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FINALTERM  EXAMINATION
Spring 2010
MGT613- Production / Operations Management


Question No: 1    ( 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: 2    ( 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: 3    ( 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: 4    ( 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
   
Question No: 5    ( Marks: 1 )    - Please choose one
  Which one of the following factors provides a basis for comparing alternative forecasting techniques?
       ► Time dimension
       ► Reliability factor
       ► Degree of accuracy
       ► Measuring units
   
Question No: 6    ( 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: 7    ( 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
   
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 defines the range of the smoothing constant (Alpha)?
       ► 2 and -2
       ► 1 and -1
       ► 0 and -1
       ► 0 and 1
   
Question No: 10    ( Marks: 1 )    - Please choose one
  In exponential smoothing model, α denotes:


       ► Smoothing constant
       ► Actual forecast
       ► Forecast error
       ► Previous forecast
   
Question No: 11    ( 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: 12    ( 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: 13    ( Marks: 1 )    - Please choose one
  Who introduced the use of statistical control charts to Japanese manufacturers?
       ► Edwards Deming
       ► Joseph Juran
       ► Kaoru Ishikawa
       ► Philip Crosby
   
Question No: 14    ( Marks: 1 )    - Please choose one
  Mr. Ali purchased a TV set. After a period of a year, the picture quality started deteriorating. He went to the company and complained and the company responded subsequently. Which of the following dimensions of quality would come into play?
       ► Reliability
       ► Conformance
       ► Serviceability
       ► Aesthetics
   
Question No: 15    ( Marks: 1 )    - Please choose one
  Who proposed the concept of “total quality control” in the mid 1950s?
       ► Armand Feigenbaum
       ► G.S Radford
       ► W. Shewhart
       ► David Gravin
   
Question No: 16    ( Marks: 1 )    - Please choose one
  Which of the following is a pair of service quality dimensions?
       ► Reliability and Responsiveness
       ► Uniqueness and Universality
       ► Specification and Security
       ► Reliability and Reputation
   
Question No: 17    ( Marks: 1 )    - Please choose one
  Which of the following best describes the ISO?
       ► International Organization for Statements
       ► International Operations for Statements
       ► International Organization for Standardization
       ► International Operations for Statements
   
Question No: 18    ( Marks: 1 )    - Please choose one
  Which of the following stage of Deming's wheel involves evaluating the improvement plan?
       ► Plan
       ► Do
       ► Check
       ► Act
   
Question No: 19    ( Marks: 1 )    - Please choose one
  What would be the total cost of inventory, if a firm holds 1000 units of a product ‘A’, where the carrying cost is Rs. 5 per unit?
       ► Rs. 995
       ► Rs. 5000
       ► Rs. 1050
       ► Rs. 200
   
Question No: 20    ( Marks: 1 )    - Please choose one
  The optimal order quantity shows a trade-off between which one of the following sets of costs?
       ► Carrying costs and shortage costs
       ► Carrying costs and ordering costs
       ► Carrying costs and stockout costs
       ► Carrying costs and setup costs
   
Question No: 21    ( Marks: 1 )    - Please choose one
  Which one of the following mathematical expressions can be employed to compute annual carrying cost?
       ► (Q-2)H
       ► (Q+2)H
       ► (Q÷2)H
       ► (Q×2)/H
   
Question No: 22    ( Marks: 1 )    - Please choose one
  Which of the following is used to store information about the status of each item with respect to time period?
       ► Master schedule
       ► Bill of materials file
       ► Inventory records file
       ► Rough – cut capacity plan
   
Question No: 23    ( Marks: 1 )    - Please choose one
  Which of the following compares the known and estimated future capacity requirements?
       ► Capacity reports
       ► Operations reports
       ► Load reports
       ► Inventory records
   
Question No: 24    ( Marks: 1 )    - Please choose one
  Which of the following is the first step of Capacity planning?

       ► Initial feasibility report is prepared
       ► Master schedule is tested for feasibility
       ► Adjustments are made in master schedule before it finalizes
       ► Material requirements are ascertained
   
Question No: 25    ( Marks: 1 )    - Please choose one
  Which of the following are the priorities emphasized most often in JIT system?
       ► High quality and minimal wastage
       ► Low cost and consistent quality
       ► Low inventory and consistent material supply
       ► Low cost and low inventory
   
Question No: 26    ( Marks: 1 )    - Please choose one
  Just in Time system maintains inventory with which of the following lot size/sizes?
       ► Small
       ► Medium
       ► Large
       ► Can be small and medium both
   
Question No: 27    ( Marks: 1 )    - Please choose one
  Which of the following statements is TRUE about a Gantt chart?
       ► It represents an important event in the completion of a project
       ► It relates interdependent activities to their completion time
       ► It arranges events in order of importance
       ► It is used to schedule independent activities
   
Question No: 28    ( Marks: 1 )    - Please choose one
  Network activities are used to determine all of the following EXCEPT:
       ► Critical path
       ► Budgeted cost
       ► Slack time
       ► Expected project duration
   
Question No: 29    ( Marks: 1 )    - Please choose one
  With reference to Network activities, what does the term ‘EF’ stand for?
       ► Equal Finish
       ► Economic Finish
       ► Early Finish
       ► Easy Finish
   
Question No: 30    ( Marks: 1 )    - Please choose one
  Which one of the following is NOT an element of a queuing system?
       ► Population source
       ► Waiting line
       ► Order processing
       ► Logistics
   
Question No: 31    ( 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: 32    ( Marks: 1 )    - Please choose one
  Which one of the following is the goal of work sampling?


       ► Studying 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: 33    ( Marks: 1 )    - Please choose one
  Training program and quality audits come under which type of costs that an organization has to bear as cost of service quality?
       ► Internal failure cost
       ► Recovery cost
       ► Prevention cost
       ► Detection cost
   
Question No: 34    ( Marks: 1 )    - Please choose one
  Which one of the following is the most important criteria in selecting winners for a quality award?
       ► Strong motivation
       ► Quality management practices
       ► Employee empowerment
       ► Business performance results
   
Question No: 35    ( Marks: 1 )    - Please choose one
  Which of the following is NOT a disadvantage of excessive overtime?
       ► Decline quality of work
       ► Work schedules become well-defined
       ► 150 percent expensive of the regular time-pay rate
       ► Low Productivity
   
Question No: 36    ( Marks: 1 )    - Please choose one
  A company mostly involved in transportation and shipping costs than construction and land costs is probably part of which of the following industries?
       ► Heavy manufacturing
       ► Retail and service
       ► Warehouse and distribution
       ► Light industry
   
Question No: 37    ( Marks: 1 )    - Please choose one
  A company is operating under a continuous review system. It has an average demand of 50 units per week for the item it produces. The lead time for the item is 6 weeks, and it costs the company $30 to process each order. The holding cost for each unit is $10 per year. The company operates 52 weeks per year. What is the economic order quantity (EOQ) for this item?
       ► Greater than 175 units but less than or equal to 200 units
       ► Less than 175 units
       ► Greater than 200 units but less than or equal to 230 units
       ► Greater than 230 units
   
Question No: 38    ( Marks: 1 )    - Please choose one
  Perpetual system of inventory management is also known as which of the following?
       ► First-in-first-out
       ► Probability model
       ► Fixed-order quantity
       ► Periodic review
   
Question No: 39    ( Marks: 1 )    - Please choose one
  If a manager wants to see the effect of change in Master Production Schedule (MPS) on purchasing requirements for certain suppliers, which of the following system would help in this regard?
       ► Material Resource Planning system (MRP)
       ► Enterprise Resource Planning system (ERP)
       ► Capacity Requirement Planning system (CRP)
       ► Manufacturing Resource Planning system (MRPII)
   
Question No: 40    ( Marks: 1 )    - Please choose one
  If alpha = 0, how many containers are needed with the given data?
K = 1500 (0.8 + 0.2) (1 + 0)
                       270
       ► 6.5 Containers
       ► 7 Containers
       ► 6 Containers
       ► 9 Containers
   
Question No: 41    ( Marks: 1 )    - Please choose one
  Eliminating disruptions and excess inventory are _____________ in Just-In-Time production systems.



       ► Tactical goals
       ► Strategic goals
       ► Secondary goals
       ► Primary goals
   
Question No: 42    ( Marks: 1 )    - Please choose one
  In supply chain management Electronic Data Interchange (EDI) and Bar coding is a characteristic of which of the following?
       ► Logistics
       ► Technology
       ► Autonomation
       ► Just-In-Time System
   
Question No: 43    ( Marks: 1 )    - Please choose one
  In labor-limited environment, in which resource constraint is the amount of worker available, which of the following is the best option for effective scheduling in a manufacturing firm?
       ► Hire more skilled labor for the job to be completed
       ► Workers should be trained to work on a variety of machines
       ► Assign labor to the next workstation irrespective of their skills
       ► More machines should be installed for flexibility of operations
   
Question No: 44    ( Marks: 1 )    - Please choose one
  Tasks are easily scheduled in which of the following production environments?
       ► Intermediate-volume-systems
       ► Low-to-medium volume production (Job shop)
       ► Medium-to-high volume production (Flow shop)
       ► Optimal production mixes
   
Question No: 45    ( Marks: 1 )    - Please choose one
  Which of the following is the necessary qualification for a project manager?


       ► PMP certification
       ► PMD certification
       ► FMA certification
       ► CMP certification
   
Question No: 46    ( Marks: 1 )    - Please choose one
  Queuing analysis aims to minimize which of the given costs?
       ► Both customer waiting cost and service capacity cost
       ► None of the given options
       ► Customer waiting cost
       ► Service capacity cost
   
Question No: 47    ( Marks: 1 )    - Please choose one
  Which of the following is a cause of development of waiting lines?
       ► Customer arrival rate varies through out the day
       ► Time required to process a customer may vary
       ► Some transactions are complicated and require above average process time
       ► All of the given options
   
Question No: 48    ( Marks: 1 )    - Please choose one
  During the period of high unemployment or when low-skilled labor is acceptable, which of the following strategy would be cost effective?
       ► Chase demand strategy
       ► Level capacity strategy
       ► Proactive strategy
       ► Mixed or hybrid strategies
   
Question No: 49    ( Marks: 3 )
  As an operations manager of a firm what significant issues you have to consider while implementing supply chain management?

   
Question No: 50    ( Marks: 3 )
  How would you reveal the importance of maintaining good relationship with suppliers in a JIT system?

.
  
Question No: 51    ( Marks: 5 )
  As operations manager of a manufacturing firm, how can you judge the effectiveness of inventory management?


   
Question No: 52    ( Marks: 5 )
  What is bullwhip effect? What are its consequences?

   
Question No: 53    ( Marks: 5 )