Production and Operations Management Online MCQ Set 10

QN01. Buying according to the requirements is called

1. Seasonal Buying
2. Hand to mouth buying
3. Scheduled Buying
4. Tender Buying

Answer

(B)Hand to mouth buying

QN02. Raw Materials and WIP can be classified under

1. Indirect Material
2. Direct Material
3. Finished Material
4. Standard Parts

Answer

(B)Direct Material

QN03. ___________________ establishes the overall production, workforce, and inventory levels.

1. Production activity control
2. Distribution requirements planning
3. Master production schedule
4. Sale and operations planning

Answer

(D)Sale and operations planning

QN04. The master production schedule requires all of the following input except

1. Projected inventory levels
2. Production quantities
3. Forecasted demand
4. All of the above are inputs into MSP.

Answer

(D)All of the above are inputs into MSP.

QN05. In a distribution requirements planning environment, forecasted demand at the plant level is equal to __________________ in the distribution center level.

1. Scheduled receipts
2. Planned receipts
3. Planned orders
4. None of the above

Answer

(C)Planned orders

QN06. The difference between a gross material requirements plan (gross MRP) and a net material requirements plan (net MRP) is

1. The net MRP includes consideration of the inventory on hand, whereas the gross MRP does not.
2. The gross MRP doesn't take taxes into account, whereas the net MRP includes the tax considerations.
3. The gross MRP may not be computerized, but the net MRP must be computerized.
4. The gross MRP includes consideration of the inventory on hand, whereas the net MRP does not.

Answer

(A)The net MRP includes consideration of the inventory on hand, whereas the gross MRP does not.

QN07. An MRP system that provides feedback to the capacity plan, master production schedule, and production plans is called

1. System nervousness.
2. Closed-loop mrp.
3. Lot-sizing.
4. Load report.

Answer

(B)Closed-loop mrp.

QN08. ___________________ determines when specific products will be produced, when specific customer orders will be fulfilled, and what capabilities remain available to satisfy unexpected demand.

1. Sale and operations planning
2. Material requirements planning
3. Distribution requirements planning
4. Master production schedule

Answer

(D)Master production schedule

QN09. __________________ is the amount of new orders necessary to support production of the required output in the next higher level in the bill of materials.

1. Scheduled receipts
2. Available to promise
3. Projected ending inventory
4. Planning horizon

Answer

(A)Scheduled receipts

QN10. __________________ allows a segment of the master schedule to be designated as "not to be rescheduled."

1. Pegging
2. Regenerative MRP
3. Time fence
4. System nervousness

Answer

(C)Time fence

QN11. __________________ calculates the timing and quantities of material orders needed to support the master schedule.

1. Sale and operations planning
2. Distribution requirements planning
3. Material requirements planning
4. Master production schedule

Answer

(C)Material requirements planning

QN12. Which of the following lot-sizing techniques is likely to prove the most complex to use?

1. Part period balancing (PPB)
2. The Wagner-Whitin algorithm
3. Economic order quantity (EOQ)
4. Lot-for-lot

Answer

(B)The Wagner-Whitin algorithm

QN13. __________________ is a time phased approach to managing the physical distribution environment with dependent demand logic.

1. Master production schedule
2. Distribution requirements planning
3. Sale and operations planning
4. Material requirements planning

Answer

(B)Distribution requirements planning

QN14. The list of quantities of components, ingredients, and materials required to produce a product is the

1. Bill-of-materials.
2. Engineering change notice.
3. Purchase order.
4. Master schedule.

Answer

(A)Bill-of-materials.

QN15. When a bill-of-materials is used in order to assign an artificial parent to a bill-of-materials, it is usually called a

1. Phantom bill-of-materials.
2. Planning bill-of-materials.
3. Modular bill-of-materials.
4. Pick list.

Answer

(B)Planning bill-of-materials.

QN16. __________________ can be seen as the amount of new inventory created by production.

1. Scheduled receipts
2. Gross requirements
3. Planning horizon
4. Available to promise

Answer

(D)Available to promise

QN17. A lot-sizing technique that generates exactly what was required to meet the plan is

1. The Wagner-Whitin algorithm.
2. Economic order quantity.
3. Lot-for-lot.
4. Part period balancing.

Answer

(C)Lot-for-lot.

QN18. The operations manager has several tools available to deal with MRP system nervousness. Those tools are

1. Pseudo bills and kits.
2. Time fences and pegging.
3. Buckets with back flush.
4. Net and gross requirements.

Answer

(B)Time fences and pegging.

QN19. __________________ is the amount of materials necessary to support production of the required output in the next higher level in the bill of materials.

1. Planning horizon
2. Available to promise
3. Net requirements
4. Gross requirements

Answer

(D)Gross requirements

QN20. Breaking up the order and running part of it ahead of schedule is known as

1. Operations splitting.
2. Lot splitting.
3. Pegging.
4. Overlapping.

Answer

(B)Lot splitting.

QN21. A phantom bill-of-materials is a bill-of-materials developed for

1. A subassembly that exists only temporarily.
2. A final product for which production is to be discontinued.
3. The purpose of grouping subassemblies when we wish to issue “kits” for later use.
4. A module that is a major component of a final product.

Answer

(A)A subassembly that exists only temporarily.

QN22. The master production schedule is the schedule of production for what level product/material?

1. Level 0
2. Level 1
3. Level 2
4. Level 3

Answer

(A)Level 0

QN23. Managers can use work standards in which of the following ways?

1. Scheduling
2. Motivating workers
3. Capacity planning
4. All of the above

Answer

(A)Scheduling

QN24. Work-sample test

1. Often use in-tray or in-basket exercises for selecting shop floor workers
2. Normally make use of many different complementary predictors
3. Require candidates to conduct a sample of the work required for the job
4. Do not necessarily have any obvious link with the job in question

Answer

(C)Require candidates to conduct a sample of the work required for the job

QN25. Formal methods of work measurement exclude which of the following?

1. Time study method
2. Work sampling method
3. Predetermined data approach
4. Systems approach

Answer

(D)Systems approach

QN26. The work measurement method that is not usually used for setting standards for repetitive,’well-defined jobs is:

1. The elemental standard data approach
2. The predetermined data approach
3. The time study method
4. The work sampling method

Answer

(D)The work sampling method

QN27. Looking at socio-technical systems, which job design principle is not important?

1. Skill variety
2. Feedback
3. Task autonomy
4. None of the above (all are important)

Answer

(D)None of the above (all are important)

QN28. Which of the following is not a major personnel selection method?

1. Graphology
2. References
3. Biodata
4. Focus groups

Answer

(D)Focus groups

QN29. Which is not an advantage of specialization?

1. Upstream and downstream quality control
2. Rapid training
3. Ease of recruiting
4. No education required

Answer

(A)Upstream and downstream quality control

QN30. Which of the following are reasons why an allowance should be added to determine the standard time?

1. Unavoidable delay
2. Rest period
3. Fatigue
4. All of the above

Answer

(D)All of the above

QN31. The work measurement method that is most often used for setting time standards for a job is:

1. The work sampling method
2. The predetermined data approach
3. The elemental standard data approach
4. The time study method

Answer

(D)The time study method

QN32. Which is not a disadvantage of specialization?

1. Boredom
2. Little opportunity to progress
3. Low cost to replace a worker
4. Limited flexibility to change the process

Answer

(C)Low cost to replace a worker

QN33. The 5 steps of making a work sample study include all of the following except:

1. Estimate the proportion of time of the activity of interest
2. State the desired accuracy in the study results
3. Determine the specific times observations are to be made
4. Change the specific time observations to make them convenient

Answer

(D)Change the specific time observations to make them convenient

QN34. Assume that a normal cycle time for a set of transactions is 35 seconds and an allowance rate for fatigue is 15%. Determine the hourly transaction-processing rate based on the standard time in seconds for each lottery transaction.

1. 90
2. 103
3. 716
4. None of the above

Answer

(A)90

QN35. Work measurement sets time standards that are necessary for all of the following reasons except:

1. To schedule work and allocate capacity
2. To scare employees
3. To provide an objective basis for motivation
4. To bid for new contracts

Answer

(B)To scare employees

QN36. Which of the following is not a trend in job design?

1. Quality control
2. Cross training
3. Jobs for life
4. Team approaches

Answer

(C)Jobs for life

QN37. The work measurement method that eliminates the need for time studies is:

1. The predetermined data approach
2. The work sampling method
3. The elemental standard data approach
4. The time study method

Answer

(A)The predetermined data approach

QN38. Work sampling offers all the following advantages over time study except:

1. No timing device required
2. Less employee influence
3. The sample time can be easily changed
4. A complete breakdown of all the elements of a job

Answer

(D)A complete breakdown of all the elements of a job

QN39. Disadvantages of the predetermined data approach include:

1. The reduction of the sources of error inherent in time studies
2. The ability to set standards for new jobs before production begins
3. The reduction of the need for performance ratings
4. The need to break work into micromotions

Answer

(D)The need to break work into micromotions

QN40. Job enrichment includes all of the following except:

1. Horizontal enrichment
2. Vertical enrichment
3. Diagonal enrichment
4. Both A and B

Answer

(C)Diagonal enrichment