OA Exams

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  • December 12, 2024

Question 21

What is the purpose of ‘checklists’ in quality control?

a) To record inventory levels
b) To track defects and occurrences
c) To measure employee productivity
d) To estimate production costs

Answer: b) To track defects and occurrences

Explanation: Checklists are used to document common defects and the frequency with which they occur, helping to monitor and improve quality control.

Question 22

What is ‘design capacity’?

a) The actual production output under normal conditions
b) The maximum output rate attainable under ideal conditions
c) The expected output based on employee availability
d) The minimum output required to break even

Answer: b) The maximum output rate attainable under ideal conditions

Explanation: Design capacity refers to the maximum potential output a system or process can achieve under ideal conditions without any limitations.

Question 23

What is the ‘execution’ phase of the project life cycle?

a) Planning the project and estimating resources
b) Carrying out activities to achieve project objectives
c) Completing and closing the project
d) Evaluating the project’s success

Answer: b) Carrying out activities to achieve project objectives

Explanation: The execution phase involves implementing the project plan and performing the tasks necessary to achieve the project’s goals.

Question 24

What is ‘finite loading’ in scheduling?

a) Scheduling that does not account for available capacity
b) Scheduling work centers based on predetermined capacity limits
c) Scheduling tasks based on machine availability
d) Scheduling jobs with no time constraints

Answer: b) Scheduling work centers based on predetermined capacity limits

Explanation: Finite loading schedules jobs up to a specific capacity limit, ensuring that work centers do not exceed their available resources.

Question 25

What is ‘capacity utilization’?

a) The rate at which employees use their available skills
b) A measure of how much of the available capacity is being used
c) The amount of inventory a company holds
d) The rate at which resources are replaced

Answer: b) A measure of how much of the available capacity is being used

Explanation: Capacity utilization measures the percentage of available production capacity that is actually being used to produce goods or services.

Question 26

What is the ‘forward scheduling’?

a) Scheduling work to start as soon as possible
b) Scheduling work to meet a specific deadline
c) Scheduling work without considering capacity
d) Scheduling work based on employee availability

Answer: a) Scheduling work to start as soon as possible

Explanation: Forward scheduling determines the earliest possible completion date for a job by starting tasks as soon as resources are available.

Question 27

What is the role of ‘external distributors’?

a) Employees responsible for distributing goods within a company
b) Companies or providers responsible for delivering goods to the final customer
c) Departments responsible for internal quality control
d) Suppliers responsible for providing raw materials

Answer: b) Companies or providers responsible for delivering goods to the final customer

Explanation: External distributors are third-party logistics providers that manage the delivery of finished goods to customers.

Question 28

What is ‘capacity focus’?

a) A strategy where facilities specialize in a wide range of production
b) A strategy where facilities focus on a narrow set of production objectives
c) A method of measuring capacity based on demand
d) A way to prioritize tasks based on urgency

Answer: b) A strategy where facilities focus on a narrow set of production objectives

Explanation: Capacity focus involves creating specialized facilities that are optimized for a limited set of objectives to increase efficiency.

Question 29

What is ‘conception’ in the project life cycle?

a) The final stage of project closure
b) The initial stage where the need for a project is identified
c) The phase where resources are allocated
d) The execution of project tasks

Answer: b) The initial stage where the need for a project is identified

Explanation: The conception phase is the first stage of the project life cycle, where the need for a project is recognized and initial planning begins.

Question 30

What is ‘performance time’?

a) The actual time it takes to complete a task
b) The estimated time for completing tasks under ideal conditions
c) The average time workers take to complete tasks
d) The maximum allowable time for completing a task

Answer: a) The actual time it takes to complete a task

Explanation: Performance time refers to the length of time it takes to complete a specific task, from start to finish.

Question 31

What is ‘throughput time’?

a) The time required to move raw materials through the production process to finished goods
b) The time it takes for a product to reach the customer
c) The time between ordering supplies and receiving them
d) The average time employees spend on task completion

Answer: a) The time required to move raw materials through the production process to finished goods

Explanation: Throughput time refers to the total time it takes for a product to move from raw materials to finished goods.

Question 32

What is the purpose of ‘capacity requirements planning’?

a) To measure employee efficiency
b) To determine the production capacity available to meet demand
c) To schedule production based on customer demand
d) To allocate resources for maximum productivity

Answer: b) To determine the production capacity available to meet demand

Explanation: Capacity requirements planning is used to calculate the production capacity needed to meet current and future customer demands.

Question 33

What is ‘infinite loading’?

a) Scheduling that calculates capacity based on available resources
b) Scheduling that assumes no capacity limits
c) Scheduling that focuses on minimizing production costs
d) Scheduling based on customer orders

Answer: b) Scheduling that assumes no capacity limits

Explanation: Infinite loading schedules tasks without considering the actual capacity available, which can lead to overloading resources.

Question 34

What is ‘lean systems’?

a) Systems that maximize inventory levels to reduce stockouts
b) Systems that focus on reducing waste and adding value to processes
c) Systems that increase employee turnover
d) Systems that prioritize speed over quality

Answer: b) Systems that focus on reducing waste and adding value to processes

Explanation: Lean systems aim to improve efficiency by removing waste and non-value-adding activities from processes.

Question 35

What is ‘ERP’ (Enterprise Resource Planning)?

a) A system that manages employee performance reviews
b) A system that integrates and automates business processes across departments
c) A system that tracks customer orders
d) A method for determining production schedules

Answer: b) A system that integrates and automates business processes across departments

Explanation: ERP systems streamline business processes by integrating various functions, such as finance, HR, and production, into a single system.

Question 36

What is the fourth stage of the ‘project life cycle’?

a) Planning
b) Execution
c) Conception
d) Termination

Answer: b) Execution

Explanation: The fourth stage of the project life cycle is the execution phase, where the project plan is implemented, and the tasks necessary to complete the project are carried out.

Question 37

What is ‘group technology’?

a) A technology that automates supply chain management
b) A method for grouping similar production processes
c) A system that assigns tasks to specific employee groups
d) A way to track inventory in real-time

Answer: b) A method for grouping similar production processes

Explanation: Group technology organizes similar processes into groups to streamline production and increase efficiency.

Question 38

What is ‘periodic inventory review’?

a) Inventory is checked on a continuous basis
b) Inventory is checked at specific intervals
c) Inventory is automatically reordered when stock is low
d) Inventory is only checked when a discrepancy is found

Answer: b) Inventory is checked at specific intervals

Explanation: Periodic inventory review involves conducting physical counts of inventory at regular intervals to ensure accuracy and proper stock levels.

Question 39

What is ‘respect for people’ in JIT systems?

a) Ensuring employees work faster to meet production quotas
b) Treating human resources as a critical part of the JIT philosophy
c) Reducing the number of employees needed for production
d) Using technology to replace employees

Answer: b) Treating human resources as a critical part of the JIT philosophy

Explanation: In Just-In-Time systems, respect for people is a fundamental element, as employees are seen as essential contributors to eliminating waste and improving processes.

Question 40

What is ‘process velocity’?

a) The speed at which products are shipped to customers
b) The time it takes for an employee to complete a task
c) A measure of wasted time in a process
d) A method for measuring production costs

Answer: c) A measure of wasted time in a process

Explanation: Process velocity calculates how much time is spent on non-value-added activities or wasted time in a production process.

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