1. Which of the following is (are) important consideration(s) concerning activity times?
a) Activity time should be obtained from the person responsible for the completion of an activity
b) Activity time must be independent of any influence which the preceding or succeeding activity may have
on it.
c) Activity time may assume that just the normal quantity of resources required to carry out the activity are
available.
d) All of the above
2. Objective of Work Study is to improve ---------
a) Cycle time
b) Productivity
c) Production
d) All of the above
3. The following is not a major contributor in the development of Control Charts and Sampling plan
a) F H Dodge
b) H G Roming
c) Walter Schewhart
d) J M Juran
4. Organizational models are
a) multinational model
b) international model
c) global organizational model
d) All of the above
5. The ––––––––– is the defect level for which lots are regarded as bad lots.
a) Acceptable quality level
b) Consumer’s risk
c) Producer’s risk
d) Lot Tolerance Percentage Defective
6. What are the advantages of templates over diagrams?
a) Can be conveniently moved on the graph paper
b) Less laborious
c) Saves time
d) All of the above
7. Attack strategies are
a) Frontal attack
b) Flank attack
c) Encirclement attack
d) All of the above
8. 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
9. Which of the following are activities of corrective maintenance?
a) Overhauling
b) Emergency repairs
c) Modifications and improvements
d) All of the above
10. Limitations of Traditional cost accounting are
a) Assumes factory as an isolated entity
b) It measures only the cost of producing
c) both (A) and (B)
d) none of the above
11. Which kind of defect can be called as minor defect?
a) Which does not reduce the usability of the product for its intended use
b) The cost of repairing the defect is less
c) Both (A) and (B)
d) None of the above
12. General Electric Matrix is divided into how many cells
a) 4
b) 9
c) 16
d) 25
13. What is the reason of excessive friction between parts?
a) Improper or lack of lubrication
b) Material of parts
c) both (A) and (B)
d) None of above
14. Capacity decisions have a direct influence on performance of production system in respect of
–––––––––
a) Delivery performance
b) Quality control
c) Plant size
d) Manpower
15. Business is rated on which dimensions
a) Market attractiveness
b) Business strength
c) both (A) and (B)
d) none of the above
16. Which of the following policies is advisable in case of low product variety and large volumes?
a) Skilled labour, special purpose machines
b) Low skilled labour, general purpose machine
c) Low Skilled Labour, Special Purpose Machines
d) Any of the above
17. In an organization there may not be a formal PPC department if
a) Work is highly repetitive in nature
b) Planning activities are performed by the line staff
c) Number of workmen is not very large
d) All of the above
18. 'W' in SWOT stands for
a) What do you do well?
b) What could you improve?
c) What doors are open to you?
d) What threats could harm you
19. Which kind of labour force is required in case of Jobbing Production?
a) Highly Skilled
b) Semi skilled
c) Unskilled
d) Any of the above
20. Which of the following is not the characteristic of Project Production?
a) Continuous flow of material
b) Highly mechanised material handling
c) Virtually zero manufacturing cycle time
d) All of the above
21. 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
22. 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
23. 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
24. 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
25. 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%
26. 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
27. Inadequate production capacity ultimately leads to
a) Poor quality
b) Poor Customer Service
c) Poor inventory control
d) All of the above
28. 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
29. 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
30. 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
31. Someone who has responsibility for marketing decisions concerning a group of products is:
a) A marketing manager
b) A brand manager.
c) A sales manager.
d) A product manager.
32. The paradigm that leads to more complex products at ever-increasing prices is ______________.
a) Product orientation
b) Production orientation
c) Marketing orientation
d) Sales orientation
33. Which of the following best describes the decision making required in dealing with customer
enquiries?
a) Unstructured, strategic
b) Unstructured, operational
c) Structured, strategic
d) Structured, operational
34. Two systems are described as_________________ if a change in the outputs of one causes a
substantial change in the state of the other.
a) Highly decoupled
b) Highly coupled
c) Black boxes
d) Sub-systems
35. Chang and Chang observe that the competition is increasing the size of its warehouses. They have
decided to do the same. They are following a _______________________ strategy.
a) Theory of Constraints
b) Follow the leader
c) Expansionist
d) Wait-and-see
36. A facility with a design capacity of 1,000 units, an actual average of 800 units, and effective capacity
of 850 units has a utilization of ______________ .
a) 85%
b) 80%
c) 125%
d) 94%
37. Yield management is not especially useful where:
a) The service/product can be stored
b) Capacity is relatively fixed
c) The service cannot be sold in advance
d) The market can be fairly clearly segmented
38. Which of the following is true?
a) Value is always lower than price.
b) Value is what consumers are prepared to pay.
c) Cost is always lower than price.
d) Price is always lower than value.
39. A specific satisfier for a need is called a______________.
a) Product
b) Demand
c) Want
d) Market
40. Structured decisions are also called_________________ decisions
a) Strategic
b) Programmable
c) Read-intensive
d) Non-programmable
41. Inputs come from and outputs are transferred to the_________________ of a system.
a) Environment
b) Sub-system
c) Comparator
d) Effector
42. When evaluating alternative capacity decisions, qualitative concerns exclude:
a) Cash flow.
b) Uncertainties about demand
c) Competitive reaction.
d) Technology change.
43. When demand exceeds capacity, a firm should
a) Lower prices.
b) Add workers.
c) Temporarily lay-off workers.
d) Advertise.
44. The marketing concept should be central to business strategy because:
a) Business strategy is aimed at customers
b) Companies have a moral responsibility to care for their customers.
c) Marketing enables firms to persuade their customers to buy things they do not really need.
d) Customers will only spend money with firms that look after their needs.
45. One way to decouple the production system and the sales system is:
a) To introduce a feedback loop
b) To treat the systems as black boxes
c) To decrease sales
d) To introduce an inventory
46. Long-term capacity planning deals with which of the following factors?
a) Overtime budgets
b) Workforce size
c) Inventories
d) Investment in new facilities
47. Efficiency is given by
a) Actual output divided by design capacity.
b) Capacity divided by utilization.
c) Effective capacity divided by actual output.
d) Actual output divided by effective capacity
48. The most aggressive and risky approach to capacity planning is
a) Capacity lags with incremental expansion.
b) Leading demand with one-step expansion.
c) Leading demand with incremental expansion.
d) Attempts to have an average capacity that straddles demand with incremental expansion.
49. Demand is created when:
a) A need is identified.
b) A significant group of people want to buy something.
c) People who can afford something want to buy it.
d) Marketers persuade people to want something.
50. Input measures of capacity are preferred when there is/are:
a) Service processes.
b) High-volume processes.
c) Flexible flow processes.
d) Low customization.
51. In general, a less capital-intensive industry such as a hotel chain would do well with a utilization rate
of:
a) Approximately 18%.
b) 30-40%.
c) 60-70%.
d) 100%.
52. A facility with a design capacity of 1,000 units, an actual average of 800 units, and effective capacity
of 850 units has an efficiency of ______________.
a) 80%
b) 50%
c) 85%
d) 94%
53. The first steps of capacity planning and control do not include:
a) Identifying the alternative capacity plans?
b) Measuring aggregate demand and capacity?
c) Studying the effect of queueing theory
d) Choosing the most appropriate capacity plan?
54. Someone who controls media purchases and deals with advertising agencies is
____________________.
a) An advertising manager
b) A brand manager
c) A public relations manager
d) A sales manager
55. A measure of the reserve capacity a process has to handle in unexpected increases in demand is the:
a) Capacity utilization rate.
b) Capacity cushion
c) Capacity bottleneck.
d) Capacity constraint limit
56. The maximum output of a system in a given period is called the
a) Efficiency.
b) Effective capacity.
c) Design capacity.
d) Break-even point.
57. The multiple product case of determining breakeven in dollars
a) Weights the variable cost of each product.
b) Weights the selling price of each product.
c) Weights the fixed cost attributable to each product.
d) Weights the contribution of each product.
58. The basic break-even model
a) Demonstrates that the break-even point increases as output volume increases.
b) Demonstrates that fixed costs remain constant as output volume increases.
c) Demonstrates that total revenue is fixed as output volume increases.
d) Demonstrates that per unit variable costs vary as output volume increases
59. Which of the following provides the best definition of 'information'?
a) Computer hardware
b) Data processed for a purpose
c) Computer software
d) Transaction Data
60. Which of the following decision is least likely to be supported by a management information system?
a) Company reorganisation
b) Analysis of performance
c) Allocating budgets
d) Dealing with customer enquiries
61. Enterprise Resource Planning (ERP) has been criticised on a number of grounds. Which of the
following is not a common criticism of ERP?
a) It doesn't allow decisions and databases from all parts of the organisation to be integrated
b) Implementation is expensive
c) The effect it has on businesses is disappointing
d) It can have a disruptive effect on the organisation's operations
62. Demand for a given item is said to be dependent if
a) the item has several children
b) there is a deep bill of materials
c) the finished products are mostly services (rather than goods)
d) there is a clearly identifiable parent
63. In MRP (Materials Requirements Planning) the Bill of Materials is:
a) The required output from a process over time
b) A list of required safety stock items
c) The sum of stock-on-hand and work-in-progress
d) The product structure showing where common parts are used
64. What is measurementship?
a) Trying to agree low objectives so as to look good later
b) Discussing "the numbers" at every opportunity
c) Surveying by naval architects.
d) Collecting too much performance data
65. The outputs of a MRP II system are:
a) Sales order priorities / Bills of Materials / Material Requirement Plans
b) Material Requirement Plans / scheduled purchase orders / capacity requirement plans
c) Stock quantities / Bills of Materials / Master Production Schedule
d) Capacity requirement plans / stock quantities / stock locations
66. Three levels of planning. What are they?
a) Top, middle and bottom
b) Headquarters, divisional and local
c) Operational, intermediate and strategic
d) None of these
67. Three inputs for every MRP system are:
a) Sales forecast, delivery costs, capacity plan
b) Average replenishment time, re-order point, economic order quantity
c) Stock on hand, Master Production Schedule, Bill of Materials
d) Bill of Materials, sales forecast, sales history
68. What three problems commonly hindering successful planning did we identify?
a) An oversized planning department; poor co-operation between managers and planners; managers with
little time to gather information.
b) Procedures unsuited to change; negative organisational culture; poor interpersonal relationships.
c) Lack of planning expertise; little top management support; misuse of planning specialists.
d) Conflict among objectives; impossibility of measuring outcomes; confusion between means and ends.
69. What is the more formal term for what is known as 'Plan B'?
a) A contingency plan
b) A circumstantial plan
c) A catastrophe plan
d) A convergence plan
70. What is the planning horizon?
a) The time ahead for which there is no information.
b) The time period within which uncertainty is very low.
c) The maximum time for which managers can make plans.
d) The time between making a plan and putting it into effect.
71. What are the four stages of Simon's model of decision making?
a) Intelligence, design, choice, implementation
b) Intelligence, design, computation, implementation
c) Information, design, choice, implementation
d) Intelligence, data, choice, implementation
72. Which of the following best describes 'formal information'?
a) Produced by standard procedures. Passed by word of mouth
b) Produced by standard procedures. Objective
c) Objective. Passed by word of mouth
d) Subjective. Based on estimates
73. MRP stands for:
a) Master Resources Production
b) Management Reaction Planning
c) Materials Requirements Planning
d) Manufacturing Resource Planning
74. A master production schedule contains information about
a) Quantities and required delivery dates of all sub-assemblies
b) Quantities and required delivery dates of final products
c) Inventory on hand for each sub-assembly
d) Inventory on hand for each final product
75. Optimized production technology (OPT) is a computer-based technique and tool which helps to
schedule production systems. Which of the following are not principles of OPT?
a) Capacity is "king"
b) Balance flow is what is required
c) Process batch should be variable
d) Bottlenecks govern throughput
76. MPS stands for:
a) Master Planning System
b) Master Production Schedule
c) Material Production Schedule
d) Material Planning System
77. A master production schedule contains information about
a) Quantities and required delivery dates of all sub-assemblies
b) Quantities and required delivery dates of final products
c) Inventory on hand for each sub-assembly
d) Inventory on hand for each final product
78. Dependent demand and independent demand items differ in that
a) For any product, all components are dependent-demand items
b) The need for independent-demand items is forecasted
c) The need for dependent-demand items is calculated
d) All of the above are true
79. A master production schedule specifies
a) The financial resources required for production
b) What component is to be made, and when
c) What product is to be made, and when
d) The labor hours required for production
80. Closed Loop MRP means:
a) Actual inventory is counted regularly and adjustment made to the inventory records
b) Capacity and resource planning is included in the MRP logic
c) Unused materials are returned to stores and recorded back into the system
d) Actual sales are netted off the forecasts in the MPS
81. Which of the following statements is correct regarding profit maximization as the primary goal of
the firm?
a) Profit maximization considers the firm's risk level.
b) Profit maximization will not lead to increasing short-term profits at the expense of lowering expected
future profits.
c) Profit maximization does consider the impact on individual shareholder's EPS.
d) Profit maximization is concerned more with maximizing net income than the stock price.
82. __________________ is concerned with the maximization of a firm's stock price.
a) Shareholder wealth maximization
b) Profit maximization
c) Stakeholder welfare maximization
d) EPS maximization
83. ___________________ is the scientific technique for planning the ordering and usage of materials
at various levels of production and for monitoring the stocks during these transaction.
a) MPS
b) MRP
c) BOM
d) None of these
84. Procuring an item in staggering deliveries according to the delivery schedule finished to the supplier
by the buyer.
a) Seasonal Buying
b) Hand to mouth buying
c) Scheduled Buying
d) Tender Buying
85. Which of the following statements is not correct regarding earnings per share (EPS) maximization as
the primary goal of the firm?
a) EPS maximization ignores the firm's risk level.
b) EPS maximization does not specify the timing or duration of expected EPS.
c) EPS maximization naturally requires all earnings to be retained.
d) EPS maximization is concerned with maximizing net income.
86. __________________ is the time that elapses between issuing replenishment order and receiving
the material in stores.
a) Replenishment time
b) Lead time
c) Idle time
d) All of these
87. __________________ is concerned with the maximization of a firm's earnings after taxes.
a) Shareholder wealth maximization
b) Profit maximization
c) Stakeholder maximization
d) EPS maximization
88. The first activity of Purchasing cycle is
a) Communicating requirement to the purchase
b) Source Selection and development
c) Recognizing the need for procurement
d) Inspection of goods
89. What is the most appropriate goal of the firm?
a) Shareholder wealth maximization.
b) Profit maximization.
c) Stakeholder maximization.
d) EPS maximization.
90. __________________ is the task of buying goods of right quality, in the right quantities, at the right
time and at the right price.
a) Supplying
b) Purchasing
c) Scrutinizing
d) None of these
91. We identified several internal benefits of objectives, goals and a sense of mission. Which is not
included?
a) Basis of plans and decisions
b) Unity of direction
c) Basis to resolve disputes
d) None of the above.
92. Identify the best definition of planning.
a) The core activity of planners and planning departments
b) Setting an organisation's objectives and the means of reaching them.
c) Devising ways of achieving the objectives of an organisation.
d) An integrated process in which plans are formulated, carried out and controlled.
93. Business cycle, price trends, National Economy are ___________
a) Micro Factors
b) Macro Factors
c) Controllable Factors
d) All of these
94. Which is not a part of 5R's of buying?
a) Right Quality
b) Right Quantity
c) Right Source
d) None of the above
95. Buying of the annual requirements of an item during its season.
a) Seasonal Buying
b) Hand to mouth buying
c) Scheduled Buying
d) Tender Buying
96. __________________ is concerned with the branch of economics relating the behavior of principals
and their agents.
a) Financial management
b) Profit maximization
c) Agency theory
d) Social responsibility
97. Corporate governance success includes three key groups. Which of the following represents these
three groups?
a) Suppliers, managers, and customers.
b) Board of Directors, executive officers, and common shareholders.
c) Suppliers, employees, and customers.
d) Common shareholders, managers, and employees.
98. _________________ also called part lists or building lists is the document generated at the design
stage.
a) MRP (Material Requirement Planning)
b) BOM (Bill of Materials)
c) MPS (Master Production Schedule)
d) None of these
99. Purchasing responsibilities can be divided into Buying, Clerical and __________________ division.
a) Packing
b) Traffic
c) Record
d) Follow up
100. ________________________ are the basic materials which have not undergone any conversion
since their receipt from suppliers.
a) WIP
b) Raw Material
c) Finished Parts
d) Work Made Parts