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web.groovymark@gmail.com
- December 12, 2024
Question 01
What is ‘capacity planning’?
a) Determining the number of employees needed for production
b) Identifying the actions necessary to meet customer demand
c) Estimating how much inventory is needed to meet sales
d) Scheduling production based on available equipment
Answer: b) Identifying the actions necessary to meet customer demand
Explanation: Capacity planning helps organizations determine how to meet current and future customer demands by identifying the resources and actions necessary to achieve those goals.
Question 02
What is ‘tier one supplier’?
a) Supplier that directly provides materials to the end customer
b) Supplier that provides materials directly to the processing facility
c) Supplier that provides raw materials to another supplier
d) Supplier that manages the distribution network
Answer: b) Supplier that provides materials directly to the processing facility
Explanation: Tier one suppliers deliver materials directly to the company's production or processing facility, making them critical to the supply chain.
Question 03
What is ‘push production’?
a) A method where production starts based on actual demand
b) A method where products are made in anticipation of future demand
c) A system that reduces excess inventory
d) A system that only produces based on customer orders
Answer: b) A method where products are made in anticipation of future demand
Explanation: Push production is based on forecasting future customer demand and producing goods in advance to meet that expected demand.
Question 04
What is ‘job rotation’?
a) Giving an employee additional responsibilities
b) Moving employees between different jobs to increase skills
c) Reducing the number of tasks assigned to employees
d) Increasing the amount of overtime worked by employees
Answer: b) Moving employees between different jobs to increase skills
Explanation: Job rotation allows employees to experience different roles, which helps them gain new skills and knowledge while reducing monotony.
Question 05
What is the purpose of ‘capacity requirement planning’ (CRP)?
a) To calculate the maximum production output
b) To calculate the production capacity required to meet demand
c) To determine the number of employees needed
d) To estimate the amount of overtime required
Answer: b) To calculate the production capacity required to meet demand
Explanation: CRP helps businesses determine how much production capacity they will need to meet customer demands effectively.
Question 06
What is ‘vertical integration’?
a) Acquiring companies that operate in the same industry
b) Acquiring companies that supply raw materials or distribute products
c) Expanding into unrelated business sectors
d) Merging with competitors
Answer: b) Acquiring companies that supply raw materials or distribute products
Explanation: Vertical integration occurs when a company acquires another firm that operates earlier or later in the production process, such as suppliers or distributors.
Question 07
What is the purpose of ‘job enrichment’?
a) To improve production line automation
b) To provide employees with additional responsibilities and incentives
c) To reduce the number of tasks an employee is responsible for
d) To evaluate employee efficiency
Answer: b) To provide employees with additional responsibilities and incentives
Explanation: Job enrichment aims to increase employee motivation by offering more complex tasks and additional responsibilities, leading to greater job satisfaction.
Question 08
What is ‘finite loading’?
a) Scheduling that does not consider capacity limitations
b) Scheduling work centers up to a predetermined capacity
c) Scheduling based on available workforce
d) Scheduling tasks without considering deadlines
Answer: b) Scheduling work centers up to a predetermined capacity
Explanation: Finite loading schedules tasks based on the actual capacity of work centers, ensuring that no resources are overloaded.
Question 09
What is the primary focus of ‘lean systems’?
a) To reduce employee costs
b) To maximize value by removing waste and inefficiencies
c) To increase production output
d) To maintain large inventory levels
Answer: b) To maximize value by removing waste and inefficiencies
Explanation: Lean systems focus on improving efficiency by eliminating waste, reducing delays, and maximizing value for the customer.
Question 10
What is ‘effective capacity’?
a) The highest achievable output under ideal conditions
b) The output level a company expects to achieve given current operating constraints
c) The total production output during peak hours
d) The amount of time employees spend on individual tasks
Answer: b) The output level a company expects to achieve given current operating constraints
Explanation: Effective capacity is the realistic output that a company can achieve, considering current operating constraints like machine downtime and employee availability.
Question 11
What is the primary objective of ‘ISO 14000’?
a) To standardize inventory management practices
b) To provide guidelines for environmental management systems
c) To regulate financial reporting processes
d) To establish guidelines for employee training programs
Answer: b) To provide guidelines for environmental management systems
Explanation: ISO 14000 standards focus on environmental management, helping organizations minimize their environmental impact and comply with regulations.
Question 12
What is ‘horizontal integration’?
a) A company acquiring its suppliers
b) A company merging with competitors in the same industry
c) A company outsourcing production tasks
d) A company reducing production output to save costs
Answer: b) A company merging with competitors in the same industry
Explanation: Horizontal integration involves acquiring or merging with companies in the same industry to increase market share and reduce competition.
Question 13
What is ‘capacity utilization’?
a) A measure of the amount of available capacity being used
b) A method for determining production output
c) A calculation of the time required to meet customer demand
d) A strategy for maximizing inventory turnover
Answer: a) A measure of the amount of available capacity being used
Explanation: Capacity utilization measures how much of a company’s available capacity is being utilized to produce goods or services.
Question 14
What is the purpose of ‘capacity planning’?
a) To identify the number of employees required for a project
b) To plan for the resources necessary to meet customer demand
c) To determine which tasks need to be outsourced
d) To allocate tasks based on employee availability
Answer: b) To plan for the resources necessary to meet customer demand
Explanation: Capacity planning helps organizations prepare for current and future customer demands by identifying the resources and actions needed to meet those demands.
Question 15
What is ‘MRP’ (Material Requirements Planning)?
a) A system that schedules employee work shifts
b) A system that determines the quantity and timing of material requirements
c) A method for forecasting sales
d) A strategy for reducing production costs
Answer: b) A system that determines the quantity and timing of material requirements
Explanation: MRP is a system that helps companies plan the materials needed for production, ensuring that the right materials are available at the right time.
Question 16
What is ‘project process’?
a) A standardized procedure for producing goods
b) A method for making one-at-a-time products to customer specifications
c) A continuous production process for mass manufacturing
d) A system for reducing production waste
Answer: b) A method for making one-at-a-time products to customer specifications
Explanation: The project process is used to produce customized, one-off products designed specifically to meet customer requirements.
Question 17
What is ‘control risk’?
a) The risk that management will make poor financial decisions
b) The risk that internal controls will not prevent or detect material misstatements
c) The risk that production output will exceed capacity
d) The risk of overloading employees with tasks
Answer: b) The risk that internal controls will not prevent or detect material misstatements
Explanation: Control risk refers to the possibility that a company's internal controls may fail to detect or prevent material errors in financial statements.
Question 18
What is ‘observed time’?
a) The time recorded under ideal conditions
b) The actual time measured during the performance of a task
c) The estimated time required to complete a task
d) The maximum time allowed for task completion
Answer: b) The actual time measured during the performance of a task
Explanation: Observed time is the real time taken to perform a task, as measured during time studies or work studies.
Question 19
What is ‘scatter diagram’ used for?
a) To track project progress
b) To determine the relationship between two variables
c) To compare the outputs of different production facilities
d) To identify bottlenecks in a process
Answer: b) To determine the relationship between two variables
Explanation: Scatter diagrams plot data points to show if there is a correlation between two variables, often used in quality control analysis.
Question 20
What is the purpose of ‘six sigma’?
a) To increase production speed
b) To eliminate causes of defects and minimize variability in processes
c) To reduce employee turnover
d) To maximize inventory levels
Answer: b) To eliminate causes of defects and minimize variability in processes
Explanation: Six Sigma uses data-driven techniques to identify and eliminate defects in processes, improving quality and efficiency.
