Project Planning Appraisal and Control Set 3

QN1. Which of the following is not a characteristic of a production system

a) It is a universally applicable model

b) Varies from enterprise to enterprise

c) It is a framework within which production activities take place

d) Ensures coordination of various production operations

Answer

Answer: a) It is a universally applicable model

QN2. Which of the following is not a type of production system

a) Continuous production

b) Job or unit production

c) Intermittent production

d) Flexible manufacturing

Answer

Answer: c) Intermittent production

QN3. All of the following are production functions except

a) Aggregate planning

b) Pricing of products

c) Capacity assessment

d) Scheduling of operations

Answer

Answer: b) Pricing of products

QN4. Order winner means

a) The sales person who gets the order

b) The factor of the product that wins the order for the firm

c) Order that results in high profits

d) Repeat order

Answer

Answer: c) Order that results in high profits

QN5. All of the following are functions of forecasting except

a) An estimation tool

b) A tool for predicting events related to operations planning and control

c) An input for the JIT system

d) A vital prerequisite for the planning process

Answer

Answer: c) An input for the JIT system

QN6. Degree of uncertainty in short term forecasting is

a) High

b) Low

c) Nil

d) Significant

Answer

Answer: a) High

QN7. All of the following are key areas of forecasting except

a) Better materials management

b) Rationalized manpower decisions

c) Basis for planning and scheduling

d) Routine decisions

Answer

Answer: b) Rationalized manpower decisions

QN8. Which of the following is a dependent demand for an organization manufacturing refrigerators

a) Compressor

b) Requirement for a DG set

c) Refrigerators

d) Tea coffee vending machine

Answer

Answer: b) Requirement for a DG set

QN9. If a forecast repeatedly overestimates actual demand, bias will have

a) Positive value

b) Negative value

c) Zero value

d) Infinity

Answer

Answer: a) Positive value

QN10. Which of the following is not a qualitative method of forecasting

a) Delphi method

b) Historical data

c) Econometric models

d) Nominal group technique

Answer

Answer: a) Delphi method

QN11. The most suitable method for forecasting the demand for a brand new product is

a) Moving averages

b) Historical data

c) Exponential smoothening

d) Delphi method

Answer

Answer: c) Exponential smoothening

QN12. The planning that addresses the supply side of a firm’s ability to meet the demand is known as

a) Business plan

b) Aggregate production planning

c) Aggregate capacity planning

d) Master production scheduling

Answer

Answer: b) Aggregate production planning

QN13. Which of the following is not a considerations in developing an aggregate production plan

a) Concept of aggregation

b) Goal for aggregate planning

c) Forecast of aggregate demand

d) Supplier lead time

Answer

Answer: c) Forecast of aggregate demand

QN14. The aggregate production planning strategy that cannot be employed in a strong union environment is

a) Changing inventory levels

b) Changing workforce levels

c) Subcontracting

d) Influencing demand

Answer

Answer: c) Subcontracting

QN15. Which of the following is not an alternative for managing supply

a) Inventory based alternatives

b) Promotional schemes

c) Capacity adjustment

d) Capacity augmentation

Answer

Answer: d) Capacity augmentation

QN16. All of the following are capacity adjustment alternatives except

a) Hiring/ Firing of workers

b) Varying shifts

c) Varying working hours

d) Subcontracting

Answer

Answer: d) Subcontracting

QN17. Which of the following is not an aggregate production planning method

a) Trial-and-error method

b) Transportation method

c) Linear programming method

d) Assignment method

Answer

Answer: d) Assignment method

QN18. All of the following are characteristics of Master Production Scheduling except

a) MPS makes use of actual customer orders

b) Product varieties are taken care of in MPS

c) MPS is a critical linkage between planning and execution of operations

d) It is same as rough cut capacity planning

Answer

Answer: d) It is same as rough cut capacity planning

QN19. Which is not a characteristic of a Bill Of Materials

a) List all parts required for one unit of a product

b) Shows dependency relationships

c) Gives total number of a part used in a product

d) Indicates multi levels of a product

Answer

Answer: c) Gives total number of a part used in a product

QN20. All of the following are time phasing requirement of an MRP logic except

a) Gross requirement will occur at the middle of a period

b) On hand inventory will be measured at the end of a period

c) Planned order release will occur at the beginning of a period

d) Lead time considerations are not taken for time phasing

Answer

Answer: d) Lead time considerations are not taken for time phasing

QN21. Which of the following is not an input to the MRP system

a) The Master Production Schedule

b) Bill of materials

c) Engineering drawing

d) Inventory status file

Answer

Answer: c) Engineering drawing

QN22. Which of the following is not a Lot sizing technique

a) The lot-for lot technique

b) The EOQ approach

c) Mini-Max approach

d) Period order quantity approach

Answer

Answer: c) Mini-Max approach

QN23. The process of tracing the effect of one component in another is called

a) Pegging

b) Cycle counting

c) Lot sizing

d) Time fencing

Answer

Answer: d) Time fencing

QN24. Stability in an MRP is achieved by

a) Updating

b) Cycle counting

c) Lot Sizing

d) Time fencing

Answer

Answer: a) Updating

QN25. Time fence means

a) The shortest lead-time from raw material to finished production of an item

b) Ensuring accuracy of inventory records

c) Method used to update MRP at regular intervals

d) Calculating net requirements of components

Answer

Answer: a) The shortest lead-time from raw material to finished production of an item

QN26. All of the following are characteristics of capacity except

a) It is the maximum rate at which a system can accomplish work

b) Capacity depends on the bottleneck

c) Capacity is the productive capability of a facility

d) Capacity is measured in monetary terms

Answer

Answer: b) Capacity depends on the bottleneck

QN27. Operations managers are concerned with capacity for several reasons. Which of the following is not a concern

a) Enough capacity to meet customer demands

b) Capacity affects cost efficiency of operations

c) Investment required in capacity

d) Machine locations in a facility

Answer

Answer: c) Investment required in capacity

QN28. Which of the following is not a short term strategy for modifying capacity

a) Inventories

b) Employment levels

c) Subcontracting

d) Expansion

Answer

Answer: d) Expansion

QN29. All of the following are steps in capacity control except

a) Monitoring of output

b) Comparing with capacity plan

c) Assessing demand

d) Taking corrective actions

Answer

Answer: d) Taking corrective actions

QN30. Multi-skilling of work force doesn’t results in

a) Increasing capacity

b) Increasing flexibility

c) Improving productivity

d) Waste elimination

Answer

Answer: c) Improving productivity

QN31. Activity not associated with Dispatching is

a) Issue of instructions concerning movement of materials between work centers

b) Issue of instructions to operators

c) Loading work centers with jobs

d) Issue instructions concerning the issue and return of special tools

Answer

Answer: b) Issue of instructions to operators

QN32. Routing doesn’t include

a) Sequence of processes, operations for a product

b) Machines, tools, work stations used in producing the product

c) Standard time applicable for each operation

d) Detailed skills of the operator for each operation

Answer

Answer: d) Detailed skills of the operator for each operation

QN33. Three planning premises are used in production management. Which of the following is not one among them

a) Make to stock

b) Make to order

c) Assemble to order

d) Make subassemblies

Answer

Answer: d) Make subassemblies

QN34. A strategy that is not used for altering lead time is

a) Overlapping

b) Lot sizing

c) Operations splitting

d) Lot splitting

Answer

Answer: b) Lot sizing

QN35. Backlogs can be reduced by all of the following except

a) Increasing work center capacity

b) Reducing order release rate

c) Increasing lead time

d) Subcontracting

Answer

Answer: c) Increasing lead time

QN36. Priority index in scheduling is also known as

a) Critical ratio

b) Critical Path

c) Random number

d) Earliest due date

Answer

Answer: b) Critical Path

QN37. All of the following are characteristics of flow shop production except

a) Special purpose equipment

b) Many number of end items

c) Low skilled workers

d) Low in process inventories

Answer

Answer: b) Many number of end items

QN38. Which of the following is not a characteristic of job shop production

a) Multipurpose equipment

b) Highly skilled workers

c) High investment

d) Low raw material inventory

Answer

Answer: d) Low raw material inventory

QN39. Bottleneck operation in line balancing means

a) Having high operation time

b) Having high cycle time

c) Having low operation time

d) Having more no. of follower operations

Answer

Answer: d) Having more no. of follower operations

QN40. Which of the following is not associated with line balancing

a) Precedence diagrams

b) Cycle time

c) Closeness matrix

d) Minimum number of workstations

Answer

Answer: d) Minimum number of workstations