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Mgt613 Production And Operation Management Solved Mid Term Papers

Paper 1

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 1)

Question No: 1 ( Marks: 1 ) – Please choose one

Which ONE of the following statements correctly explains the role of operation’s

manager?

To coordinate the activities between marketing and finance department

To sustain, protect and project the company’s long term strategies

To develop organizational strategy that reflects the operational strategy

To sustain, protect and project the company’s operation/production side

. (page 1)Whether profit or non profit, the role of an OPERATIONS MANAGER is

to sustain, protect, and project the company’s operations side.

Question No: 2 ( Marks: 1 ) – Please choose one

What would be the productivity if a machine produced 50 units in 3 hours?

0.066 units per hr

16.66 units per hr

6.766 units per hr

60.66 units per hr

50 /3 = 16.66

Question No: 3 ( Marks: 1 ) – Please choose one

Operations manager is responsible for all of the following EXCEPT:

Forecasting

Capacity planning

Inventory management

Distributing organizations’ goods

Operations Managers job responsibility includes but is not limited to (page 3)

Ø Forecasting

Ø Capacity planning

Ø Scheduling

Inventory Management

Ø Quality Assurance and Control

Ø Motivating employees

Ø Deciding where to locate facilities

Question No: 4 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute value?

(Quality + Speed – Flexibility) / Cost

(Quality + Speed+ Flexibility) / Cost

(Quality + Speed – Cost) / Flexibility

(Quality + Speed+ Cost) / Flexibility

Question No: 5 ( Marks: 1 ) – Please choose one

Which one the following formula or function can be used to measure the

performance?

Flexibility + profit+ operations

Work + profit + value

Quality + speed + flexibility

Profit + Incentives + standards

Question No: 6 ( Marks: 1 ) – Please choose one

Organizational strategies relate to which of the following sets of factors?

Survival, profitability, growth rate and market share

Profitability, survival, leads times and target market

Quality, operating resources, growth rate and market share

Scheduling, profitability, lead times and survival

Question No: 7 ( Marks: 1 ) – Please choose one

Which of the following statements corresponds to an order-winning characteristic?

A factor which may be significant in other parts of the organization

A factor which gives an organization a competitive edge

A factor which serves as a minimum standard for purchase

A factor which increases the profitability of the organization

(Handout page 15)order winners are the characteristics of an organization’s services

that cause it to be perceived as better than the competitors services

Order winners are the criteria that differentiate the products and services of the

firm from others’. These are the characteristics of an organization’s goods or

services that cause it to be perceived as better than competitors’ products

Question No: 8 ( Marks: 1 ) – Please choose one

To make operations strategy effective it should be:

Independent of the organization’s strategy

Consistent with the organization’s strategy

Developed by a first line manager

Independent of time dimension

·Operations strategy – The approach, consistent with organization strategy that is

used to guide the operations function page#14

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the elements of a good forecast?

Timely, having a purpose, accurate, written, reliable, meaningful

Timely, accurate, judgmental, correctness, verbal, simple to use

Timely, accurate, reliable, meaningful, written, simple to use

Timely, accurate, reliable, consistent, meaningful, written, simple to use

(Handout Page 34) Timely, Reliable, Accuracy, Meaningful Forecast,

Written/Documented, Simple to understand and use

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the qualitative forecasting technique?

It consists mainly of numerical descriptions and defies subjective inputs of managers.

It consists mainly of subjective inputs and defies particular numerical descriptions.

It consists mainly of subjective inputs and defies human factor, personal opinions.

It consists mainly of analyzing objective and hard data and defies human factor, opinion.

(page 34)Qualitative Techniques which use subjective inputs and no numerical data.

It relies solely on soft information like human factors, personal opinion, hunches.

Thus Qualitative Forecasts are often biased and tilted towards what the

management wants to predict.

Question No: 11 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the quantitative forecasting technique?

It consists mainly of numerical descriptions and resists subjective inputs of

managers.

It consists mainly of subjective inputs and resists particular numerical descriptions.

It consists mainly of subjective inputs and resist human factor, personal opinions.

It consists mainly of analyzing objective and hard data and resist human factor,

opinion.

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques uses explanatory variables to

predict future demand?

Associative forecast

Time series forecast

Consumer survey

Executive opinion

(page 35)Associative models – uses explanatory variables to predict the future for

example demand for a small car may be dependant upon increase in price of petrol

or CNG. The analysis in this case would employ a mathematical model that would

relate the predicted variable with the predictor variable or variables.

Question No: 13 ( Marks: 1 ) – Please choose one

Given the table:

Alternatives Possible future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility 12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff under MAXIMAX approach?

Rs. 10,000

Rs. 18,000

Rs. 20,000

Rs. 32,000

(reference ) Example

The maximax criterion (an optimistic approach):

1. For each option, find the maximum payoff

2. Choose the option with the greatest maximum payoff

Profit in $1,000’s

(States of Nature)

Investment

Choice

(Alternatives)

Strong

Economy

Stable

Economy

Weak

Economy

Large factory

Average factory

Small factory

200

90

40

50

120

30

-120

-30

20

Maximum profit

large factory

Maximum profit

200

average factory

Maximum profit

small factory

120

40

Greatest maximum is to chosen large factory

Question No: 14 ( Marks: 1 ) – Please choose one

Which one of the following is a limitation of a moving average having a trend?

The forecast lags behind the actual

The forecast represents demand more accurately

The forecast will not be accurate

The forecast will not be reliable

However, traditional moving averages have one very serious deficiency. They are a

‘lagging’ technical indicator. This means that moving averages, due to their

mathematical construction (averaging prices over a number of prior periods) tend

to lag behind the current market price.

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following is an index used to measure actual output relative to design

capacity?

Utilization

Efficiency

Effective capacity

Effectiveness

(Handout page 66) Efficiency and Utilization Example

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions is used to compute

utilization?

Actual output / effective capacity

Actual output / design capacity

Actual output + effective capacity

Actual output – design capacity

(Handout page 66) Efficiency and Utilization Example

Question No: 17 ( Marks: 1 ) – Please choose one

Which one of the following stages of product life cycle relates to more predictable

behavior in terms of capacity requirements?

Introduction

Growth

Maturity (not sure )

Decline

Question No: 18 ( Marks: 1 ) – Please choose one

Which one of the following statement is TRUE about cost-volume relationship?

It represents the relationship between cost, revenue and volume of output.

It represents the relationship between cost and volume of output.

It represents the relationship between cost and revenue.

It represents the relationship between inputs, cost and volume of output.

(handout page 73)Cost Volume Relationship focuses on relationships between costs, revenue

and volume of output

Question No: 19 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute break even point?

Q = VC / (R – VC)

Q = FC / (R – VC)

Q = VC / (R + FC)

Q = FC / (R + VC)

Question No: 20 ( Marks: 1 ) – Please choose one

Which one of the following is a characteristic of continuous process?

High lead times

Short process times

The ability to handle high variety

The ability to handle high volumes

 

Question No: 21 ( Marks: 1 ) – Please choose one

Which of the following refers the way an organization chooses to produce its good or

services?

Process selection

Process reengineering

Process redesign

Process design

(page 77). Process Selection refers to the way an organization chooses to produce its good

or services

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following best describes the cellular layout?

It groups machines into departments according to their function.

It groups machines into small assembly lines that produce families of parts.

It allows production of larger lots by reducing set-up time.

It encourages the use of large, efficient machinery.

 (page 83)Cellular Production

– Layout in which machines are grouped into a cell that can process items that have

similar processing requirements.

Group Technology

The grouping into part families of items with similar design or

manufacturing

characteristics.

Question No: 23 ( Marks: 1 ) – Please choose one

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

(Question No: 24 ( Marks: 1 ) – Please choose one

Which of the following layout types is associated with a supermarket?

Fixed position layout

Process layout

Product layout

Cellular layout

Question No: 25 ( Marks: 1 ) – Please choose one

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

Question No: 26 ( Marks: 1 ) – Please choose one

Which one of the following defines the range of the smoothing constant (Alpha)?

2 and -2

1 and -1

0 and -1

0 and 1

Question No: 27 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the

product?

Functional design

Production design

Service design

Product design

Product design (i.e., industrial design) is perhaps most associated with aesthetic

considerations (Bel Geddes 1934, pp. 222-241)

Question No: 28 ( Marks: 1 ) – Please choose one

Which one of the following refers to using some of the components of old products in

the

manufacturing of new products?

Manufacturability

Remanufacturing

Robust design

Automation

(Handout page 51) Design for Remanufacturing: Using some of the components of

the old products in the manufacture of new products.

Question No: 29 ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions can be used to compute

availability?

(MTBF)/ (MTBF+MTR)

(MTBF)/ (MTBF-MTR)

(MTR)/ (MTBF+MTR)

(MTR)/ (MTBF-MTR)

(page 63 )Availability = (MTBF)/(MTBF + MTR)

Question No: 30 ( Marks: 1 ) – Please choose one

Which one of the following is correct about the range of availability on a measuring

index?

0.1 to 1.0

0 to 1.0

0.5 to 1.0

0.01 to 1.0

(page23)http://books.google.com/books?id=818wT_TGJgAC&pg=PA23&dq=range

+of+availability+on+a+measuring+index&hl=en&ei=BcmMTbzCFdDirAfIprTQD

Q&sa=X&oi=book_result&ct=result&resnum=4&ved=0CDoQ6AEwAw#v=onepag

e&q&f=false

Question No: 31 ( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for 300

hours between repairs, and the mean repair time is expected to be 2 hours?

6.02

2.0

0.99

0.006

we represent mean time between failures by MTBF and mean time to repair by

MTR

Availability = (MTBF)/(MTBF + MTR)

= 300/ 300+2

= 0.99

Question No: 32 ( Marks: 1 ) – Please choose one

Which one of the following operating levels is best with respect to capacity?

The maximum point of the cost curve

The level of capacity for which average unit cost is minimized

The level of capacity for which average unit cost is maximized

The level of capacity for which total cost is minimized

(page463)

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following is the goal of work sampling?

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

Specifying the content and methods to perform a job

Question No: 34 ( Marks: 1 ) – Please choose one

The advantages of specialization to management include all of the following

EXCEPT:

Rapid training of the workforce

Ease in recruiting new workers

Fewer turnovers

Less boredom for workers

Question No: 35 ( Marks: 1 ) – Please choose one

The disadvantages of specialization to management include all of the following

EXCEPT:

More absenteeism

Minimum responsibility

More difficult to teach the job

Question No: 36 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a business application of forecasting?

Budgeting

Capacity planning

Inventory management

Quality control

(page 31)·Forecasting in business forms the basis for budgeting and planning for

capacity, sales, production, inventory, manpower, purchasing and more

Question No: 37 ( Marks: 1 ) – Please choose one

Services differ from manufacturing in all the following ways EXCEPT:

Customers typically interact directly with the service delivery process.

Consumption and production take place simultaneously.

Services are intangible.

Services can be stored.

Question No: 38 ( Marks: 1 ) – Please choose one

All of the following are examples of the transformation process EXCEPT:

Cutting

Packing

Facilitating

Labeling (not sure )

Question No: 39 ( Marks: 1 ) – Please choose one

Which one of the following represents the series of a time forecast?

Averaging, cycle, seasonality, random variations

Trend, seasonality, exponential smoothing

Trend, cycle, seasonality, moving average

Trend, cycle, seasonality, random variations

(

Question No: 40 ( Marks: 1 ) – Please choose one

Which of the following is a characteristic of linear regression?

It is superior to a moving average

It is a causal forecasting model

It compensates for both trend and seasonal variations in demand

It is superior to an exponential smoothing

Paper 2

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 2)

Question No: 1 ( Marks: 1 ) – Please choose one

Who developed the use of standardization in large-scale mass production using a

moving assembly line?

Frederick Winslow Taylor

Frank Gilbreth

Adam Smith

Henry Ford

Question No: 2 ( Marks: 1 ) – Please choose one

Within the operations function, which one of the following is a long-term

management decision?

Control decision

Non-operational decision

Strategic decision

Tactical decision

Question No: 3 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per shift?

Capital

Energy

Labor

Machine

Labor Productivity

Units of output per labor hour

Units of output per shift

Value-added per labor hour

Question No: 4 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per dollar

input?

Capital

Energy

Labor

Machine

Capital Productivity Units of output per Rs. Input Dollar value of output per Rs. input

Question No: 5 ( Marks: 1 ) – Please choose one

Operations manager is responsible for all of the following EXCEPT:

Forecasting

Capacity planning

Inventory management

Distributing organizations’ goods

Operations Managers job responsibility includes but is not limited to (page 3)

Ø Forecasting

Ø Capacity planning

Ø Scheduling

Inventory Management

Ø Quality Assurance and Control

Ø Motivating employees

Ø Deciding where to locate facilities

Question No: 6 ( Marks: 1 ) – Please choose one

Which of the following is NOT usually considered a general characteristic of a

service?

Production and sales cannot easily be separated functionally

Many services involve both tangible and intangible outputs

Production and consumption can always be separated

Degree of customer contact is high

Question No: 7 ( Marks: 1 ) – Please choose one

Which of the following is NOT a decision to be made by operations managers?

How much capacity is required to balance demand?

What should be the location and layout of a facility?

How to improve operational efficiency?

Which market areas to manufacture the products for?

Question No: 8 ( Marks: 1 ) – Please choose one

A business process is a logical set of tasks or activities that:

Are specific to the operations function

Are specific to the marketing function

Are interdependent with other processes

Have exactly the same performance measures for any process

A process is a sequence of related activities, or may be a sequence of related

tasks which make up an activity. These activities or tasks are usually

interdependent, and there is a well-defined flow from one activity to another or

from one task to another.

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute value?

(Quality + Speed – Flexibility) / Cost

(Quality + Speed+ Flexibility) / Cost

(Quality + Speed – Cost) / Flexibility

(Quality + Speed+ Cost) / Flexibility

Question No: 10 ( Marks: 1 ) – Please choose one

Which of the following refers to the essential elements of operations strategy?

Policies, tactics and objectives

Plans, strategies and vision

Mission, goals and plans

Mission, policies and distinctive competencies

Question No: 11 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the qualitative forecasting technique?

It consists mainly of numerical descriptions and defies subjective inputs of

managers.

It consists mainly of subjective inputs and defies particular numerical

descriptions.

It consists mainly of subjective inputs and defies human factor, personal

opinions.

It consists mainly of analyzing objective and hard data and defies human factor,

opinion.

Qualitative Techniques which use subjective inputs and no numerical data. It relies

solely on soft information like human factors, personal opinion, hunches. Thus

Qualitative Forecasts are often biased and tilted towards what the management

wants to predict

Question No: 12 ( Marks: 1 ) – Please choose one

Which of the following approaches favors adopting a “go for it” strategy?

Maximin

Maximax

Minimax regret

Laplace

Maximax(page 26)

􀀀 Maximax determines

􀀀 the best possible outcome

􀀀 Choose the Alternative with the best possible payoff.

􀀀 It does not take into account any other alternative then the best payoff.

􀀀 An optimistic approach.

􀀀 Go for it strategy.

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following is an outcome of Maximax?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

Maximax(page 26)

􀀀 Maximax determines

􀀀 the best possible outcome

􀀀 Choose the Alternative with the best possible payoff.

􀀀 It does not take into account any other alternative then the best payoff.

􀀀 An optimistic approach.

􀀀 Go for it strategy

Question No: 14 ( Marks: 1 ) – Please choose one

Which one of the following is a limitation of a moving average having a trend?

The forecast lags behind the actual

The forecast represents demand more accurately

The forecast will not be accurate

The forecast will not be reliable

Ref:

However, traditional moving averages have one very serious deficiency. They are a

‘lagging’ technical indicator. This means that moving averages, due to their

mathematical construction (averaging prices over a number of prior periods) tend

to lag behind the current market price.

Question No: 15 ( Marks: 1 ) – Please choose one

Which of the following is a technique that averages a number of recent actual values

that are updated as new values become available?

Simple moving average

Delphimethod

Trend adjusted forecast

Naïve forecast

(Handout page 37)Moving average – A technique that averages a number of recent

actual values, updated as new values become available.

Question No: 16 ( Marks: 1 ) – Please choose one

A workers strike represents which of the following behaviors of a time series?

Cycle

Trend

Seasonality

Irregular variations

(page 37)Irregular variations - caused by unusual circumstances such as severe weathers,

earthquakes, worker strikes, or major change in product or service. They do not capture or

reflect the true behavior of a variable and can distort the overall picture. These should be

identified and removed from the data.

Question No: 17 ( Marks: 1 ) – Please choose one

Which one of the following is called as the difference between designed and utilized

capacity?

Design capacity (not sure )

Effective capacity

Buffer capacity

Utilization rate

Question No: 18 ( Marks: 1 ) – Please choose one

Which one of the following is an index used to measure actual output relative to

design capacity?

Utilization

Efficiency

Effective capacity

Effectiveness

(Handout page 66) Efficiency and Utilization Example

Question No: 19 ( Marks: 1 ) – Please choose one

The formula for determining the required cycle time is operation time per day

divided by:

Sum of task times

Actual output per day (in units)

Number of workstation

Desired output (in units)

(Handout page 85) cycle time = OT/ D

Question No: 20 ( Marks: 1 ) – Please choose one

Which one of the following layout type is associated with a restaurant?

Fixed position layout

Process layout

Product layout

Hybrid layout

Question No: 21 ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions can be used to compute output

capacity?

OT/CT

CT/OT

CT+OT

CT-OT

(page 85)If OC is the Output capacity, OT is the operating Time and CT is

the Cycle time then output capacity = OT/CT

Question No: 22 ( Marks: 1 ) – Please choose one

What would be the output capacity if an assembly line operates for 7 hours per day

with a cycle time of 2.0 minutes?

210 units per day

3.5 units per day

0.004 units per day

14 units per day

output capacity = OT/CT

= 7/2.0

= 3.5

Question No: 23 ( Marks: 1 ) – Please choose one

Which of the following forecasting technique is based on the assumption that past

data is more indicative of the future than the most recent occurrences?

Exponential smoothing

Linear regression

Judgmental forecast

Naive forecast

Question No: 24 ( Marks: 1 ) – Please choose one

Which of the following ensures that the design meets the performance

characteristics that are specified in the product concept?

Functional design

Production design

Service design

Product design

Question No: 25 ( Marks: 1 ) – Please choose one

CBR stands for which one of the following?

Commercial board of revenue

Central board of recycling

Central board of renovation

Central board of revenue

(page 46)CBR denotes Center Board of Revenue

Question No: 26 ( Marks: 1 ) – Please choose one

In order to comply with the environmental standards, an organization ABC has to

implement Occupational Safety Hygiene Administration (OSHA).Which one of the

following is a way to accomplish this task?

Promoting friendly relations among employees

Installing safety guards and devices to reduce the risk of potential accidents

Installing machinery to make the process speedy

Installing machinery that provides cost effective output

(Handout page 46)

Question No: 27 ( Marks: 1 ) – Please choose one

Which of the following is an advantage of standardization?

Frozen designs

Customized parts

Interchangeable parts

Reduced variety

Question No: 28 ( Marks: 1 ) – Please choose one

Which of the following refers to translate the voice of the customer into technical

design requirements?

Concurrent design

Design for manufacture

Robust design

Quality functional deployment

Question No: 29 ( Marks: 1 ) – Please choose one

A product ‘A’ is specified to work well up to 30 degree Celsius temperature and

30% humidity. What would these specifications represent?

Reliability factor

Standard conditions

Normal operating conditions

Standard operating procedure

Question No: 30 ( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for

350 hours between repairs, and the mean repair time is expected to be 3 hours?

0.99

1.0

3.0

7.03

Availability = (MTBF)/(MTBF + MTR)

350/353 = 0.99

Question No: 31 ( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for

300 hours between repairs, and the mean repair time is expected to be 2 hours?

6.02

2.0

0.99

0.006

Question No: 32 ( Marks: 1 ) – Please choose one

Which of the following management level is responsible for long-range capacity

planning?

Lower management

Middle management

Top management

Non managerial employees

Top-level management

* Require an extensive knowledge of management roles and skills.

* They have to be very aware of external factors such as markets.

* Their decisions are generally of a long-term nature

* Their decisions are made using analytic, directive, conceptual and/or

behavioral/participative processes

* They are responsible for strategic decisions.

* They have to chalk out the plan and see that plan may be effective in the future.

* They are executive in nature.

Question No: 33 ( Marks: 1 ) – Please choose one

Capacity planning involves answering all of the following questions EXCEPT:

What kind of capacity is needed?

How much is needed?

When is it needed?

Who is going to decide?

(Handout page 64)

What kind of capacity is needed?

2. How much is needed?

3. When is it needed?

Question No: 34 ( Marks: 1 ) – Please choose one

The disadvantages of specialization to management include all of the following

EXCEPT:

More absenteeism

Minimum responsibility

More turnover

More difficult to teach the job

Question No: 35 ( Marks: 1 ) – Please choose one

Which of the following can be used to compute standard time?

Multiplying the elemental average time by the rating factor

Dividing the average elemental time by the rating factor

Multiplying the normal cycle time by the rating factor

Multiplying the normal cycle time by one plus the allowance factor

(page 92)Standard Time=ST=NT X AF is the normal time plus allowance for delays like (

getting a glass of water or going to the washroom human needs)

Question No: 36 ( Marks: 1 ) – Please choose one

Which one of the following is an example of community factors that affect location

decisions?

Transportation

Quality of life

Location of new markets

Location of raw materials

(page 96)Community Considerations

􀀀 Quality of life

􀀀 Services

􀀀 Attitudes

􀀀 Taxes

􀀀 Environmental regulations

􀀀 Utilities

􀀀 Developer support

Question No: 37 ( Marks: 1 ) – Please choose one

Which one of the following statements is true about Occupational Safety Hygiene

Administration (OSHA)?

To safeguard against potential hazards

To develop cost effective processes

To implement legal standards

To carry out implication of manufacturability and fitness

Question No: 38 ( Marks: 1 ) – Please choose one

Which of the following is the primary input in capacity planning?

Supply chain capabilities

Competitors’ strengths

Demand forecasts

Overall cost estimates

(page 31)A statement about the future value of a variable of interest such as resource

requirements, capacity planning, SCM and product or service demand.

http://en.wikipedia.org/wiki/Capacity_planning

Question No: 39 ( Marks: 1 ) – Please choose one

Services differ from manufacturing in all the following ways EXCEPT:

Customers typically interact directly with the service delivery process.

Consumption and production take place simultaneously.

Services are intangible.

Services can be stored.

Question No: 40 ( Marks: 1 ) – Please choose one

Forecasting for groups tend to be more accurate than forecasting for individual

items because:

A group is composed of a number of items

A group exhibits a uniform behavior

A group cancels the forecasting errors among items

A group behavior is relatively less uncertain

(page 33) Forecasts more accurate for groups vs. individuals naturally because

forecasting errors in a group tend to cancel out forecasting errors for individuals.

Paper 3

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 1)

Question No: 1 ( Marks: 1 ) – Please choose one

Within the operations function, which one of the following is a long-term

management decision?

Control decision

Non-operational decision

Strategic decision

Tactical decision

Question No: 2 ( Marks: 1 ) – Please choose one

What would be the productivity if 9 workers installed 650 square yards of carpeting

in 6 hours?

12.03 square yards/hr

72.20 square yards/hr

108.30 square yards/hr

5850 square yards/hr

productivity = 650/ 9*6 = 12.03

(reference) ]

OPERATIONS STRATEGY

E.g. 4 workers installed 720 square yards of carpeting in 8 hours.

Productivity = 720/(4*8) = 22.5 yards/hour

Question No: 3 ( Marks: 1 ) – Please choose one

All of the following are the decision areas of an operations manager EXCEPT:

Financial reporting

Inventory management

Scheduling tasks

Supply chain management

 

Question No: 4 ( Marks: 1 ) – Please choose one

Which of the following statements corresponds to an order-winning characteristic?

A factor which may be significant in other parts of the organization

A factor which gives an organization a competitive edge

A factor which serves as a minimum standard for purchase

A factor which increases the profitability of the organization

(Handout page 15)order winners are the characteristics of an organization’s

services that cause it to be perceived as better than the competitors services

Question No: 5 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the elements of a good forecast?

Timely, having a purpose, accurate, written, reliable, meaningful

Timely, accurate, judgmental, correctness, verbal, simple to use

Timely, accurate, reliable, meaningful, written, simple to use

Timely, accurate, reliable, consistent, meaningful, written, simple to use

(Handout page 34)

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the quantitative forecasting

technique?

It consists mainly of numerical descriptions and resist subjective inputs of

managers.

It consists mainly of subjective inputs and resist particular numerical descriptions.

It consists mainly of subjective inputs and resisit human factor, personal opinions.

It consists mainly of analyzing objective and hard data and resist human factor,

opinion.

Question No: 7 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques uses explanatory variables to

predict future demand?

Associative forecast

Time series forecast

Consumer survey

Executive opinion

(page 35)Associative models – uses explanatory variables to predict the future for

example demand for a small car may be dependant upon increase in price of petrol

or CNG. The analysis in this case would employ a mathematical model that would

relate the predicted variable with the predictor variable or variables

Question No: 8 ( Marks: 1 ) – Please choose one

Which one of the following involves completing a series of questionnaires each

developed from the previous one, to achieve a consensus forecast?

Consumer surveys

Executive opinion

Time series forecast

Delphi method

(page 35)Delphi method: Managers and staff complete a series of questionnaires,

each developed from the previous one, to achieve a consensus forecast

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following is a limitation of a moving average having a trend?

The forecast lags behind the actual

The forecast represents demand more accurately

The forecast will not be accurate

The forecast will not be reliable

However, traditional moving averages have one very serious deficiency. They are a

‘lagging’ technical indicator. This means that moving averages, due to their

mathematical construction (averaging prices over a number of prior periods) tend

to lag behind the current market price.

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques is used to identify a trend when

data is neither growing nor declining rapidly and has no seasonal characteristics?

Simple moving average

Delphimethod

Trend adjusted forecast

Naïve forecast

Question No: 11 ( Marks: 1 ) – Please choose one

Effective capacity is influenced by all of the following factors EXCEPT:

Facilities

Product mix

Processes

Operations

(Handout page 66 and 67)

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following stages of product life cycle relates to more predictable

behavior in terms of capacity requirements?

Introduction

Growth

Maturity

Decline

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following statement is TRUE about cost-volume relationship?

It represents the relationship between cost, revenue and volume of output.

It represents the relationship between cost and volume of output.

It represents the relationship between cost and revenue.

It represents the relationship between inputs, cost and volume of output.

(page 73)Cost Volume Relationship focuses on relationships between costs, revenue and

volume of output

Question No: 14 ( Marks: 1 ) – Please choose one

Which one of the following refers to the volume of output at which total cost equals

total revenue?

Optimal operating rate

Break even point

Feasible volume

Utilization

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following manufacturing process is associated with high volume

car manufacture?

Job shop

Assembly line

Batch

Automation

Question No: 16 ( Marks: 1 ) – Please choose one

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

Question No: 17 ( Marks: 1 ) – Please choose one

Which one of the following layout type is associated with a restaurant?

Fixed position layout

Process layout

Product layout

Hybrid layout

Question No: 18 ( Marks: 1 ) – Please choose one

Which of the following layout types is associated with a supermarket?

Fixed position layout

Process layout

Product layout

Cellular layout

Question No: 19 ( Marks: 1 ) – Please choose one

Which one of the following layout types is associated with car assembly?

Fixed position layout

Process layout

Product layout

Hybrid layout

Product – Layout should suit to the nature of product and its method of production.

i.e. aircraft manufacturing and car manufacturing layouts will be different. Sales

also affects the layout.

Question No: 20 ( Marks: 1 ) – Please choose one

In which one of the following techniques, the least squares method models uses one

dependent and one or more independent variables?

Trend adjusted forecast

Simple moving average

Regression analysis

Exponential smoothing

Question No: 21 ( Marks: 1 ) – Please choose one

In exponential smoothing model, a denotes:

Smoothing constant

Actual forecast

Forecast error

Previous forecast

(Handout page 40)a = Alpha smoothing constant

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following is responsible for administering environmental issues

about product and service design?

Central Board Revenue

Environmental Protection Agency

Federal Drug Agency

Occupational Safety Hygiene Administration

Question No: 23 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the

product?

Functional design

Production design

Service design

Product design

Question No: 24 ( Marks: 1 ) – Please choose one

Which of the following ensures that the design meets the performance

characteristics that are specified in the product concept?

Functional design

Production design

Service design

Product design

(page51)

Question No: 25 ( Marks: 1 ) – Please choose one

Which of the following factors are considered in product and service design?

Customer satisfaction, quality, and improvement costs

Employee motivation, quality, and production costs

Customer satisfaction, flexibility, and production costs

Customer satisfaction, quality, and production costs

(Handout page 44)A good product/service design can ensure customer satisfaction,

quality and production costs

Question No: 26 ( Marks: 1 ) – Please choose one

CBR stands for which one of the following?

Commercial board of revenue

Central board of recycling

Central board of renovation

Central board of revenue

Question No: 27 ( Marks: 1 ) – Please choose one

An automatic car wash is an example of which of the following?

Customized service

Batch processing

Intermittent processing

Standardized service

Standardized service implies that every customer or item processed receives

essentially the same service. An automatic car wash is a good example; each car,

regardless of how clean or dirty it is, receives the same service. Standardized

processes deliver standardized service or produce standardized goods.

Question No: 28 ( Marks: 1 ) – Please choose one

Which one of the following statements relates to the final stage of product life cycle?

Improve reliability, and reduce production costs

Improve packaging, and reliability

Improve reliability, and reduce quality

Improve reliability, and reduce promotion costs

Question No: 29 ( Marks: 1 ) – Please choose one

Which one of the following statements is TRUE about product life cycle?

It depicts demand of a product at various price levels

It depicts demand of a product with respect to time

It relates demand of a product to quality

It relates demand of a product to market share

Question No: 30 ( Marks: 1 ) – Please choose one

Technology has impacted the work place by:

Adding to the existing geographical barriers for recruiting

Increasing the cost of telecommuting

Increasing the amount required to be spent on training

Unifying the workforce to a common skill level

Question No: 31 ( Marks: 1 ) – Please choose one

CPFR stands for which of the following?

Collaborative Promotion, Forecasting, and Replenishment

Collaborative Planning, Forecasting, and Reactivity

Co-operative Planning, Function, and Replenishment

Collaborative Planning, Forecasting, and Replenishment

(page 177)CPFR is an acronym derived from the first letters of the following phrase:

Collaborative Planning, Forecasting and Replenishment

Question No: 32 ( Marks: 1 ) – Please choose one

Forecasting accuracy has relation with time horizon.

Inverse

Linear

Direct

Parallel

(page 33)Forecast accuracy decreases as time horizon increases indicating it is safe to make

short range forecasts instead of long term forecasts. If you can recall we had talked about

Flexible and Agile Corporations in the past.

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following is a key benefit of process plant strategy?

Economies of scale

Diseconomies of scale

Product variety

Task specialization

(page 369)

Question No: 34 ( Marks: 1 ) – Please choose one

Which one the following is an assumption of center of gravity method?

The quantity to be shipped is variable

The quantity to be shipped is fixed

The quantity carries no value

The quantity to be shipped should be extraordinarily high

The center of gravity method is used to determine the location of a single

distribution center that will minimize distribution costs. It treats distribution cost as

a linear function of the distance and the quantity shipped, which is assumed to be

fixed,

Question No: 35 ( Marks: 1 ) – Please choose one

Which of the following is the primary input in capacity planning?

Supply chain capabilities

Competitors’ strengths

Demand forecasts

Overall cost estimates

(page 31)A statement about the future value of a variable of interest such as resource

requirements, capacity planning, SCM and product or service demand.

Question No: 36 ( Marks: 1 ) – Please choose one

The type of processing structure that is used for producing discrete products at

higher volume is:

Continuous Flow

Assembly Line

Batch

Job shop

Question No: 37 ( Marks: 1 ) – Please choose one

Quality, costs, lead times, operating resources are all related to which one of the

following strategies.

Organizational strategy

Financial strategy

Operational strategy

Tectical strategy

(page 5)

Question No: 38 ( Marks: 1 ) – Please choose one

The Strategies which are more focused on maintaining or improving the quality of

an organization’s products or services are known as:

Quality at the source

Time based strategies

Cost leadership strategies

Quality-based strategies

(page 18)Quality-based strategies

􀀀 Focuses on maintaining or improving the quality of an organization’s products or

services

Question No: 39 ( Marks: 1 ) – Please choose one

Which of the following is NOT an attribute to classify services?

Tangibility

Perishability

Simultaneity

Courtesy

Question No: 40 ( Marks: 1 ) – Please choose one

Forecasting for groups tend to be more accurate than forecasting for individual

items because:

A group is composed of a number of items

A group exhibits a uniform behavior

A group cancels the forecasting errors among items

A group behavior is relatively less uncertain

(page 33) Forecasts more accurate for groups vs. individuals naturally because

forecasting errors in a group tend to cancel out forecasting errors for individuals

Paper 4

MIDTERM EXAMINATION

Spring 2009 MGT613- Production / Operation Management (Session – 2)

Question No: 1 ( Marks: 1 ) – Please choose one

Within the operations function, which one of the following is a long-term

management decision?

►Control decision

►Non-operational decision

Strategic decision

►Tactical decision

Question No: 2 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per dollar input?

Capital

►Energy

►Labor

►Machine

Capital Productivity: Units of output per dollar input

Dollar value of output per dollar input

Question No: 3 ( Marks: 1 ) – Please choose one

Which one of the following is a measure of productivity that involves

measuring inputs and outputs using a common unit of measurement?

►Multifactor

►Partial

►Single

►Total

OPERATIONS STRATEGY

Multifactor productivity measures require inputs and outputs using a common unit of

measurement, such as cost or value.

Question No: 4 ( Marks: 1 ) – Please choose one

The major business function consisting of research and development,

product design, manufacturing, marketing, distribution, and customer

service is refers to:

►Value chain

►The transformation process

►Quality control

Life cycle

Question No: 5 ( Marks: 1 ) – Please choose one

A business process is a logical set of tasks or activities that:

►Are specific to the operations function

►Are specific to the marketing function

Are interdependent with other processes

►Have exactly the same performance measures for any process

A process is a sequence of related activities, or may be a sequence of related tasks which make up an

activity. These activities or tasks are usually interdependent, and there is a well-defined flow from

one activity to another or from one task to another.

http://www.martymodell.com/pgsa2/pgsa13.html

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute value?

►(Quality + Speed – Flexibility) / Cost

(Quality + Speed+ Flexibility) / Cost

►(Quality + Speed – Cost) / Flexibility

►(Quality + Speed+ Cost) / Flexibility

(HANDOUT PAGE 10)

Question No: 7 ( Marks: 1 ) – Please choose one

Which one the following formula or function can be used to measure the performance?

Flexibility + profit+ operations

►Work + profit + value

Quality + speed + flexibility

►Profit + Incentives + standards

(HANDOUT PAGE 10)

Question No: 8 ( Marks: 1 ) – Please choose one

Which of the following statements corresponds to an order-winning characteristic?

►A factor which may be significant in other parts of the organization

A factor which gives an organization a competitive edge

►A factor which serves as a minimum standard for purchase

►A factor which increases the profitability of the organization

(Handout page 15)order winners are the characteristics of an organization’s services

that cause it to be perceived as better than the competitors services.

Question No: 9 ( Marks: 1 ) – Please choose one

As a manager, you have defined the purpose of the forecasts. What

should be the next step in forecasting process?

►Choose a forecasting technique.

►Determine the purpose of the forecast.

Set up a time horizon or a time limit.

►Collect and analyze the appropriate data.

(Handout page 34)

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following forecasting technique is based on historical data?

►Judgmental

►Associative

Time series

► Qualitative

(page 35) · T ime series - uses historical data assuming the future will be like the

past and depend on developing relationships between variables that can be

expressed to predict future values.

Question No: 11 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques use

subjective inputs su from consumer surveys, sales staff,

managers and experts?

►Time series

►Quantitative

Judgmental

►Associative

(page 35) J udgmental - uses subjective inputs meaning that a judgmental forecast rely

on analysis of subjective inputs obtained from various sources, such as consumer surveys,

the sales staff, managers and executives, and panels of experts. These insights are not

available publicly.

Question No: 12 ( Marks: 1 ) – Please choose one

Which of the following approaches favors adopting a “go for it” strategy?

►Maximin

Maximax

►Minimax regret

►Laplace

(Handout page 26)

Question No: 13 ( Marks: 1 ) – Please choose one

Possible future demand

Low (Rs.) High (Rs.)

10,000 8,000

12,000 20,000

18,000 15,000

Given the table:

Alternatives

Which one of the following is the correct payoff under MAXIMAX approach?

Rs. 10,000

► Rs. 18,000

► Rs. 20,000

► Rs. 32,000

Question No: 14 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a step of decision making process?

►Develop alternatives

►Monitor results

Consider risk averseness strategies

►Specify criteria for decision

Ref: 1. Specify Objectives and the Criteria for decision making

2. Develop Alternatives

3. Analyze and compare alternatives.

4. Select the best alternative.

5. Implement the chosen Alternative

6. Monitor the results to ensure the desired results are achieved.

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following stages of product life cycle relates to

more predictable behavior in terms of capacity requirements?

►Introduction

►Growth(not sure)

►Maturity

►Decline

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following statement is TRUE about cost-volume relationship?

It represents the relationship between cost, revenue and volume of output.

►It represents the relationship between cost and volume of output.

►It represents the relationship between cost and revenue.

►It represents the relationship between inputs, cost and volume of output.

Ref: Cost Volume Relationship focuses on relationships between costs, revenue and

volume of output. (page 73)

Question No: 17 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute break even point?

►Q = VC / (R – VC)

►Q = FC / (R – VC)

►Q = VC / (R + FC)

►Q = FC / (R + VC)

Question No: 18 ( Marks: 1 ) – Please choose one

ABC Corporation has planned to purchase a new machine. Total annual

fixed cost is Rs. 10,000, variable cost is Rs. 5 per unit and revenue is Rs. 7

per unit. What would be the break even point?

►833 units

►2000 units

►5000 units

►1012 units

Question No: 19 ( Marks: 1 ) – Please choose one

Which of the following terms of financial analysis are important for the

organization to proceed with a capacity alternative decision?

►Cash flow and fixed cost

►Present value and fixed cost

Cash flow and present value

►Cash flow and profit

Ref: Operations manager along with managerial accountant often work to calculate

what cash flow or present value in terms of rupees is available for the organization

to proceed with a capacity alternative decision.(page 76)

Question No: 20 ( Marks: 1 ) – Please choose one

Which of the following is a system designed to coordinate all activities

and information needed to complete business processes?

Enterprise resource planning

►Supply chain management

►New product development

►Customer relationship management

Question No: 21 ( Marks: 1 ) – Please choose one

Which of the following is NOT a characteristic of product layouts?

►High material handling costs

►Sequential arrangement of machines

►Standardized output

►Continuous production system

Ref: Lecture slide#19

1. High rate of output.

2. Low unit cost.

3. Labor specialization.

4. Low material handling cost.

5. High utilization of labor and equipment.

6. Established routing and scheduling.

7. Routing accounting and purchasing.

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following layout types is associated with car assembly?

►Fixed position layout

►Process layout

Product layout

►Hybrid layout

Question No: 23 ( Marks: 1 ) – Please choose one

In exponential smoothing model, a denotes:

Smoothing constant

►Actual forecast

►Forecast error

►Previous forecast

(Handout page 40)= Alpha smoothing constant

Question No: 24 ( Marks: 1 ) – Please choose one

Which one of the following designs resists modifications?

Frozen design (review again)

►Product design

►Service design

►Robust design

(Page 48)

Question No: 25 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about Taguchi approach?

To test the robustness of a design

►To articulate the “voice of the customer”

►To reduce the degree of automation

►To create a concurrent design

Question No: 26 ( Marks: 1 ) – Please choose one

Which one of the following refers to using some of the components of old

products in the manufacturing of new products?

►Manufacturability

Remanufacturing

►Robust design

►Automation

Question No: 27 ( Marks: 1 ) – Please choose one

Which one of the following is a curve showing failure rate over time?

►Cost curve

Bath tub curve

►Fish bone diagram

►Reliability curve

(Page 59 and 60)

Question No: 28 ( Marks: 1 ) – Please choose one

ble to operate for 250

What would be the

availability if a carpe hours

between repairs, and the

mean rep?

►1.01

►5.03

►3.0

►0.98

Question No: 29 ( Marks: 1 ) – Please choose one

Which one of the following is the goal of method analysis?

► Dividing and analyzing a job

►Check individual human motions used to perform an operation

►Determining the length of time it will take to undertake a particular task

►Determining the amount of time a worker spends on various activities

(page 87)

Design of Work System also entails method analysis which in turn centers on how

jobs are performed.

(page 93)

Supplementary discussions focused on Method Analysis and Motion Study

Techniques, which focused on efficiency aspect of the job. This may ignore the

behavior aspect but still form an important and integral part of job design.

Question No: 30 ( Marks: 1 ) – Please choose one

Which one of the following is an example of regional factors that

affect location decisions?

►Transportation

►Quality of life

►Development support

Location of new markets

(page 96)

Regional Factors

􀀀 Location of raw materials

􀀀 Location of markets

􀀀 Labor factors

􀀀 Climate and taxes

Question No: 31 ( Marks: 1 ) – Please choose one

Which one of the following is an example of site related factors

that affect location decision?

Transportation

►Quality of life

►Location of new markets

►Location of raw materials

(page 96)

•Land

•Transportation

•Environmental

•Legal

Question No: 32 ( Marks: 1 ) – Please choose one

Which one of the following statements is true about Occupational

Safety Hygiene Administration (OSHA)?

To safeguard against potential hazards

►To develop cost effective processes

►To implement legal standards

To carry out implication of manufacturability and fitness

(page 46) OSHA refers to Occupational Safety Hygiene Administration

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following is used to produce gasoline and petroleum products?

►Job shop

►Batch processing

►Assembly line

Continuous processing

Continuous and Semi Continuous Operations

1. A system that produces highly uniform products or continuous services, often

performed by machines.

1. Processing of chemicals, photographic film, newsprint and oil products

2. Repetitive Processing. A production system that renders one or a few highly

standardized products or services.

1. Automobiles, televisions, computers ,calculators, cameras and video equipments

Question No: 34 ( Marks: 1 ) – Please choose one

The type of processing structure that is used for producing discrete

products at higher volume is:

►Continuous Flow

Assembly Line

►Batch

►Job shop

Question No: 35 ( Marks: 1 ) – Please choose one

An example of a business/industry that uses batch flow process structure is:

►Commercial printer

Heavy equipment

►Automobile assembly

►Sugar refinery

Question No: 36 ( Marks: 1 ) – Please choose one

Services differ from manufacturing in all the following ways EXCEPT:

►Customers typically interact directly with the service delivery process.

►Consumption and production take place simultaneously.

►Services are intangible.

Services can be stored.

Question No: 37 ( Marks: 1 ) – Please choose one

Quality, costs, lead times, operating resources are all related to

which one of the following strategies.

►Organizational strategy

►Financial strategy

►Operational strategy

►Tectical strategy

Os is related to products, processes, methods, operating resources, quality, costs,

lead times, and scheduling.

Question No: 38 ( Marks: 1 ) – Please choose one

All of the following are examples of the transformation process EXCEPT:

►Cutting

►Packing

►Facilitating

►Labeling(not sure )

Question No: 39 ( Marks: 1 ) – Please choose one

___________ purpose is to coordinate and control all the required sources so that

productive system can be used efficiently and to ensure the delivery of product in time.

Total quality control’s

►Demand management’s

►Forecasting’s

►Operations management’s

Question No: 40 ( Marks: 1 ) – Please choose one

Which of the following is a characteristic of linear regression?

It is superior to a moving average

► It is a causal forecasting model

► It compensates for both trend and season

► It is superior to an exponential smoothing

Paper 5

MIDTERM EXAMINATION

Spring 2010

MGT613- Production / Operations Management

Question No: 1 ( Marks: 1 ) – Please choose one

Within the operations function, which one of the following is a long-term management

decision?

► Control decision

► Non-operational decision

► Strategic decision

► Tactical decision

Question No: 2 ( Marks: 1 ) – Please choose one

The management of systems or processes that creates goods and provides services is

known as:

► Operation Management

► Operation/production Management

► Operation/Research Management

► Production/Research Management

Page#3 perations Management (The management of systems or processes that create

goods and/or rovide services)

Question No: 3 ( Marks: 1 ) – Please choose one

Which one of the following decision is NOT made by operations managers?

► How much capacity is required to balance demand?

► What should be the location and layout of a facility?

► How to improve operational efficiency?

► Which market areas to manufacture the products for?

Question No: 4 ( Marks: 1 ) – Please choose one

A business process is a logical set of tasks or activities that:

► Are specific to the operations function

► Are specific to the marketing function

► Are interdependent with other processes

► Have exactly the same performance measures for any process

Question No: 5 ( Marks: 1 ) – Please choose one

Which one the following formula or function can be used to measure the performance?

► Flexibility + profit+ operations

► Work + profit + value

► Quality + speed + flexibility

► Profit + Incentives + standards

Question No: 6 ( Marks: 1 ) – Please choose one

Which of the following statements describes an order-qualifier characteristic?

► A competitive dimension used to make final decision among competitors

► A factor which directly and significantly contribute to winning business

► A factor which increases the profitability of the organization

► A factor perceived as a minimum standard as a potential for purchase

Page#15

Order qualifiers are those significant characteristics that service customers perceive

as minimum standards of acceptability to be considered as a potential purchase

while order winners

Question No: 7 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques uses explanatory variables to predict

future demand?

► Associative forecast

► Time series forecast

► Consumer survey

► Executive opinion

Question No: 8 ( Marks: 1 ) – Please choose one

In which one of the following decision environments it is impossible to assess the

likelihood of various future events?

► Risk

► Bounded rationality

► Certainty

► Uncertainty

• Uncertainty – Environment in which it is impossible to assess the likelihood of

various future events

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following is an implication oflaplaceapproach of decision making?

► The best of the worst possible payoff

► The best possible payoff

► The best average payoff

► The least of the worst regrets

Page#27 Determines the Average payoff for each alternative

Ø And chooses the alternative with the best average.

Ø This is a cautious approach

Ø Laplace approach treats the states of nature as equally likely.

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following is an outcome of MINIMAX regret?

► The best of the worst possible payoff

► The best possible payoff

► The best average payoff

► The least of the worst regret

Question No: 11 ( Marks: 1 ) – Please choose one

Which one of the following is a limitation of a moving average having a trend?

► The forecast lags behind the actual

► The forecast represents demand more accurately

► The forecast will not be accurate

► The forecast will not be reliable

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following refers to the maximum output that a firm can produce under

ideal conditions?

► Design capacity (not sure)

► Effective capacity

► Capacity planning

► Utilization rate

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following is a characteristic of continuous process?

► High lead times

► Short process times

► The ability to handle high variety

► The ability to handle high volumes

Question No: 14 ( Marks: 1 ) – Please choose one

Which of the following is an example of a business that uses assembly line process

structure?

► Automobile assembly

► Sugar refinery

► Heavy equipment

► French restaurants

Assembly line – Example: automobile production line

A good example of an assembly line is an automobile plant.

Question No: 15 ( Marks: 1 ) – Please choose one

Which of the following layout types is associated with a supermarket?

► Fixed position layout

► Process layout

► Product layout

► Cellular layout

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following layout types is associated with car assembly?

► Fixed position layout

► Process layout

► Product layout

► Hybrid layout

Question No: 17 ( Marks: 1 ) – Please choose one

A department store discovered that in a four-month period, the best forecast can be

determined by using 50 percent of the sales for the most recent month, 20 percent of the

sales of two months ago, 10 percent of the sales of three months ago, and 20 percent of

the sales of four months ago. Which forecasting method should the store use to forecast

demand?

► Simple Moving Average

► Linear Regression

► Time Series Analysis

► Weighted Moving Average

Question No: 18 ( Marks: 1 ) – Please choose one

Which one of the following is an application of simple exponential smoothing?

► Establishing durability

► Finding reliability

► Scheduling services

► Quality improvement

Question No: 19 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the product?

► Functional design

► Production design

► Service design

► Product design

Question No: 20 ( Marks: 1 ) – Please choose one

Which one of the following statements is TRUE about product life cycle?

► It depicts demand of a product at various price levels

► It depicts demand of a product with respect to time

► It relates demand of a product to quality

► It relates demand of a product to market share

Question No: 21 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about Taguchi approach?

► To test the robustness of a design

► To articulate the “voice of the customer”

► To reduce the degree of automation

► To create a concurrent design

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following is a curve showing failure rate over time?

► Cost curve

► Bath tub curve

► Fish bone diagram

► Reliability curve

(Handout page 60)

Question No: 23 ( Marks: 1 ) – Please choose one

Which of following statement is true about effective capacity?

► It is the actual output achieved

► It is always less than actual output

► It is the maximum output that a firm can produce

► It is always less than designed capacity

(page 249)

Question No: 24 ( Marks: 1 ) – Please choose one

Which one of the following is used to produce gasoline and petroleum products?

► Job shop

► Batch processing

► Assembly line

► Continuous processing

Question No: 25 ( Marks: 1 ) – Please choose one

Quality, costs, lead times, operating resources are all related to which one of the

following strategies.

► Organizational strategy

► Financial strategy

► Operational strategy

► Tectical strategy

Os is related to products, processes, methods, operating resources, quality,

costs, lead times, and scheduling.

Question No: 26 ( Marks: 1 ) – Please choose one

Which one of the following refers to bringing together engineering design and

manufacturing personnel early in the design phase.

► Reverse engineering

► Concurrent engineering

► Manufacturability

► Serviceability

(Handout page 53) Concurrent engineering is the bringing together of engineering design

and manufacturing personnel early in the design phase.

Question No: 27 ( Marks: 1 ) – Please choose one

Which of the following refers to the way an organization chooses to produce its goods or

services?

► Process selection

► Process reengineering

► Process redesign

► Process design

(page 77) Process Selection refers to the way an organization chooses to produce its

good or services

Question No: 28 ( Marks: 1 ) – Please choose one

Which one of the following is the first step in line balancing?

► To specify the sequential relationship among tasks.

► To determine the required cycle time.

► To determine the minimum number of workstations.

► To determine the desired output

Paper 6

MIDTERM EXAMINATION Spring 2010

MGT613- Production and operation management (Session – 3)

Question No: 1 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per shift?

► Capital

► Energy

Labor

► Machine

Page#19 Labor Productivity Units of output per shift

Question No: 2 ( Marks: 1 ) – Please choose one

All of the following are the decision areas of an operations manager EXCEPT:

► Inventory management

► Scheduling tasks

► Supply chain management

Financial reporting

http://wiki.answers.com/Q/What_are_Operations_management_decisions

Question No: 3 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute value?

► (Quality + Speed – Flexibility) / Cost

(Quality + Speed+ Flexibility) / Cost

► (Quality + Speed – Cost) / Flexibility

► (Quality + Speed+ Cost) / Flexibility

Value= Performance/Cost= (Quality +Speed+ Flexibility)/Cost_______ Eq. 1

Question No: 4 ( Marks: 1 ) – Please choose one

Which of the following refers to the essential elements of operations strategy?

► Policies, tactics and objectives

► Plans, strategies and vision

Mission, goals and plans

►Mission, policies and distinctive competencies

Question No: 5 ( Marks: 1 ) – Please choose one

As a manager, you have defined the purpose of the forecasts. What should be

the next step in forecasting process?

► Choose a forecasting technique.

► Determine the purpose of the forecast.

Set up a time horizon or a time limit.

► Collect and analyze the appropriate data.

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques is used to identify a trend when

data is neither growing nor declining rapidly and has no seasonal characteristics?

Simple moving average

►Delphimethod

► Trend adjusted forecast

► Naïve forecast

Ref:The Moving Average model takes the average of several periods of

data; the result is a dampened or smoothed data set; use this model

when demand is stable and there is no evidence of a trend or seasonal

pattern.

Question No: 7 ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions is used to compute utilization?

► Actual output / effective capacity

Actual output / design capacity

► Actual output + effective capacity

► Actual output -effective capacity

Question No: 8 ( Marks: 1 ) – Please choose one

Effective capacity is influenced by all of the following factors EXCEPT:

► Facilities

Product mix

► Processes

► Operations

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following is concerned with short term capacity needs?

► Cycle

► Trends

Seasonality

► Average

(page 76)Long term capacity decisions relate to overall level of capacity while short

term capacity decisions refer to seasonal, random or irregular variations in demand.

Question No: 10 ( Marks: 1 ) – Please choose one

Which of the following statements is correct about capacity evaluating alternatives?

Minimum cost and optimal operating rate are functions of size of plant

► Minimum cost and optimal operating rate are functions of fixed cost.

► Minimum cost and productivity are functions of size of plant.

► Maximum cost and optimal operating rate are functions of size of plant.

 (page 6)

Question No: 11 ( Marks: 1 ) – Please choose one

Which of the following is an example of a business that uses assembly line process

structure?

Automobile assembly

► Sugar refinery

► Heavy equipment

► French restaurants

Question No: 12 ( Marks: 1 ) – Please choose one

Which of the following layout types is associated with a supermarket?

► Fixed position layout

Process layout

► Product layout

► Cellular layout

(

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following defines the range of the smoothing constant (Alpha)?

► 2 and -2

► 1 and -1

► 0 and -1

0 and 1

The value of α can be between 0 and 1.

Question No: 14 ( Marks: 1 ) – Please choose one

Which method of forecasting is most widely used?

► Regression analysis

► Adaptive forecasting

► Weighted moving average

Exponential smoothing

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following refers to a design that takes into account organization’s

operational capabilities, when designing a product?

► Design for assembly

Design for manufacturing

► Design for recycling

► Design for disassembly

Page#51

Design for Manufacturing (DFM): The designers’ consideration of the

organization’s manufacturing capabilities when designing a product. The more

general term design for operations encompasses services as well as manufacturing

Question No: 16 ( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for

300 hours between repairs, and the mean repair time is expected to be 2 hours?

► 6.02

► 2.0

0.99

► 0.006

Calculation: Availability = (MTBF)/(MTBF + MTR)

Where, MTBF = Mean time between factor =300

MTR = Mean repair time =2 hours

Availability = (300)/(300+2)

=300/302

= 0.99

Question No: 17 ( Marks: 1 ) – Please choose one

Which of the following management level is responsible for long-range capacity

planning?

► Lower management

► Middle management

Top management

► Non managerial employees

Question No: 18 ( Marks: 1 ) – Please choose one

Which of the following is NOT an emerging trend in the workplace?

► Increasing workplace diversity

Decreasing work schedule flexibility

► Increasing number of part time jobs

► Increasing use of temporary labor

http://highered.mcgrawhill.

com/sites/0072402857/student_view0/chapter10/multiple_choice_qui

z.html

Question No: 19 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a business application of forecasting?

► Budgeting

► Capacity planning

► Inventory management

Quality control

Page#31 Forecasting in business forms the basis for budgeting and planning for

capacity, sales, production, inventory, manpower, purchasing and more.

Question No: 20 ( Marks: 1 ) – Please choose one

Which one of the following is an example of site related factors that affect location

decision?

Transportation

► Quality of life

► Location of new markets

► Location of raw materials

Ref: Site Related Factors

•Land

•Transportation

•Environmental

•Legal

Question No: 21 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about work sampling?

► It describes individual human motions that are used in a job task

► It involves determining the length of time it will take to undertake a particular

task

It involves determining the amount of time a worker spends on various

activities

► It provides standard times for micro motions such as reach, move and release

Reference

Question No: 22 ( Marks: 1 ) – Please choose one

Services differ from manufacturing in all the following ways EXCEPT:

► Customers typically interact directly with the service delivery process.

► Consumption and production take place simultaneously.

► Services are intangible.

Services can be stored.

Question No: 23 ( Marks: 1 ) – Please choose one

Which of the following is NOT an attribute to classify services?

Tangibility

► Perishability

► Simultaneity

► Courtesy

Question No: 24 ( Marks: 1 ) – Please choose one

Organizational strategies relate to which of the following sets of factors?

Survival, profitability, growth rate and market share

► Profitability, survival, lead times and target market

► Quality, operating resources, growth rate and market share

► Scheduling, profitability, lead times and survival

Question No: 25 ( Marks: 1 ) – Please choose one

The purpose of ___________ is to coordinate and control all the required sources so

that productive system can be used efficiently and to ensure the delivery of product

in time.

► Total quality control

Demand management

► Forecasting

► Operations management

Question No: 26 ( Marks: 1 ) – Please choose one

Which one of the following forecasting methods uses subjective inputs such as

opinions from consumer surveys, sales staff, managers and experts?

► Time series model

►Least Squaremethod

Judgmental forecasting model

► Associative forecasting model

Page# 35 · Judgmental – uses subjective inputs meaning that a judgmental

forecast rely on analysis of subjective inputs obtained from various sources,

such as consumer surveys, the sales staff, managers and executives, and

panels of experts. These insights are not available publicly.

Question No: 27 ( Marks: 1 ) – Please choose one

Which one of the following refers to translating the voice of the customer into

technical design requirements?

► Concurrent design

► Design for manufacture

► Robust design

Quality function deployment

Question No: 28 ( Marks: 1 ) – Please choose one

Which one of the following statements represents use of cost-volume analysis?

► It is a tool for reliability measurement

► It provides a base for marketing research

It helps in comparing capacity alternatives

► It is important in product design

Page#73 Cost Volume Relationship focuses on relationships between costs, revenue

and volume of output. The primary purpose of cost volume analysis is to estimate

the income of an organization under different operating conditions. It is particularly

useful as a tool for comparing capacity alternatives.

Paper 7

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 1)

Question No: 1 ( Marks: 1 ) – Please choose one

A business process is a logical set of tasks or activities that:

Are specific to the operations function

Are specific to the marketing function

Are interdependent with other processes

Have exactly the same performance measures for any process

Question No: 2 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute value?

(Quality + Speed – Flexibility) / Cost

(Quality + Speed+ Flexibility) / Cost

(Quality + Speed – Cost) / Flexibility

(Quality + Speed+ Cost) / Flexibility

Question No: 3 ( Marks: 1 ) – Please choose one

Which of the following is referred to as plans for achieving goals?

Rules

Strategies

Policies

Mission

(page 17)

Question No: 4 ( Marks: 1 ) – Please choose one

Which of the following statements corresponds to an order-winning characteristic?

A factor which may be significant in other parts of the organization

A factor which gives an organization a competitive edge

A factor which serves as a minimum standard for purchase

A factor which increases the profitability of the organization

Question No: 5 ( Marks: 1 ) – Please choose one

To make operations strategy effective it should be:

Independent of the organization’s strategy

Consistent with the organization’s strategy

Developed by a first line manager

Independent of time dimension

page#14 Operations strategy – The approach, consistent with organization strategy

that is used to guide the operations function

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following techniques uses historical data to predict future value of a

variable of interest?

Time series method

Causal forecasting method

Qualitative forecasting method

Intuitive forecasting method

(page 35)Time series - uses historical data assuming the future will be like the past and

depend on developing relationships between variables that can be expressed to predict

future values. future

Question No: 7 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques uses explanatory variables to predict

future demand?

Associative forecast

Time series forecast

Consumer survey

Executive opinion

(Handout page 35) Associative models - uses explanatory variables to predict the

future for example demand for a small car may be dependant upon increase in price of

petrol or CNG

Question No: 8 ( Marks: 1 ) – Please choose one

Which one of the following involves completing a series of questionnaires each

developed from the previous one, to achieve a consensus forecast?

Consumer surveys

Executive opinion

Time series forecast

Delphi method

(page 35) Managers and staff complete a series of questionnaires, each developed from

the previous one, to achieve a consensus forecast.

Question No: 9 ( Marks: 1 ) – Please choose one

In which one of the following situations, the use of a decision tree is required instead of a

payoff table?

When there are more than three states of nature

When there are more than three decision payoffs

When the decision situation encompasses an extended time period

When a series of decisions is required

If a decision situation requires a series of decisions, then a payoff table cannot be

created, and a decision tree becomes the best method for decision analysis.

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following is an outcome of Maximin criterion?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

(page 55)

Question No: 11 ( Marks: 1 ) – Please choose one

Given the table:

Possible Alternatives future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility 12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff underLAPLACEapproach?

Rs. 9,000

Rs. 16,000

Rs. 33,000

Rs. 16,500

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following is called as the difference between designed and utilized

capacity?

Design capacity( not sure )

Effective capacity

Buffer capacity

Utilization rate

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions is used to compute utilization?

Actual output / effective capacity

Actual output / design capacity

Actual output + effective capacity

Actual output – design capacity

(Handout page 66)

Question No: 14 ( Marks: 1 ) – Please choose one

Which of the following terms of financial analysis are important for the organization to

proceed with a capacity alternative decision?

Cash flow and fixed cost

Present value and fixed cost

Cash flow and present value

Cash flow and profit

(page 76)Capacity alternatives are often evaluated with the aid of certain financial

analyses. Operations manager along with managerial accountant often work to

calculate what cash flow or present value

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following is the first step in line balancing?

Specify the sequential relationship among tasks.

Determine the required cycle time.

Determine the minimum number of workstations.

Determine the desired output

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following layout types is associated with car assembly?

Fixed position layout

Process layout

Product layout

Hybrid layout

Product – Layout should suit to the nature of product and its method of

production. i.e. aircraft manufacturing and car manufacturing layouts will be

different. Sales also affects the layout.

Question No: 17 ( Marks: 1 ) – Please choose one

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

Question No: 18 ( Marks: 1 ) – Please choose one

What would be the output capacity if an assembly line operates for 7 hours per day with a

cycle time of 2.0 minutes?

210 units per day

3.5 units per day

0.004 units per day

14 units per day

Question No: 19 ( Marks: 1 ) – Please choose one

Which of the following probability distribution is used most extensively in dealing with

forecasting errors?

Normal

Exponential

Beta

Pareto

(question 10)http://highered.mcgrawhill.

com/sites/0072443901/student_view0/chapter3/self_quiz_from_cd.html

Question No: 20 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the product?

Functional design

Production design

Service design

Product design

Question No: 21 ( Marks: 1 ) – Please choose one

Which of the following factors are considered in product and service design?

Customer satisfaction, quality, and improvement costs

Employee motivation, quality, and production costs

Customer satisfaction, flexibility, and production costs

Customer satisfaction, quality, and production costs

Page#44

A good product/service design can ensure customer satisfaction, quality and

production costs

Question No: 22 ( Marks: 1 ) – Please choose one

An automatic car wash is an example of which of the following?

Customized service

Batch processing

Intermittent processing

Standardized service

Standardized service implies that every customer or item processed receives

essentially the same service. An automatic car wash is a good example; each car,

regardless of how clean or dirty it is, receives the same service. Standardized

processes deliver standardized service or produce standardized goods.

http://highered.mcgraw-hill.com/sites/dl/free/0070911894/90584/2ndSampleCh4.pdf

Question No: 23 ( Marks: 1 ) – Please choose one

Which of the following is an advantage of standardization?

Frozen designs

Customized parts

Interchangeable parts

Reduced variety

Question No: 24 ( Marks: 1 ) – Please choose one

Which one of the following is the most significant disadvantage of standardization?

Reduced design costs

Interchangeable parts

Reduced variety

Customized parts

Question No: 25 ( Marks: 1 ) – Please choose one

Product life cycle is based on which of the following components?

Place

Demand

Supply

Price

Question No: 26 ( Marks: 1 ) – Please choose one

Which one of the following is the final stage of product life cycle?

Growth

Decline

Maturity

Planning

Question No: 27 ( Marks: 1 ) – Please choose one

Which one of the following statements relates to the final stage of product life cycle?

Improve reliability, and reduce production costs

Improve packaging, and reliability

Improve reliability, and reduce quality

Improve reliability, and reduce promotion costs

Question No: 28 ( Marks: 1 ) – Please choose one

Which of the following refers to translate the voice of the customer into technical design

requirements?

Concurrent design

Design for manufacture

Robust design

Quality functional deployment

(page43)

Question No: 29 ( Marks: 1 ) – Please choose one

Which one of the following is correct about the range of availability on a measuring

index?

0.1 to 1.0

0 to 1.0

0.5 to 1.0

0.01 to 1.0

Question No: 30 ( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for 250

hours between repairs, and the mean repair time is expected to be 3 hours?

1.01

5.03

3.0

0.98

Availability = (MTBF)/(MTBF + MTR)

Question No: 31 ( Marks: 1 ) – Please choose one

Capacity planning involves answering all of the following questions EXCEPT:

What kind of capacity is needed?

How much is needed?

When is it needed?

Who is going to decide?

P–64

1. What kind of capacity is needed?

2. How much is needed?

3. When is it needed?

Question No: 32 ( Marks: 1 ) – Please choose one

The disadvantages of specialization to management include all of the following

EXCEPT:

More absenteeism

Minimum responsibility

More turnovers

More difficult to teach the job

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following refers to a team having representatives from different

functional areas of the organization?

Traditional work group

Self-directed team

Cross-functional team

Self motivated team

(page 109)

Question No: 34 ( Marks: 1 ) – Please choose one

Which one of the following refers to the length of time needed to complete a job?

Work sampling methods

Work measurement

Job design

Methods analysis

(page 90) Work Measurement determines how long it should take to do a job.

Question No: 35 ( Marks: 1 ) – Please choose one

Which one of the following location strategies follows a decentralized approach?

Process plant strategy

Market area plant strategy

Cost conservation strategy

Product plant strategy

 

Question No: 36 ( Marks: 1 ) – Please choose one

Which one of the following location strategies is favored by automobile manufacturers?

Product plant strategy

Process plant strategy

Market area plant strategy

Cost conservation strategy

Question No: 37 ( Marks: 1 ) – Please choose one

Which of the following refers to bringing together engineering design and

manufacturing personnel early in the design phase.

Reverse engineering

Concurrent engineering

Manufacturability

Serviceability

(Handout page 53) Concurrent engineering is the bringing together of engineering design

and manufacturing personnel early in the design phase.

Question No: 38 ( Marks: 1 ) – Please choose one

Which of the following is the primary input in capacity planning?

Supply chain capabilities

Competitors’ strengths

Demand forecasts

Overall cost estimates

Question No: 39 ( Marks: 1 ) – Please choose one

Which of the following best describes the concept of the value chain?

The step-wise increases in product prices as raw materials are turned into goods/services

Adding financial value to an organization through the acquisition of other firms

A sequence of activities that involve movement of materials in a production facility

All steps in the transformation process that add value even if they don’t come from

manufacturing

Question No: 40 ( Marks: 1 ) – Please choose one

The Strategies which are more focused on maintaining or improving the quality of an

organization’s products or services are known as:

Quality at the source

Time based strategies

Cost leadership strategies

Quality-based strategies

Page#18 •Quality-based strategies

Ø Focuses on maintaining or improving the quality of an organization’s products or

services

Paper 8

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 2)

Question No: 1 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per dollar input?

Capital

Energy

Labor

Machine

Question No: 2 ( Marks: 1 ) – Please choose one

What would be the productivity if a machine produced 50 units in 3 hours?

0.066 units per hr

16.66 units per hr

6.766 units per hr

60.66 units per hr

50/3=16.66

Question No: 3 ( Marks: 1 ) – Please choose one

The major business function consisting of research and development, product design,

manufacturing, marketing, distribution, and customer service is refers to:

Value chain

The transformation process

Quality control

Life cycle

Page#379

Question No: 4 ( Marks: 1 ) – Please choose one

Which of the following is NOT usually considered a general characteristic of a service?

Production and sales cannot easily be separated functionally

Many services involve both tangible and intangible outputs

Production and consumption can always be separated

Degree of customer contact is high

Question No: 5 ( Marks: 1 ) – Please choose one

Which of the following statements corresponds to an order-winning characteristic?

A factor which may be significant in other parts of the organization

A factor which gives an organization a competitive edge

A factor which serves as a minimum standard for purchase

A factor which increases the profitability of the organization

(Handout page 15)order winners are the characteristics of an organization’s services

that cause it to be perceived as better than the competitors services

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following is an implication ofLaplaceapproach of decision making?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

Page#27

Determines the Average payoff for each alternative

Ø And chooses the alternative with the best average.

Ø This is a cautious approach

Ø Laplace approach treats the states of nature as equally likely

Question No: 7 ( Marks: 1 ) – Please choose one

Which one of the following is an outcome of Maximin criterion?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

Question No: 8 ( Marks: 1 ) – Please choose one

Given the table:

Possible Alternatives future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility 12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff under MAXIMIN approach?

Rs. 8,000

Rs. 12,000

Rs. 18,000

Rs. 20,000

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques is used to identify a trend when data is

neither growing nor declining rapidly and has no seasonal characteristics?

Simple moving average

Delphimethod

Trend adjusted forecast

Naïve forecast

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following refers to the maximum output that a firm can produce under

ideal conditions?

Design capacity

Effective capacity

Capacity planning

Utilization rate

Question No: 11 ( Marks: 1 ) – Please choose one

Which one of the following perspectives is the most obvious to be considered while

evaluating alternatives for future capacity?

Social

Political

Economic

Legal

Question No: 12 ( Marks: 1 ) – Please choose one

Which of the following terms of financial analysis are important for the organization to

proceed with a capacity alternative decision?

Cash flow and fixed cost

Present value and fixed cost

Cash flow and present value

Cash flow and profit

(page 76)Capacity alternatives are often evaluated with the aid of certain financial

analyses. Operations manager along with managerial accountant often work to

calculate what cash flow or present value

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following manufacturing process is associated with high volume car

manufacture?

Job shop

Assembly line

Batch

Automation

Question No: 14 ( Marks: 1 ) – Please choose one

The formula for determining the required cycle time is operation time per day divided by:

Sum of task times

Actual output per day (in units)

Number of workstation

Desired output (in units)

Question No: 15 ( Marks: 1 ) – Please choose one

Assembly lines relate most closely to a:

Functional layout

Product layout

Process layout

Departmental layout

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following layout type is associated with a restaurant?

Fixed position layout

Process layout

Product layout

Hybrid layout

Question No: 17 ( Marks: 1 ) – Please choose one

Which of the following forecasting technique is based on the assumption that past data is

more indicative of the future than the most recent occurrences?

Exponential smoothing

Linear regression

Judgmental forecast (not sure )

Naive forecast

Question No: 18 ( Marks: 1 ) – Please choose one

In exponential smoothing model, a denotes:

Smoothing constant

Actual forecast

Forecast error

Previous forecast

Page#40

Exponential Smoothing Model

a = Alpha smoothing constant

Question No: 19 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the product?

Functional design

Production design

Service design

Product design

Product design (i.e., industrial design) is perhaps most associated with aesthetic

considerations (Bel Geddes 1934, pp. 222-241).

Question No: 20 ( Marks: 1 ) – Please choose one

Which of the following factors are considered in product and service design?

Customer satisfaction, quality, and improvement costs

Employee motivation, quality, and production costs

Customer satisfaction, flexibility, and production costs

Customer satisfaction, quality, and production costs

Page#44.A good product/service design can ensure customer satisfaction, quality

and production costs

Question No: 21 ( Marks: 1 ) – Please choose one

Which one of the following is the overall objective of product and service design?

Customer satisfaction and variety

Customer satisfaction and profitability

Reliability and variety

Quality and reliability

Page#44,Importance of Product/Service Design

Product/Service design plays a strategic role in helping an organization achieve its

goals. A good product/service design can ensure customer satisfaction, quality and

production costs

Question No: 22 ( Marks: 1 ) – Please choose one

CBR stands for which one of the following?

Commercial board of revenue

Central board of recycling

Central board of renovation

Central board of revenue

Question No: 23 ( Marks: 1 ) – Please choose one

Which one of the following designs resists modifications?

Frozen design (not sure)

Product design

Service design

Robust design

Question No: 24 ( Marks: 1 ) – Please choose one

Which one of the following is a curve showing failure rate over time?

Cost curve

Bath tub curve

Fish bone diagram

Reliability curve

Question No: 25 ( Marks: 1 ) – Please choose one

Which of the following management level is responsible for long-range capacity

planning?

Lower management

Middle management

Top management

Non managerial employees

REF:

* Require an extensive knowledge of management roles and skills.

* They have to be very aware of external factors such as markets.

* Their decisions are generally of a long-term nature

* Their decisions are made using analytic, directive, conceptual and/or

behavioral/participative processes

http://en.wikipedia.org/wiki/Management

Question No: 26 ( Marks: 1 ) – Please choose one

Capacity planning involves answering all of the following questions EXCEPT:

What kind of capacity is needed?

How much is needed?

When is it needed?

Who is going to decide?

Page#64

1.What kind of capacity is needed?

2. How much is needed?

3. When is it needed?

Question No: 27 ( Marks: 1 ) – Please choose one

The advantages of specialization to management include all of the following EXCEPT:

Rapid training of the workforce

Ease in recruiting new workers

Fewer turnovers

Less boredom for workers

Q#5

Question No: 28 ( Marks: 1 ) – Please choose one

The disadvantages of specialization to management include all of the following

EXCEPT:

More absenteeism

Minimum responsibility

More turnovers

More difficult to teach the job

Q#6

Question No: 29 ( Marks: 1 ) – Please choose one

Technology has impacted the work place by:

Adding to the existing geographical barriers for recruiting

Increasing the cost of telecommuting

Increasing the amount required to be spent on training

Unifying the workforce to a common skill level

Q#10

Question No: 30 ( Marks: 1 ) – Please choose one

Which of the following can be used to compute standard time?

Multiplying the elemental average time by the rating factor

Dividing the average elemental time by the rating factor

Multiplying the normal cycle time by the rating factor

Multiplying the normal cycle time by one plus the allowance factor

P#92, Standard Time=ST=NT X AF is the normal time plus allowance for delays

like ( getting a glass of water or going to the washroom human needs)

Question No: 31 ( Marks: 1 ) – Please choose one

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

Question No: 32 ( Marks: 1 ) – Please choose one

Which one of the following is an example of community factors that affect location

decisions?

Transportation

Quality of life

Location of new markets

Location of raw materials

Page#96Community Considerations

􀀀 Quality of life

􀀀 Services

􀀀 Attitudes

􀀀 Taxes

􀀀 Environmental regulations

􀀀 Utilities

􀀀 Developer support

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following is an example of site related factors that affect location

decision?

Transportation

Quality of life

Location of new markets

Location of raw materials

Page#96

Site Related Factors

•Land

•Transportation

•Environmental

•Legal

Question No: 34 ( Marks: 1 ) – Please choose one

Which one of the following location strategies follows a decentralized approach?

Process plant strategy

Market area plant strategy

Cost conservation strategy

Product plant strategy

Question No: 35 ( Marks: 1 ) – Please choose one

Which of the following is the primary input in capacity planning?

Supply chain capabilities

Competitors’ strengths

Demand forecasts

Overall cost estimates

(Handouts Page#31)And other ref:

For conventional goods, demand forecasts are used to set safety stock and

replenishment levels; to drive procurement, especially of long lead-time

items; to establish production plans; and as input to capacity and financial

planning processes. In services, demand forecasts are used primarily for

financial planning, capacity and workforce planning.

Question No: 36 ( Marks: 1 ) – Please choose one

Which of the following statements would generally be considered as correct job shop?

A continuous process has lower output volume as compared to job shop

Equipment flexibility is lower in job shop than that of a continuous process

Labour costs are higher in a Job Shop operation than in most other processes

Batch processing produces a more standard range of products than continuous flow

processes

Question No: 37 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about work sampling?

It describes individual human motions that are used in a job task

It involves determining the length of time it will take to undertake a particular task

It involves determining the amount of time a worker spends on various activities

It provides standard times for micro motions such as reach, move and release

Work Sampling is the statistical technique for determining the proportion of time

spent by workers in various defined categories of activity (e.g. setting up a machine,

assembling two parts, idle…etc

Question No: 38 ( Marks: 1 ) – Please choose one

Services differ from manufacturing in all the following ways EXCEPT:

Customers typically interact directly with the service delivery process.

Consumption and production take place simultaneously.

Services are intangible.

Services can be stored.

Question No: 39 ( Marks: 1 ) – Please choose one

___________ Purpose is to coordinate and control all the required sources so that

productive system can be used efficiently and to ensure the delivery of product in time.

Total quality control’s

Demand management’s

Forecasting’s

Operations management’s

Question No: 40 ( Marks: 1 ) – Please choose one

Forecasting for groups tend to be more accurate than forecasting for individual items

because:

A group is composed of a number of items

A group exhibits a uniform behavior

A group cancels the forecasting errors among items

A group behavior is relatively less uncertain

Page#33·Forecasts more accurate for groups vs. individuals naturally because

forecasting errors in a group tend to cancel out forecasting errors for individuals.

Paper 9

MGT613 mid 2010

Question No: 1 ( Marks: 1 ) – Please choose one

Who developed the use of standardization in large-scale mass production using a

moving assembly line?

► Frederick Winslow Taylor

► Frank Gilbreth

► Adam Smith

Henry Ford

Question No: 2 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per shift?

► Capital

► Energy

Labor

► Machine

Page#19 Labor Productivity: Units of output per shift

Question No: 3 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per dollar input?

Capital

► Energy

► Labor

► Machine

Question No: 4 ( Marks: 1 ) – Please choose one

Which one of the following is a measure of productivity that involves measuring

inputs and outputs using a common unit of measurement?

Multifactor

► Partial

► Single

► Total

Question No: 5 ( Marks: 1 ) – Please choose one

What would be the productivity if 9 workers installed 650 square yards of carpeting

in 6 hours?

12.03 square yards/hr

► 72.20 square yards/hr

► 108.30 square yards/hr

► 5850 square yards/hr

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute value?

► (Quality + Speed – Flexibility) / Cost

(Quality + Speed+ Flexibility) / Cost

► (Quality + Speed – Cost) / Flexibility

► (Quality + Speed+ Cost) / Flexibility

Question No: 7 ( Marks: 1 ) – Please choose one

All of the following are examples of quantitative forecasting EXCEPT:

Delphi method

► Time series analysis

► Associative models

► Naïve forecasting

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following is a limitation of a moving average having a trend?

The forecast lags behind the actual

► The forecast represents demand more accurately

► The forecast will not be accurate

► The forecast will not be reliable

Question No: 10 ( Marks: 1 ) – Please choose one

Which one of the following is an index used to measure actual output relative to

design capacity?

► Efficiency

► Effective capacity

► Effectiveness

Utilization

Question No: 11 ( Marks: 1 ) – Please choose one

What would be the utilization, if 34 cars are produced in a day with a design capacity

of 50 cars per day?

68%

► 1.47%

► 84%

► 16%

Utilization = Actual Output/ Design Capacity

=34/50

68%

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following stages of product life cycle relates to more predictable

behavior in terms of capacity requirements?

► Introduction

► Growth

Maturity (not sure )

► Decline

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following layout types is associated with car assembly?

► Fixed position layout

► Process layout

Product layout

► Hybrid layout

Question No: 14 ( Marks: 1 ) – Please choose one

Which of the following probability distribution is used most extensively in dealing

with forecasting errors?

Normal

► Exponential

► Beta

► Pareto

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following is an application of simple exponential smoothing?

► Establishing durability

► Finding reliability

Scheduling services

► Quality improvement

Question No: 16 ( Marks: 1 ) – Please choose one

Which of the following forecasting technique is based on the assumption that past

data is more indicative of the future than the most recent occurrences?

► Naive forecast

► Exponential smoothing

► Linear regression

Judgmental forecast (review again)

Question No: 17 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the

product?

► Functional design

► Production design

► Service design

Product design

Question No: 18 ( Marks: 1 ) – Please choose one

Which one of the following is the overall objective of product and service design?

► Customer satisfaction and variety

Customer satisfaction and profitability

► Reliability and variety

► Quality and reliability

Question No: 19 ( Marks: 1 ) – Please choose one

Which one of the following is the final stage of product life cycle?

► Growth

Decline

► Maturity

► Planning

Question No: 20 ( Marks: 1 ) – Please choose one

Which one of the following is the goal of method analysis?

Dividing and analyzing a job

► Check individual human motions used to perform an operation

► Determining the length of time it will take to undertake a particular task

► Determining the amount of time a worker spends on various activities

Question No: 21 ( Marks: 1 ) – Please choose one

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

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following location strategies follows a decentralized approach?

► Process plant strategy

► Market area plant strategy

► Cost conservation strategy

Product plant strategy

Question No: 23 ( Marks: 1 ) – Please choose one

Which one of the following location strategies is favored by automobile

manufacturers?

► Product plant strategy

Process plant strategy

► Market area plant strategy

► Cost conservation strategy

Reference (Page#369)

Question No: 24 ( Marks: 1 ) – Please choose one

In which of the following approaches location decision is based on personal opinions

and quantitative information?

Factor rating

► Market area plant strategy

► Currency fluctuations

► Product plant strategy

Question No: 25 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about the importance of capacity planning?

► It is profitable

It increase the capacity of productive unit

► It helps managers quantify production capability

► It establishes good relationship with the customer

Acts as a major determinant of initial costs. It is typical to see that greater the

capacity of a productive unit, greater would be the cost. (page 65)

Question No: 26 ( Marks: 1 ) – Please choose one

Organizational strategies relate to which of the following sets of factors?

Survival, profitability, growth rate and market share

► Profitability, survival, lead times and target market

► Quality, operating resources, growth rate and market share

► Scheduling, profitability, lead times and survival

Question No: 27 ( Marks: 1 ) – Please choose one

Which one of the following forecasting methods uses subjective inputs such as

opinions from consumer surveys, sales staff, managers and experts?

► Time series model

►Least Squaremethod

Judgmental forecasting model

► Associative forecasting model

Page# 35 · Judgmental – uses subjective inputs meaning that a judgmental

forecast rely on analysis of subjective inputs obtained from various sources,

such as consumer surveys, the sales staff, managers and executives, and

panels of experts. These insights are not available publicly.

Question No: 28 ( Marks: 1 ) – Please choose one

Transportation method helps in solving which of the following problems?

Facility location problems

► Allocation of cost problems

► Workforce management problems

► Unfamiliar laws and regulaitons problems

Page#28 Transportation Method

Transportation Method is a quantitative approach that can help solve multiple

facility location problems.

Paper 10

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 1)

A business process is a logical set of tasks or activities that:

Are specific to the operations function

Are specific to the marketing function

Are interdependent with other processes

Have exactly the same performance measures for any process

Which of the following is referred to as plans for achieving goals?

Rules

Strategies

Policies

Mission

To make operations strategy effective it should be:

Independent of the organization’s strategy

Consistent with the organization’s strategy

Developed by a first line manager

Independent of time dimension

Chapter 1, Heizer/Render, 5th edition

Operations strategy is the approach consistent with organization strategy that

is used to guide the operations function. It is narrower in scope, dealing with

the operations aspect of the organization

Which one of the following techniques uses historical data to predict future

value of a variable of interest?

Time series method

Causal forecasting method

Qualitative forecasting method

Intuitive forecasting method

􀀀􀀀T time series - uses historical data assuming the future will be like the past

and depend on developing relationships between variables that can be

expressed to predict future values. Some time series forecast try to smoothen

out random variations in historical data. There are some time series forecast

which identify specific patterns and then may even extrapolate those patterns

into the future.

Which one of the following forecasting techniques uses explanatory variables

to predict future demand?

Associative forecast

Time series forecast

Consumer survey

Executive opinion

Ref: • Associative models – uses explanatory variables to predict the future for

example demand for a small car may be dependant upon increase in price of

petrol or CNG. The analysis in this case would employ a mathematical model

that would relate the predicted variable with the predictor variable or

variables.

Which one of the following involves completing a series of questionnaires

each developed from the previous one, to achieve a consensus forecast?

Consumer surveys

Executive opinion

Time series forecast

Delphi method

􀀀Delphi method: Managers and staff complete a series of questionnaires, each

developed from the previous one, to achieve a consensus forecast.

In which one of the following situations, the use of a decision tree is required

instead of a payoff table?

When there are more than three states of nature

When there are more than three decision payoffs

When the decision situation encompasses an extended time period

When a series of decisions is required

Decision Trees A schematic representation of the alternatives and their possible

consequences is presented graphically. You can refer

􀀀 The diagram resembles a tree

􀀀 Extremely suitable for analyzing and evaluating situations which involve

sequential decisions

􀀀 Decision Trees

http://businessmanagementcourses.org/Lesson37DecisionTheory&DecisionTre

es.pdf

Given the table:

Possible Alternatives future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility 12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff under LAPLACE approach?

Rs. 9,000

Rs. 16,000

Rs. 33,000

Rs. 16,500

Which one of the following is called as the difference between designed and

utilizes capacity?

Design capacity(not sure)

Effective capacity

Buffer capacity

Utilization rate

Which one of the following mathematical expressions is used to compute

utilization?

Actual output / effective capacity

Actual output / design capacity

Actual output + effective capacity

Actual output – design capacity

Which one of the following is the first step in line balancing?

Specify the sequential relationship among tasks.

Determine the required cycle time.

Determine the minimum number of workstations.

Determine the desired output

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

What would be the output capacity if an assembly line operates for 7 hours per

day with a cycle time of 2.0 minutes?

210 units per day

3.5 units per day

0.004 units per day

14 units per day

OC = Output capacity = OT/CT

=7/2.0

=3.5

Which of the following factors are considered in product and service design?

Customer satisfaction, quality, and improvement costs

Employee motivation, quality, and production costs

Customer satisfaction, flexibility, and production costs

Customer satisfaction, quality, and production costs

An automatic car wash is an example of which of the following?

Customized service

Batch processing

Intermittent processing

Standardized service

Which of the following is an advantage of standardization?

Frozen designs

Customized parts

Interchangeable parts

Reduced variety

Which one of the following is the most significant disadvantage of

standardization?

Reduced design costs

Interchangeable parts

Reduced variety

Customized parts

Product life cycle is based on which of the following components?

Place

Demand

Supply

Price

Which one of the following statements relates to the final stage of product life

cycle?

Improve reliability, and reduce production costs

Improve packaging, and reliability

Improve reliability, and reduce quality

Improve reliability, and reduce promotion costs

Which of the following refers to translate the voice of the customer into

technical design requirements?

Concurrent design

Design for manufacture

Robust design

Quality functional deployment

Which one of the following is correct about the range of availability on a

measuring index?

0.1 to 1.0

0 to 1.0

0.5 to 1.0

0.01 to 1.0

What would be the availability if a carpenter is expected to be able to operate

for 250 hours between repairs, and the mean repair time is expected to be 3

hours?

1.01

5.03

3.0

0.98

Which one of the following refers to a team having representatives from

different functional areas of the organization?

Traditional work group

Self-directed team

Cross-functional team

Self motivated team

Ref: Cross-functional systems were designed to integrate the activities of the

entire business process, and are called so because they ‘cross’ departmental

boundaries.

Which one of the following refers to the length of time needed to complete a

job?

Work sampling methods

Work measurement

Job design

Methods analysis

p—93 Work Measurement determines how long it should take to do a job.

Which of the following refers to bringing together engineering design and

manufacturing personnel early in the design phase?

Reverse engineering

Concurrent engineering

Manufacturability

Serviceability

p#53 Concurrent engineering is the bringing together of engineering design and

manufacturing personnel early in the design phase.

Which of the following is the primary input in capacity planning?

Supply chain capabilities

Competitors’ strengths

Demand forecasts

Overall cost estimates

Ref: For conventional goods, demand forecasts are used to set safety stock and

replenishment levels; to drive procurement, especially of long lead-time items;

to establish production plans; and as input to capacity and financial planning

processes. In services, demand forecasts are used primarily for financial

planning, capacity and workforce planning.

Which of the following best describes the concept of the value chain?

The step-wise increases in product prices as raw materials are turned into goods/services

Adding financial value to an organization through the acquisition of other firms

A sequence of activities that involve movement of materials in a production facility

All steps in the transformation process that add value even if they don’t come from

manufacturing

The Strategies which are more focused on maintaining or improving the

quality of an organization’s products or services are known as:

Quality at the source

Time based strategies

Cost leadership strategies

Quality-based strategies

p#18 􀀀Quality-based strategies

􀀀 focuses on maintaining or improving the quality of an organization’s

products or services

Paper 11

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 1)

Question No: 1 __ ( Marks: 1 ) – Please choose one

Which ONE of the following statements correctly explains the role of operation’s

manager?

To coordinate the activities between marketing and finance department

To sustain, protect and project the company’s long term strategies

To develop organizational strategy that reflects the operational strategy

To sustain, protect and project the company’s operation/production side

Question No: 2 __ ( Marks: 1 ) – Please choose one

Which one of the following decision is NOT made by operations managers?

How much capacity is required to balance demand?

What should be the location and layout of a facility?

How to improve operational efficiency?

Which market areas to manufacture the products for?

Question No: 3 __ ( Marks: 1 ) – Please choose one

The major business function consisting of research and development, product

design, manufacturing, marketing, distribution, and customer service is refers to:

Value chain

The transformation process

Quality control

Life cycle

Question No: 4 ( Marks: 1 ) – Please choose one

Which of the following is referred to as plans for achieving goals?

Rules

Strategies

Policies

Mission

Question No: 5 ( Marks: 1 ) – Please choose one

Which of the following statements corresponds to an order-winning

characteristic?

A factor which may be significant in other parts of the organization

A factor which gives an organization a competitive edge

A factor which serves as a minimum standard for purchase

A factor which increases the profitability of the organization

Question No: 6 __ ( Marks: 1 ) – Please choose one

Which of the following statements describes an order-qualifier characteristic?

A competitive dimension used to make final decision among competitors

A factor which directly and significantly contribute to winning business

A factor which increases the profitability of the organization

A factor perceived as a minimum standard as a potential for purchase

Page#15 Order qualifiers are those significant characteristics that service customers

perceive as minimum standards of acceptability to be considered as a potential

purchase while order winners

Question No: 7 __ ( Marks: 1 ) – Please choose one

As a manager, you have defined the purpose of the forecasts. What should be

the next step in forecasting process?

Choose a forecasting technique.

Determine the purpose of the forecast.

Set up a time horizon or a time limit.

Collect and analyze the appropriate data.

(Handout page 34)

Question No: 8 __ ( Marks: 1 ) – Please choose one

Which one of the following techniques uses historical data to predict future value

of a variable of interest?

Time series method

Causal forecasting method

Qualitative forecasting method

Intuitive forecasting method

Question No: 9 __ ( Marks: 1 ) – Please choose one

Which one of the following forecasting techniques use subjective inputs such as

opinions from consumer surveys, sales staff, managers and experts?

Time series

Quantitative

Judgmental

Associative

(Handout page 35)

Question No: 10 __ ( Marks: 1 ) – Please choose one

Which of the following approaches favors adopting a “go for it” strategy?

Maximin

Maximax

Minimax regret

Laplace

(Handout page 26)

Question No: 11 ( Marks: 1 ) – Please choose one

In which one of the following situations, the use of a decision tree is required

instead of a payoff table?

When there are more than three states of nature

When there are more than three decision payoffs

When the decision situation encompasses an extended time period

When a series of decisions is required

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following is a limitation of a moving average having a trend?

The forecast lags behind the actual

The forecast represents demand more accurately

The forecast will not be accurate

The forecast will not be reliable

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following reasons account for using moving average in

forecasting?

It eliminates the trend

It smoothes the random fluctuations

It counteracts the seasonal variations

It approximates the period average

Question No: 14 ( Marks: 1 ) – Please choose one

Which one of the following refers to the maximum output that a firm can produce

under ideal conditions?

Design capacity

Effective capacity

Capacity planning

Utilization rate

Question No: 15 __ ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions is used to compute

utilization?

Actual output / effective capacity

Actual output / design capacity

Actual output + effective capacity

Actual output – design capacity

(Handout page 66)

Question No: 16 ( Marks: 1 ) – Please choose one

What would be the utilization, if 40 cars are produced in a day with a design

capacity of 60 cars per day?

67%

20%

100%

150%

Actual output / design capacity

40/60 *100 = 67%

Question No: 17 ( Marks: 1 ) – Please choose one

Which of the following statements is correct about capacity evaluating

alternatives?

Minimum cost and optimal operating rate are functions of size of plant.

Minimum cost and optimal operating rate are functions of fixed cost.

Minimum cost and productivity are functions of size of plant.

Maximum cost and optimal operating rate are functions of size of plant.

Question No: 18 ( Marks: 1 ) – Please choose one

Which one of the following is the first step in line balancing?

Specify the sequential relationship among tasks.

Determine the required cycle time.

Determine the minimum number of workstations.

Determine the desired output

Question No: 19 ( Marks: 1 ) – Please choose one

The formula for determining the required cycle time is operation time per day

divided by:

Sum of task times

Actual output per day (in units)

Number of workstation

Desired output (in units)

Page#85 Cycle time is the maximum time allowed at each workstation to complete

its set of tasks on a unit. If CT represents cycle time and D represents the desired

output then we can calculate cycle time as

CT = cycle time = OT/D

Question No: 20 __ ( Marks: 1 ) – Please choose one

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

Question No: 21 __ ( Marks: 1 ) – Please choose one

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

CT = cycle time = OT/D

=9/300

=0.03

Question No: 22 __ ( Marks: 1 ) – Please choose one

What would be the output capacity if an assembly line operates for 7 hours per

day with a cycle time of 2.0 minutes?

210 units per day

3.5 units per day

0.004 units per day

14 units per day

OC Output capacity = OT/CT

=7/2.0

=3.5

Question No: 23 __ ( Marks: 1 ) – Please choose one

Which one of the following types of manufacturing layout is considered a hybrid?

Process layout

Product layout

Fixed-position layout

All of the given options

Page#80 Hybrid/Combination. A Layout that makes use of the combination of

Product, Process or Fixed Position Layout

Question No: 24 __ ( Marks: 1 ) – Please choose one

A department store discovered that in a four-month period, the best forecast can

be determined by using 50 percent of the sales for the most recent month, 20

percent of the sales of two months ago, 10 percent of the sales of three months

ago, and 20 percent of the sales of four months ago. Which forecasting method

should the store use to forecast demand?

Simple Moving Average

Linear Regression

Time Series Analysis

Weighted Moving Average

Question No: 25 __ ( Marks: 1 ) – Please choose one

Which of the following forecasting technique is based on the assumption that

past data is more indicative of the future than the most recent occurrences?

Exponential smoothing

Linear regression

Judgmental forecast (review again)

Naive forecast

Question No: 26 ( Marks: 1 ) – Please choose one

Which of the following takes into consideration the design of aesthetics of the

product?

Functional design

Production design

Service design

Product design

Question No: 27 ( Marks: 1 ) – Please choose one

Which of the following is an advantage of standardization?

Frozen designs

Customized parts

Interchangeable parts

Reduced variety

Slides No 11&13

Question No: 28 ( Marks: 1 ) – Please choose one

Which one of the following is the most significant disadvantage of

standardization?

Reduced design costs

Interchangeable parts

Reduced variety

Customized parts

See Slide#14

Question No: 29 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about Taguchi approach?

To test the robustness of a design

To articulate the “voice of the customer”

To reduce the degree of automation

To create a concurrent design

Page#52 Taguchi Approach To Robust Design

Question No: 30 ( Marks: 1 ) – Please choose one

Which one of the following is correct about the range of availability on a

measuring index?

0.1 to 1.0

0 to 1.0

0.5 to 1.0

0.01 to 1.0

Question No: 31 ( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for

350 hours between repairs, and the mean repair time is expected to be 3 hours?

0.99

1.0

3.0

7.03

Availability = (MTBF)/(MTBF + MTR)

=350/350+3

=0.99

Question No: 32 ( Marks: 1 ) – Please choose one

Which of the following management level is responsible for long-range capacity

planning?

Lower management

Middle management

Top management

Non managerial employees

REF:

* Require an extensive knowledge of management roles and skills.

* They have to be very aware of external factors such as markets.

* Their decisions are generally of a long-term nature

* Their decisions are made using analytic, directive, conceptual and/or

behavioral/participative processes

http://en.wikipedia.org/wiki/Management

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following refers to a team having representatives from different

functional areas of the organization?

Traditional work group

Self-directed team

Cross-functional team

Self motivated team

Reference (Page#109)

Question No: 34 ( Marks: 1 ) – Please choose one

Which of the following refers to changing the job role of one worker with another?

Job rotation

Job enlargement

Job enrichment

Job design

Question No: 35 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a business application of forecasting?

Budgeting

Capacity planning

Inventory management

Quality control

Page#31 Forecasting in business forms the basis for budgeting and planning for

capacity, sales, production, inventory, manpower, purchasing and more.

Question No: 36 __ ( Marks: 1 ) – Please choose one

Which one of the following is an example of site related factors that affect

location decision?

Transportation

Quality of life

Location of new markets

Location of raw materials

Page#96 Site Related Factors

Land

Transportation

Environmental

Legal

Question No: 37 __ ( Marks: 1 ) – Please choose one

In which of the following approaches location decision is based on personal

opinions and quantitative information?

Factor rating

Market area plant strategy

Currency fluctuations

Product plant strategy

Reference (Page#379)

Question No: 38 __ ( Marks: 1 ) – Please choose one

Which of the following best describes the concept of the value chain?

• The step-wise increases in product prices as raw materials are turned into

goods/services

Adding financial value to an organization through the acquisition of other firms

• A sequence of activities that involve movement of materials in a production

facility

• All steps in the transformation process that add value even if they don’t

come from manufacturing

Question No: 39 __ ( Marks: 1 ) – Please choose one

The Strategies which are more focused on maintaining or improving the quality of

an organization’s products or services are known as:

Quality at the source

Time based strategies

Cost leadership strategies

Quality-based strategies

Page#18 Quality-based strategies

􀀀 Focuses on maintaining or improving the quality of an organization’s products or

services

Question No: 40 __ ( Marks: 1 ) – Please choose one

Which one of the following describes the Naïve forecast?

Attempt to predict the future value based on the past data.

Determine long term upward or downward movement in data.

Forecast for any period equals the previous period’s actual value.

Collect outside opinion of consumer and potential customers.

Paper 12

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 1)

Question No: 1 ( Marks: 1 ) – Please choose one

The management of systems or processes that creates goods and provides services is

known as:

Operation Management

Operation/production Management

Operation/Research Management

Production/Research Management

Page#3 Operations Management (The management of systems or processes that create

goods and/or provide services)

Question No: 2 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity has units of output per shift?

Capital

Energy

Labor

Machine

Page#19

Labor Productivity

Units of output per labor hour

Units of output per shift

Value-added per labor hour

Question No: 3 ( Marks: 1 ) – Please choose one

Which one of the following forms of productivity is expressed as dollar value of output

per kilowatt hour?

Machine

Capital

Energy

Labor

Page#19 Energy Productivity

Units of output per kilowatt-hour

Rupee value of output per kilowatt-hour

Question No: 4 ( Marks: 1 ) – Please choose one

What would be the productivity if a machine produced 50 units in 3 hours?

0.066 units per hr

16.66 units per hr

6.766 units per hr

60.66 units per hr

Question No: 5 ( Marks: 1 ) – Please choose one

Which of the following functions of an organization consists of all activities directly

related to production of a good or service?

Operations

Marketing

Accounting

Finance

Question No: 6 ( Marks: 1 ) – Please choose one

Which of the following is NOT a decision to be made by operations managers?

How much capacity is required to balance demand?

What should be the location and layout of a facility?

How to improve operational efficiency?

Which market areas to manufacture the products for?

Question No: 7 ( Marks: 1 ) – Please choose one

All of the following are the decision areas of an operations manager EXCEPT:

Financial reporting

Inventory management

Scheduling tasks

Supply chain management

http://wiki.answers.com/Q/What_are_Operations_management_decisions

Question No: 8 ( Marks: 1 ) – Please choose one

Organizational strategies relate to which of the following sets of factors?

Survival, profitability, growth rate and market share

Profitability, survival, leads times and target market

Quality, operating resources, growth rate and market share

Scheduling, profitability, lead times and survival

Question No: 9 ( Marks: 1 ) – Please choose one

Which of the following statements describes an order-qualifier characteristic?

A competitive dimension used to make final decision among competitors

A factor which directly and significantly contribute to winning business

A factor which increases the profitability of the organization

A factor perceived as a minimum standard as a potential for purchase

Page#15 Order qualifiers are those significant characteristics that service customers

perceive as minimum standards of acceptability to be considered as a potential

purchase while order winners

Question No: 10 ( Marks: 1 ) – Please choose one

To make operations strategy effective it should be:

Independent of the organization’s strategy

Consistent with the organization’s strategy

Developed by a first line manager

Independent of time

page#14Operations strategy – The approach, consistent with organization strategy

that is used to guide the operations function

Question No: 11 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the qualitative forecasting technique?

It consists mainly of numerical descriptions and defies subjective inputs of managers.

It consists mainly of subjective inputs and defies particular numerical descriptions.

It consists mainly of subjective inputs and defies human factor, personal

opinions.

It consists mainly of analyzing objective and hard data and defies human factor,

opinion.

Page#34 Qualitative Techniques which use subjective inputs and no numerical data.

It relies solely on soft information like human factors, personal opinion, hunches.

Thus Qualitative Forecasts are often biased and tilted towards what the

management wants to predict.

Question No: 12 ( Marks: 1 ) – Please choose one

Which one of the following correctly explains the quantitative forecasting technique?

It consists mainly of numerical descriptions and resist subjective inputs of

managers.

It consists mainly of subjective inputs and resist particular numerical descriptions.

It consists mainly of subjective inputs and resisit human factor, personal opinions.

It consists mainly of analyzing objective and hard data and resist human factor,

opinion.

Question No: 14 ( Marks: 1 ) – Please choose one

Given the table:

Alternatives Possible future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff underLAPLACEapproach?

Rs. 9,000

Rs. 16,000

Rs. 33,000

Rs. 16,500

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a step of decision making process?

Develop alternatives

Monitor results

Consider risk averseness strategies

Specify criteria for decision

Page#24 Normally the decision making process involves the following six important steps

1. Specify Objectives and the Criteria for decision making

2. Develop Alternatives

3. Analyze and compare alternatives.

4. Select the best alternative.

5. Implement the chosen Alternative

6. Monitor the results to ensure the desired results are achieved.

Question No: 16 ( Marks: 1 ) – Please choose one

As an operations manager you have collected data about the demand of certain product

“P” over time “t”. The data shows short-term fairly regular variations over the time

period “t“. Which one of the following is correctly explaining the behavior of the data?

Cycle

Random variation

Seasonality

Trend

Question No: 17 ( Marks: 1 ) – Please choose one

Which one of the following formulae can be used to compute break even point?

Q = VC / (R – VC)

Q = FC / (R – VC)

Q = VC / (R + FC)

Q = FC / (R + VC)

Page# 76 QBEP= FC/ ( R-VC)

Question No: 18 ( Marks: 1 ) – Please choose one

ABC Corporation has planned to purchase a new machine. Total annual fixed cost is Rs.

10,000, variable cost is Rs. 5 per unit and revenue is Rs. 7 per unit. What would be the

break even point?

833 units

2000 units

5000 units

1012 units

Page# 76 QBEP= FC/ ( R-VC)

=10,000/(7-5)

=10,000/2

=5000

Question No: 19 ( Marks: 1 ) – Please choose one

Which one of the following manufacturing process is associated with high volume car

manufacture?

Job shop

Assembly line

Batch

Automation

http://en.wikipedia.org/wiki/Assembly_line

Reference

Question No: 20 ( Marks: 1 ) – Please choose one

Which one of the following is a characteristic of continuous process?

High lead times

Short process times

The ability to handle high variety

The ability to handle high volumes

Slide#7 Slide#9

Question No: 21 ( Marks: 1 ) – Please choose one

Which of the following refers the way an organization chooses to produce its good or

services?

Process selection

Process reengineering

Process redesign

Process design

Page#77 Process Selection refers to the way an organization chooses to produce its

good or services

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following is an example of business that uses job shop process

structure?

French restaurants

Heavy equipment

Sugar refinery

Automobile assembly

Page#329 Under the heading of competitive advantages

Question No: 23 ( Marks: 1 ) – Please choose one

In which of the following layouts, work stations are arranged according to the general

function they perform without regard to any particular product?

Product

Process

Fixed-position

Storage

In a Process layout, work stations are arranged according to the general

function they perform without regard to any particular product.

Question No: 24 ( Marks: 1 ) – Please choose one

Which of the following layout types is associated with a supermarket?

Fixed position layout

Process layout

Product layout

Cellular layout

Reference(Page#28)

Other ref

Supermarket layouts are essentially process layouts, yet we find that most use fixedpath

material-handling devices such as roller-type conveyors in the stockroom and

belt-type conveyors at the cash registers.

Question No: 25 ( Marks: 1 ) – Please choose one

OSHA stands for which one of the following?

Occupational stock hygiene administration

Occupational safety hygiene administration

Occupational safety hygiene agency

Occupational science hygiene administration

Page#46 OSHA refers to Occupational Safety Hygiene Administration,

Question No: 26 ( Marks: 1 ) – Please choose one

In order to comply with the environmental standards, an organization ABC has to

implement Occupational Safety Hygiene Administration (OSHA).Which one of the

following is a way to accomplish this task?

Promoting friendly relations among employees

Installing safety guards and devices to reduce the risk of potential accidents

Installing machinery to make the process speedy

Installing machinery that provides cost effective output

Question No: 27 ( Marks: 1 ) – Please choose one

Which one of the following statements is TRUE about product life cycle?

It depicts demand of a product at various price levels

It depicts demand of a product with respect to time

It relates demand of a product to quality

It relates demand of a product to market share

Question No: 28 ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about Taguchi approach?

To test the robustness of a design

To articulate the “voice of the customer”

To reduce the degree of automation

To create a concurrent design

Page#52 Taguchi Approach To Robust Design

Question No: 29 ( Marks: 1 ) – Please choose one

The disadvantages of specialization to management include all of the following

EXCEPT:

More absenteeism

Minimum responsibility

More turnovers

More difficult to teach the job

Question No: 30 (Marks: 1) – Please choose one

Technology has impacted the work place by:

Adding to the existing geographical barriers for recruiting

Increasing the cost of telecommuting

Increasing the amount required to be spent on training

Unifying the workforce to a common skill level

Question No: 31 ( Marks: 1 ) – Please choose one

Which one of the following refers to a team having representatives from different

functional areas of the organization?

Traditional work group

Self-directed

Cross-functional team

Self motivated team

Reference (Page#109)

Question No: 32 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a business application of forecasting?

Budgeting

Capacity planning

Inventory management

Quality control

Page#31: Forecasting in business forms the basis for budgeting and planning for

capacity, sales, production, inventory, manpower, purchasing and more.

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following factors makes a forecast LESS perfect?

Randomness

Non serious attitude

Non availability of data

Un qualified personnel

Reference (Page#69)

Question No: 34 ( Marks: 1 ) – Please choose one

Which one of the following is an example of community factors that affect location

decisions?

Transportation

Quality of life

Location of new markets

Location of raw materials

Page#96 Community Considerations

􀀀 Quality of life

􀀀 Services

􀀀 Attitudes

􀀀 Taxes

􀀀 Environmental regulations

􀀀 Utilities

􀀀 Developer support

Question No: 35 ( Marks: 1 ) – Please choose one

Which one of the following location strategies is favored by automobile manufacturers?

Product plant strategy

Process plant strategy

Market area plant strategy

Cost conservation strategy

Reference (Page#369)

Question No: 36 ( Marks: 1 ) – Please choose one

Which one the following is an assumption of center of gravity method?

The quantity to be shipped is variable

The quantity to be shipped is fixed

The quantity carries no value

The quantity to be shipped should be extraordinarily high

Question No: 37 ( Marks: 1 ) – Please choose one

Which of the following statements would generally be considered as correct job shop?

A continuous process has lower output volume as compared to job shop

Equipment flexibility is lower in job shop than that of a continuous process

Labor costs are higher in a Job Shop operation than in most other processes

Batch processing produces a more standard range of products than continuous flow

processes

Question No: 38 ( Marks: 1 ) – Please choose one

Which one of the following is NOT an input in the transformation process?

Information

Services

Facilities

Materials

Question No: 39 ( Marks: 1 ) – Please choose one

Which one of the following describes the Naïve forecast?

Attempt to predict the future value based on the past data.

Determine long term upward or downward movement in data.

Forecast for any period equals the previous period’s actual value.

Collect outside opinion of consumer and potential customers.

Question No: 40 ( Marks: 1 ) – Please choose one

Which one of the following is an advantage of a moving average forecast?

All the values in the average are weighted equally

The method is reliable to forecast the demand accurately

The method is easy to compute and easy to understand

The most recent values are given the more weight age

Paper 13

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 2)

The major business function consisting of research and development, product

design, manufacturing, marketing, distribution, and customer service is refers

to:

Value chain

The transformation process

Quality control

Life cycle

Which of the following is NOT usually considered a general characteristic of a

service?

Production and sales cannot easily be separated functionally

Many services involve both tangible and intangible outputs

Production and consumption can always be separated

Degree of customer contact is high

Which one of the following is an implication of Laplace approach of decision

making?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

Which one of the following is an outcome of Maximin critrion?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

Given the table:

Possible Alternatives future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility 12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff under MAXIMIN approach?

Rs. 8,000

Rs. 12,000

Rs. 18,000

Rs. 20,000

Which one of the following forecasting techniques is used to identify a trend

when data is neither growing nor declining rapidly and has no seasonal

characteristics?

Simple moving average

Delphimethod

Trend adjusted forecast

Naïve forecast

Which one of the following refers to the maximum output that a firm can

produce under ideal conditions?

Design capacity

Effective capacity

Capacity planning

Utilization rate

REF: page#74

Which one of the following perspectives is the most obvious to be considered

while evaluating alternatives for future capacity?

Social

Political

Economic p#70

Legal

Which of the following terms of financial analysis are important for the

organization to proceed with a capacity alternative decision?

Cash flow and fixed cost

Present value and fixed cost

Cash flow and present value

Cash flow and profit

Which one of the following manufacturing process is associated with high

volume car manufacture?

Job shop

Assembly line

Batch

Automation

The formula for determining the required cycle time is operation time per day

divided by:

Sum of task times

Actual output per day (in units)

Number of workstation

Desired output (in units)

Assembly lines relate most closely to a:

Functional layout

Product layout

Process layout

Departmental layout

Which one of the following layout type is associated with a restaurant?

Fixed position layout

Process layout

Product layout

Hybrid layout

In exponential smoothing model, a denotes:

Smoothing constant

Actual forecast

Forecast error

Previous forecast

CBR stands for which one of the following?

Commercial board of revenue

Central board of recycling

Central board of renovation

Central board of revenue

Which one of the following designs resists modifications?

Frozen design p 48 (review again)

Product design

Service design

Robust design

Which one of the following is a curve showing failure rate over time?

Cost curve

Bath tub curve

Fish bone diagram

Reliability curve

Which of the following management level is responsible for long-range

capacity planning?

Lower management

Middle management

Top management

Non managerial employees

Capacity planning involves answering all of the following questions EXCEPT:

What kind of capacity is needed?

How much is needed?

When is it needed?

Who is going to decide?

The advantages of specialization to management include all of the following

EXCEPT:

Rapid training of the workforce

Ease in recruiting new workers

Fewer turnovers

Less boredom for workers

The disadvantages of specialization to management include all of the

following EXCEPT:

More absenteeism

Minimum responsibility

More turnovers

More difficult to teach the job

Technology has impacted the work place by:

Adding to the existing geographical barriers for recruiting

Increasing the cost of telecommuting

Increasing the amount required to be spent on training

Unifying the workforce to a common skill level

Which of the following can be used to compute standard time?

Multiplying the elemental average time by the rating factor

Dividing the average elemental time by the rating factor

Multiplying the normal cycle time by the rating factor

Multiplying the normal cycle time by one plus the allowance factor

Page#92 Standard Time=ST=NT X AF is the normal time plus allowance for

delays like ( getting a glass of water or going to the washroom human needs)

Which one of the following is an example of community factors that affect

location decisions?

Transportation

Quality of life

Location of new markets

Location of raw materials

Community Considerations p#96

􀀀 Quality of life

􀀀 Services

􀀀 Attitudes

􀀀 Taxes

􀀀 Environmental regulations

􀀀 Utilities

􀀀 Developer support

Which one of the following is an example of site related factors that affect

location decision?

Transportation

Quality of life

Location of new markets

Location of raw materials

Site Related Factors

•Land

•Transportation

•Environmental

•Legal

Which of the following statements would generally be considered as correct

job shop?

A continuous process has lower output volume as compared to job shop

Equipment flexibility is lower in job shop than that of a continuous process

Labour costs are higher in a Job Shop operation than in most other processes

Batch processing produces a more standard range of products than continuous

flow processes

Which one of the following is TRUE about work sampling?

It describes individual human motions that are used in a job task

It involves determining the length of time it will take to undertake a particular

task

It involves determining the amount of time a worker spends on various

activities

It provides standard times for micro motions such as reach, move and release

Purpose is to coordinate and control all the required sources so that productive

system can be used efficiently and to ensure the delivery of product in time.

Total quality controls

Demand management’s

Forecasting’s

Operations management’s

Forecasting for groups tend to be more accurate than forecasting for individual

items because:

A group is composed of a number of items

A group exhibits a uniform behavior

A group cancels the forecasting errors among items

A group behavior is relatively less uncertain

Page#33 •Forecasts more accurate for groups vs. individuals naturally because

forecasting errors in a group tend to cancel out forecasting errors for individuals.

Paper 14

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 2)

Question No: 1 __ ( Marks: 1 ) – Please choose one

Which of the following is NOT a decision to be made by operations managers?

How much capacity is required to balance demand?

What should be the location and layout of a facility?

How to improve operational efficiency?

Which market areas to manufacture the products for?

Question No: 2 ( Marks: 1 ) – Please choose one

Which one of the following forecasting technique is based on historical data?

Judgmental

Associative

Time series

Qualitative

Question No: 3 __ ( Marks: 1 ) – Please choose one

Which one of the following is an outcome of Maximax?

The best of the worst possible payoff

The best possible payoff

The best average payoff

The least of the worst regrets

Maximax

􀀀 Maximax determines

􀀀 the best possible outcome

􀀀 Choose the Alternative with the best possible payoff.

􀀀 It does not take into account any other alternative then the best payoff.

􀀀 An optimistic approach.

􀀀 Go for it strategy.

Question No: 4 __ ( Marks: 1 ) – Please choose one

Given the table:

Alternatives Possible future demand

Low (Rs.) High (Rs.)

Small facility 10,000 8,000

Medium facility 12,000 20,000

Large facility 18,000 15,000

Which one of the following is the correct payoff under MAXIMIN approach?

Rs. 8,000

Rs. 12,000

Rs. 18,000

Rs. 20,000

Question No: 5 __ ( Marks: 1 ) – Please choose one

A workers strike represents which of the following behaviors of a time series?

Cycle

Trend

Seasonality

Irregular variations

Question No: 6 ( Marks: 1 ) – Please choose one

Which one of the following is an index used to measure actual output relative to

design capacity?

Utilization

Efficiency

Effective capacity

Effectiveness

Question No: 7 __ ( Marks: 1 ) – Please choose one

What would be the utilization, if 34 cars are produced in a day with a design

capacity of 50 cars per day?

16%

68%

1.47%

84%

Utilization = Actual Output/ Design Capacity

=34/50

=68%

Question No: 8 __ ( Marks: 1 ) – Please choose one

Effective capacity is influenced by all of the following factors EXCEPT:

Facilities

Product mix

Processes

Operations

Question No: 9 ( Marks: 1 ) – Please choose one

Which one of the following statement represents use of cost-volume analysis?

It is a tool for reliability measurement

It provides a base for marketing research

It helps in comparing capacity alternatives

It is important in product design

Cost Volume Relationship focuses on relationships between costs, revenue and volume of

output. The primary purpose of cost volume analysis is to estimate the income of an

organization under different operating conditions. It is particularly useful as a tool for

comparing capacity alternatives.

Question No: 10 ( Marks: 1 ) – Please choose one

ABC Corporation has planned to purchase a new machine. Total annual fixed

cost is Rs. 10,000, variable cost is Rs. 5 per unit and revenue is Rs. 7 per unit.

What would be the break even point?

833 units

2000 units

5000 units

1012 units

Question No: 11 __ ( Marks: 1 ) – Please choose one

Which of the following terms of financial analysis are important for the

organization to proceed with a capacity alternative decision?

Cash flow and fixed cost

Present value and fixed cost

Cash flow and present value

Cash flow and profit

Question No: 12 ( Marks: 1 ) – Please choose one

Which of the following is an example of a business that uses assembly line

process structure?

Automobile assembly

Sugar refinery

Heavy equipment

French restaurants

Question No: 13 ( Marks: 1 ) – Please choose one

Which one of the following is a type of layout where equipment, machinery and

people are moved as required?

Product layout

Fixed position layout

Process layout

Hybrid layout

Question No: 14___( Marks: 1 ) – Please choose one

A self-service cafeteria is usually positioned as:

Process layout

Fixed position layout

Hybrid layout

Product layout

Question No: 15 ( Marks: 1 ) – Please choose one

Which one of the following mathematical expressions can be used to compute

output capacity?

OT/CT

CT/OT

CT+OT

CT-OT

(page 85)

Question No: 16 ( Marks: 1 ) – Please choose one

Which one of the following types of manufacturing layout is considered a hybrid?

Process layout

Product layout

Fixed-position layout

All of the given options

(page 80)Hybrid/Combination. A Layout that makes use of the combination of Product,

Process or Fixed Position Layout.

Question No: 17 ( Marks: 1 ) – Please choose one

Which of the following forecasting technique is based on the assumption that

past data is more indicative of the future than the most recent occurrences?

Exponential smoothing

Linear regression

Judgmental forecast (review again)

Naive forecast

Question No: 18 ( Marks: 1 ) – Please choose one

Which one of the following is responsible for administering environmental issues

about product and service design?

Central Board Revenue

Environmental Protection Agency

Federal Drug Agency

Occupational Safety Hygiene Administration

Question No: 19 __ ( Marks: 1 ) – Please choose one

Which of the following factors are considered in product and service design?

Customer satisfaction, quality, and improvement costs

Employee motivation, quality, and production costs

Customer satisfaction, flexibility, and production costs

Customer satisfaction, quality, and production costs

Question No: 20 ( Marks: 1 ) – Please choose one

OSHA stands for which one of the following?

Occupational stock hygiene administration

Occupational safety hygiene administration

Occupational safety hygiene agency

Occupational science hygiene administration

Question No: 21 ( Marks: 1 ) – Please choose one

In order to comply with the environmental standards, an organization ABC has to

implement Occupational Safety Hygiene Administration (OSHA).Which one of the

following is a way to accomplish this task?

Promoting friendly relations among employees

Installing safety guards and devices to reduce the risk of potential

accidents(not sure )

Installing machinery to make the process speedy

Installing machinery that provides cost effective output

Question No: 22 ( Marks: 1 ) – Please choose one

Which one of the following designs resists modifications?

Frozen design (not sure )

Product design

Service design

Robust design

Question No: 23 __ ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about Taguchi approach?

To test the robustness of a design

To articulate the “voice of the customer”

To reduce the degree of automation

To create a concurrent design

Question No: 24 __ ( Marks: 1 ) – Please choose one

Which one of the following refers to a design that takes into account

organization’s operational capabilities, when designing a product?

Design for assembly

Design for manufacturing

Design for recycling

Design for disassembly

(page 51)Design for Manufacturing (DFM): The designers’ consideration of the

organization’s manufacturing capabilities when designing a product. The more general

term design for operations encompasses services as well as manufacturing.

Manufacturability is the ease of fabrication and/or assembly which is important for:

i. Cost

ii. Productivity

iii. Quality

Question No: 25 ( Marks: 1 ) – Please choose one

Which one of the following refers to using some of the components of old

products in the manufacturing of new products?

Manufacturability

Remanufacturing

Robust design

Automation

Question No: 26 __ ( Marks: 1 ) – Please choose one

MTBF refers to which of the following?

Measure time before failure

Mean time between failures

Mean time before failure

Measure test before failure

(page 63)

 Question No: 27___( Marks: 1 ) – Please choose one

What would be the availability if a carpenter is expected to be able to operate for

300 hours between repairs, and the mean repair time is expected to be 2 hours?

6.02

2.0

0.99

0.006

Question No: 28 __ ( Marks: 1 ) – Please choose one

Which of the following management level is responsible for long-range capacity

planning?

Lower management

Middle management

Top management

Non managerial employees

Question No: 29 ( Marks: 1 ) – Please choose one

Capacity planning involves answering all of the following questions EXCEPT:

What kind of capacity is needed?

How much is needed?

When is it needed?

Who is going to decide?

Question No: 30 ( Marks: 1 ) – Please choose one

Which one of the following is the goal of method analysis?

Dividing and analyzing a job

Check individual human motions used to perform an operation

Determining the length of time it will take to undertake a particular task

Determining the amount of time a worker spends on various activities

Question No: 31 ( Marks: 1 ) – Please choose one

Which one of the following is the goal of work sampling?

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

Specifying the content and methods to perform a job

Question No: 32 ( Marks: 1 ) – Please choose one

Which one of the following refers to a team having representatives from different

functional areas of the organization?

Traditional work group

Self-directed team

Cross-functional team

Self motivated team

Question No: 33 ( Marks: 1 ) – Please choose one

Which one of the following is NOT a business application of forecasting?

Budgeting

Capacity planning

Inventory management

Quality control

Question No: 34 __ ( Marks: 1 ) – Please choose one

Which one of the following factors makes a forecast LESS perfect?

Randomness

Non serious attitude

Non availability of data

Un qualified personnel

Question No: 35 ( Marks: 1 ) – Please choose one

An example of a business/industry that uses batch flow process structure is:

Commercial printer

Heavy equipment

Automobile assembly

Sugar refinery

Question No: 36 __ ( Marks: 1 ) – Please choose one

Which one of the following is TRUE about work sampling?

It describes individual human motions that are used in a job task

It involves determining the length of time it will take to undertake a particular task

It involves determining the amount of time a worker spends on various

activities

It provides standard times for micro motions such as reach, move and release

Question No: 37 ( Marks: 1 ) – Please choose one

Which of the following is a difference of service organizations as compared to

manufacturing organizations?

Manufacturing organizations are more specialized than service organizations

Manufacturing firms have more variety than service organizations.

Service firms are more flexible than manufacturing organizations

Manufacturing decisions are made by maximizing the profit potential (not

sure)

Question No: 38 ( Marks: 1 ) – Please choose one

All of the following are examples of time based strategies EXCEPT:

Products /service design time

Processing time

Response time for complaints

Response time for innovation

(handout page 18)

Question No: 39 __ ( Marks: 1 ) – Please choose one

purpose is to coordinate and control all the required sources so that productive

system can be used efficiently and to ensure the delivery of product in time.

Total quality control’s

Demand management’s

Forecasting’s

Operations management’s

Question No: 40 ( Marks: 1 ) – Please choose one

Which one of the following is an advantage of a moving average forecast?

All the values in the average are weighted equally

The method is reliable to forecast the demand accurately

The method is easy to compute and easy to understand

The most recent values are given the more weight age

Paper 15

MIDTERM EXAMINATION

Spring 2009

MGT613- Production / Operations Management (Session – 2)

Within the operations function, which one of the following is a long-term

management decision?

►Control decision

►Non-operational decision

►Strategic decision

►Tactical decision

Which one the following formula or function can be used to measure the

performance?

Flexibility + profit+ operations

►Work + profit + value

Quality + speed + flexibility

►Profit + Incentives + standards

Which of the following statements corresponds to an order-winning

characteristic?

►A factor which may be significant in other parts of the organization

A factor which gives an organization a competitive edge

►A factor which serves as a minimum standard for purchase

►A factor which increases the profitability of the organization

As a manager, you have defined the purpose of the forecasts. What should be

the next step in forecasting process?

►Choose a forecasting technique

►Determine the purpose of the forecast

Set up a time horizon or a time limit

►Collect and analyze the appropriate data.

Which one of the following forecasting technique is based on historical data?

►Judgmental

►Associative

Time series

► Qualitative

Which one of the following forecasting techniques use subjective inputs from

consumer surveys, sales staff, managers and experts?

►Time series

►Quantitative

►Judgmental

►Associative

Which of the following approaches favours adopting a “go for it” strategy?

►Maximin

Maximax

►Minimax regret

►Laplace

p#26

Possible future

demand

Low (Rs.) High (Rs.)

10,000 8,000

12,000 20,000

18,000 15,000

Given the table:

Alternatives

Small facility Medium facility large facility

Which one of the following is the correct payoff under MAXIMAX approach?

Rs. 10,000

►Rs. 18,000

►Rs. 20,000

►Rs. 32,000

Which one of the following is NOT a step of decision making process?

►Develop alternatives

►Monitor results

Consider risk averseness strategies

►Specify criteria for decision

Which one of the following stages of product life cycle relates to more

predictable behaviour in terms of capacity requirements?

►Introduction

Growth

Maturity(not sure )

►Decline

Which one of the following statement is TRUE about cost-volume

relationship?

It represents the relationship between cost, revenue and volume of output.

►It represents the relationship between cost and volume of output.

►It represents the relationship between cost and revenue.

►It represents the relationship between inputs, cost and volume of output.

Which one of the following formulae can be used to compute break even

point?

►Q = VC / (R – VC)

Q = FC / (R – VC)

►Q = VC / (R + FC)

►Q = FC / (R + VC)

Ref: QBEP = FC/ R-VC

Which of the following is a system designed to coordinate all activities and

information needed to complete business processes?

Enterprise resource planning

►Supply chain management

►New product development

►Customer relationship management

(page 509)

Which of the following is NOT a characteristic of product layouts?

High material handling costs

►Sequential arrangement of machines

►Standardized output

►Continuous production system

Ref: Lecture slide#19

1. High rate of output.

2. Low unit cost.

3. Labor specialization.

4. Low material handling cost.

5. High utilization of labor and equipment.

6. Established routing and scheduling.

7. Routing accounting and purchasing.

Which one of the following refers to using some of the components of old

products in the manufacturing of new products?

►Manufacturability

Remanufacturing

►Robust design

►Automation

What would be the availability if a carp hours between repairs, and the

mean rep?

►1.01

►5.03

►3.0

►0.98

Which one of the following is the goal of method analysis?

► Dividing and analyzing a job

►Check individual human motions used to perform an operation

►Determining the length of time it will take to undertake a particular task

►Determining the amount of time a worker spends on various activities

(slide 19)

ble to operate for 250

Which one of the following is an example of regional factors that affect

location decisions?

►Transportation

►Quality of life

►Development support

Location of new markets

Which one of the following statements is true about Occupational Safety

Hygiene Administration (OSHA)?

To safeguard against potential hazards

►To develop cost effective processes

►To implement legal standards

To carry out implication of manufacturability and fitness

Which one of the following is used to produce gasoline and petroleum

products?

►Job shop

►Batch processing

►Assembly line

Continuous processing

The type of processing structure that is used for producing discrete products at

higher volume is:

►Continuous Flow

Assembly Line

►Batch

►Job shop

An example of a business/industry that uses batch flow process structure is:

►Commercial printer

Heavy equipment

►Automobile assembly

►Sugar refinery

Quality, costs, lead times, operating resources are all related to which one of

the following strategies.

►Organizational strategy

►Financial strategy

►Operational strategy

►Tectical strategy

All of the following are examples of the transformation process EXCEPT:

►Cutting

►Packing

►Facilitating

►Labeling (not sure )

Which of the following is a characteristic of linear regression?

It is superior to a moving average

► It is a causal forecasting model

► It compensates for both trend and season

► It is superior to an exponential smoothing

Paper 16

MIDTERM EXAMINATION

Spring 2010

MGT613- Production / Operations Management

Which of the following statements describes an order-qualifier characteristic?

► A competitive dimension used to make final decision among competitors

► A factor which directly and significantly contribute to winning business

► A factor which increases the profitability of the organization

► A factor perceived as a minimum standard as a potential for purchase

In which one of the following decision environments it is impossible to assess

the likelihood of various future events?

► Risk

► Bounded rationality

► Certainty

► Uncertainty

Which one of the following is an outcome of MINIMAX regret?

► The best of the worst possible payoff

► The best possible payoff

► The best average payoff

► The least of the worst regret

Which one of the following is a limitation of a moving average having a trend?

► The forecast lags behind the actual

► The forecast represents demand more accurately

► The forecast will not be accurate

► The forecast will not be reliable

Which of the following is an example of a business that uses assembly line

process structure?

► Automobile assembly

► Sugar refinery

► Heavy equipment

► French restaurants

Which one of the following layout types is associated with car assembly?

► Fixed position layout

► Process layout

► Product layout

► Hybrid layout

A department store discovered that in a four-month period, the best forecast

can be determined by using 50 percent of the sales for the most recent month,

20 percent of the sales of two months ago, 10 percent of the sales of three

months ago, and 20 percent of the sales of four months ago. Which forecasting

method should the store use to forecast demand?

► Simple Moving Average

► Linear Regression

► Time Series Analysis

► Weighted Moving Average

Which one of the following statements is TRUE about product life cycle?

► It depicts demand of a product at various price levels

► It depicts demand of a product with respect to time

► It relates demand of a product to quality

► It relates demand of a product to market share

Which of following statement is true about effective capacity?

► It is the actual output achieved

► It is always less than actual output

► It is the maximum output that a firm can produce

► It is always less than designed capacity

Which one of the following refers to bringing together engineering design and

manufacturing personnel early in the design phase?

► Reverse engineering

► Concurrent engineering

► Manufacturability

► Serviceability

Which of the following refers to the way an organization chooses to produce

its goods or services?

► Process selection

► Process reengineering

► Process redesign

► Process design

The purpose of ___________ is to coordinate and control all the required

sources so that productive system can be used efficiently and to ensure the

delivery of product in time.

► Total quality control

► Demand management

► Forecasting

► Operations management

Which of the following is NOT an attribute to classify services?

Tangibility

► Perish ability

► Simultaneity

► Courtesy

Which of the following is NOT an emerging trend in the workplace?

► Increasing workplace diversity

► Decreasing work schedule flexibility

► Increasing number of part time jobs

► Increasing use of temporary labor

Which method of forecasting is most widely used?

► Regression analysis

► Adaptive forecasting

► Weighted moving average

► Exponential smoothing

Which one of the following is concerned with short term capacity needs?

► Cycle

► Trends

Seasonality

► Average

Which relationship exists between the robustness of a product and the

probability of failure.

► Positive relation

► Direct relation

► Inverse relation(not sure)

► Negative relation

(page 218)

Which one of the following management functions is based on forecasting?

► Planning

► Organizing

► Leading

► Controlling

(page 35)

 (page 293)

Which one of the following factors provides a basis for comparing alternative

forecasting techniques?

► Time dimension

► Reliability factor

► Degree of accuracy

► Measuring units

(page 35)

Which of the following functions of an organization consists of all activities

directly related to production of a good or service?

► Operations

► Marketing

► Accounting

► Finance

Which of following statement is true about effective capacity?

► It is the actual output achieved

► It is always less than actual output

► It is the maximum output that a firm can produce

► It is always less than designed capacity

In which one of the following decision environments it is impossible to assess

the likelihood of various future events?

► Risk

► Bounded rationality

► Certainty

► Uncertainty

Which of the following is NOT mark of a good layout in manufacturing?

► Bottleneck operations

► Straight line flow pattern

► Work stations close together

► Open plant floors (high visibility)

All of the following are examples of time based strategies EXCEPT:

► Products /service design time

► Processing time

► Response time for complaints

Response time for innovation

(Handout page 18)

Which one of the following is a key benefit of process plant strategy?

► Economies of scale

► Diseconomies of scale

► Product variety

► Task specialization

 

Which one of the following refers to a design that takes into account

organization’s operational capabilities, when designing a product?

► Design for assembly

► Design for manufacturing

► Design for recycling

► Design for disassembly

Question No: 28 ( Marks: 1 ) – Please choose one

Which of the following layouts facilitates the handling of varied processing

requirements?

► Product layout

►Process layout

► Fixed-position layout

► Hybrib/Combination layout

Which one of the following forecasting techniques uses explanatory variables to

predict future demand?

► Quantitative forecast

► Time series forecast

► Consumer survey

► Executive opinion

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Mgt603 Strategic Management Current Online Quizzes Solved File

1.         Backward integration is effective in all of the following situations EXCEPT: 

Select correct option: 

  • When an organization competes in an industry that is growing rapidly
  • When an organization needs to acquire a needed resource quickly
  • When the advantage of stable prices are not important  (page 82)
  • When present suppliers have high profit margins 

2.         Which of the following decisions determine the amount of funds that are retained in a firm compared to the amount paid out to stockholders? 

Select correct option: 

  • Financing
  • Investment
  • Capital
  • Dividend  (page 64)

3.         Which one of the following is the most refined and filtered one? 

Select correct option: 

  • Data
  • Information
  • Raw Data
  • None of the above

4.         MIS stands for ? 

Select correct option: 

  • Market Investment Standards
  • Management Information System
  • Minnesota Institute of Strategy
  • ManhattanInvestment Scheme

5.         Identify the factor among the following which is NOT directly related to “Opportunities & Threats”:- 

Select correct option: 

  • A potential product envisioned by a firm to fulfill an existing need
  • Youth under the age of 25 years
  • A new law related to taxes enacted by the Government
  • Skilled and experienced manpower of a company

6.         ‘Sino-American relations’ means: 

Select correct option: 

  • The relations ofSri Lanka&USA
  • The relations ofPapua New Guinea&USA
  • The relations ofChina&USA
  • The relations of Singapore & USA

7.         Which one of the following is not a function of Management: 

Select correct option: 

  • Staffing
  • Controlling
  • Depriving
  • Leading

8.         Where an organization takes into account the effect of its strategic decisions on the society, the firm is taking care of which of these? 

Select correct option: 

  • Corporate governance
  • Business policy
  • Business ethics
  • Social policy 

9.         ‘Final Ratios’ are one of the:- 

Select correct option: 

  • Abstract Factors
  • Internal Factors
  • External Factors
  • Conceptual Factors

10.       Of the following, which one would NOT be considered one of the components of a mission statement? 

Select correct option: 

  • The target market for XYZ is oil and gas producers as well as producers of chemicals.
  • XYZ shall hire only those individuals who have with sufficient educational levels so as to be of benefit to our customers.
  • The customers of XYZ shall include global and local consumers of gas and oil products and domestic users of nontoxic chemicals.
  • The technologies utilized by XYZ shall focus upon development of alternative sources of gas and oil so as to remain competitive within the industry.

11.       One of the important global challeneges currently faced by Pakistan is related to: 

Select correct option: 

  • Cotton Production
  • Socialist Government
  • Exports
  • Membership of SAARC

12.       Integration strategies are sometimes collectively referred to as which of these strategies? 

Select correct option: 

  • Horizontal integration
  • Forward integration
  • Hierarchical integration
  • Vertical integration 

13.       The history of record keeping can be traced back to which civilization ? 

Select correct option: 

  • Egyptians
  • Greeks
  • Babylonians
  • IndusValley

14.       Assessment of competitive rivalry does NOT include an understanding of which of the following? 

Select correct option: 

  • Mergers and acquisition in industry
  • Market growth rates
  • Exit barriers and operational efficiency of competitor
  • The management structure of an organization 

15.       Which of the following is NOT a component of external environment analysis? 

Select correct option: 

  • Customer satisfaction feedback  
  • Global impacts  
  • Legal issues within the industry  
  • Competitive position of rival companies 

16.       Which of the following statement is refered to ‘Price fluctuation’? 

Select correct option: 

  • Decrease in prices
  • Increase in prices
  • Fluctuation in the prices of a particular commodity
  • Fluctuation in general price level 

17.       Chief Information Officer is a job title, who is generally: 

Select correct option

  • the overall head of the IT
  • the overall head of the corporate development
  • the overall head of the administration
  • the overall head of the finance department

18.       The highest possible weighted score in an IFE Matrix of any company is? 

Select correct option: 

  • 4.0
  • 2.5
  • 5.0
  • 1.0

19.       “Prediction is very difficult, especially about the future”, are the words of whom? 

Select correct option: 

  • Martin Luther King
  • Ernest Rutherford
  • Neils Bohr
  • Abdus Salam

20.       What is the range for a firm’s total weighted score in an External Factor Evaluation Matrix? 

Select correct option: 

  • 0 to 5
  • 0 to 4
  • 1 to 5
  • 1 to 4 

21.       Which management function includes breaking tasks into jobs, combining jobs to form departments and delegating authority? 

Select correct option: 

  • Motivating
  • Staffing
  • Organizing
  • Planning

22.       What does IFE Matrix evaluates? 

Select correct option: 

  • strengths & opportunities
  • threats & weaknesses
  • strengths & weaknesses
  • strengths & threats

23.       In which of the following phase of strategic management, annual objectives are especially important? 

Select correct option: 

  • Formulation
  • Evaluation
  • Implementation
  • Management 

24.       An Administrative Officer who is also performing the task of maintaining the record of stocks and inventory, and also decides to provide how much of this stock and inventory in response to request of any other employee. He is performing which function of Management in this situation? 

Select correct option: 

  • Planning
  • Organizing
  • Controlling 
  • Motivating

25.       Which one of the following area can be the weakness of a firm? 

Select correct option: 

  • Changing lifestyle
  • High oil prices
  • Ineffective Marketing
  • Increasing pollution 

26.       The XYZ Organization has a statement that describes the needs for which the organization was created to fill and answers the basic question of why the organization exists. XYZ is most likely to have any one of the following? 

Select correct option: 

  • Strategy
  • Vision statement 
  • Mission statement
  • Functional tactics 

27.       Most of the human resource management practices evolved out of which one of the following functions of Management: 

Select correct option: 

  • Staffing
  • Controlling
  • Leading
  • Organizing

28.       All of the following would represent possible threats to the ABC Company EXCEPT which one of the following? 

Select correct option: 

  • Entrance of new competitors 
  • Improved buyer or supplier relationships
  • New or revised regulations
  • Slow industry/market growth 

 29.      Which of the following is not a strategy-implementation activity? 

Select correct option: 

  • Long term goals and objectives
  • Developing strategy supportive culture
  • Redirecting marketing efforts
  • Developing and utilizing information system

30.       Job Analysis is dervived from which function of Management ? 

Select correct option: 

  • Planning
  • Organizing
  • Controlling 
  • Motivating

31.       One of the important global challeneges currently faced by Pakistan is related to: 

Select correct option: 

  • Cotton Production
  • Socialist Government
  • Exports
  • Membership of SAARC

32.       Strategic management is the art and science of formulating, implementing and evaluating cross-functional decisions which is usually done by all of the following EXCEPT: 

Select correct option: 

  • Chairman of the company
  • Board of directors
  • Chief executive officer
  • Marketing officer

33.       When the Chief Executive of a chain of pharmacies decided to sell off or close some of the locations that were not profitable, he was performing which of the management function? 

Select correct option: 

  • Leading 
  • Planning 
  • Controlling
  • Organizing 

34.       What refers to a strategy of seeking ownership of or increased control over a firm’s competitors? 

Select correct option: 

  • Conglomerate diversification
  • Backward integration
  • Horizontal integration
  • Concentric diversification

35.       Which type of trend can be exemplified by the increase in average level of education in a society? 

Select correct option: 

  • Social
  • Economic
  • Cultural
  • Technological

36.       Which of the following can be best described as short-term in nature? 

Select correct option: 

  • Missionstatements
  • Annual objectives
  • Strategies
  • Vision statement

37.       Which model was presented by Michael Porter? 

Select correct option: 

  • Three Forces Model
  • Four Forces Model
  • Five Forces Model
  • Six Forces Model

 38.       Which of the following statement is TRUE about a Vision statement of a company? 

Select correct option: 

  • It concentrates on future 
  • It defines the customers
  • It identify critical processes
  • It informs about the desired level of performance 

40.       Which of the following is NOT an activity directly related to marketing? 

Select correct option: 

  • Branding
  • Advertising
  • Job Analysis
  • Pricing

41.       R&D stands for? 

Select correct option: 

  • Rigour & Dissemination
  • Research & Development
  • Roots & Development
  • Research & Declaration

42.       The analysis of industry’s major competitors’ strengths may give an insight of which one of these? 

Select correct option: 

  • Key threats for the firm
  • Key opportunities for the firm
  • Both opportunities and strengths for the firm
  • None of the given options 

43.       During which stage of strategic management, firm’s specific internal strengths and weaknesses are determined? 

Select correct option: 

  • Formulation
  • Implementation
  • Evaluation
  • Feedback 

44.       Corporate social policy should be designed and articulated during which phase of strategic management? 

Select correct option: 

  • Implementation
  • Formulation
  • Evaluation
  • Management

45.       What are dividend decisions concerned with? 

Select correct option: 

  • That how much percentage of the profit will be paid to the stockholders.
  • That how much allocation will be made from which discounts will be offered to customers.
  • That how much loan will be required from a bank.
  • That how much finance will be needed to repair depreciated machinery.

46.       What is the profession of Michael Porter, the brain behind the Five Forces Model? 

Select correct option: 

  • Politician in the state of Ohio
  • Lawyer at theMichiganSupreme Court
  • Professor atHarvardBusinessSchool
  • Entrepreneur

47.       Lack of access to key distribution channel indicates which of the following? 

Select correct option: 

  • Strength
  • Weakness
  • Opportunity
  • Threat

48.       What does CPM stands for? 

Select correct option: 

  • Competitive Porter’s Model
  • Consolidated Profile Model
  • Competitive Profile Model
  • Competitive Profile Matrix

49.       Which of the followings best describes the Horizontal integration? 

Select correct option: 

  • A firm takes over a supplier
  • A firm takes over a distributor
  • A firm takes over a competitor
  • A firm takes over a manufacturer 

50.       Technological advancements can create which of the following advantage besides many other existing powerful advantages for the businesses? 

Select correct option: 

  • Economic
  • Competitive
  • Social
  • Environmental 

51.       Select the Demographic variable among the following:- 

Select correct option: 

  • Technology
  • Cost
  • Ethnicity
  • Machinery

52.       Which of the following is the decision support role of management information system? 

Select correct option: 

  • Processing marketing records into marketing plans
  • Allowing users to ask “What if” questions
  • Recording and storing such human resource records
  • Processing operations records into production schedules 

53.       SAARC stands for? 

Select correct option: 

  • South Asian Association for Regional Cooperation 
  • South Asian Agreement for Regional Cooperation 
  • South Asian Association for Rigorous Cooperation
  • South AtlanticAssociation for Regional Cooperation 

54.       If Mr. A and Mr. B starts a simple contracting business of building schools. Here, Mr. A provides the finance, and Mr. B provides the labour by hiring, compensating and managing labourers. Here, mainly which function of Management is performed by Mr. B?  

Select correct option: 

  • Planning
  • Motivating
  • Staffing
  • Organizing

55.       External assessment is performed in which of the strategic management phase? 

Select correct option: 

  • Strategy formulation stage
  • Strategy implementation stage
  • Strategy evaluation stage
  • All of the given options   

56.       Strategic management integrates all of the following areas EXCEPT: 

Select correct option: 

  • Management
  • Marketing
  • Research and development
  • Human resource management

57.       Internal analysis involves gathering and analyzing the information about all areas of a firm EXPECT: 

Select correct option: 

  • Research and development
  • Management information system
  • Marketing
  • Competitors

58.       Buyers can exercise high bargaining power over their suppliers under which one of the following conditions? 

Select correct option: 

  • When there are many good substitutes of raw material
  • There are few buyers in the market
  • They have few suppliers to choose from 
  • There is a high concentration of suppliers

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