Operations Management Quiz - 1

1. Establishing personnel policies in an organization falls more appropriately under which of the following activities?
[A]Planning
[B]Organizing
[C]Controlling
[D]Directing



2. Which of the following is false with respect to maturity stage of Product Life Cycle?
[A]The growth rate in sales decreases but sales continue to be either constant or increase slowly
[B]Emphasis is on efficiency
[C]Emphasis is on low cost
[D]Emphasis is on customized product design and production in small batches



3. Washing machine company Sunidhi Ltd. is planning to set the production target for the month of November. Actual and forecasted demand for last four months is as follows:
(in units)
Month July Aug Sep Oct
Forecast 40 35 45 65
Actual 30 38 37 52
The mean square error (MSE) of the above data is
[A]80.5
[B]85.5
[C]95.5
[D]85



4. Which of the following assumptions of Linear Programming Models assumes that economies of scale do not have a role to play in linear programming problems?
[A]Proportionality
[B]Additivity
[C]Divisibility
[D]Certainty



5. The initial investment is higher in which of the following production systems?
[A]Discrete Unit Manufacturing
[B]Process Manufacturing
[C]Product Focussed
[D]All of the above



6. Which of the following is not true in case of Point Rating technique?
[A]It is based on the ranking of various weighted factors that influence the choice of location
[B]Locations are ranked by the appropriate weightages given to each factor
[C]Evaluation should be only quantitative and not qualitative
[D]Implementation of this type of system requires careful judgement



7. Which of the following models is best applied in situations in which the management has done aggregate output planning on an intuitive basis?
[A]Linear Programming
[B]Linear Decision Rule
[C]Management Coefficients Model
[D]CRAFT



8. Warehouse rental is associated with which of the following costs?
[A]Carrying Cost
[B]Ordering Cost
[C]Stock-out Cost
[D]Both (a) and (b) above



9. Which of the following is not correct regarding Make-or-Buy Analysis?
[A]Purchase managers, with the assistance of production engineers, generally do a Make-or-buy analysis for materials
[B]It is made based on the break-even analysis
[C]A fixed cost is associated with purchasing the material
[D]Break-even demand is the demand at which the total cost of making a product is equal to the total cost of buying the product



10. Which of the following is the forerunner of the “empowerment of personnel” tactic necessary for total quality management and is also a form of cross-training necessary for a just-in-time implementation?
[A]Job enlargement
[B]Job enrichment
[C]Job analysis
[D]Job description



11. In which of the following work measurement technique (s), an analyst is not required to measure work performance?
[A]Time Study
[B]Standard Data
[C]Historical Analysis
[D]Both (b) and (c) above



12. The process of capturing data about the flow of items through automatic means such as bar coding, and using this information to support planning and scheduling of production activities is an example of
[A]CAD
[B]Direct CAM
[C]Indirect CAM
[D]CIM



13. If the capacity requirements cannot be modified to match the available capacity, managers can adjust the requirements by using which of the following strategies?
I. Missing some customer orders and thereby losing sales.
II. Adding a shift or making the operators work overtime.
III. Hiring some personnel and thereby increasing manpower.
[A]Only (I) above
[B]Only (II) above
[C]Only (III) above
[D]All of the above



14. Which of the following is false regarding Kanban system?
[A]It requires some initial levels of inventory to begin with
[B]In this type of system, three different cards are used to initiate material transaction: Production authorization card, Vendor authorization card and Conveyance authorization card
[C]Kanbans operate in closed loops and continue to operate until the Materials Manager withdraws them
[D]The system depends more on the machines involved in the process



15. Manufacturing Resource Planning (MRP II) includes which of the following functions?
[A]Product Planning
[B]Operations Planning
[C]Operations Control
[D]All of the above