Multiple Choice Questions - Operations Management

N.Rajan
Answer All the Questions:
Part A

1. The strategic decisions are long – term in nature and are concerned with
_____________
a. Process design
b. Inventory
c. Reordering level
d. Production scheduling

2. The tactical decision is taken by an operation manager is followed by

______________
a. strategic decision
b. operational decision
c. evaluation decision
d. action decision

3. The evaluation of operations management started after industrial revolution by the

identification of division of labor in manufacturing, which was proposed by
___________
a. F.W.Taylor
b. Elton Mayo
c. Adam Smith
d. Henry Fayol

4. The computerization of operations began when the first computer was installed in
________________________ organization
a. General Motors
b. General Electric
c. Ford Motors
d. Western House

5. The banks in India went for the computerization in their process is mainly to increase
___________________
i. Data Processing
ii. efficiency
iii. Number of customers
a. i
b. i&ii
c. i&iii
d. ii&iii

6. __________________________ always starts wit the idea generation and have it

sources from employee, customers, vendors etc.,
a. New process development
b. New methodology development
c. New Product development
d. Quality development program
7. In the element of operations strategy, after the production design and product / service
development which of the following components is to be planned?
a. Allocation of resources
b. Facility planning
c. Technology selection
d. Human resource planning
8. Forecasting involves making calculated predictions that can be used in the planning
and ______________________ process
a. Decision making
b. Quality
c. Production
d. Controlling
9. The forecasting methods, that are based on the judgment and opinions are
______________
a. Causal models
b. Time Series
c. Delphi Method
d. Regression analysis
10. The selection of forecasting method is based on the long term decisions like product
planning, facility location and expansion is depend on the factor like
______________
a. Time span
b. Data availability
c. Cost
d. Accuracy
11. Which of the following is NOT used to measure the accuracy of the forecasting?
a. Mean Absolute Deviation
b. Mean Forecast Error
c. Mean Standard Error
d. Mean Square Error
12. ___________________ method can be used when there are three variables to which
the decisions has to be taken in Linear programming problems.
a. Graphical method
b. Simplex Method
c. Least Cost method
d. VAM
13. In the transportation problem, a dummy variable is added either to the source or to the
destination due to __________________________
a. Balanced
b. Variation
c. Differentiation
d. Unbalanced
14. The stepping stone method is used in the transportation model to find out the
___________________
a. Initial cost
b. Initial basic solution
c. Optimal solution
d. Balanced or unbalanced one
15. ________________________ forms the basis for designing factory buildings, facility
layout and selecting production equipment.
a. Product planning
b. Process planning
c. Tactical planning
d. Action planning
16. ____________________ refers to the extent to which the production and the
distribution chain is brought under the ownership of the organization.
a. Horizontal integration
b. Vertical integration
c. Forward integration
d. Backward integration

17. Which chart contains the symbols like

a. Assembly charts
b. Process charts
c. Gantt charts
d. Simultaneous charts
18. The objective of an ________________________ is to minimize production costs,
make appropriate changes in production rates and work force level and to improve
profits, customer service and utilization of resources.
a. Business planning
b. Product planning
c. Aggregate planning
d. Action planning
19. The EOQ method is used to identify the order quantity that would minimize the total
cost ie _____________________
a. Ordering cost and carrying cost
b. Purchase cost and carrying cost
c. Ordering cost and stock out cost
d. Purchase cost and ordering cost
20. The process of determining how much time an average worker takes to complete a job
under standard work condition is known as ____________________
a. Job Analysis
b. Work Measurement
c. Work Enrichment
d. Work Description
21. ____________________ is a technique of analyzing work by taking several
observations, usually at random to see the relative frequency with which various
elemental activities takes place.
a. Time Study
b. Standard Data
c. Work Sampling
d. Historical Analysis
22. In automation to counter the problem in handling day-to-day situations in the
operations, a rule base system was conceptualized, which employ human logic in
evaluation of different situation. This system is known as
_______________________
a. CIM
b. FMS
c. Expert system
d. Robotics
23. The material management is given more importance in an organization, because
materials normally account for _____ percent of the total capital invested.
a. 40
b. 50
c. 60
d. 75
24. The Kanban system was developed by __________________ company
a. Toyota Motor
b. General Motor
c. Ford
d. Suzuki
25. When the product is complex and the production process involves many components
and sub-assemblies, to manage the inventory __________________ systems was
used.
a. FMS
b. MRP
c. EOQ
d. EDI
26. The file containing information about when and how many units of finished products
are required have the information of purchasing, receiving fabrication and assembling
is known as ______________________
a. Bill of Materials
b. Inventory Record File
c. Master Production schedule
d. Material Resource Allocation
27. The second step in the MRP system information processing is to develop a materials
requirement plan for each item in the BOM file for each time bucket is known as
________________
a. Explosion
b. Netting
c. Offsetting
d. Inventing
28. _______________________ is the fundamental rethinking and radical redesign of
business process to achieve dramatic improvements in critical, contemporary
measures of performance such as costs, quality, service and speed.
a. Reengineering
b. Outsourcing
c. Benchmarking
d. Strategic Process
29. In the implementation of the ERP package which step is following after the mapping
of business process onto the package?
a. Test Runs
b. Parallel Run
c. Customization
d. Gap Analysis
30. There are ______ number of supply chain management which represents business
processes and practices.
a. Five
b. Six
c. Seven
d. Eight
31. The approach in which employees are given the option of choosing their work, work
timings, provided that a specific number of hours are complete in a week is known as
_________________
a. Flexi Time
b. Flex tour
c. Part Time
d. Staggered Times
32. The display of resources like machines, tanks, pipes, operators and products in
graphical method to schedule the operations process. This technique is known as
________________
a. Gantt Charts
b. Job sequencing Rules
c. Assembly Charts
d. Process Charts
33. Which of the following are NOT the characteristics of JIT system?
a. Small Lot Size
b. Closer Supplier Ties
c. Random Workstation Load
d. Continuous Improvement
34. The features of a product which indicates the operational life of a product or in other
words, how long the product can be used without replacements is known as
___________________
a. Reliability
b. Durability
c. Conformance
d. Aesthetics
35. If the maintenance activity are carried out based on time frame like once a week or
one a month or based on the usage of the machines like after every 40 hrs of operation
is known as ____________________
a. Irregular Preventive Maintenance
b. Predictive maintenance
c. Periodic maintenance
d. Remedial Maintenance
36. The activity is a task or an item of work to be done in a project and is represented by
_____________
a. Circle
b. Arrow
c. Square
d. Rectangle
37. The Critical Path Method is used to determine _______________________ path in a
project.
a. Longest
b. Shortest
c. Average
d. Negative
38. What is LPG?
a. Liquid Petroleum Gas
b. Liberty Prosperity Gratitude
c. Liberalization Privatization Globalization
d. Longer Period Grievance
39. Economics of scales is achieved in the production process by when the
_________________________
a. People experience with the work
b. Management introduce new technology
c. Reengineering process is adopted
d. Customization of the product
40. The company AtoZ, is following a master production schedule,
a. Translate aggregate plan
b. Evaluate alternate schedules
c. Cost analysis
d. Effective utilization capacity
Part B

41. The Mercedes Benz car was manufactured usually for the top level people those who
want to show their status. What type of product design the manufacturer follow?
a. Standard product design
b. Customized product design
c. Quality product design
d. Quantity product design
42. The Alpha engineering limited is having the annual production volume ranging
between 2 to three lakhs. What type of process design can be selected?
a. Product – focused
b. Process – focused
c. Cellular manufacturing
d. Group technology
43. The general manager of Kiran group of steel industries have decided to start a steel
manufacturing company in kerala, but his project manager opposes the plan, because
of the _________________________ factor.
a. Site cost
b. Available of Skilled worker
c. Available of raw materials
d. Availability of services
44. The Ajay industries in nagpur is planning a process design, which follows a linear
path without backtracking or side tracking. This process design is known as
___________________
a. Cellular manufacturing
b. Group technology
c. Process focused
d. Product focused
45. The ABC Ltd company manufacturing spare parts for automobile industry is selecting
a location for starting a new branch. The manager had selected a site using
________________, because the BEP analysis had given approximately equal values.
a. Point rating method
b. Qualitative method
c. Causal method
d. Nominal group method
46. The New Age Ship building industry, the product is kept stationery and all the
machine and men move to complete the product. This type of layout is known as
______________
a. Process layout
b. Product layout
c. Fixed layout
d. Hybrid layout

47. The Helix Company is storing the glass plates in the ware house and when the product
was to be transported to a retailer, it was found some of them was damaged. Find out
what type of cost is incurred?
a. Purchase cost
b. Ordering cost
c. Stock out cost
d. Carrying cost
48. In the Kumar Industries, all the departmental heads purchase the materials required
accordingly, which gives the flexibility to alter its purchasing policy.
The Kumar industries followed a ______________________ system
a. Centralized purchasing
b. Decentralized purchasing
c. Collective purchasing
d. Integrated purchasing
49. The P.V Industries allotted the work load for each worker within the reasonable limits
of his skills, physical and mental ability. This type of job design followed by the P.V
industries is known as _____________
a. Technical feasibility
b. Economic feasibility
c. Behavioral feasibility
d. Basic feasibility
50. The Kumar Industries went for the automation in their operations and they
implemented a automatic materials handling system with several machines tools fixed
to perform various operations. What type of automation system they used?
a. CAM
b. CNC
c. FMS
d. CAD
51. The General Motors automobile plant at Flint, Michigan uses a type of computer
controlled materials handling equipment called _________________
a. Fixed Sequence Robots
b. Numerical Control Robots
c. Automatic Guided Vehicles
d. Conveyance System
52. The Anand associates Ltd, in their organization they had a network covering stages
which includes manufacturing, supplying, transport, warehousing, distributors etc.,
the system which they are following are ________________
a. Supply Chain Management
b. Enterprise Resource Planning
c. Material Resource Planning
d. Electronic Data
53. The ABC Ltd, company incurs a cost that is associated with evaluating the quality and
performance of the products and machines. This cost is known as ________________
a. Prevention Cost
b. Appraisal Cost
c. Failure Cost
d. Interference Cost
Answer the questions from 54 to 56 based on the following problem.

The Alpha Enterprise Ltd produces a generator and has the following demand for the past
seven months from January to July are

Month January February March April May June July

Demand 265 280 245 260 275 300 285

54. Identify the demand of the generators for the month of august?
a. 286
b. 287
c. 288
d. 290
55. If the actual demand for the august is 285, then check the forecast accuracy?
a. Less accurate
b. More deviation
c. More accurate
d. More positive
56. The type of forecasting technique used in the above problem is ________________
a. Qualitative model
b. Time series model
c. Causal model
d. Chart model

57. The cost of transportation between the factory and its warehouses & the demand at
each ware houses are given in the table below:

W1 W2 W3 Supply
F1 1 2 6 7
F2 0 4 2 12
F3 3 1 5 11
Demand 10 10 10

Find out the solution for the transporting the goods at a minimum cost for the given problem
using NWCR.
a. 91
b. 92
c. 93
d. 94
Answer the questions from 58 and 59 based on the following problem.

A T.V Stabilizer manufacturer selects four locations for installing their production unit and
the information regarding the locations are given below:
Location Fixed Cost Variable Cost
A 25,000/- 135/-
B 45,000/- 120/-
C 70,000/- 110/-
D 80,000/- 100/-

The T.V Stabilizer manufacturer is planning to produce 1000 units/year of a piece of the
product will be sold at around Rs. 500/- per unit.

58. On the basis of the information provided, identify the location that would be most
economical for the T.V Stabilizer manufacturer.
a. A
b. B
c. C
d. D
59. What will be estimated profit of the most economical location?
a. 4,75,000/-
b. 4,61,500/-
c. 4,43,500/-
d. 4,50,000/-

60. A manufacturer requires 500 units of product ‘A’ per annum. The firm purchases each
unit of ‘A’ for Rs. 50/- and spends Rs. 250/- on each order. The inventory carrying
cost of item of A is 25% of the unit price. Determine the EOQ.
a. 135
b. 141
c. 146
d. 150

Answer the questions from 61 and 62 based on the following problem.

The activity precedence diagram for five assembly activities is shown in the figure given
below. The element time required (in min) is also shown. The assembly line operational for
10 hrs a day and its expected output is 1000 units per day.

B 0.3

A 0.25 D 0.2 E 0.35

C 0.4

Precedence Diagram
 61. Calculate the cycle time for the above problem?
a. 0.4
b. 0.5
c. 0.6
d. 0.7
62. Calculate the theoretical minimum number of stations required to carry out the
activities to generate required output?
a. 2
b. 3
c. 4
d. 5

Answer the questions from 63 and 64 based on the following problem.

In the Maruthi Udyog ltd, a time study of an assembly line worker in the Maruthi 800
segment had the following results:
Worker performance rating: 90%
Cycle time; 3.5 min
Average allowance for the activity: 1.5% of the job time.

63. Calculate the normal time?

a. 3.05
b. 3.10
c. 3.15
d. 3.20
64. Calculate the standard time?
a. 3.6
b. 3.7
c. 3.8
d. 3.9

Answer the questions from 65 and 66 based on the following problem.

The western Printers were involved in printing and binding works. The company has got
orders from four of its customers A, B, C and D at the beginning of the work.
The processing time and due date of these jobs is given below:

Job (in order of Processing time Due date

arrival) (days)
A 4 6
B 5 7
C 3 5
D 2 4

65. Find out the sequence of the jobs according to their earliest due date?
a. A-B-C-D
b. D-C-A-B
c. A-B-D-C
d. D-A-B-C
 66. What is the average delay of the job according to the earliest due date?
a. 2.5
b. 3
c. 3.5
d. 4

Answer the questions from 67 to 69 based on the following problem.

The ABC Ltd, was assigned to complete a project which consists of six activities and the
network path with the duration of each activity is given below.

8 2 2

1 5

4 3

3 4
5

67. Find out the critical path for the above network?
a. 1-2-5
b. 1-2-4-5
c. 1-3-4-5
d. 1-2-3-4-5
68. Find out the duration of the project assigned to the company?
a. 10
b. 12
c. 21
d. 32
69. What is the shortest duration in the project?
a. 10
b. 20
c. 21
d. 32
 Answer the questions from 70 to 73 based on the following problem

Bill of Materials for product A is given below and the quantity required are also given. Use
this information to answer the following questions.

B C
D E
3 2
2 4

F
2
G C
2 3

H G
3 3

70. How many units of C’s are needed to make 20 units of A?

a. 270
b. 280
c. 290
d. 300
71. How many units of D’s are needed to produce 20 units of A’s?
a. 20
b. 30
c. 40
d. 50
72. How many units of G’s are needed to make 20 units of A?
a. 500
b. 510
c. 520
d. 530
73. How many units of C’s are needed to make 20 units of A?
a. 350
b. 360
c. 370
d. 380
Answer the questions from 74 to 76 based on the following problem

In a job work company, there are five jobs each of which is to be processed through two
machines M1 and M2 in the order M1M2. Processing hours are as follows:

Job 1 2 3 4 5
M1 3 8 5 7 4
M2 4 10 6 5 8

74. Find the total elapsed time of the above problem?

a. 31
b. 36
c. 38
d. 42
75. Calculate the idle time for the machine 1?
a. 6
b. 9
c. 12
d. 15
76. Calculate the idle time for the machine 2?
a. 3
b. 6
c. 9
d. 12

Answer the questions from 77 and 78 based on the following problem

A Modern Industries have achieved actual sales of 900 units in the month of July, when the
forecast was for 800 units. Use a smoothing constant of 0.1.

77. Calculate the sales for the month of august?

a. 800
b. 810
c. 820
d. 830
78. The above method of calculating the demand forecast belongs to which of the
following?
a. Qualitative method
b. Time series
c. Causal method
d. Delphi Method
79. The Universal Motors, while measuring the accuracy of their forecast by using the
Tracking signal method, they got a value of T.S is -0.428, this indicates that their
forecast is ______________________________
a. Actual
b. Under estimated
c. Over estimated
d. Average
80. The Sigma Industries have designed a product of the following arrangements.

Identify the name of the method of design.

a. Straight Line
b. U-shape
c. Convolution Shape
d. Main assembly Line