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web.groovymark@gmail.com
- December 12, 2024
Question 21
What is the difference between horizontal and vertical integration?
a) Horizontal integration is acquiring competitors, while vertical integration is acquiring suppliers or distributors
b) Vertical integration involves acquiring competitors, while horizontal integration involves expanding into different industries
c) Horizontal integration is about improving customer relations, while vertical integration is about improving product quality
d) Vertical integration focuses on market expansion, while horizontal integration focuses on cost reduction
Answer: a) Horizontal integration is acquiring competitors, while vertical integration is acquiring suppliers or distributors
Explanation: Horizontal integration involves acquiring companies in the same industry, while vertical integration involves expanding control over suppliers or distributors.
Question 22
What is an assignable cause of variation?
a) A variation that occurs randomly and cannot be controlled
b) A variation that can be identified and eliminated
c) A variation due to external economic factors
d) A variation caused by machine malfunction alone
Answer: b) A variation that can be identified and eliminated
Explanation: Assignable causes are those variations that can be traced to specific factors and corrected.
Question 23
What is backward scheduling used for?
a) To determine when a job should start to meet a due date
b) To schedule jobs in reverse order of priority
c) To avoid unnecessary overtime
d) To manage equipment downtime
Answer: a) To determine when a job should start to meet a due date
Explanation: Backward scheduling helps planners determine the latest start time to ensure a job meets its deadline.
Question 24
What is the purpose of a checklist in quality management?
a) To track employee performance
b) To list common defects and the frequency of their occurrence
c) To schedule regular maintenance
d) To track the delivery of goods
Answer: b) To list common defects and the frequency of their occurrence
Explanation: Checklists are used to identify defects and track how often they occur, improving the quality control process.
Question 25
What does capacity utilization measure?
a) The maximum output possible under ideal conditions
b) The actual amount of capacity used compared to available capacity
c) The cost of production compared to profits
d) The amount of downtime between shifts
Answer: b) The actual amount of capacity used compared to available capacity
Explanation: Capacity utilization measures how much of the available capacity is actually being used in production.
Question 26
What does the term ‘backward scheduling’ refer to?
a) Scheduling that starts with the earliest available date
b) Scheduling that moves jobs to an earlier start date
c) Scheduling that determines the latest possible start date for completion
d) Scheduling that prioritizes job flexibility over deadlines
Answer: c) Scheduling that determines the latest possible start date for completion
Explanation: Backward scheduling works from the deadline backward to determine the latest possible start date to ensure timely completion.
Question 27
What is a ‘capacity focus’?
a) A broad approach to handling various production objectives
b) A narrow approach targeting small, specialized facilities
c) A focus on maximizing output regardless of resources
d) A method of allocating resources equally across departments
Answer: b) A narrow approach targeting small, specialized facilities
Explanation: Capacity focus involves concentrating on a limited number of objectives, often in small, specialized facilities, to achieve operational efficiency.
Question 28
What does ‘capacity utilization’ measure?
a) The total number of employees used per unit produced
b) The percentage of available capacity that is actually being used
c) The maximum potential output of a company
d) The proportion of output delivered to customers
Answer: b) The percentage of available capacity that is actually being used
Explanation: Capacity utilization measures how much of a company's available production capacity is being utilized, reflecting efficiency.
Question 29
Which of the following best describes a ‘finite loading’ scheduling system?
a) It schedules work centers without any limit on capacity
b) It limits work based on available capacity at each center
c) It schedules jobs based on maximum production output
d) It ignores resource limitations in scheduling
Answer: b) It limits work based on available capacity at each center
Explanation: Finite loading limits scheduling based on the actual capacity available at work centers to avoid overloading.
Question 30
What does ‘infinite loading’ involve in production scheduling?
a) Scheduling without considering available capacity
b) Scheduling that limits tasks based on machine availability
c) Ensuring jobs start as soon as resources are available
d) Scheduling work only after analyzing all possible delays
Answer: a) Scheduling without considering available capacity
Explanation: Infinite loading schedules tasks without considering resource availability, assuming there will be sufficient capacity.
Question 31
What is ‘throughput time’?
a) The time it takes for a product to reach the consumer
b) The time it takes to manufacture a product from start to finish
c) The total time from the arrival of materials to the final product’s storage
d) The time taken for a product to be shipped to the warehouse
Answer: b) The time it takes to manufacture a product from start to finish
Explanation: Throughput time measures the total time required for production, from the start of the process to completion.
Question 32
What is the ‘bottleneck’ in a process flowchart?
a) The longest task that delays the overall process
b) The shortest task that speeds up the process
c) The step where the most employees are assigned
d) The part of the process that is most expensive
Answer: a) The longest task that delays the overall process
Explanation: A bottleneck refers to the slowest part of the process that limits the overall production speed.
Question 33
What is ‘job design’ in operations management?
a) A process that focuses on improving overall profitability
b) A process of specifying work activities for employees
c) A system for distributing managerial tasks
d) A methodology for determining production schedules
Answer: b) A process of specifying work activities for employees
Explanation: Job design involves defining the work activities and responsibilities required for a specific job role within an organization.
Question 34
Which of the following is a characteristic of ‘just-in-time’ systems?
a) Keeping large inventories to meet demand
b) Reducing waste and inventory levels
c) Prioritizing product diversification
d) Producing goods in anticipation of future orders
Answer: b) Reducing waste and inventory levels
Explanation: Just-in-time systems aim to minimize excess inventory and waste by producing goods only when needed.
Question 35
What is the purpose of ‘ERP (Enterprise Resource Planning)’ systems?
a) To control the flow of goods between suppliers and customers
b) To integrate all departments and functions across a company into a single system
c) To plan production schedules based on forecasted demand
d) To manage external suppliers and transportation logistics
Answer: b) To integrate all departments and functions across a company into a single system
Explanation: ERP systems help manage and integrate the essential functions of a business, such as finance, HR, manufacturing, and supply chain.
Question 36
What is meant by ‘material requirement planning (MRP)’?
a) A system that schedules and monitors workforce activities
b) A system that focuses on allocating resources for customer service
c) A system that determines the quantity and timing of material needs
d) A system for managing employee performance reviews
Answer: c) A system that determines the quantity and timing of material needs
Explanation: MRP is used to manage manufacturing processes, ensuring that materials are available for production when needed.
Question 37
What does ‘observed time’ refer to in process management?
a) The time taken to complete a task under standard conditions
b) The time recorded by supervisors during an activity
c) The actual time it takes for a worker to complete a task
d) The time it takes for materials to reach the production floor
Answer: c) The actual time it takes for a worker to complete a task
Explanation: Observed time refers to the real, measured time taken by a worker to complete a task.
Question 38
What is the key difference between ‘periodic’ and ‘perpetual’ inventory systems?
a) Periodic systems track inventory continuously, while perpetual systems use regular updates
b) Periodic systems update inventory continuously, while perpetual systems rely on physical counts
c) Perpetual systems continuously update inventory, while periodic systems rely on regular physical counts
d) Perpetual systems are used for small businesses, while periodic systems are for larger enterprises
Answer: c) Perpetual systems continuously update inventory, while periodic systems rely on regular physical counts
Explanation: Perpetual inventory systems update in real-time, while periodic systems only update inventory during regular intervals.
Question 39
What is a ‘scatter diagram’?
a) A graph that shows the relationship between two variables
b) A diagram used to display project timelines
c) A chart that organizes work schedules by time
d) A flowchart that shows all steps of a process
Answer: a) A graph that shows the relationship between two variables
Explanation: A scatter diagram is a tool used to analyze the relationship between two variables, often to identify trends or patterns.
Question 40
What is the final stage of the project life cycle?
a) Conception
b) Execution
c) Planning
d) Termination
Answer: d) Termination
Explanation: The termination phase is where the project is formally completed, resources are released, and the final product is delivered.
