MIDTERM EXAMINATION
Spring 2010
MGT613- Production / Operations Management



Question No: 1 ( Marks: 1 ) - Please choose one
Within the operations function, which one of the following is a long-term management decision?
► Control decision
► Non-operational decision
► Strategic decision
► Tactical decision

Question No: 2 ( Marks: 1 ) - Please choose one
The management of systems or processes that creates goods and provides services is known as:
► Operation Management
► Operation/production Management
► Operation/Research Management
► Production/Research Management

Question No: 3 ( Marks: 1 ) - Please choose one
Which one of the following decision is NOT made by operations managers?
► How much capacity is required to balance demand?
► What should be the location and layout of a facility?
► How to improve operational efficiency?
► Which market areas to manufacture the products for?

Question No: 4 ( Marks: 1 ) - Please choose one
A business process is a logical set of tasks or activities that:
► Are specific to the operations function
► Are specific to the marketing function
► Are interdependent with other processes
► Have exactly the same performance measures for any process

Question No: 5 ( Marks: 1 ) - Please choose one
Which one the following formula or function can be used to measure the performance?
► Flexibility + profit+ operations
► Work + profit + value
► Quality + speed + flexibility
► Profit + Incentives + standards

Question No: 6 ( Marks: 1 ) - Please choose one
Which of the following statements describes an order-qualifier characteristic?
► A competitive dimension used to make final decision among competitors
► A factor which directly and significantly contribute to winning business
► A factor which increases the profitability of the organization
► A factor perceived as a minimum standard as a potential for purchase

Question No: 7 ( Marks: 1 ) - Please choose one
Which one of the following forecasting techniques uses explanatory variables to predict future demand?
► Associative forecast
► Time series forecast
► Consumer survey
► Executive opinion

Question No: 8 ( Marks: 1 ) - Please choose one
In which one of the following decision environments it is impossible to assess the likelihood of various future events?
► Risk
► Bounded rationality
► Certainty
► Uncertainty

Question No: 9 ( Marks: 1 ) - Please choose one
Which one of the following is an implication of laplace approach of decision making?

► The best of the worst possible payoff
► The best possible payoff
► The best average payoff
► The least of the worst regrets

Question No: 10 ( Marks: 1 ) - Please choose one
Which one of the following is an outcome of MINIMAX regret?
► The best of the worst possible payoff
► The best possible payoff
► The best average payoff
► The least of the worst regret

Question No: 11 ( Marks: 1 ) - Please choose one
Which one of the following is a limitation of a moving average having a trend?


► The forecast lags behind the actual
► The forecast represents demand more accurately
► The forecast will not be accurate
► The forecast will not be reliable

Question No: 12 ( Marks: 1 ) - Please choose one
Which one of the following refers to the maximum output that a firm can produce under ideal conditions?

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► Design capacity
► Effective capacity
► Capacity planning
► Utilization rate

Question No: 13 ( Marks: 1 ) - Please choose one
Which one of the following is a characteristic of continuous process?

► High lead times
► Short process times
► The ability to handle high variety
► The ability to handle high volumes

Question No: 14 ( Marks: 1 ) - Please choose one
Which of the following is an example of a business that uses assembly line process structure?
► Automobile assembly
► Sugar refinery
► Heavy equipment
► French restaurants

Question No: 15 ( Marks: 1 ) - Please choose one
Which of the following layout types is associated with a supermarket?

► Fixed position layout
► Process layout
► Product layout
► Cellular layout

Question No: 16 ( Marks: 1 ) - Please choose one
Which one of the following layout types is associated with car assembly?
► Fixed position layout
► Process layout
► Product layout
► Hybrid layout

Question No: 17 ( Marks: 1 ) - Please choose one
A department store discovered that in a four-month period, the best forecast can be determined by using 50 percent of the sales for the most recent month, 20 percent of the sales of two months ago, 10 percent of the sales of three months ago, and 20 percent of the sales of four months ago. Which forecasting method should the store use to forecast demand?
► Simple Moving Average
► Linear Regression
► Time Series Analysis
► Weighted Moving Average

Question No: 18 ( Marks: 1 ) - Please choose one
Which one of the following is an application of simple exponential smoothing?
► Establishing durability
► Finding reliability
► Scheduling services
► Quality improvement

Question No: 19 ( Marks: 1 ) - Please choose one
Which of the following takes into consideration the design of aesthetics of the product?



► Functional design
► Production design
► Service design
► Product design

Question No: 20 ( Marks: 1 ) - Please choose one
Which one of the following statements is TRUE about product life cycle?

► It depicts demand of a product at various price levels
► It depicts demand of a product with respect to time
► It relates demand of a product to quality
► It relates demand of a product to market share

Question No: 21 ( Marks: 1 ) - Please choose one
Which one of the following is TRUE about Taguchi approach?

► To test the robustness of a design
► To articulate the “voice of the customer”
► To reduce the degree of automation
► To create a concurrent design

Question No: 22 ( Marks: 1 ) - Please choose one
Which one of the following is a curve showing failure rate over time?

► Cost curve
► Bath tub curve
► Fish bone diagram
► Reliability curve

Question No: 23 ( Marks: 1 ) - Please choose one
Which of following statement is true about effective capacity?
► It is the actual output achieved
► It is always less than actual output
► It is the maximum output that a firm can produce
► It is always less than designed capacity

Question No: 24 ( 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: 25 ( Marks: 1 ) - Please choose one
Quality, costs, lead times, operating resources are all related to which one of the following strategies.
► Organizational strategy
► Financial strategy
► Operational strategy
► Tectical strategy

Question No: 26 ( Marks: 1 ) - Please choose one
Which one of the following refers to bringing together engineering design and manufacturing personnel early in the design phase.

► Reverse engineering
► Concurrent engineering
► Manufacturability
► Serviceability

Question No: 27 ( Marks: 1 ) - Please choose one
Which of the following refers to the way an organization chooses to produce its goods or services?
► Process selection
► Process reengineering
► Process redesign
► Process design

Question No: 28 ( Marks: 1 ) - Please choose one
Which one of the following is the first step in line balancing?

► To specify the sequential relationship among tasks.
► To determine the required cycle time.
► To determine the minimum number of workstations.
► To determine the desired output

Question No: 29 ( Marks: 3 )
Write down at least three ways of improving reliability of a system.


Question No: 30 ( Marks: 3 )
What qualities does a successful job design contain?

Question No: 31 ( Marks: 5 )
Suppose you are the operations manager of ABC Corporation. To develop competence in business operations, you have to decide either to rely on the facilities available in-house or outsource. What are some of the factors you would base the decision on?

Question No: 32 ( Marks: 5 )
“Standardization plays an important role in product design". How will you describe this role?