1.

Critical path method

(A) Helps in ascertaining time schedules
(B) Makes better and detailed planning possible
(C) Provides a standard method for communicating project plans schedules and to time and cost
performance
(D) All of the above

2. Critical Path Net Work helps an engineer

(A) To concentrate his attention on critical activities
(B) To divert the resources from noncritical advanced activities to critical activities
(C) To be cautious for avoiding any delay in the critical activities to avoid delay of the whole project
(D) All of the above

3. Both Rowan plan and 50-50 Halsey plan will provide the same earning when the actual time is
_________ the standard time.

(A) One-fourth
(B) One-half
(C) Equal to
(D) Twice

4. In break-even analysis, total cost consists of

(A) Fixed cost
(B) Variable cost
(C) Fixed cost + variable cost
(D) Fixed cost + variable cost + overheads

5. Which one of the following techniques is used for determining allowances in time study?

(A) Acceptance sampling

(B) Linear regression
(C) Performance rating
(D) Work sampling

6. Expediting function consists in keeping a watch on

(A) Operator's activity
(B) Flow of material and in case of trouble locate source of trouble
(C) Minimizing the delays
(D) Making efficient dispatching

7. The most popular type of organisation used for Civil Engineering Constructions is
(A) Line organization
(B) Line and staff organization
(C) Functional organization
(D) Effective organization
8. Which one of the following chart gives simultaneously information about the progress of work
and machine loading?

(A) Process chart

(B) Machine load chart
(C) Man-machine chart
(D) Gantt chart

9. Merit Rating is the method of determining worth of

(A) A job
(B) An individual employee
(C) A particular division in workshop
(D) Machine

10. Routing is essential in the following type of industry

(A) Assembly industry

(B) Process industry
(C) Job order industry
(D) Mass production industry

11. The time required to complete a task is established and a bonus is paid to the worker for every
hour he saves from the established time required. This type of incentive plan is known as
(A) Rowan Plan
(B) Taylor Differential Piece rate system
(C) Halsey Premium plan
(D) Day work plan

12. Which of the following wage incentive plan guarantees minimum wage to a worker and bonus
is paid for the fixed percentage of time saved?

(A) Halsey plan

(B) Gantt plan
(C) Rowan plan
(D) Emerson's efficiency plan

13. Bin card is used in

(A) Administrative wing
(B) Workshop
(C) Foundry shop
(D) Stores

14. The production scheduling is simpler and high volume of output and high labour efficiency are
achieved in the case of

(A) Product layout

(B) Process layout
(C) Fixed position layout
 (D) A combination of line and process layout

15. The disadvantage of product layout is

(A) High initial investment for the specialized facilities
(B) Skilled labour to operate machines
(C) Production time is longer, requiring more goods in inventory
(D) High cost of inspection

1. If the process is in the state of statistical control, as per the

statistical control chart, the fluctuations are due to _________

a. Assignable variability
b. Random variability
c. Occasional variability
d. Sequential variability

2. Match the Following

1] Proximity to market i] Educational facility

2] Industrial and labour attitude ii] Safety factor

3] Legislation and taxation iii] Licenses

4] Community Facilities iv] Fragile product

v] Productivity of labour
a. 1-ii, 2-i, 3-iii, 4-iii
b. 1-iv, 2-v, 3-iii, 4-i
c. 1-i, 2-ii, 3-iii, 4-iv
d. None of the above

3. Technique which can help an organization to reduce inventory is

called

a. TPM
b. CRM
c. CPM
d. MRP

4. What are the advantages of having the plant location near to the
market?

i] Liaisoning with dealers and wholesalers become economical and

easy
ii] Recovery from customers is easy and time saving
iii] Labour turnover rate is low
iv] Many administrative problems that add to cost get avoided

a. Only i and iv
b. Only ii and iii
c. All, i, ii and iii
d. All i, ii and iv

5. What is the ultimate effect of inadequate production capacity?

a. Poor Planning
b. Poor Machine Utilization
c. Low Productivity
d. Poor Customer Service

6. What do you call the situation in which the component is not

completely rejected but corrected?

a. Inspection
b. Reproduction
c. Reprocessing
d. Quality assurance

7. _______ are specially trained individuals responsible for leading

six sigma teams through the DMAIC process.

a. Master Black belts

b. Black belts
c. Green Belts
d. DMAIC Professionals

8. Structure of transportation cost depends on which of the following

factors?

i] Power
ii] Average distance of shipment
iii] Characteristics of the commodity
iv] Medium of shipment

a. Only ii and iv
b. Only ii and iii
c. Only ii, iii and iv
d. All the above

9. Who selects the job for method study?

a. Storekeeper
b. Inspector
c. Operator
d. Manager

10. When batches are small, the ratio of direct workers to

supervisors is ______ and vice versa, in Batch Production.

a. Negative
b. Lower
c. Equal
d. Higher

11. What do we call the irreducible minimum time required to

complete an activity?

a. Standard time
b. Normal time
c. Crash time
d. Pessimistic time

12. _____ refers to assignment of task or work to a facility.

a. Loading
b. Directing
c. Controlling
d. Coordinating

13. In the planned maintenance work cycle what is the step prior to
executing?

a. Recording
b. Planning
c. Controlling
d. Scheduling

14. What are the advantages of JIT?

i] Zero or reduced incoming inspection

ii] Early detection and correction of non-conformances, giving an
opportunity for improving quality of purchased parts
iii] Reduced inventories of raw materials, purchased parts, work in
progress and finished goods
iv] Slow response to engineering change requirements

a. i and ii
b. i and iii
c. i, ii and iii
d. All the above

15. Some of the common objectives of a good layout are as following

i] Efficient utilization of available space
ii] Minimization of rejections
iii] Economy in material handling
iv] Minimization of production delays

a. i and ii
b. i and iii
c. i, iii and iv
d. All the above
16. Kanban is a visual indicator that triggers replenishment of items
like _____

a. Rack
b. Store
c. Bin
d. Card

17. Which of the following are the main principles of Six Sigma?

a. Genuine focus on customer

b. Data and fact driven management
c. Process focus management and improvement
d. Efficient supply chain management and logistics

a. Only i and ii
b. Only ii and iii
c. Only i, ii and iii
d. All the above

18. Which of the following indicates assignment of task or work to a

facility?

a. Loading
b. Directing
c. Coordinating
d. Controlling

19. " What your process can deliver " is termed as _________.

a. Variance
b. Control
c. Variation
d. Process Capability

20. This type of maintenance includes preventive maintenance

activities that are carried out when the machine is still running.

a. Preventive maintenance
b. Design-out Maintenance
c. Running Maintenance
d. Working Maintenance

21. The loss caused by non-absorption of overheads for ttributed to

machine break down is called as _____.

a. Cost of repairs
b. Added setup cost
c. Opportunity cost
d. Down time cost

22. What are the advantages of Critical Path Analysis?

i] It ensures a through pre-planning

ii] It indicates the optimal start and finish times of each activity of
the project
iii] It provides equal weightage to control all activities
iv] It improves task coordination

a. Only i and ii
b. Only i and iii
c. Only ii and iv
d. All i, ii and iv

23. This type of maintenance anticipates failures and adopts

necessary actions to check them before they occur.

a. Preventive maintenance
b. Shutdown Maintenance
c. Corrective Maintenance
d. Design-out Maintenance

24. Which of the following are the basis to establish activity time?

i] Judgement
ii] Experience from past
iii] Actual measurement
iv] Historical data

a. ii and iv
b. iii and iv
c. ii, iii and iv
d. All the above

25. What do you call the amount of time the master schedule extends
into future?

a. Planning Horizon
b. Supply Chain
c. Critical Path
d. Time Fence

26. Match the Following

1] Minimization of production delays i] Modelling approach to layouts

2] Maximum visibility ii] Objective of good layout

3] Scale model iii] Layout analysis

4] Factor Analysis iv] Principles of good layout

v] Method to evaluate layouts

a. 1-ii, 2-iv, 3-iii, 4-v
b. 1-iv, 2-v, 3-iii, 4-i
c. 1-i, 2-ii, 3-iii, 4-iv
d. None of the above

27. Match the Following

1] Pure Serviceability i] Performance to expectation

2] Poor Service ii] Limited capacity for service

3] Turnaround time iii] Increase Responsiveness

4] Efficiency iv] Perform activities well and at the lowest cost

v] Delighted approach

vi] Unlimited accessibility to the customers

a. 1-ii, 2-i, 3-iii, 4-iii
b. 1-iv, 2-v, 3-iii, 4-i
c. 1-i, 2-ii, 3-iii, 4-iv
d. None of the above

28. How to calculate variance under the probability aspect of project

planning?

a. { ( a-b ) / 6 }2
b. { ( b-a ) / 6 }2
c. { ( b-a ) / 6 }
d. { ( a+b ) / 6 }

1. Which of the following functions is not a core function of an organization

a. The accounting and finance function
b. The marketing (including sale) function
c. The operation function
d. The product or service development function
2. Most operation produce a mixture of both products and services which of the following
business is closest to producing ‘pure’ services ?
a. IT company
b. Counsellor /therapist
c. Steel company
d. A restaurant

3. Operations can be classified according to their volume and variety of production as

well as the degree of variation & visibility. Which of the following operations would be
classified as high volume, low variety?
a. A front office bank
b. A family doctor
c. A carpenter
d. A fast food restaurant

4. Which of the following activities is not a direct responsibility of operations

management?
a. Developing an operations strategy for the operation
b. Planning & controlling the operations
c. Determining the exact mix of products and services that customers will want
d. Designing the operations products, services & process

5. Operations can be classified according to the degree of variations in demand and

visibility of the operations as well as their volume and variety of production which of
the following operations would be classified as high variation & high visibility?
a. A front office staff
b. A family doctor
c. A carpenter
d. A fast food restaurant

6. Which of the following would not be normally be considered a general

characteristic of a service?
a. Production and consumption are simultaneous
b. Low contact service can often be made more efficient than high contract
c. Production and consumption can always be spatially separated
d. Many services involve both tangible & intangible outputs
e. Production & sales cannot easily be separated functionally

7. Which of the following would not be normally considered as a key feature of

operations management?
a. Most new technology is implemented
b. World class operations can give an organization competitive advantage
c. Operations researches mathematical techniques for optimizing process
d. Operations is the part of an organization which creates wealth through the management of the
transformation
process
e. Operations is the area of a business where most people

8. Which of the following is the least likely decision to be made by operations

managers?
a. Selecting the locations and layout of a facility
b. Designing and improving the jobs of the workspace
c. How to use quality techniques to reduce waste
d. Deciding which market areas to manufacture products for
e. How much capacity is required to balance demand
 9. Operations management is applicable
a. Mostly to the service sector
b. To services exclusively
c. Mostly to the manufacturing sector
d. To the manufacturing & service sectors
e. To the manufacturing sector exclusively

10. The field of operations management is shaped by advances in which of the

following fields?
a. Chemistry and physics
b. Industrial engineering & management science
c. Biology and anatomy
d. Information science
e. All of the above

11. The five elements in the management process are

a. Plan, direct, update, lead & surprise
b. Accounting /finance, marketing, operations and management
c. Organize, plan, control, staff and manage
d. Plan, organize, staff, lead and control
e. Plan, lead, organize, manage and control

12. The responsibilities of the operations manager include

a. Planning, organizing, staffing, procuring and reviewing
b. Forecasting, designing, planning, organizing, and controlling
c. Forecasting, designing, operating, procuring, and reviewing
d. Planning, organizing, staffing, leading, and controlling
e. Designing & operating

13. Which of the following is not an element of management process

a. Pricing
b. Staffing
c. Planning
d. Controlling
e. Leading

14. Which of the following illustrate an activity that does not add value?
a. Training employees
b. Ordering parts from a supplier
c. Making a part
d. Accumulating parts in front of the next work centre

15. Which of the following statements regarding a pull system is true ?

a. Large lots are pulled from upstream stations
b. Work is pulled to the downstream work stations before it is actually needed
c. Manufacturing cycle time is increased
d. Problems become more obvious

1. The purpose of the transportation approach for locational analysis is to minimize

a) total costs
b) total shipping costs
c) total variable costs
d) total fixed costs
 e) the number of shipments

2. The initial solution to a transportation problem can be generated in any manner,

so long as
a. it minimizes cost
a. b it ignores cost
b. all supply and demand are satisfied
c. degeneracy does not exist
d. all cells are filled

3. Which of the following statements about the northwest corner rule is false?
a. One must exhaust the supply for each row before moving down to the next row.
b. One must exhaust the demand requirements of each column before moving to the next column.
c. When moving to a new row or column, one must select the cell with the lowest cost.
d. One must check that all supply and demand constraints are met.
e. All of the above are false.

4. In transportation model analysis the stepping-stone method is used to

a. obtain an initial optimum solution
b. obtain an initial feasible solution
c. evaluate empty cells for potential solution improvements
d. evaluate empty cells for possible degeneracy
e. balance supply and demand

5. A transportation problem has a feasible solution when

a. all of the improvement indexes are positive
b. the number of filled cells is one less than the number of rows plus the number of columns
c. all the squares are used
d. the solution yields the lowest possible cost
e. all demand and supply constraints are satisfied

6. When the number of shipments in a feasible solution is less than the number of
rows plus the number of columns minus one
a. the solution is optimal
b. there is degeneracy, and an artificial allocation must be created
c. a dummy source must be created
d. a dummy destination must be created
e. the closed path has a triangular shape

7. The total cost of the optimal solution to a transportation problem

a. is calculated by multiplying the total supply (including any dummy values) by the average cost of the
cells
b. cannot be calculated from the information given
c. can be calculated from the original non-optimal cost, by adding the savings made at each
improvement
d. is found by multiplying the amounts in each cell by the cost for that cell for each row and then
subtract the products of the amounts in each cell times the cost of each cell for the columns
e. can be calculated based only on the entries in the filled cells of the solution

8. The stepping-stone method

a. is an alternative to using the northwest corner rule
b. often involves tracing closed paths with a triangular shape
c. is used to evaluate the cost effectiveness of shipping goods via transportation routes not
currently in the solution
d. is used to identify the relevant costs in a transportation problem
e. helps determine whether a solution is feasible or not
9. In a minimization problem, a negative improvement index in a cell indicates that
the
a. solution is optimal
b. total cost will increase if units are reallocated to that cell
c. total cost will decrease if units are reallocated to that cell
d. current iteration is worse than the previous one
e. problem has no feasible solution

10. In a minimization problem, a positive improvement index in a cell indicates that

a. the solution is optimal
b. the total cost will increase if units are reallocated to that cell
c. the total cost will decrease if units are reallocated to that cell
d. there is degeneracy
e. the problem has no feasible solution

11. An improvement index indicates

a.whether a method other than the stepping stone should be used
b. whether a method other that the northwest corner rule should be used
c. whether the transportation cost in the upper left-hand corner of a cell is optimal
d. how much total cost would increase or decrease if the largest possible quantity were reallocated
to that cell
e. how much total cost would increase or decrease if a single unit was reallocated to that cell

12. Which of the following would not generally be a motive for a firm to hold inventories?
To
a. take advantage of quantity discounts
b. minimize holding costs
c. reduce stockout risks
d. decouple production from distribution
e. meet anticipated demand

13. Which of the following statements about ABC analysis is false?

a. ABC analysis is based on the presumption that controlling the few most important items produces the
vast majority of inventory savings.
b. In ABC analysis, "A" Items are tightly controlled, have accurate records, and receive regular review
by major decision makers.
c. ABC analysis is based on the presumption that all items must be tightly controlled to produce
important cost savings.
d. In ABC analysis, "C" Items have minimal records, periodic review, and simple controls
e. None of the above statements are true.

14. ABC analysis divides on-hand inventory into three classes, generally based upon
a. unit price
b. the number of units on hand
c. annual demand
d. annual dollar volume
e. item quality

15. Among the advantages of cycle counting is that it

a. makes the annual physical inventory more acceptable to management
b. allows more rapid identification of errors and consequent remedial action than is possible
with annual physical inventory
c. does not require the detailed inventory records necessary when annual physical inventory is used
d. does not require highly trained people
e. does not need to be performed for less expensive items

16. The two most basic inventory questions answered by the typical inventory model are
a. timing and cost of orders
b. quantity and cost of orders
 c. timing and quantity of orders
d. order quantity and service level
e. ordering cost and carrying cost

17. Which of the following statements about the basic EOQ model is true?
a. If the ordering cost were to double, the EOQ would rise.
b. If annual demand were to double, the EOQ would increase.
c. If the carrying cost were to increase, the EOQ would fall.
d. If annual demand were to double, the number of orders per year would decrease.
e. All of the above statements are true.

18. An inventory decision rule states that "when the inventory level goes down to 14
gearboxes, 100 gearboxes will be ordered." Which of the following statements is
true?
a. 100 is the reorder point, and 14 is the order quantity.
b. The number 100 is a function of demand during lead time.
c. 14 is the safety stock, and 100 is the reorder point.
d. 14 is the reorder point, and 100 is the order quantity.
e. None of the above.

19. The Production Order Quantity model

a. relaxes the assumption of known and constant demand
b. uses Ordering Cost, not Setup Cost, in its formula
c. assumes instantaneous delivery
d. results in larger average inventory than an equivalent EOQ model
e. is appropriate when units are sold/used as they are produced

20. Which of the following statements regarding the Production Order Quantity model is
true?
a. It applies only to items produced in the firm's own production departments.
b. It relaxes the assumption that the demand rate is constant.
c. It minimizes the total production costs.
d. It relaxes the assumption that all the order quantity is received at one time.
e. It minimizes inventory.

21. Which of the following statements about quantity discounts is false?

a. The cost-minimizing solution may, or may not, be where annual holding costs equal annual ordering
costs.
b. In inventory management, item cost becomes relevant to inventory decisions only when a quantity
discount is available.
c. The larger annual demand, the less attractive a discount schedule will be.
d. The smaller the ordering cost, the less attractive a discount schedule will be.
e. If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the
discount schedule.

22. The layout strategy that deals with low-volume, high-variety production is
a. fixed-position layout
b. retail/service layout
c. warehouse layout
d. all of the above
e. none of the above

23. A good layout requires determining

a. capacity and space requirements
b. material handling requirements
c. environment and aesthetics
d. flows of information
e. all of the above
 24. For which of the following operations would a fixed-position layout be
most appropriate?
a. assembly of an automobile
b. production of cameras and TV sets
c. construction of a ship
d. refining of crude oil
e. grocery store

25. The type of layout which features departments or other functional

groupings in which similar activities are performed is
a. process
b. product
c. fixed-position
d. mass
e. unit

26. According to Heizer and Render, an office layout

a. groups workers, their equipment, and spaces/offices to provide for movement of information
b. addresses the layout requirements of large, bulky projects such as ships and buildings
c. seeks the best personnel and machine utilization in repetitive or continuous production
d. allocates shelf space and responds to customer behavior
e. deals with low-volume, high-variety production

27. According to Heizer and Render, a retail/service layout

a. groups workers, their equipment, and spaces/offices to provide for movement of information
b. addresses the layout requirements of large, bulky projects such as ships and buildings
c. seeks the best personnel and machine utilization in repetitive or continuous production
d. allocates space and responds to customer behavior
e. deals with low-volume, high-variety production

28. Balancing low-cost storage with low-cost material handling is important in

a. a fixed-position layout
b. a process-oriented layout
c. an office layout
d. a product-oriented layout
e. a warehouse layout

29. which type of layout is used to achieve a smooth and rapid flow of large
volumes of output?
a. process
b. batch
c. product
d. unit
e. fixed-position

30. Which of the following are strongly associated with "crossdocking"?

a. non-value-adding activities such as receiving and storing
b. multi-modal transportation facilities at seaports
c. processing items as soon as they are received into a distribution center
d. use of manual product identification systems

e. all of the above

Q1. The "father" of scientific management is
Frederick W. Taylor.
Q2. The three major business functions necessary to all organizations are
marketing, finance/accounting, production/operations
Q3. Which of these is NOT one of the basic functions of the management process.
Inspecting?
Q4. Which of these statements accurately captures a current trend in operations?
Products and services are designed more quickly and by teams.
Q5. The service sector constitutes what percentage of employment in the United
States?
Between 75% and 85%
Q6. Productivity increases when
inputs decrease while outputs remain the same.
Q7. The capital investment each year in the United States usually
increases.
Q8. Which appears to provide the best opportunity for increases in productivity?
management

Q9. The person who introduced standardized, interchangeable parts was

Eli Whitney.

Q10. The person who developed plant-wide quality control systems was
W. Edwards Deming.

Q11. An insurance adjuster processes the claims of six policy holders in an eight
hour work day. The adjuster uses $5 in gasoline and $3 in forms and office supplies
to complete the work. What is her labor productivity?
0.75 claims per hour

Q12. Two car wash employees are paid $7.50 an hour each and are capable of
washing 12 cars per hour, using $1 of water and $2 of soap and other cleaning
supplies. What is the multifactor productivity of this operation?
0.66 cars per dollar

Q13. When a tangible product is NOT included in the service, it is called

a pure service.

Q14. In the early part of the 21st century, annual productivity growth in the U.S. has
been
2.5%

Q15. Increases in productivity are difficult to achieve if

the task is more intellectual and personal.
Q16. What are the input resources to any transformation process?
Staff, facilities, materials, information and customers.

Q17. What do we mean by micro-operations?

The component transformation processes which together make up the macro-
operation.

Q18. Disneyland Paris is one of the largest and best known theme parks in Europe.
In terms of the four Vs (volume, variety, variation, visibility) how would you describe
it?
High volume, low variety, high variation, high visibility.

Q19. Operations can be classified according to their volume and variety of

production as well as the degree of variation and visibility. Which of the following
operations would be classified as high volume, low variety?
A fast food restaurant

Q20. Which of the following activities is NOT a direct responsibility of operations

management?
Determining the exact mix of products and services that customers will want.

Q21. The three-stage operations model requires transformation of the input resource
into some form of output. Any one 'resource' can be involved at all three stages. True
or false?
True

Q22. Which one of the following transformational processes is not associated with
the processing of materials?
Psychological state

Q23. Operations typically differ in terms of volume of output, variety of output,

variation in demand or the degree of 'visibility' (i.e. customer contact) that they give
to customers of the production process. Please match the following element with the
most appropriate of the above dimensions. Short waiting tolerance is most closely
matched to:
Visibility

Q24. Low-variety operations do not include:

A tax consultancy advice service

Q25. Which of the following functions is NOT a core function of an organisation?

The accounting and finance function

Q26. Which of the following is the least likely decision to be made by Operations
Managers?
Deciding which market areas to manufacture products for

Q27. Which performance objectives do IKEA focus most on?

Cost
Q28. What other names may be given to an operations manager?
All of the above

Q29. The overall direction and contribution of the operations function with the
business and the way in which market requirements and operations capabilities are
reconciled relates to what?
Operations Strategy

Q30. Service processes that are devoted to producing knowledge-based or advice-

based services are called:
Professional services