Production and Operations Management Questions and Answers Part-3

1. The term ––––––––– implies the foregone profit due to inability of company to produce.
a) Opportunity cost
b) Marginal cost
c) Overhead cost
d) All of the above

Answer: a

2. . OC curve of ideal sampling plan suggests that all lots less than 3% defectives have the probability of acceptance of –––––––––.
a) 0.25
b) 0.5
c) 0.75
d) 1

Answer: d

3. Which of the following are the objectives of a good maintenance system?
a) Minimisation of wear and tear of machines
b) Ensuring maximum plant availability
c) Both (A) and (B)
d) None of the above

Answer: c

4. Inherent Safety' is one of the principle of good layout. In context of layout, this can be achieved by the following
a) Clear gangway
b) Location of material and material handling system
c) Both (A) and (B)
d) None of the above

Answer: c

5. In case of an OC curve, the risk of rejecting a good quality lot may vary between –––––––––.
a) 0.01 to 5%
b) 0.01 to 10%
c) 0.01 to 15%
d) 0.01 to 20%

Answer: b

6. How does 'structure' reduce external uncertainty arising out of human behaviour
a) Research and planning
b) Forecasting
c) both (A) and (B)
d) none of the above

Answer: c

7. Inadequate production capacity ultimately leads to
a) Poor quality
b) Poor Customer Service
c) Poor inventory control
d) All of the above

Answer: b

8. What do you understand by the inspection conducted on all non reworkable jobs prior to their movement to the scrap yard?
a) Final inspection
b) Endurance inspection
c) Functional inspection
d) Salvage inspection

Answer: d

9. A/An ––––––––– history card is the record of all repairs, replacements and engineering changes carried out in the equipment during it's period of service.
a) Service
b) Equipment
c) Repair
d) None of the above

Answer: b

10. Which of the following are assignable cause?
a) Large variations in hardness of material
b) Tool wear
c) Errors in setting
d) All of the above

Answer: d