for setting equitable time standards

Answer

Ans: c) Service organizations

QN32. 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

Answer

Ans: c) Service organizations

QN33. 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

Answer

Ans: c) Service organizations

QN34. 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

Answer

Ans: c) Service organizations

QN35. 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

Answer

Ans: c) Service organizations

QN36. Which of the following automatically places parts into a warehouse:

( a ) ASRS

( b ) AGV

( c ) FMS

( d ) CAD

Answer

Ans: c) Service organizations

QN37. 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

Answer

Ans: c) Service organizations

QN38. 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

Answer

Ans: c) Service organizations

QN39. 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

( d ) Reducing the number of steps required to perform a task

Answer

Ans: c) Service organizations

QN40. 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

Answer

Ans: c) Service organizations