Production and Operations Management Online MCQ Set 13

QN01. Which of the following is a recent trend in business?

  1. pollution control.
  2. total quality management.
  3. supply chain management.
  4. competition from foreign manufacturers.
  5. technological change.
Answer

(C)supply chain management.

QN02. Based on the Service-System Design Matrix, which of the following has a lower level of "production efficiency"?

  1. Face-to-face loose specs.
  2. Phone contact.
  3. Internet and on-site technology.
  4. Face-to-face tight specs.
  5. Mail contact.
Answer

(A)Face-to-face loose specs.

QN03. Two widely used metrics of variation are the ______________ and the______________.

  1. mean; standard deviation.
  2. productivity ratio; correlation.
  3. standardized mean; assignable deviation.
  4. randomized mean; standardized deviation.
  5. normal distribution; random variation.
Answer

(A)mean; standard deviation.

QN04. Which one of these was not mentioned in the list of recent trends in operations management?

  1. Total quality management.
  2. Worker involvement.
  3. Global competition.
  4. Automation.
  5. Environmental issues.
Answer

(D)Automation.

QN05. Moving from the aggregate plan to a master production schedule requires

  1. rough cut capacity planning.
  2. sub-optimization.
  3. disaggregation.
  4. strategy formulation.
Answer

(C)disaggregation.

QN06. Warranty cost is an example of which of the following?

  1. Internal failure cost.
  2. External failure cost.
  3. Prevention cost.
  4. Appraisal cost.
Answer

(B)External failure cost.

QN07. Technology choices seldom affect:

  1. Costs.
  2. Productivity.
  3. Union activity.
  4. Quality.
Answer

(C)Union activity.

QN08. Product design and process selection are examples of ______________ decisions.

  1. Financial.
  2. Tactical.
  3. system design.
  4. system operation.
  5. Forecasting.
Answer

(C)system design.

QN09. The type of operation being carried out by an organization depends upon:

  1. Degree of standardization.
  2. Volume of output.
  3. Demand.
  4. Both (a) and (b).
Answer

(D)Both (a) and (b).

QN10. Job shop and batch processing are differentiated on the basis of:

  1. Job requirements.
  2. Degree of standardization.
  3. Volume of output.
  4. Both (b) and (c).
Answer

(A)Job requirements.

QN11. Location decisions are viewed primarily as part of:

  1. Marketing strategy.
  2. Growth factors.
  3. Financial aspect.
  4. Both (a) and (b).
Answer

(D)Both (a) and (b).

QN12. Technology choices seldom affect:

  1. Costs.
  2. Productivity.
  3. Union activity.
  4. quality.
Answer

(C)Union activity.

QN13. The responsibilities of the operations manager are:

  1. planning, organizing, staffing, procuring, and reviewing.
  2. planning, organizing, staffing, directing, and controlling.
  3. forecasting, designing, planning, organizing, and controlling.
  4. forecasting, designing, operating, procuring, and reviewing.
Answer

(B)planning, organizing, staffing, directing, and controlling.

QN14. Dealing with the fact that certain aspects of any management situation are more important than others is called:

  1. analysis of tradeoffs.
  2. sensitivity analysis.
  3. recognition of priorities.
  4. analysis of variance.
  5. decision table analysis.
Answer

(C)recognition of priorities.

QN15. Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of ______________ is leading to increased emphasis on ______________ management.

  1. outsourcing; supply chain.
  2. off shoring; lean.
  3. downsizing; total quality.
  4. optimizing; inventory.
  5. internationalization; intercultural.
Answer

(A)outsourcing; supply chain.

QN16. What are the two sources of costs in queuing analysis?

  1. Arrivals and departures.
  2. Arrivals and idleness.
  3. Waiting customers and capacity.
  4. Equipment breakdowns and departures.
Answer

(C)Waiting customers and capacity.

QN17. Which of the following is not true about a lean production system?

  1. It puts emphasis on quality, flexibility, and time reduction.
  2. It puts emphasis on reducing a company’s labor force.
  3. It is involved in maintaining and improving the system with lower amounts of inventory.
  4. It relies on buffers against unforeseen occurrences.
Answer

(D)It relies on buffers against unforeseen occurrences.

QN18. Which of the following terms reflects Japanese view of continuous improvement?

  1. Kaizen.
  2. Poka-yoke.
  3. Six sigma.
  4. Control limits.
Answer

(A)Kaizen.

QN19. Which of the following is not a type of operations?

  1. goods production.
  2. storage/transportation.
  3. entertainment.
  4. all the above involve operations.
Answer

(D)all the above involve operations.

QN20. Construction of fertilizer plant is

  1. Continuous.
  2. Project.
  3. Job.
  4. Flow shop.
Answer

(B)Project.

QN21. The goal of motion study is to achieve:

  1. Cost minimization.
  2. Maximum efficiency.
  3. Profitability.
  4. All of the given options.
Answer

(B)Maximum efficiency.

QN22. Budgeting, analysis of investment proposals, and provision of funds are activities associated with the ______________ function.

  1. operation.
  2. marketing.
  3. purchasing.
  4. finance.
Answer

(D)finance.

QN23. What is credited with gains in industrial productivity, increased standards of living and affordable products?

  1. personal computers .
  2. the internet.
  3. mass transportation.
  4. assembly lines.
Answer

(D)assembly lines.

QN24. Service strategy development begins by selecting which of the following as an operating focus or performance priority?

  1. Price.
  2. Quality.
  3. Variety.
  4. Treatment.
  5. All of the above.
Answer

(E)All of the above.

QN25. Taking a systems viewpoint with regard to operations in today’s environment increasingly leads decision-makers to consider ______________ in response to the ______________.

  1. flexibility; pressure to be more efficient.
  2. off shoring; need to promote domestic production.
  3. sustainability; threat of global warming.
  4. technology; impact of random variation.
  5. forecasting; stabilization of demand.
Answer

(C)sustainability; threat of global warming.

QN26. Which of the following statements about variation is FALSE&#63

  1. Variation prevents a production process from being as efficient as it can be.
  2. Some variation can be prevented.
  3. Variation can be either assignable or random.
  4. Any variation makes a production process less productive.
  5. Random variation generally cannot be influenced by managers.
Answer

(D)Any variation makes a production process less productive.

QN27. Which one of the following is not a typical question dealt with by operations managers?

  1. How much capacity will be needed in the months ahead?.
  2. What is a satisfactory location for a new facility?.
  3. Which products/services should be offered?.
  4. All are typical of operations decisions.
Answer

(D)All are typical of operations decisions.

QN28. When the flow of materials is variable,

  1. layout by process is most suitable.
  2. b layout by product is most suitable.
  3. layout by fixed position is most suitable.
  4. line balancing is most suitable.
Answer

(A)layout by process is most suitable.

QN29. Which of the following refers to a continuous measurement of an organization’s products and processes against a company recognized as a leader in that industry?

  1. Benchmarking.
  2. Gap analysis.
  3. Statistical process control.
  4. Continuous improvement.
Answer

(A)Benchmarking.

QN30. Budgeting, analysis of investment proposals, and provision of funds are activities associated with the ______________ function.

  1. Operation.
  2. Marketing.
  3. Purchasing.
  4. finance.
Answer

(D)finance.

QN31. What type of process would a fertilizer plant be most likely to use

  1. Continuous.
  2. Project.
  3. Job.
  4. Flow shop.
Answer

(A)Continuous.

QN32. What are the two basic types of production systems?

  1. Automated and manual.
  2. Intermittent and non-intermittent process.
  3. Normal and continuous process.
  4. Continuous process and batch.
Answer

(B)Intermittent and non-intermittent process.

QN33. Poor quality adversely affects:

  1. Costs.
  2. Productivity.
  3. Profitability.
  4. All of the given options.
Answer

(D)All of the given options.

QN34. What name is often given to processes which involve the manufacture of a unique item from beginning to end?

  1. Jobbing processes.
  2. Continuous processes.
  3. Lean production processes.
  4. Batch processes.
Answer

(B)Continuous processes.

QN35. Production systems with customized outputs typically have relatively:

  1. high volumes of output.
  2. low unit costs.
  3. high amount of specialized equipment.
  4. skilled workers.
Answer

(D)skilled workers.

QN36. The process of comparing outputs to previously established standards to determine if corrective action is needed is called:

  1. planning.
  2. directing.
  3. controlling.
  4. budgeting.
  5. disciplining.
Answer

(C)controlling.

QN37. Marketing depends on operations for information regarding ______________.

  1. productivity.
  2. lead time.
  3. cash flow.
  4. budgeting.
  5. corporate intelligence.
Answer

(B)lead time.

QN38. Which came last in the development of manufacturing techniques?

  1. Lean production.
  2. Division of labor.
  3. Mass production.
  4. Craft production.
  5. Interchangeable parts.
Answer

(A)Lean production.

QN39. What is simulation?

  1. A quick solution method to problem-solving.
  2. A formalized deterministic approach to problem-solving.
  3. A graphical method to problem-solving.
  4. A trial-and-error approach to problem-solving.
Answer

(D)A trial-and-error approach to problem-solving.

QN40. Which of the following is an example of appraisal cost?

  1. Rework costs.
  2. Returned goods.
  3. Testing labs.
  4. Quality improvement programs.
Answer

(C)Testing labs.

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