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Questions for Operation Management Jobs(Operations Management Quiz - 11)

1. 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
[B]Direct CAM
[C]Indirect CAM

2. 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. Subcontracting a part of the work.
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 (I), (II) and (III) above

3. 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
[C]Kanbans operate in closed loops and continue to operate until the Materials Manager withdraws them
[D]The system does not depend on the people involved in the process

4. Which of the following is a function of Operational Planning component of Supply Chain Management(SCM)?
[A]Order release
[B]Incoming inspection
[C]Supplier capacity planning
[D]Accounts payable

5. Which of the following is false in relation to Demand Chain?
[A]Instead of building and operating their supply chain from manufacturer to market, Demand Chain leaders are creating alliances with those channel partners who are best able to fulfill the consumers’ needs and wants
[B]The players in today’s emerging Demand Chains are different from those in traditional supply chains
[C]Responsibilities are assumed by the Demand Chain as a whole
[D]In a Demand Chain, products don’t necessarily originate from manufacturers

6. Hybrid layout is commonly used to manufacture which of the following products?

7. Which of the following actions enhance(s) equipment maintenance in JIT manufacturing systems?
I. Organizations should design their equipment as simple as possible, reduce the variety of machines, and standardize the replacement parts.
II. Organizations should collect information about the frequency and causes of equipment failure and use this knowledge to allocate maintenance resources efficiently.
III. Organizations can rebuild equipment by replacing parts one by one, rather than all at once.
[A]Only (I) above
[B]Only (II) above
[C]Only (III) above
[D]Both (I) and (II) above

8. Maximum managers spend most of their time working on large number of unimportant problems than working on few important problems. The solution to this universal problem can be had by most effectively using
[A]Value analysis
[B]Job analysis
[C]ABC analysis
[D]Make-or-Buy analysis

9. Lakhan Company Limited wants to forecast the demand of its lawnmowers for the month of April,2005. Actual and forecasted demand for last five months is as follows:(in units)
Month | Nov ’04| Dec ’04 | Jan ’05 | Feb ’05 | Mar ’05
Forecast | 110 | 120 | 145 | 155 | 180
Actual | 80 | 106 | 133 | 162 | 170
The mean absolute percentage error (MAPE) of the above data is
[A]12.98 %
[B]13.98 %
[C]14.98 %
[D]15.98 %

10. Which of the following is not true about constrained optimization models?
[A]An optimization model reduces the feasible solutions for a complex problem, to a manageable number
[B]Optimization models make the decision-making process more objective
[C]Optimization models enable the decision-maker to solve practical problems mathematically
[D]Non-quantifiable criteria like worker motivation level do not affect the effectiveness of the solution

11. Which of the following factors does not affect the degree of Backward Integration?
[A]The costs associated with producing components versus buying them
[B]The investments necessary to produce components in-house
[C]The capability of existing technology to produce components
[D]The ability of the organization to market its products

12. A computerized system that enables customers and suppliers or departments within the same organization to share and transmit information electronically in real time is known as
[A]Computer aided design
[B]Computer aided manufacturing
[C]Electronic data interchange
[D]Artificial Intelligence

13. Which of the following inputs/outputs of the MRP system contains the list of materials and their quantities used to produce one unit of the product?
[A]Master production schedule file
[B]Bill of materials file
[C]Inventory record file
[D]Planned order releases

14. Which of the following is not true in respect of the steps followed in Enterprise Resource Planning (ERP) implementation?
[A]Evaluation of the ‘as-is’ situation of the business is done
[B]Decision is made about the desired ‘would be’ situation for the business
[C]Business process reengineering is carried out to achieve the desired result
[D]The various packages available in the market are evaluated only on the basis of the price of the package

15. Which of the following is false about strategic decisions?
[A]They usually have a time frame that extends up to seven years or more
[B]They are very broad in nature
[C]They are usually taken by top-level managers
[D]They do not affect short-term and mid-term organizational decisions


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