Project Planning Appraisal and Control Set 2

QN1. If the order winner is delivery speed to customer, then the production planning and control system must focus on:

a) Cost

b) Lead time

c) Quality

d) Coordination with Marketing

Answer

Answer: b) Lead time

QN2. A firm uses simple exponential smoothing to forecast demand with a = 0.2. The forecast for the month of March was 500 units whereas the actual demand turned out to be 460 units. What is the forecast for the month of April?

a) 489.6

b) 492

c) 480

d) 490

Answer

Answer: b) 492

QN3. Bias as a measure of forecast error is used to determine:

a) The total magnitude of error

b) The direction of error

c) Absolute value

d) Weighted average

Answer

Answer: c) Absolute value

QN4. Aggregate output planning generally consists of planning a desired output over a period of:

a) one week

b) five years

c) daily

d) three months to 1 year

Answer

Answer: d) three months to 1 year

QN5. Optimum inventory level as per EOQ system will increase:

a) in direct proportion to increase in holding cost

b) inversely with setup cost

c) in proportion to square root of demand for the year

d) in direct proportion to square root of holding cost

Answer

Answer: a) in direct proportion to increase in holding cost

QN6. Product structure tree is:

a) diagram explaining the features of a product

b) used to display the total makeup of a particular product

c) is representation of a tree

d) identical to decision tree

Answer

Answer: a) diagram explaining the features of a product

QN7. Kit numbers are used in MPS:

a) when there are many small, loose parts – such as fasteners, nuts and bolts – at level 1 in the product structure

b) to identify related items

c) to add complexity to planning

d) as a quick aid to forecasting

Answer

Answer: a) when there are many small, loose parts – such as fasteners, nuts and bolts – at level 1 in the product structure

QN8. MRP takes the output from the master schedule, combines that with information from inventory

records and product structure records and determines:

a) the volume of production in each period

b) the schedule of timing and quantities for each item to get the right materials to the right place at the right time

c) closing inventory

d) whether customer demand can be met

Answer

Answer: b) the schedule of timing and quantities for each item to get the right materials to the right place at the right time

QN9. Manufacturing Resource Planning is:

a) the planning of resources in the manufacturing environment using the closed loop system

b) another term for rough cut capacity planning

c) is also known as MRP I or little

d) is a quicker way to MRP

Answer

Answer: a) the planning of resources in the manufacturing environment using the closed loop system

QN10. A classification system has been devised to determine how well an MRP system has been

implemented. Class C company is:

a) one which has MRP II in full use and the closed loop is working

b) one in which MRP system is working only in the computing department

c) one which may have MRP, capacity planning and shop floor controls working

d) one which uses MRP for inventory ordering but not for scheduling

Answer

Answer: d) one which uses MRP for inventory ordering but not for scheduling

QN11. MRP logic uses the following relationships:

a) Net requirements = total requirements – available inventory

b) Net requirements = scheduled receipts + inventory on hand

c) Net requirements = gross requirements – allocations

d) Net requirements = gross requirements – on hand inventory

Answer

Answer: a) Net requirements = total requirements – available inventory

QN12. Lot-for-Lot technique in MRP yields:

a) high holding cost

b) low setup cost

c) zero holding cost

d) zero setup cost

Answer

Answer: c) zero holding cost

QN13. The simulation studies on many of the lot sizing rules show:

a) good performance of L-4-L rule

b) good performance of EOQ rule

c) poor performance of PPB, GR and MCP rules

d) poor performance of L-4-L and EOQ rules

Answer

Answer: b) good performance of EOQ rule

QN14. Time fence is a designated length of time

a) to create system nervousness in MRP system

b) that is the longest lead time from raw material to finished production for an end item

c) that must pass without changing the MPS, to stabilise the MRP system; afterward the MPS is allowed to change

d) around which the system is upgraded

Answer

Answer: c) that must pass without changing the MPS, to stabilise the MRP system; afterward the MPS is allowed to change

QN15. Pegging is used in MRP system for:

a) identifying which components are affected by disruptions in material plans

b) pausing the system

c) showing old records

d) showing current records with updated status

Answer

Answer: a) identifying which components are affected by disruptions in material plans

QN16. Route sheet used in production planning and control is:

a) used to indicate the location of each department

b) a document to show the routing of a component, including the work centers and operation times, through its production processes

c) a flow process chart used for process change

d) a document showing the daily production schedule

Answer

Answer: b) a document to show the routing of a component, including the work centers and operation times, through its production processes

QN17. The Master Production Schedule (MPS) is a schedule of:

a) weekly production plan for each product according to customer orders and demand forecasts

b) aggregate production plan in product groups

c) daily production plan for shop floor control

d) business activity expressed in money value

Answer

Answer: b) aggregate production plan in product groups

QN18. A good strategy to meet short term overload for a month can be:

a) buy a new equipment

b) invest in a new project

c) subcontract work

d) telling marketing that the job cannot be done

Answer

Answer: c) subcontract work

QN19. Infinite loading is:

a) assigning jobs to work centers without considering the work center’s capacity

b) using Gantt chart for loading

c) using visual load profile for showing load

d) considering loading of planned orders only

Answer

Answer: a) assigning jobs to work centers without considering the work center’s capacity

QN20. Final Assembly Schedule can serve as MPS:

a) when the number of end products manufactured is small

b) when the number of end products is large

c) when there is a need to disaggregate

d) when M-bills have to be used

Answer

Answer: a) when the number of end products manufactured is small

QN21. An aluminium extruder forecasted the demand for pipe extrusions to be 500 units per month

for each of three months. The actual demands turned out to be 400, 560 and 700. The forecast

error in terms of MAD(Mean Absolute Deviation) is:

a) -50 units

b) 125 units

c) 120 units

d) 53 units

Answer

Answer: d) 53 units

QN22. Frigerware has experienced demand for ice coolers at 400 units for April, 500 units for May and

600 units for June. The forecast of demand for July using a three period model with the most

recent period’s demand weighted twice as heavily as each of the previous two period’s demand

is:

a) 425

b) 525

c) 625

d) 400

Answer

Answer: b) 525

QN23. In the regression model for forecasting, the forecast of the period’s demand F is expressed as

F = a + bX, where:

a) F is the independent variable

b) X is the dependent variable

c) X is the independent variable

d) a is the slope of the line

Answer

Answer: F = a + bX, where:

QN24. Capacity is a facility’s productive capability, usually expressed as volume of:

a) input in case of automobiles

b) output in case of steel producer

c) likely business as per marketing

d) output in case of hospital

Answer

Answer: b) output in case of steel producer

QN25. For short term periods of up to one year, fundamental capacity is fixed. However, short term

adjustments of capacity are possible by:

a) building inventories during slack periods to meet later demand

b) subcontracting during slack periods

c) building inventories during peak periods to meet demand in slack periods

d) wishing that some customers may cancel the order

Answer

Answer: a) building inventories during slack periods to meet later demand

QN26. Steel manufacturing is an example of :

a) Job manufacturing process

b) Continuous manufacturing flow process

c) Assembly line process

d) None of the above

Answer

Answer: b) Continuous manufacturing flow process

QN27. Visual Load profile is:

a) a graph comparing work loads and capacities on a time scale

b) identical to Gantt load chart

c) used for forward scheduling process

d) used for job sequencing

Answer

Answer: a) a graph comparing work loads and capacities on a time scale

QN28. SPT rule in scheduling:

a) assigns highest priority to the slowest job

b) prioritises on basis of setup time

c) prioritises on basis of delivery times

d) assigns highest priority to the job order whose processing time is shortest

Answer

Answer: c) prioritises on basis of delivery times

QN29. Which sequencing rule will you prefer for minimising average job lateness:

a) Shortest processing time rule

b) Longest processing time rule

c) Earliest Due Date rule

d) First cum first served rule

Answer

Answer: c) Earliest Due Date rule

QN30. For scheduling N jobs through two machine centers in series, you will use:

a) Johnson rule to decide the sequence and then schedule on a Gantt chart

b) McLaren’s Order Moment

c) Groff’s Algorithm

d) None of the above

Answer

Answer: a) Johnson rule to decide the sequence and then schedule on a Gantt chart

QN31. If a machining center has a machine utilisation of 95% and operator efficiency of 80%, what is

the effective work centre capacity in July assuming 26 working days and 3 shifts running each

day:

a) 472.24 hours

b) 472 hours

c) 158.08 hours

d) 59.28 hours

Answer

Answer: a) 472.24 hours

QN32. Critical Ratio used in Capacity Planning and Control is:

a) Time to due date divided by required time for remaining operations

b) Time for first job divided by time for second job

c) Capacity consumed by the job divided by total capacity of the plant

d) Capacity of output divided by capacity of input

Answer

Answer: a) Time to due date divided by required time for remaining operations

QN33. Job A and B are waiting to be released. Both will go to work center 1. Then A will continue on

to work center 3 while B will go to work center 4. Suppose that A has high priority on the first

work center and center 4 is backlogged and center 4 is idle. Which order should be released

first?

a) Job A

b) Job B

c) Both Job A and Job B together

d) Toss a coin and if its heads, go for Job A otherwise Job B.

Answer

Answer: a) Job A

QN34. Cycle time as used in assembly line manufacturing is:

a) the time taken in last work station

b) the productive time divided by demand

c) the time taken by the bottleneck operation

d) both b) and c) are considered and the higher value taken

Answer

Answer: b) the productive time divided by demand

QN35. In an assembly line the total processing time per, unit is 380 seconds, and the cycle time for

the line is 90 seconds. What is the minimum number of workstations required in the assembly

line?

a) 4 stations

b) 4.22 stations

c) 5 stations

d) 4.2 stations

Answer

Answer: a) 4 stations

QN36. Runout Time (ROT) used in batch processing is:

a) the time taken to complete the batch

b) the current inventory of an item divided by the demand per period for that item

c) the demand for the item divided by the opening inventory level

d) time for setup plus processing time

Answer

Answer: b) the current inventory of an item divided by the demand per period for that item

QN37. JIT is:

a) another management jargon

b) a philosophy of waste reduction and techniques for reducing inventory and waste

c) applicable only to job shop units

d) none of the above

Answer

Answer: b) a philosophy of waste reduction and techniques for reducing inventory and waste

QN38. If the setup cost is Rs 10,000 per setup, annual demand is 100,000 units and holding cost is Rs

200 per unit per year the optimal batch quantity in production should be (rounded off):

a) 3162

b) 316

c) 31623

d) 3000

Answer

Answer: a) 3162

QN39. Kanban is:

a) a push production system

b) another word for MRP system

c) a pull system based on a ‘visible record’ or ‘card’

d) input output system

Answer

Answer: a) a push production system

QN40. If D is the demand per unit of time, L is the lead time, A is the container capacity and S the

safety stock factor, the number of Kanbans N will be :

a) DL(1+S)/A

b) A(l+S)/D

c) LAS(l + D)/24

d) (D/A) + L+S

Answer

Answer: a) DL(1+S)/A