Production And Operations Management

Chapter 1
1. __________ involves identifying the manpower requirements, machine capacity,
and materials required to meet the planned production targets
a)
b)
c)
d)

Routing
Estimating
Scheduling
Dispatching

2. __________ productivity is measured by calculating the number of products per

hour for an individual
a)
b)
c)
d)

System
Capital
Labour
Personnel

3. __________ is done with the purpose of ensuring that the operations are smooth
a)
b)
c)
d)

Expediting
Dispatching
Scheduling
Estimating

4. ________________ sets the quantity of each end item to be completed during each
time period of the short-range planning
a)
b)
c)
d)

Aggregate planning
Routing
Estimating
Master production schedule

5. Coordination between various operations in identifying the jobs that have to be

done is a function of which of the following?
a)
b)
c)
d)

Personnel productivity
System productivity
Capital productivity
Labour productivity

6. Which of the following quality tools is also known as the fishbone diagram?

a)
b)
c)
d)

Scatter diagram
Histogram
Cause and effect diagram
Check sheet

2 Marks
1. State whether the following statements are true or false.
1. Capital productivity enhances motivation, which is an important attribute of a
productive employee.
2. Strategies are needed to minimise the utilisation of the funds allotted towards
capital.
a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

2. A quality circle is composed of a small group of employees who genuinely care

about others and who preferably do work that includes which of the following.
1. Meeting voluntarily with a leader on a regular basis
2. Identifying the problems
3. Balancing operations in assembly line
4. Setting up productivity norms and evaluation of production operations
a)
b)
c)
d)

Options
Options
Options
Options

1
1
1
2

&
&
&
&

4
2
3
3

3. Consider the following statements:

1. Capacities at workstations are so adjusted that a product takes different amount
of time during each stage in the process of assembly.
2. Assembly lines carry out operations randomly so that the product gets completed
in stages.
State True or False:

a)
b)
c)
d)

1-True, 2-False
1-False, 2-False
1-False, 2-True
1-True, 2-True

4. Which of the following are the functions of material control?

1. Determining the quantities to be ordered
2. Setting production activities in motion
3. Formulating the terms of delivery
4. Determining the sequence of operations.
a)
b)
c)
d)

Options 1 & 2
Options 2 & 4
Options1 & 3
Options 2 & 3

Chapter 2
1. Which one of these options is the factor that must be reduced during operations?
a)
b)
c)
d)

Processing time
Flexibility
Quality
Routing

2. According to the BCG classification, which of the following industries has a small
size of advantage but many approaches to obtain an advantage?
a)
b)
c)
d)

Volume
Specialised
Stalemated
Fragmented

3. _____________ specifies as to when the jobs start and end at particular

workstations
a)
b)
c)
d)

Scheduling
Routing
Estimating
Dispatching

4. ____________is used for the purpose of visualising the work assignments and to
know the progress of work by comparing the actual against the planned activities.
a) Simulation model

b) Line balancing
c) Flow charts
d) Gantt charts
5. ___________is a process of comparison with a superior performer anywhere in the
world to improve quality
a)
b)
c)
d)

Environmental scanning
Strategic decision making
Benchmarking
SWOT analysis

6. Which of the following options is a marketing strategy that an organisation can

adopt?
a)
b)
c)
d)

Formulating action plans with time frames

Identifying and developing new suppliers
Making the commission attractive for the dealer
Revamping assembly lines

2 Marks
1. Which of the following options are controlling functions of a manufacturing
organisation?
1. Estimating
2. Routing
3. Dispatching
4. Expediting
a)
b)
c)
d)

Options
Options
Options
Options

1
2
1
3

&
&
&
&

2
3
4
4

2. Which are the factors which affect the quality of decisions?

1. Accuracy of data
2. Relevance for the matter under consideration
3. Customer relationship
4. Order fulfilment
a) Options 1 & 2
b) Options 2 & 3
c) Options 1 & 4

d) Options 3 & 4
3. Which among the following are the metrics that can be used in Pragmatic
benchmarking?
1. Tax to be paid
2. Number of breakdowns per week
3. Transportation
4. Return on investment
a)
b)
c)
d)

Options
Options
Options
Options

2
1
1
1

&
&
&
&

4
4
2
3

4. Consider the below mentioned statements.

1. Pragmatic benchmarking is a method of measuring a companys processes,
methods, and procedures in a way that all functions in great detail.
2. The components and parts that are integral to the product are always visible.
State True or False:
a)
b)
c)
d)

1-False, 2-False
1-True, 2-True
1-True, 2-False
1-False, 2-True

Chapter 3
1. During _________ stage, the product may meet the obsolescence both in
technology and in customer requirements
a)
b)
c)
d)

Introduction
Declining
Growth
Maturity

2. ______________ includes incorporating superior features, greater durability and

convenience to services.
a)
b)
c)
d)

Standard product design

Service design
High performance design
Consistent design

3. Which approach is used to gain access to foreign markets and quickly promote an
organisation\'s interest?
a)
b)
c)
d)

Joint venture
Technology transfer
Collaboration
Licensing

4. ________ strategy pursued at the corporate level may include buying foreign parts
or services and combating traditional domestic competitions.
a)
b)
c)
d)

Corporate
Functional
Business
Global

5. Which of the following strategies serves as a competitive priority of customisation

and ensures fast delivery?
a)
b)
c)
d)

Make-to stock
Make-to-order
Assemble-to-order
Service

6. __________ is adopted where there is mass production by using a group of

machines
a)
b)
c)
d)

Make-to-order strategy
Joint venture
Product-focussed system
Process-focussed system

2 Marks
1. Two effective global strategies adopted by firms are _________and _________.
a) Strategic alliance, Make-to-order

b) Strategic alliance, Assemble-to-order

c) Assemble-to-order, Make-to-order
d) Strategic alliance, Locating operations abroad

2. Which of the following options are examples of business strategies?

1. To serve a defined product to the stable market
2. To provide high product variety
3. To build flexible capacity into the production line
4. To compete in the quality of the product
a)
b)
c)
d)

Options
Options
Options
Options

1
2
1
3

&
&
&
&

2
3
4
4

3. For which of the following options is make-to-stock strategy feasible?

1. To produce customised products from sub-assemblies
2. To make standardised products with high volumes
3. To accommodate flexibility and offer variety
4. Where forecast is reasonably accurate
a)
b)
c)
d)

Options
Options
Options
Options

2
1
1
1

&
&
&
&

4
4
2
3

4. Consider the below mentioned statements.

1. Technology transfer is the term used to describe the processes by which
technological knowledge moves within or between organisations.

2. A company has to follow the same operations strategy when locating the
manufacturing operation in a foreign country.
State True or False:

a)
b)
c)
d)

1-False, 2-False
1-True, 2-True
1-True, 2-False
1-False, 2-True

Chapter 4
1. __________ refers to the ability to meet the demand in terms of resources and the
preparedness on the part of the company
a)
b)
c)
d)

Human resources
Capacity
Supply chain management
Training

2. In the____________ method, the product or service may be given a trial use to a

specified group like students, employees, neighbours, etc. and their responses are
collected and analysed
a)
b)
c)
d)

Historical analysis
Delphi
Nominal group testing
Market surveys

3. In the __________ method, a set of observations pertaining to a certain variable

like sales, production, or consumption is observed and the forecast is taken as the
same value as that of the most recent period.
a)
b)
c)
d)

Naive
Life cycle analysis
Jury of executive opinion
Regression

4. __________is used to measure how closely forecast values are matching the actual
data.
a)
b)
c)
d)

Regression
Correlation
Standard error of estimate
Mean Absolute Deviation

5. Which of the following is the equation for multiple linear regression?

a)
b)
c)
d)

Y=a+bx1+cx2+dx3
Y=a +b x
Y= a+bx2
Y=A+BX1+CX22+DX33

6. Which of the following is a part of exponential smoothing method?

a)
b)
c)
d)

Simulations model
Leading indicator
Box - Jenkins method
Economic model

2 Marks
1. State whether the following statements are true or false.
1. For any business activity to be started, the first step would be to develop the
plans towards meeting the demand and then to predict the demand.
2. Forecasting is considered to be more guesswork rather than a scientific aspect.
a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

2. Which of the following options are the forecasting methods classified on the basis
of methodology?
1. Time-series
2. Causal
3. Qualitative
4. Quantitative

a)
b)
c)
d)

Options
Options
Options
Options

1
1
1
2

&
&
&
&

4
2
3
3

3. Consider the following statements:

1. The demand starts with maximum value and keeps decreasing as the product
moves along the life cycle.
2. If methods are applied mechanically without observing the current stage of the
product, the forecast is bound to be erroneous.
State True or False:

a)
b)
c)
d)

1-True, 2-False
1-False, 2-True
1-False, 2-False
1-True, 2-True

4. Which of the following are the factors on which the choice of a forecasting
method depends?
1. Data availability
2. Product life cycle

3. Accuracy required
4. Volume of demand

a)
b)
c)
d)

Options 1 & 2
Options 2 & 4
Options1 & 3
Options 2 & 3

Chapter 5
1. In which of the following sectors is the flexibility of choice high regarding the
selection of a location?
a)
b)
c)
d)

Electronics
Mining
Agriculture
Lumber

2. In _________ method, the various factors for locating a plant are given ratings
depending upon the perception of the management
a)
b)
c)
d)

Factor rating
Point rating method
Centre of gravity
Rating plan

3. Which among the following is a special factor that influences the plant location?
a)
b)
c)
d)

Cultural factor
Infrastructure
Communication facilities
Transport

4. In ___________ method, a fraction of a suitably selected total rating is apportioned

and the points that can be allocated to the locations under consideration is
assessed.
a)
b)
c)
d)

Factor rating
Rating plan
Centre of gravity
Point rating

5. Which among the following is a general factor that influences the plant location?
a)
b)
c)
d)

Economic stability
Wages
Availability of land
Joint ventures

6. Identify the variable costs from the following options

a)
b)
c)
d)

Production costs
Machinery costs
Plant costs
Land costs

2 Marks
1. Which of the following policies of the state governments and local bodies affect
the plant location?
1. Labour laws
2. Industrial sickness
3. Insurance schemes
4. Building codes

a) Options 3 & 4
b) Options 1 & 4
c) Options 1 & 2

d) Options 1 & 3

2. Consider the below mentioned statements.

1. Fixed costs remain so for any length of time.
2. Fixed costs are not influenced by the production volume.
State True or False:

a)
b)
c)
d)

1-False, 2-False
1-True, 2-True
1-True, 2-False
1-False, 2-True

3. In which among the following options is the flexibility in choice low regarding the
location of the plant?
1. Textile
2. Furniture
3. Medical services
4. Non-profit organisations

a)
b)
c)
d)

Options
Options
Options
Options

3
1
1
1

&
&
&
&

4
4
2
3

4. Consider the below mentioned statements.

1. Locating a plant near the facilities of good schools, housing and recreation for
employees will benefit the organisation.

2. Location decisions start from the site level and move to the national level.
State True or False:

a)
b)
c)
d)

1-False, 2-False
1-True, 2-True
1-True, 2-False
1-False, 2-True

Chapter 6

1. In which of the following material handling equipments, the picker is on a

platform of the vehicle ?
a)
b)
c)
d)

Person aboard
Horizontal travel
Part to picker
Special equipment

2. Workshop, tools rooms and machine shop come under which of the following
facilities?
a)
b)
c)
d)

Additional facilities
Support facilities
Employee utilities
Production facilities

3. Which of the following plant layout problem involves arranging all the facilities to
work as an integrated whole?
a)
b)
c)
d)

Planning a complete new plan

Expanding or moving to an existing plant
Rearranging a present layout
Minor adjustments in existing layouts

4. Which of the following type of layout is concerned with the grouping of machines,
process, or services according to their function?
a)
b)
c)
d)

Process layout
Product layout
Group technology layout
Fixed position layout

5. Which of the following does c represent in the Theoretical minimum equation

a)
b)
c)
d)

Desired output rate in units per hour

Total time required to assemble each unit
Cycle time in hours per unit
Number of stations

6. ________ is the combination of layout types

a)
b)
c)
d)

Hybrid layout
Site layout
Block layout
Detailed layout

2 Marks
1. Which of the following are the features of process layout?
1. Emphasis is on special orders or products having significant and frequent design
changes.
2. Standardised product with little or no design changes.
3. Minimum requirement of in-process inspection.
4. Use of general purpose machines.

a) Options 3 & 4
b) Options 1 & 4

c) Options 1 & 2
d) Options 2 & 3

2. Consider the below mentioned statements.

1. The balance delay is the difference in time between the service time and the
cycle time, expressed as a percentage of the cycle time.
2. The time required to complete the work allotted to each station is known as the
service time.
State True or False:

a)
b)
c)
d)

1-False, 2-False
1-False, 2-True
1-True, 2-False
1-True, 2-True

3. Which of these following options comes under economic factors affecting

selection of equipment?
1. Supporting processes
2. Response time
3. Investment required
4. Project life

a)
b)
c)
d)

Options
Options
Options
Options

3
1
1
1

&
&
&
&

4
4
2
3

4. Consider the below mentioned statements.

1. Possibility of achieving good equipment and labour balances in product layout.

2. Expensive machinery which are costly to move are involved in product layout.
State True or False:

a)
b)
c)
d)

1-False, 2-False
1-True, 2-True
1-True, 2-False
1-False, 2-True

Chapter 7
1. _______________ is a visual representation of a process showing the various steps
a)
b)
c)
d)

Flow chart
Pareto analysis
Histogram
Check sheet

2. Which of the following is an example of prevention costs?

a)
b)
c)
d)

Downgrading
Rework
Field testing
Quality planning

3. Which among the following is one of the Crosby\'s absolutes of quality?

a)
b)
c)
d)

Quality
Quality
Quality
Quality

originates in all factions

is \"Fitness for use\"
is the result of good planning
comes from design

4. ________________is the degree to which the manufactured product or delivered

service meets the parameters that have been incorporated in the design.
a)
b)
c)
d)

Quality of design
Utilisation conditions
After sales service
Conformance to design

5. Which of the following is an example of external failure costs?

a)
b)
c)
d)

Supplier evaluation
Warranties
Re-designing
Shortages

6. Which of the following is Edward Deming\'s principle?

a)
b)
c)
d)

Quality is conformance to requirements

\"Prevention, not appraisal, is the path to quality\"
Conduct meaningful training on the job
Holding on to the gains

2 Marks

1. Which of the following are steps for analysing the data using flowchart?
1. Identify what the customer wants
2. Convert the wants into design specifications
3. Listing out the various steps or activities in a particular job
4. Classifying them as a procedure or a decision

a) Option 1 & 2

b) Option 1 & 3
c) Option 3 & 4
d) Option 2 & 3

2. State whether the following statements are true or false.

1. Total quality management (TQM) has different approaches towards its
achievement and all the approaches are completely different from each other.
2. The basic thrust of each of the approaches of total quality management is
realising excellence.

a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

3. A scatter diagram is used to know which of the following?

1. Degree of relationship between the two variables
2. Degree of excellence
3. Degree of customer satisfaction
4. Degree of extent over a range of values of the variables

a)
b)
c)
d)

Option
Option
Option
Option

1
1
3
2

&
&
&
&

2
4
4
3

4. Consider the below mentioned statements:

1. Strategy means planning and supplementing a series of activities based on the

evaluation of only internal environment, so as to maximise the yield.
2. The foundation of any strategy should be quality.
State True or False:

a)
b)
c)
d)

1-True, 2-False
1-True, 2-True
1-False, 2-False
1-False, 2-True

Chapter 8
1. In process model diagram, _______________ help in taking a decision between
choosing the path or whether the process should continue or not.
a)
b)
c)
d)

Decision point
Nodes in the path
Starting point of the process
Process path

2. ____________________ is the representation of putting together all the activities of

business process in detail and making a representation of them
a)
b)
c)
d)

Physical data model

Conceptual data model
Logical data model
Logical process model

3. __________________ is concerned with the actual design of database meeting the

requirements of the business
a)
b)
c)
d)

Physical process modelling

Logical process modelling
Business process modelling
Data modelling

4. After determining the disposition of data at the end of the process which of the
following step should be performed?
a) State the rules used to define the various parts of the process.
b) Check whether the participants in the process are sufficient or, any changes
and additions need to be made
c) Ensure that all the data expected is included or not
d) Determine the other elements depending upon the business process and the
need

5. Which of the following is a responsibility of a business analyst in order to identify

the best solutions for the business need of an organisation?
a)
b)
c)
d)

Managing cost elements of a company\'s income statement

See through the logical steps that need to be taken
Effective planning and delegating
Ensuring teamwork.

6. _________________ represents various processes and the flow of information, within

and between different processes and entities
a)
b)
c)
d)

Block diagram
Data flow diagram
Process flow diagram
Control flow diagram

2 Marks
1. Which of the following is the responsibility of the designers and programmers of
the modelling process?
1. Lead the team members to a consensus.
2. Format the requirements and problems of the business.
3. Put in place the architecture which is capable of addressing these needs.

4. Put together the data and processes to provide optimum benefits.

a)
b)
c)
d)

Option
Option
Option
Option

1
1
3
2

&
&
&
&

2
3
4
3

2. Consider the below mentioned statements.

1. Physical process modelling will be of great assistance to system architects and
developers, to produce efficient and scalable applications.
2. The purpose of setting the data in a logical order is to locate deficiencies and
remove them.
State True or False:

a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

3. Which of the following are performed, according to logical process modelling?

1. Every business activity can be represented by a diagram.
2. Deals with the conversion of the logical model into a relational model.
3. Objects get defined at the schema level.
4. Every business activity can be decomposed and meaningful names can be given
to the details.

a)
b)
c)
d)

Option
Option
Option
Option

1
1
3
2

&
&
&
&

2
4
4
3

4. Consider the below mentioned statements:

1. Workflow contains a number of entities in a unidirectional path with nodes.
2. Workflow offers options in the way processes are conducted.
State True or False:

a)
b)
c)
d)

1-True, 2-True
1-True, 2-False
1-False, 2-False
1-False, 2-True

Chapter 9
1. ______________ involves understanding the scope and various processes in a
project cycle
a)
b)
c)
d)

Project management
Total quality management
Process management
Program management

2. Which of the following is a graphical method of displaying multivariate data in the

form of a two-dimensional chart of three or more quantitative variables represented
on axes starting from the same point?
a)
b)
c)
d)

Bubble chart
Burn down chart
Gantt charts
Radar chart

3. ____________ is the technique to analyse the content of work and cost by breaking
it down into its component parts

a)
b)
c)
d)

Work Breakdown Structure

Product Breakdown Structure
Workflow Business System
Web Based Simulation

4. ________________ are used for coordinating with people and resources to carry out
the plan
a)
b)
c)
d)

Initiating processes
Planning processes
Controlling processes
Executing processes

5. Which of the following is a responsibility of a business analyst?

a)
b)
c)
d)

Managing cost elements of a company\'s income statement

See through the logical steps that need to be taken
Effective planning and delegating
Ensuring teamwork

6. Which of the following is responsible for managing relations with the customer
and company?
a)
b)
c)
d)

Quality manager
Programmer
Project manager
Designer

2 Marks
1. Effort justification during project evaluation deals with which of the following?
1. Has any market analysis been done?
2. Is there any documentation of the various market opportunities?
3. Are the efforts in-line with the work and the objectives to be achieved?

4. Is there enough competence for doing research?

a)
b)
c)
d)

Option
Option
Option
Option

1
1
3
2

&
&
&
&

2
3
4
3

2. State whether the following statements are true or false.

1. The project plan should be tracked at the end for which various checklists could
be used.
2. The key stages work plans and the actual performance should be compared with
the project plan prepared for a particular stage.

a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

3. ________________ plan and manage the project on a day-to-day basis for this stage.
________________ define the coordination, control activities and identify the suitable
personnel to carry them out.

a)
b)
c)
d)

Project coordinators, Stage teams

Stage managers, Project coordinators
Stage teams, Key stakeholders
Stage managers, Key stakeholders

4. Project process is classified into two main categories __________________ and

_____________________.

a)
b)
c)
d)

Project management process, Planning process

Initiating process, Product oriented process
Product oriented process, Project management process
Planning processes, Initiating process

Chapter 10
1. In which of the following phases is the information collected from the customer
about the project?
a)
b)
c)
d)

Analysis and evaluation phase

Marketing phase
Design phase
Execution phase

2. Which of the following step comes after quality control step for monitoring and
controlling a project?
a)
b)
c)
d)

Preliminary work
Project progress
Stage control
Progress control

3. In which of the following steps of changing the project management process, the
project management team is required to accept the recommendation, choose an
alternative solution, or request further investigation?
a)
b)
c)
d)

Decide on the actions for the change

Identify alternate solutions
Request for a change
Implement change

4. __________________ involves the execution of the project as per the plan.

a)
b)
c)
d)

Feasibility stage
Research stage
Preparation stage
Implementation stage

5. Identifying the actions to minimise the risk consequences is also known as

_______________.
a)
b)
c)
d)

Risk
Risk
Risk
Risk

assessment
mitigation
prioritising
management

6. Which of the following may be done through regularly organised meetings and
quality reviews?
a)
b)
c)
d)

Outstanding project work evaluation

Project review questionnaire
Final product evaluation
Process evaluation

2 Marks
1. Which of the following are inputs received during the design phase?
1. Functional specifications of the project
2. System design specifications
3. Preliminary project evaluation details
4. Project proposal

a)
b)
c)
d)

Option
Option
Option
Option

1
1
3
2

&
&
&
&

2
3
4
3

2. State whether the following statements are true or false.

1. Only the project manager should be fully aware of the techniques and methods to
rectify the factors influencing delay of the project and its product.
2. The results of any stage in a project, depends on the inputs to that stage.

a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

3. Which of the following is included in configuration management?

1. Defining the naming and numbering scheme
2. Structuring the changes
3. The way project plans are updated
4. The manner in which project performance are monitored

a)
b)
c)
d)

Option
Option
Option
Option

1
1
2
3

&
&
&
&

3
2
3
4

4. State whether the following statements are true or false.

1. Risk management entails additional cost.
2. Risk management can be considered cost-effective only if the cost of risk
management is considerably more than the cost incurred if the risk materialises.

a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

Chapter 11
1. _______________ helps in production management by developing an overall plan
a)
b)
c)
d)

Aggregate plan
Business plan
Marketing plan
Architectural plan

2. Which of the following strategies permit hiring and laying off workers as required?
a)
b)
c)
d)

Differentiation strategy
Stable work-force strategy
Level production strategy
Chase demand strategy

3. Which among the following strategies cause increase in costs associated with
storage, insurance, handling, obsolescence, pilferage, and increase in capital
invested?
a)
b)
c)
d)

Changing inventory levels

Varying workforce size by hiring or layoffs
Sub-contracting
Using part-time workers

4. Which of the following is an advantage of varying production rates through the

overtime or idle time option of aggregate planning?
a) Stable workforce
b) Changes in human resources

c) Matches seasonal fluctuations without hiring/training costs

d) Fully utilizes resources

5. In which of the following options is goodwill lost because customers are required
to wait?
a)
b)
c)
d)

Influencing demand
Back ordering during high-demand periods
Sub-contracting
Using part-time workers

6. Which of the following is true regarding the chase demand strategy?

a)
b)
c)
d)

Inventories would be accumulated

Production output is held constant
Overtime or subcontracting is used
Work force is maintained at the same level

2 Marks
1. Which of the following are pitfalls of sub-contracting?
1. It lowers the morale of all workers.
2. It wears out the workers and the overall productivity drops off.
3. It risks opening the clients door to a competitor.
4. It may be expensive.

a)
b)
c)
d)

Option
Option
Option
Option

1
1
3
2

&
&
&
&

2
3
4
3

2. Consider the below mentioned statements:

1. Transportation algorithm is a special case of the linear-programming model.
2. The solution generated using mathematical models may be feasible and need not
be refined.
State True or False:

a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

3. Which of the following are basic capacity (production) options?

1. Varying production rates through overtime or idle time
2. Sub-contracting
3. Counter-seasonal product and service mixing
4. Produce at a constant rate and use inventories

a)
b)
c)
d)

Option
Option
Option
Option

1
1
2
3

&
&
&
&

3
2
3
4

4. Consider the below mentioned statements:

1. In a typical service organisation, controlling the labour is the most important
requirement.
2. In many service organisations, more people are hired during lean periods and few
during peak periods.
State True or False:

a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

Chapter 12
1. _____________ decisions are made typically over a longer time horizon
a)
b)
c)
d)

Strategic
Operational
Inventory
Transportation

2. Portals may be generic in nature for ______________

a)
b)
c)
d)

Storing
Retrieving
Customers
Querying

3. Which of the following lets an organisation get the right goods and services to the
place they are needed at the right time, in the proper quantity and at an acceptable
cost?
a)
b)
c)
d)

Supply Chain Management (SCM)

Customer relationship management (CRM)
Total quality management (TQM)
Material requirements planning (MRP)

4. ____________________ is a process in which a supplier generates orders for its

distributor based on demand information sent by the distributor.

a)
b)
c)
d)

Point Of Sale
Integrated Supply Chain Management
Distributed Control System
Vendor Managed Inventory

5. Which of the following enables a company to maintain a balance between holding

cost and ordering or carrying cost?
a)
b)
c)
d)

Vendor Managed Inventory

Economic Order Quantity
VED (Vital, Essential, Desirable) analysis
HML (High, Medium, Low) analysis

6. Which of the following step is performed after the 'study overall impact' step of
SCM implementation?
a)
b)
c)
d)

Study the strengths and weaknessess

Understand the organisations objectives
Finalise SCM document, circulate, and implement the same
Study the existing systems

2 Marks
1. ___________ flow includes the movement of goods from a supplier to a customer,
as well as customer returns. ___________ flow involves transmitting orders and
updating the status of delivery.

a)
b)
c)
d)

Product, Financial
Financial, Information
Product, Information
Information, Product

2. Consider the below mentioned statements:

1. Postponement is a proactive lever along with substitution, specialisation, and

centralisation.
2. Postponement belongs to a set of levers used in inventory management to attack
the variability of demand and supply.
State True or False:

a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

3. Bullwhip effect may be avoided by which of the following effects?

1. Avoid multiple demand forecasting
2. Reduced service levels in the organisation
3. Increased transportation cost
4. Breaking the single orders into number of batches of orders

a)
b)
c)
d)

Option
Option
Option
Option

1
1
2
3

&
&
&
&

3
4
3
4

4. Consider the below mentioned statements:

1. Coordination between various players in the supply chain is the key in its
effective management.
2. Supply chains exist only in service organisation.

a) 1-True, 2-True
b) 1-False, 2-False

c) 1-False, 2-True
d) 1-True, 2-False

Chapter 13
1. Which of the following is an external factor for scheduling?
a)
b)
c)
d)

Customer demand
Finished Goods Inventory
Process intervals
Availability of equipment

2. ____________ is the planning activity undertaken to determine the best route for
manufacturing a product
a)
b)
c)
d)

Follow up
Dispatch
Routing
Scheduling

3. Which of the following are scheduling guidelines used independently or in

conjunction with any one of the scheduling strategies?
a)
b)
c)
d)

Priority decision rules

Cumulative-detailed combination
Total quality management (TQM)
Material requirements planning (MRP)

4. Which of the following shows the amount of cumulative workload that each work
centre has in a manufacturing unit?
a)
b)
c)
d)

Gantt schedule and progress chart

Schedule boards
Computer graphics
Gantt load chart

5. Which of the following is an example of backlog methods used by the scheduler

in services?
a)
b)
c)
d)

Surgery in hospitals
Servicing of cars
Services provided by hospitals
Services provided by travels

6. Critical Ratio is equal to which of the following?

a)
b)
c)
d)

Lead time
Lag time
Time remaining for due date of the job
Total completion time

2 Marks
1. Consider the below mentioned statements:
1. Scheduling deals with questions like which work centre will do which job.
2 Dealer and retailer inventories is an internal factor that governs scheduling.
State True or False:

a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

2. Consider the below mentioned statements:

1. Backward scheduling is an approach where the customer orders are immediately
processed as soon as they come in even if their due dates are far away.
2. With backward scheduling, the scheduler begins with a planned receipt date or
due date and moves backward in time according to the required processing times.

State True or False:

a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

3. Service centres allow ____________ to develop so that they can plan their capacity
better. _____________ system is used when the customer uses service facilities based
on their requirements.
a)
b)
c)
d)

Backlogs, appointments
Backlogs, reservations
Reservations, appointments
Appointments, reservations

4. Which of the followings are uses of Gantt chart?

1. Total workload shown graphically is simple, clear, and easy to understand
2. It indicates the need for more resources
3. It accounts for delays and disruptions at the work centres
4. It gives information regarding the due date requirements of each job

a)
b)
c)
d)

Option
Option
Option
Option

1
1
1
2

&
&
&
&

4
3
2
4

Chapter 14
1. _______________ is a methodology by which we try to minimise the cost and
improve the revenue of a product or an operation.

a)
b)
c)
d)

Value Engineering
Systems engineering
Control engineering
Industrial engineering

2. Which of the following is done during the data gathering phase of process of
value analysis?
a)
b)
c)
d)

Evaluation of the process

Evaluation of the alternatives
Classification of the relevant information
Evaluation of the project potential

3. The process of involving suppliers from the design stage is called ______________.
a)
b)
c)
d)

Pre-sourcing
Routing
Implementation
Planning

4. Which of the following is a technique used during the idea generation and
evaluation of substitutes step of process of value analysis?
a)
b)
c)
d)

Allocate resources
Record available information
Evaluate by comparison
Refine ideas

5. Which of the following helps in decision making?

a)
b)
c)
d)

Total quality management

Management information systems
Just in time
Total productive maintenance

6. Which of the following is a benefit of the application of VE?

a)
b)
c)
d)

Improve employee relations

Improve materials management
Development of reliable suppliers
No finished goods inventory

2 Marks
1. Which of the following tasks are performed during the analysis and valuation of
functions?
1. Analyse costs
2. Select specific study areas
3. Speculate on evaluation criteria
4. Develop change document

a)
b)
c)
d)

Option
Option
Option
Option

1
1
1
2

&
&
&
&

4
3
2
4

2. Consider the below mentioned statements:

1. As an extension of the external processes where a higher value is sought to be
realised for the same cost, suppliers of materials and services are involved at the
design stage.
2. The principles of value engineering starts at the product concept and design and
is carried down the value chain.
State True or False:

a) 1-True, 2-True

b) 1-False, 2-False
c) 1-False, 2-True
d) 1-True, 2-False

3. Which of the following are the practices which all industries need to implement to
provide value to the customers?
1. Promote employee involvement in value work
2. Production planning and control systems
3. Enhance product reliability
4. Inspection and issue procedures

a)
b)
c)
d)

Option
Option
Option
Option

1
1
1
2

&
&
&
&

4
3
2
4

4. Consider the below mentioned statements:

1. It is advantageous to record the source of information.
2. In analysis and valuation of functions step, the available information is recorded
and when information is not available, tags can be attached for information
gathering at a later date.
State True or False:

a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

Chapter 15
1. Which of the following charts help initially in establishing the various steps to be
taken and correcting the activities as the process is on?
a)
b)
c)
d)

Milestone chart
Gantt load chart
Gantt schedule and progress chart
Flow chart

2. Project Management Body of Knowledge

a)
b)
c)
d)

Work Breakdown Structure

Work Breakdown Structure
Single-Minute Exchange of Die
Program Evaluation Review Technique

3. Which of the following is an advantage of Kanban processes?

a)
b)
c)
d)

Reduced lead time to deliver

Commitment to meet the organisation needs is less
Shows all the tasks to be achieved at any point of time
Shows dependencies between tasks

4. Which of the following results in high storage costs and is difficult to detect
defects?
a)
b)
c)
d)

Over production
Movement
Waiting time
Defective products

5. ___________ refers to the time involved in completing a set of operations or

processes to convert input to output

a)
b)
c)
d)

Lead time
Cycle time
Lag time
Just in time

6. Which of the following is also called as pull system?

a)
b)
c)
d)

Visual control
Risk control
Kanban
Change Management System

2 Marks
1. Consider the below mentioned statements:
1. Wastage of time happens when goods are moving.
2. Underutilised employee potential is identified as an 8th waste in the recent times.
State True or False:

a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

2. Which of the following are the advantages of Kanban processes?

1. The orders are controlled and triggered from defined locations
2. Increased the work productivity
3. Reduced Inventory costs and Work In Progress (WIP)
4. Reduced operating costs

a) Option 1 & 4

b) Option 1 & 3
c) Option 1 & 2
d) Option 2 & 4

3. Consider the below mentioned statements:

1. The main handicap to any programme is the resistance by the organisational
members, even at the top, to make changes.
2. JIT is not an ongoing continuous improvement programme but destination in the
process of achieving TQM.
State True or False:

a)
b)
c)
d)

1-True, 2-True
1-False, 2-False
1-False, 2-True
1-True, 2-False

4. Which of the following two Ss were added later by the U.S. managers?
1. Safety
2. Support
3. Sort
4. Simplify

a)
b)
c)
d)

Option
Option
Option
Option

1
1
1
2

&
&
&
&

4
3
2
4

5. Consider the below mentioned statements:

1. If the optimal solution occurs at more then one extreme point, the value of the
objective function will be the same for all convex combination of these extreme
points.

2. If the convex set of the feasible solutions of the system of simultaneous equation
is a convex polyhedron, then at least one of the extreme points gives an optimal
solution.
3. The collection of all feasible solutions to an LPP problem constitutes a convex set
whose extreme points correspond to the basic feasible solutions.
4. Extreme points are referred to as vertices or corner points of the non-convex
regions.
State True or False:

a)
b)
c)
d)

Statements 1, 3 and 4 are false

Statement 1, 3 and 4 are true
Statements 1, 2 and 3 are false
Statements 1, 2 and 3 are true