FINALTERM EXAMINATION

Spring 2011

MGT613- Production / Operations Management (Session - 4)

Time: 90 min
Question No: 1 ( Marks: 1 ) - Please choose one
As a project manager, your project has become lengthy enough and you have to
spend more money to complete it quickly within time constraints, the activity is
known as:
► Rectifying time estimation
► Project scope creeping
► Project crashing
► Project risk management
Ref: Crashing a project involves paying more money to complete a project more
quickly.

Question No: 2 ( Marks: 1 ) - Please choose one

Which of the following refers to the inherent variability in a process?

► Control limits
► Process capability
► Chance causes of variation
► Assignable causes of variation
Reference
Question No: 3 ( Marks: 1 ) - Please choose one
Which of the following are the priorities emphasized most often in JIT system?
► High quality and minimal wastage
► Low cost and consistent quality
► Low inventory and consistent material supply
► Low cost and low inventory
Ref: Lean Manufacturing: is a management philosophy focusing on reduction of
the seven wastes. By eliminating waste (muda), quality is improved, production
time is reduced and cost is reduced.
Question No: 4 ( Marks: 1 ) - Please choose one

Identify the correct sequence of steps in Deming wheel.

► Plan, Do, Check, Act
► Plan, Check, Do, Act
► Plan, Do, Act, Check
► Plan, Act, Do, Check
Question No: 5 vuzs ( Marks: 1 ) - Please choose one
Which of the following is a type of kanban that authorizes the production of
goods?
► Supplier kanban
► Material kanban
► Withdrawal kanban
► Production kanban
Reference
Question No: 6 ( Marks: 1 ) - Please choose one
Product life cycle is based on which of the following components?
► Price
► Place
► Demand
► Supply

Question No: 7 ( Marks: 1 ) - Please choose one

What would be the availability if a carpenter is expected to be able to operate
for 300 hours between repairs, and the mean repair time is expected to be 2
hours?
► 6.02
► 2.0
► 0.99
► 0.006
Calculation: Availability = (MTBF)/(MTBF + MTR)
MTBF = mean time between failure = 300
MTR = mean time repair =2 hours
= (300)/(300+2)
=0.993
Question No: 8 ( Marks: 1 ) - Please choose one
What would be the productivity if a machine produced 50 units in 3 hours?
► 0.066 units per hr
 ► 16.66 units per hr
► 6.766 units per hr
► 60.66 units per hr
Calculation: Productivity = 50/3
=16.66
Question No: 9 ( Marks: 1 ) - Please choose one
Which of the following defines inventory turnover?
► A ratio of cost of goods sold to the average inventory
► A ratio of work in process to the average inventory
► A ratio of cost of carrying cost to the average inventory
► A ratio of cost of assets to the average inventory
Question No: 10 ( Marks: 1 ) - Please choose one
Which one the following is an assumption of center of gravity method?
► The quantity to be shipped is variable
► The quantity to be shipped is fixed
► The quantity carries no value
► The quantity to be shipped should be extraordinarily high
Reference
Question No: 11 ( Marks: 1 ) - Please choose one
The quality guru Kaoru Ishikawa is famous for:
► Statistical quality control
► Fishbone diagram
► Zero defects
► Cost of quality
Question No: 12 ( Marks: 1 ) - Please choose one
Identify the dimension of quality that relates to the expected operational life of
a product.
► Durability
► Performance
► Serviceability
► Reliability
Question No: 13 ( Marks: 1 ) - Please choose one
Which one of the following forecasting techniques is used to identify a trend
when data is neither growing nor declining rapidly and has no seasonal
characteristics?
► Simple moving average
► Delphi method
► Trend adjusted forecast
► Naïve forecast
Question No: 14 ( Marks: 1 ) - Please choose one
Which of the following is the focus of statistical process control?
 ► Determining the efficiency of an operations system
► Measuring the amount of re-work required to rectify faulty goods
► Identifying the security needs of an operations system
► Measuring and controlling process variations
Question No: 15 ( Marks: 1 ) - Please choose one
All of the following are the decision areas of an operations manager EXCEPT:
► Inventory management
► Scheduling tasks
► Supply chain management
► Financial reporting
Question No: 16 ( Marks: 1 ) - Please choose one
Which of the following refers to the average of accepted lots and rejected lots?
► Acceptable Quality Level (AQL)
► Lot Tolerance Percent Defective (LTPD)
► Average Outgoing Quality (AOQ)
► Average Outgoing Quality Limit (AOQL)
Question No: 17 ( Marks: 1 ) vuzs - Please choose one
Identify the set of factors that affect the choice of a strategy for aggregate
planning.
► Cost and corporate policy
► Cost and location analysis
► Cost and capacity constraints
► Cost and training of employees
Question No: 18 ( Marks: 1 ) - Please choose one
Which one of the following location strategies is favored by automobile
manufacturers?
► Product plant strategy
► Process plant strategy
► Market area plant strategy
► Cost conservation strategy
Question No: 19 ( Marks: 1 ) - Please choose one
For which of the following purpose master schedule determines quantities?
► Capacity
► Demand
► Resources
► Production requirements
Ref: Master schedule: Determines quantities needed to meet demand.(Page
139)
Question No: 20 ( Marks: 1 ) - Please choose one
Which of the following contains a listing of all the assemblies, sub-assemblies,
parts and raw materials needed to produce one unit of a finished product?
 ► Master schedule
► Bill of materials file
► Inventory records file
► Rough – cut capacity plan
Ref: Bill of materials (BOM): One of the three primary inputs of MRP; a listing of
all of the raw materials, parts, subassemblies, and assemblies needed to produce
one unit of a product.(Page no.157)(vuZs)
Question No: 21 ( Marks: 1 ) - Please choose one
Which of the following reports compares known and expected future capacity
requirements with projected capacity availability?
► Performance control report
► Exception report
► Load report
► Planned order report
Ref: Load reports: Department or work center reports that compare known and
expected future capacity requirements with projected capacity availability.(Page
no.161)
Question No: 22 ( Marks: 1 ) - Please choose one
Which of the following is the output of capacity requirement planning process?
► Planned order releases
► Job times
► Resource requirements
► Load reports

Question No: 23 ( Marks: 1 ) - Please choose one

Given the table:

Alternatives Possible future

demand
Low High
(Rs.) (Rs.)
Small facility 10,000 8,000
Medium 12,000 20,000
facility
Large facility 18,000 15,000

Which one of the following is the correct payoff under

LAPLACE approach?
► Rs. 9,000
► Rs. 16,000
► Rs. 33,000
► Rs. 16,500
Ref: LAPLACE approach best average of alternatives.
Small facility = 18000/2 = 9000
Medium facility = 32000/2 = 16000
Large facility = 33000/2 = 16500 this is best average as it is highest.
Question No: 24 ( Marks: 1 ) vuzs - Please choose one
Which one of the following refers to the assignment of jobs to process centers?
► Sequencing
► Loading
► Scheduling
► Budgeting

Question No: 25 ( Marks: 1 ) - Please choose one

Which of the following charts shows management of flow of work and waiting
lines at work stations?
► Gantt charts
► Load charts
► Schedule charts
► Input/output charts

Question No: 26 ( Marks: 1 ) - Please choose one

Which one of the following is TRUE about work sampling?

► It describes individual human motions that are used in a job task

► It involves determining the length of time it will take to
undertake a particular task
► It involves determining the amount of time a worker spends on various
activities
► It provides standard times for micro motions such as reach, move and
release

Question No: 27 ( Marks: 1 ) - Please choose one

The Strategies which are more focused on maintaining or improving the quality
of an organization’s products or services are known as:
► Quality at the source
► Time based strategies
► Cost leadership strategies
 ► Quality-based strategies

Question No: 28 ( Marks: 1 ) - Please choose one

Which of the following is a technique that averages a number of recent actual
values that are updated as new values become available?
► Simple moving average
► Weighted moving average
► Linear trend equation
► Exponential smoothing
Ref: Moving average – A technique that averages a number of recent actual
values, updated as new values become available.
· Weighted moving average – More recent values in a series are given more
weight in computing the forecast.(Page no.37)
Question No: 29 ( Marks: 1 ) - Please choose one
Which one of the following refers to translating the voice of the customer into
technical design requirements?
► Concurrent design
► Design for manufacture
► Robust design
► Quality function deployment
Ref: A popular managerial view is that the Quality Function should be deployed
at the source or at the design stage. We also should know what Quality Function
Deployment is. Two common answers being that it is the voice of the customer
(which always sets a standard for the service organization to follow) and the
second one being that it should be in the form of a house of quality.(Page no.55)
Question No: 30 vuzs ( Marks: 1 ) - Please choose one
Training program and quality audits come under which type of costs that an
organization has to bear as cost of service quality?
► Internal failure cost
► Recovery cost
► Prevention cost
► Detection cost

Question No: 31 ( Marks: 1 ) - Please choose one

Which of the following describes the people who have sufficient experience of
working with six sigma methodology?
► Black belts
► Green belts
► Top management
► Master black belts
All of the above options are correct. All of above having experience of six sigma.
I am confused about this question.
Ref: Six Sigma Teams are formed for implement of Six Sigma in true spirit
keeping in mind both managerial as well as technical aspects.
1. Top management
2. Program champions
3. Master “black belts”
4. “Black belts”
5. “Green belts”
Question No: 32 ( Marks: 1 ) - Please choose one
Which of the following is the characteristic of an effective design?
► It facilitates manufacturing of the product
► It satisfies customer requirements
► It sells in the marketplace
► All of the given options

Question No: 33 ( Marks: 1 ) - Please choose one

The operating characteristic (OC) curve shows the probability of which of the
following?
► Acceptance for every possible true percentage of defectives
► Rejection for every possible true percentage of defectives
► Making type I error for various percentages of defectives
► None of the given options
Ref: The curve shows the probability that use of the sampling plan will result in
lots with various fractions defective being accepted.(Page no.130)
Question No: 34 ( Marks: 1 ) - Please choose one
Which of the following defines the orders which have been placed but not yet
completed?
► Order releases
► Planned receipts
► Scheduled receipts or open orders
► Planned order releases
Ref: A released order not yet shipped (customer order) or received into stock
(production, purchase or replenishment order). OR Scheduled receipts: Open
orders scheduled to arrive.
Question No: 35 vuzs ( Marks: 1 ) - Please choose one
Select the appropriate term for the total demand derived from all parent
production plans from the following options.
► Inventory record
► Load reports
► Projected on-hand inventory
 ► Gross requirement
Reference
Question No: 36 ( Marks: 1 ) - Please choose one
An automatic car wash is an example of which of the following?
► Customized service
► Batch processing
► Intermittent processing (not sure)
► Standardized service
Question No: 37 ( Marks: 1 ) - Please choose one
If alpha = 0, how many containers are needed with the given data?
K = 1500 (0.8 + 0.2) (1 + 0)
270
► 6.5 Containers
► 7 Containers
► 6 Containers
► 9 Containers
Calculation: 1500/270 =5.6. After round off the value, it is 6
containers.(vuzs)
Question No: 38 ( Marks: 1 ) - Please choose one
In supply chain management event-management capability enables organization
in which of the following ways?
► To achieve quick response
► To create trust among trading partners
► To increase productivity
► To detect and respond to unplanned events
Ref: Event-management capability
The ability to detect and respond to unplanned events.(Page no.176)
Question No: 39 ( Marks: 1 ) - Please choose one
Which of the following statement is FALSE regarding Supply Chain Management?
► Supply Chain Management issues are insignificant in service
organizations
► For effective supply chain management, “long-term partnerships” with
key suppliers is much important
► Ideas from suppliers can lead to improved competitiveness by increasing
revenues
► Supply chain management creates value though changes in time, location
and quantity

Question No: 40 vuzs ( Marks: 1 ) - Please choose one

 An operations manager of an airline industry schedules the arrival and departure
of flights by working ahead form some point in time is following which type of
scheduling?
► Backward scheduling
► Forward scheduling
► Vertical scheduling
► Horizontal scheduling
Ref: Forward scheduling may result in jobs being completed earlier then the
requested due date because forward scheduling schedules the tasks as early as
possible.
Question No: 41 ( Marks: 1 ) - Please choose one
Tasks are easily scheduled in which of the following production environments?
► Intermediate-volume-systems
► Low-to-medium volume production (Job shop)
► Medium-to-high volume production (Flow shop)
► Optimal production mixes

Question No: 42 ( Marks: 1 ) - Please choose one

In multiple workstations scheduling, the priority rule is applied to which kind of
given jobs?
► The jobs waiting for the operations
► The jobs of the least critical ratio (CR)
► The jobs arrived at workstation first
► The jobs with earliest due date

Question No: 43 ( Marks: 1 ) - Please choose one

Difference between length of a path and critical path gives which of the
following values?
► Critical activities
► Slack activities
► Activity on node
► Activity on arrow
Ref: Slack: Allowable slippage for path; the difference the length of path and
the length of critical path.(Page no.194)
Question No: 44 ( Marks: 1 ) - Please choose one
When timing of activities is fairly well established in management of projects,
which of the following time estimations approach is useful?
► Deterministic approach
► Probabilistic approach
► Optimistic time approach
► Pessimistic time approach
Ref: A deterministic approach is useful for estimating the duration of the project,
when activity times can be fairly well established.(Page no.209)
Question No: 45 ( Marks: 1 ) vuzs - Please choose one
Which one of the following is the goal of method analysis?
► Dividing and analyzing a job
► Check individual human motions used to perform an operation
► Determining the length of time it will take to undertake a particular task
► Determining the amount of time a worker spends on various activities
Question No: 46 ( Marks: 1 ) - Please choose one
Managers should greatly focus on which of the following demand options in
aggregate planning process?
► Back orders
► Promotion
► Pricing
► New demand
Ref: The operations manager should know all four demand options but should
be more interested in back order option.(Page no.135)
Question No: 47 ( Marks: 1 ) - Please choose one
In production planning, future requirement for finished goods can be derived
from all of the following EXCEPT:
► Stock out
► Backlogs
► Demand from distributors or dealers
► Forecasts for product families

Question No: 48 ( Marks: 1 ) - Please choose one

Chase demand strategy is an example of which of the following?
► Proactive strategy
► Reactive strategy
► Mixed or hybrid strategy
► Active strategy
Note: Solution is provided by vuZs Team.