1.

Which one of the following strategies specifies how the firm will employ its production capabilities to support its
corporate strategy?
Tactical
Operations
Manufacturing
Production
2. Which one of the following is a key benefit of process plant strategy?
Economies of scale
Diseconomies of scale
Product variety
Task specialization
3. What would be the required cycle time for a process that operates 9 hours daily with a desired output of 300 units
per day?
0.03 minutes
1.8 minutes
2700 minutes
291 minutes
4. Which one of the following is concerned in short term capacity needs?
Cycle
Trends
Seasonality
Average
5. Which one of the following statements is NOT correct about cycle time?
It represents daily operating time divided by desired production
It is the maximum allowable time at each work station
It determines the time often items take to roll off in assembly line
It is the time required to complete a product from start to finish
6. Which one of the following forms of productivity has units of output per dollar input?
Capital
Energy
Labor
Machine
7. Which of the following department is responsible for measuring costs of poor quality?
Accounting department
Finance department
Quality control department
Operations department
8. ABC organization, actively engaged in continuous improvements, trains its work teams to use the PDCA for
problem solving. The documentation of process by analyzing data, setting of qualitative goals comes in which of
the following stage of PDCA?
Plan
Do
Check
Act
9. Which one of the following is NOT a key external factor in formulating operations strategy?
Economic conditions
Human resources
Political conditions
Legal environment
10.Which one of the following is a productivity measure based on all inputs?
Capital productivity
Multifactor productivity
Partial productivity
Total productivity
11. Which of the following is NOT an attribute to classify services?
Tangibility
Perish ability
Simultaneity
Degree of customer contact
12.Which one of the following is the correct order of layout types from low volume/high variety to high volume/low
variety?
Fixed position, process, cell, product
Fixed position, cell, process, product
Fixed position, process, product, cell
Process, fixed position, cell, product
13.Total Quality Management stresses on all of the following principles except:
Customer satisfaction
Employee involvement
Continuous improvement in quality
Quality as competitive advantage
14.As preventive measures improve quality, _______ costs decreases.
Failure
Appraisal
Operating
Opportunity
15.Which one of the following is the focus of predetermined motion time system?
Individual human motions that are used in a job task
Determining the length of time it will take to undertake a particular task
Determining the amount of time a worker spends on various activities
Providing standard times for micro motions such as reach, move and release
16.Product life cycle is based on:
Price
Place
Demand
Supply
17.The process selection should take into account all of the following EXCEPT:
Capacity planning
Design of work systems
Production forecasts
Selection of technology
18.In exponential smoothing model, a denotes:
Actual forecast
Forecast error
Previous forecast
Smoothing constant
19.Which one of the following formula can be used to compute break even point?
Q = FC / (R + VC)
Q = VC / (R + FC)
Q = VC / (R - VC)
Q = FC / (R - VC)
1. The purpose of _________ is to avoid having one or a few employees stuck in monotonous jobs.
Job enlargement
Job rotation
Job enrichment
Job description
2. Which of the following factors should a company consider while deciding upon a certain process choice?
Capital requirements, leadership skills, technology and labor
Technology, capital requirements, leadership skills and market conditions
Labor, raw materials, market conditions and capital requirements
Capital requirements, labor, technology and market conditions
3. The focus of ___________ is customer satisfaction by incorporating quality into all phases of the organization.
SWOT analysis
Quality based strategies
Operations strategies
Organizational strategies
4. A disadvantage of __________ forecasts is the induction of personal biases.
Qualitative
Quantitative
Associative
All of the given options
5. Applied research appeals to a wide spectrum of business organizations mainly because:
It deals with a huge number of variables
It has potential for achieving commercial applications
It does not involve high costs
It is relatively easy to conduct
6. Cycle time can be calculated as:
D/OT
OT/D
D+OT
D-OT
7. The four "costs of quality" include all of the following except:
Internal failure costs
External failure costs
Supply chain failure costs
Prevention costs
8. Numerous quality improvement strategies exist. Which of the following is not a strategy discussed by the author?
ISO 9000
PPM Matrix approach
Statistical process control
Six Sigma approach
9. The popular "seven tools of quality control" include all of the following except:
Pareto chart
Cause and effect (fishbone) diagram
Scatter diagram
Brainstorming
10.Which of the following statements about Six Sigma is incorrect?
Six Sigma employs structured process improvement technique.
Six Sigma programs employ full time specialists called Black Belts.
Six Sigma approach is best suited for manufacturing process.
Data and metrics are vital in a Six Sigma approach
11.A key supply chain management strategy for some firms is to rely upon outsourcing of tasks. Identify the incorrect
statement concerning outsourcing of tasks or functions from the following.
Outsourcing entails contracting with another firm to perform certain tasks or functions.
A primary incentive for firms outsourcing various functions is the desire to focus on core competencies.
Firms that perform the outsourced tasks are specialists and are able to achieve economies of scale with the
greater volume of business.
All firms that outsource various activities achieve benefits including enhanced productivity, reduced cycle
times, greater inventory turns, and higher customer service levels.
12.Which of the following statements concerning differences between continuous review (Q systems) and periodic
review (P systems) inventory systems is false?
In periodic review systems, orders are placed after an elapsed period of time, P, has passed for a variable
quantity of units.
In continuous review systems, orders are placed for a fixed quantity of goods after a variable length of time
has passed.
Higher than normal demand during the order cycle leads to a shorter time between orders for Q Systems
while in P Systems it leads to larger order sizes.
P systems require a perpetual inventory count while Q systems require a periodic inventory counting system.
13.Which one of the following is not an element of MRP System?
Inventory Record
Capacity Planning System
Master Scheduling
Sales and Operations Planning System
14.Which one of the following is not an element of lean thinking?
Value stream mapping
Specifying value from customer’s point of view
Striving for perfection
Increasing the production capacity
15.Which of the following statements is incorrect about lean thinking approach?
Lean thinking approach can be extended beyond the production process including finance, marketing and
accounting functions
Lean thinking approach was popularized by Womack and Jones
Lean thinking approach can be easily applied to service operations
Lean thinking approach takes an internal perspective of the firm starting with the production process.
16.The measures of quality used in manufacturing processes can be readily transferred to service operations.
TRUE
FALSE
17.Parabolic trends are concaved upwards and downwards.
TRUE
FALSE
18.A Histogram is a simple chart that differentiates the vital few causes from trivial many causes.
TRUE
FALSE
19.The basic idea behind the ABC classification is to separately manage the inventories on the basis of the annual
demand patterns.
TRUE
 FALSE
20.Just-In-Time manufacturing approach is well suited for a job-shop type of production process.
TRUE
FALSE
21.Precedence diagram is used in line balancing to display elemental tasks and sequence requirements.
22.Operational strategies mostly function on two dimensions of quality management and service/manufacturing
strategy.
23.Scheduling is planning the tasks from the due date to determine the start date and/or any changes in capacity
required.
24.Job Shop refers to a system that renders unit or small lot production or service with varying specifications
according to customer needs.
25.Motion Study is the systematic study of the human motions used to perform an operation.