QN01. Which of the following is a recent trend in business?
- pollution control.
- total quality management.
- supply chain management.
- competition from foreign manufacturers.
- 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"?
- Face-to-face loose specs.
- Phone contact.
- Internet and on-site technology.
- Face-to-face tight specs.
- Mail contact.
Answer
(A)Face-to-face loose specs.
QN03. Two widely used metrics of variation are the ______________ and the______________.
- mean; standard deviation.
- productivity ratio; correlation.
- standardized mean; assignable deviation.
- randomized mean; standardized deviation.
- 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?
- Total quality management.
- Worker involvement.
- Global competition.
- Automation.
- Environmental issues.
Answer
(D)Automation.
QN05. Moving from the aggregate plan to a master production schedule requires
- rough cut capacity planning.
- sub-optimization.
- disaggregation.
- strategy formulation.
Answer
(C)disaggregation.
QN06. Warranty cost is an example of which of the following?
- Internal failure cost.
- External failure cost.
- Prevention cost.
- Appraisal cost.
Answer
(B)External failure cost.
QN07. Technology choices seldom affect:
- Costs.
- Productivity.
- Union activity.
- Quality.
Answer
(C)Union activity.
QN08. Product design and process selection are examples of ______________ decisions.
- Financial.
- Tactical.
- system design.
- system operation.
- Forecasting.
Answer
(C)system design.
QN09. The type of operation being carried out by an organization depends upon:
- Degree of standardization.
- Volume of output.
- Demand.
- Both (a) and (b).
Answer
(D)Both (a) and (b).
QN10. Job shop and batch processing are differentiated on the basis of:
- Job requirements.
- Degree of standardization.
- Volume of output.
- Both (b) and (c).
Answer
(A)Job requirements.
QN11. Location decisions are viewed primarily as part of:
- Marketing strategy.
- Growth factors.
- Financial aspect.
- Both (a) and (b).
Answer
(D)Both (a) and (b).
QN12. Technology choices seldom affect:
- Costs.
- Productivity.
- Union activity.
- quality.
Answer
(C)Union activity.
QN13. The responsibilities of the operations manager are:
- planning, organizing, staffing, procuring, and reviewing.
- planning, organizing, staffing, directing, and controlling.
- forecasting, designing, planning, organizing, and controlling.
- 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:
- analysis of tradeoffs.
- sensitivity analysis.
- recognition of priorities.
- analysis of variance.
- 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.
- outsourcing; supply chain.
- off shoring; lean.
- downsizing; total quality.
- optimizing; inventory.
- internationalization; intercultural.
Answer
(A)outsourcing; supply chain.
QN16. What are the two sources of costs in queuing analysis?
- Arrivals and departures.
- Arrivals and idleness.
- Waiting customers and capacity.
- Equipment breakdowns and departures.
Answer
(C)Waiting customers and capacity.
QN17. Which of the following is not true about a lean production system?
- It puts emphasis on quality, flexibility, and time reduction.
- It puts emphasis on reducing a company’s labor force.
- It is involved in maintaining and improving the system with lower amounts of inventory.
- 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?
- Kaizen.
- Poka-yoke.
- Six sigma.
- Control limits.
Answer
(A)Kaizen.
QN19. Which of the following is not a type of operations?
- goods production.
- storage/transportation.
- entertainment.
- all the above involve operations.
Answer
(D)all the above involve operations.
QN20. Construction of fertilizer plant is
- Continuous.
- Project.
- Job.
- Flow shop.
Answer
(B)Project.
QN21. The goal of motion study is to achieve:
- Cost minimization.
- Maximum efficiency.
- Profitability.
- 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.
- operation.
- marketing.
- purchasing.
- finance.
Answer
(D)finance.
QN23. What is credited with gains in industrial productivity, increased standards of living and affordable products?
- personal computers .
- the internet.
- mass transportation.
- assembly lines.
Answer
(D)assembly lines.
QN24. Service strategy development begins by selecting which of the following as an operating focus or performance priority?
- Price.
- Quality.
- Variety.
- Treatment.
- 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 ______________.
- flexibility; pressure to be more efficient.
- off shoring; need to promote domestic production.
- sustainability; threat of global warming.
- technology; impact of random variation.
- forecasting; stabilization of demand.
Answer
(C)sustainability; threat of global warming.
QN26. Which of the following statements about variation is FALSE?
- Variation prevents a production process from being as efficient as it can be.
- Some variation can be prevented.
- Variation can be either assignable or random.
- Any variation makes a production process less productive.
- 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?
- How much capacity will be needed in the months ahead?.
- What is a satisfactory location for a new facility?.
- Which products/services should be offered?.
- All are typical of operations decisions.
Answer
(D)All are typical of operations decisions.
QN28. When the flow of materials is variable,
- layout by process is most suitable.
- b layout by product is most suitable.
- layout by fixed position is most suitable.
- 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?
- Benchmarking.
- Gap analysis.
- Statistical process control.
- Continuous improvement.
Answer
(A)Benchmarking.
QN30. Budgeting, analysis of investment proposals, and provision of funds are activities associated with the ______________ function.
- Operation.
- Marketing.
- Purchasing.
- finance.
Answer
(D)finance.
QN31. What type of process would a fertilizer plant be most likely to use
- Continuous.
- Project.
- Job.
- Flow shop.
Answer
(A)Continuous.
QN32. What are the two basic types of production systems?
- Automated and manual.
- Intermittent and non-intermittent process.
- Normal and continuous process.
- Continuous process and batch.
Answer
(B)Intermittent and non-intermittent process.
QN33. Poor quality adversely affects:
- Costs.
- Productivity.
- Profitability.
- 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?
- Jobbing processes.
- Continuous processes.
- Lean production processes.
- Batch processes.
Answer
(B)Continuous processes.
QN35. Production systems with customized outputs typically have relatively:
- high volumes of output.
- low unit costs.
- high amount of specialized equipment.
- 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:
- planning.
- directing.
- controlling.
- budgeting.
- disciplining.
Answer
(C)controlling.
QN37. Marketing depends on operations for information regarding ______________.
- productivity.
- lead time.
- cash flow.
- budgeting.
- corporate intelligence.
Answer
(B)lead time.
QN38. Which came last in the development of manufacturing techniques?
- Lean production.
- Division of labor.
- Mass production.
- Craft production.
- Interchangeable parts.
Answer
(A)Lean production.
QN39. What is simulation?
- A quick solution method to problem-solving.
- A formalized deterministic approach to problem-solving.
- A graphical method to problem-solving.
- 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?
- Rework costs.
- Returned goods.
- Testing labs.
- Quality improvement programs.
Answer
(C)Testing labs.