MGT613 Production / Operations Management Spring 2009 Final Term Paper

FINALTERM EXAMINATION
Spring 2009
MGT613- Production / Operations Management

Question No: 1 ( Marks: 1 ) - Please choose one
Which one of the following forms of productivity has units of output per dollar input?

Capital
Energy
Labor
Machine

Question No: 2 ( Marks: 1 ) - Please choose one
An organization has describe its distinctive characteristic now what is the next step in
strategy formulation process?

Competitor s distinctiveness
Selecting the market segment
Environmental scanning
Productivity Measures

Question No: 3 ( Marks: 1 ) - Please choose one
Which one of the following correctly explains the quantitative forecasting technique?

It consists mainly of numerical descriptions and resist subjective inputs of managers.
It consists mainly of subjective inputs and resist particular numerical descriptions.
It consists mainly of subjective inputs and resisit human factor, personal opinions.
It consists mainly of analyzing objective and hard data and resist human factor, opinion.

Question No: 4 ( 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: 5 ( Marks: 1 ) - Please choose one
Given the table:

Attachment 574
Which one of the following is the correct payoff under MINIMAX regret approach?

Rs. 12,000
Rs. 6,000
Rs. 5,000
Rs. 16,000

Question No: 6 ( Marks: 1 ) - Please choose one
Which one of the following formulae can be used to compute break even point?

Q = VC / (R - VC)
Q = FC / (R - VC)
Q = VC / (R + FC)
Q = FC / (R + VC)

Question No: 7 ( Marks: 1 ) - Please choose one
Which one of the following is used to produce gasoline and petroleum products?

Job Shop
Batch processing
Assembly line
Continuous processing

Question No: 8 ( Marks: 1 ) - Please choose one
Which of the following statements would generally be considered as correct job shop?

A continuous process has lower output volume as compared to job shop
Equipment flexibility is lower in job shop than that of a continuous process
Labour costs are higher in a Job Shop operation than in most other processes
Batch processing produces a more standard range of products than continuous flow processes

Question No: 9 ( Marks: 1 ) - Please choose one
Product life cycle is based on which of the following components?

Place
Demand
Supply
Price

Question No: 10 ( Marks: 1 ) - Please choose one
Which one of the following is the goal of work sampling?

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: 11 ( Marks: 1 ) - Please choose one
Forecasting for groups tend to be more accurate than forecasting for individual items
because:

A group is compose of a number of items
A group exhibits a uniform behavior
Forecasting errors among items in a group have a canceling effect
A group behavior is relatively less uncertain

Question No: 12 ( Marks: 1 ) - Please choose one
Which one of the following is an example of site related factors that affect location
decision?

Transportation
Quality of life
Location of new markets
Location of raw materials

Question No: 13 ( Marks: 1 ) - Please choose one
Who emphasized quality in terms of inspection and gauging?

G.S. Radford
W. Shewhart
F.W. Taylor
W.E. Demig

Question No: 14 ( Marks: 1 ) - Please choose one
Which of the following word is the meaning of the term Poka Yoke ?

Mistake proof
Low quality
Defective
Expensive

Question No: 15 ( Marks: 1 ) - Please choose one
Which of the following statement defines process re-design?

It is collecting information, identifying each step and finding inputs and outputs of process
It is collecting information about cost reduction and improving the defects
It relates to asking questions about process flow and identifying missing or duplicating activities
It relates with taking a fresh approach to solve an issue on hand

Question No: 16 ( Marks: 1 ) - Please choose one
Which of the following statement defines process analysis?

It is collecting information, identifying each step and finding inputs and outputs of process
It is collecting information about cost reduction and improving the defects
It relates to asking questions about process flow and identifying missing or duplicating activities
It relates with taking a fresh approach to solve an issue on hand

Question No: 17 ( Marks: 1 ) - Please choose one
The well-known Deming wheel is also referred to as:

Juran s cycle
Crosby s cycle
Ishikawa s cycle
Shewhart s cycle

Question No: 18 ( Marks: 1 ) - Please choose one
Which of the following refers to the inherent variability in a process?

Control limits
Process capability
Chance causes of variation
Assignable causes of variation

Question No: 19 ( Marks: 1 ) - Please choose one
Which of the following refers to a variation resulted from an identifiable cause?

Random variation
Regular variation
Irregular variation
Assignable variation

Question No: 20 ( Marks: 1 ) - Please choose one
Which of the following refers to the average of accepted lots and rejected lots?

Acceptable Quality Level (AQL)
Lot Tolerance Percent Defective (LTPD)
Average Outgoing Quality (AOQ)
Average Outgoing Quality Limit (AOQL)

Question No: 21 ( Marks: 1 ) - Please choose one
If the costs of inspection are higher than costs of obtaining the sample ____________
sampling should be used.

Random
Single
Double
Multiple

Question No: 22 ( Marks: 1 ) - Please choose one
Identify the set of factors that affect the choice of a strategy for aggregate planning.

Cost and corporate policy
Cost and location analysis
Cost and capacity constraints
Cost and training of employees

Question No: 23 ( Marks: 1 ) - Please choose one
Which of the following mathematical expressions can be employed to compute backorder
cost?

Backorder cost per unit + number of backordered units
Backorder cost per unit - number of backordered units
Backorder cost per unit ÷ number of backordered units
Backorder cost per unit × number of backordered units

Question No: 24 ( Marks: 1 ) - Please choose one
What would be the total cost of inventory, if a firm holds 600 units of a product A ,
where the carrying cost is Rs. 3 per unit?

Rs. 200
Rs. 1800
Rs. 597
Rs. 603

Question No: 25 ( Marks: 1 ) - Please choose one
What would be the total backorder cost, if 400 units of a product A are ordered back
where the back order cost is Rs. 4 per unit?

Rs. 100
Rs. 396
Rs. 404
Rs. 1600

Question No: 26 ( Marks: 1 ) - Please choose one
Which of the following is an advantage of perpetual inventory system?

Periodic review of inventory
Economies in shipping orders
Fixed order quantity
Low cost of record keeping

Question No: 27 ( Marks: 1 ) - Please choose one
Which of the following refers to the costs incurred to get the equipment ready for the next
job?

Accepting cost
Holding cost
Shortage cost
Setup cost

Question No: 28 ( 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: 29 ( Marks: 1 ) - Please choose one
According to ABC classification system for inventory management, which of the
following groups of items represents high value inventory items?

Group A
Group B
Group C
Group X

Question No: 30 ( Marks: 1 ) - Please choose one
All of the following are common types of inventories Except:

Raw material
Work in transit
Work in progress
Scrapped work

Question No: 31 ( Marks: 1 ) - Please choose one
EPP stands for which of the following?

Economic Part Period
Economic Production Period
Equal Production Period
Equal Part Period

Question No: 32 ( Marks: 1 ) - Please choose one
ERP stands for which of the following?

Enterprise Resource Planning
Enterprise Requirements Planning
Equal Resource Planning
Equal Requirements Planning

Question No: 33 ( Marks: 1 ) - Please choose one
JIT stands for which of the following?

Just In Time
Just In Test
Job In Time
Job Inventory Time

Question No: 34 ( Marks: 1 ) - Please choose one
Which of the following is widely accepted as an effective planning method of all
resources of a manufacturing firm?

Enterprise Resource Planning
Material Requirements Planning
Material Requirements Planning I I
Master Production Schedule

Question No: 36 ( Marks: 1 ) - Please choose one
EDI stands for which of the following?

Enterprise Data Interchange
Economic Data Interchange
Equal Data Interchange
Electronic Data Interchange

Question No: 37 ( Marks: 1 ) - Please choose one
Which of the following is a system for inventory management and distribution planning?

Electronic Data Interchange (EDI)
Enterprise Resource Planning (ERP)
Distribution Resource Planning (DRP)
Materials Resource Planning (MRP)

Question No: 38 ( Marks: 1 ) - Please choose one
Which of the following refers to an area where a person works with special equipment on
a specialized job?

Workshop
Work area
Workplace
Workstation

Question No: 39 ( Marks: 1 ) - Please choose one
Which of the following is TRUE
about a project activity?

It is a unique, one-time activity
It is static in nature
It is often simple to outline
It is a set of unrelated tasks

Question No: 40 ( Marks: 1 ) - Please choose one
Successful project management includes all of the following factors EXCEPT:

Interchangeable staff
Competent team members
Responsiveness to clients
Control mechanisms

Question No: 41 ( Marks: 1 ) - Please choose one
Network activities are used to determine all of the following EXCEPT:

Expected project duration
Slack time
Critical path
Budgeted cost

Question No: 42 ( Marks: 1 ) - Please choose one
Which of the following is a descriptive technique that is used by a decision maker to
evaluate the behavior of a model under various conditions?

Linear programming
Simulation
Critical path method
Program evaluation and review technique

Question No: 43 ( Marks: 3 )
Explain the importance of employee empowerment in TQM.

Question No: 44 ( Marks: 3 )
What would be the annual ordering cost, if annual demand is 300 units where the
order size is 250 units and ordering cost is Rs. 10 per order?
Note: Provide answer with complete working. Failure to show working will result in
deduction of marks.

Question No: 45 ( Marks: 3 )
Gantt charts are of various types. Give a brief description about al least two types of
Gantt charts.

Question No: 46 ( Marks: 5 )
"Six sigma is related to quality improvement" Elaborate this statment.

Question No: 47 ( Marks: 5 )
MRP (Materials Requirement Planning) processing is made up of various
components. Explain some of them.

Question No: 48 ( Marks: 10 )
Implementation of six sigma aims at reducing defects. What could be the various
obstacles in implementing Six Sigma?

Question No: 49 ( Marks: 10 )
Double sampling plan is better than the single sampling plan. Elaborate some of the
features of double sampling plan and how it takes care of the limitation of single
sampling plan.