FINALTERM EXAMINATION
Spring 2010
MGT613- Production / Operations Management
Question No: 26 ( Marks: 1 ) - Please choose one
Just Just in Time system maintains inventory with which of the following lot size/sizes?
► Small
► Medium
► Large
► Can be small and medium both
Question No: 27 ( Marks: 1 ) - Please choose one
Which of the following statements is TRUE about a Gantt chart?
► It represents an important event in the completion of a project
► It relates interdependent activities to their completion time
► It arranges events in order of importance
► It is used to schedule independent activities
Question No: 28 ( Marks: 1 ) - Please choose one
Network activities are used to determine all of the following EXCEPT:
► Critical path
► Budgeted cost
► Slack time
► Expected project duration
Question No: 29 ( Marks: 1 ) - Please choose one
With reference to Network activities, what does the term ‘EF’ stand for?
► Equal Finish
► Economic Finish
► Early Finish
► Easy Finish
Question No: 30 ( Marks: 1 ) - Please choose one
Which one of the following is NOT an element of a queuing system?
► Population source
► Waiting line
► Order processing
► Logistics
Question No: 31 ( Marks: 1 ) - Please choose one
Which one of the following refers to translating the voice of the customer into technical design requirements?
► Concurrent design
► Design for manufacture
► Robust design
► Quality function deployment
Question No: 32 ( Marks: 1 ) - Please choose one
Which one of the following is the goal of work sampling?
► Studying 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: 33 ( Marks: 1 ) - Please choose one
Training program and quality audits come under which type of costs that an organization has to bear as cost of service quality?
► Internal failure cost
► Recovery cost
► Prevention cost
► Detection cost
Question No: 34 ( Marks: 1 ) - Please choose one
Which one of the following is the most important criteria in selecting winners for a quality award?
► Strong motivation
► Quality management practices
► Employee empowerment
► Business performance results
Question No: 35 ( Marks: 1 ) - Please choose one
Which of the following is NOT a disadvantage of excessive overtime?
► Decline quality of work
► Work schedules become well-defined
► 150 percent expensive of the regular time-pay rate
► Low Productivity
Question No: 36 ( Marks: 1 ) - Please choose one
A company mostly involved in transportation and shipping costs than construction and land costs is probably part of which of the following industries?
► Heavy manufacturing
► Retail and service
► Warehouse and distribution
► Light industry
Question No: 37 ( Marks: 1 ) - Please choose one
A company is operating under a continuous review system. It has an average demand of 50 units per week for the item it produces. The lead time for the item is 6 weeks, and it costs the company $30 to process each order. The holding cost for each unit is $10 per year. The company operates 52 weeks per year. What is the economic order quantity (EOQ) for this item?
► Greater than 175 units but less than or equal to 200 units
► Less than 175 units
► Greater than 200 units but less than or equal to 230 units
► Greater than 230 units
Annual Holding Cost
EOQ sqr root of 2DS
H
= 2(Annual Demand)(Order or Setup Cost)
Annual Holding Cost
Sqr root of = 2(50)(30)
10
Question No: 38 ( Marks: 1 ) - Please choose one
Perpetual system of inventory management is also known as which of the following?
► First-in-first-out
► Probability model
► Fixed-order quantity
► Periodic review
Question No: 39 ( Marks: 1 ) - Please choose one
If a manager wants to see the effect of change in Master Production Schedule (MPS) on purchasing requirements for certain suppliers, which of the following system would help in this regard?
► Material Resource Planning system (MRP)
► Enterprise Resource Planning system (ERP)
► Capacity Requirement Planning system (CRP)
► Manufacturing Resource Planning system (MRPII)
Question No: 40 ( Marks: 1 ) - Please choose one
If alpha = 0, how many containers are needed with the given data?
K = 1500 (0.8 + 0.2) (1 + 0)
270
► 6.5 Containers
► 7 Containers
► 6 Containers
► 9 Containers
Question No: 41 ( Marks: 1 ) - Please choose one
Eliminating disruptions and excess inventory are _____________ in Just-In-Time production systems.
► Tactical goals
► Strategic goals
► Secondary goals
► Primary goals
Question No: 42 ( Marks: 1 ) - Please choose one
In supply chain management Electronic Data Interchange (EDI) and Bar coding is a characteristic of which of the following?
► Logistics
► Technology
► Autonomation
► Just-In-Time System
Question No: 43 ( Marks: 1 ) - Please choose one
In labor-limited environment, in which resource constraint is the amount of worker available, which of the following is the best option for effective scheduling in a manufacturing firm?
► Hire more skilled labor for the job to be completed
► Workers should be trained to work on a variety of machines
► Assign labor to the next workstation irrespective of their skills
► More machines should be installed for flexibility of operations
Question No: 44 ( Marks: 1 ) - Please choose one
Tasks are easily scheduled in which of the following production environments?
► Intermediate-volume-systems
► Low-to-medium volume production (Job shop)
► Medium-to-high volume production (Flow shop)
► Optimal production mixes
Question No: 45 ( Marks: 1 ) - Please choose one
Which of the following is the necessary qualification for a project manager?
► PMP certification
► PMD certification
► FMA certification
► CMP certification
Question No: 46 ( Marks: 1 ) - Please choose one
Queuing analysis aims to minimize which of the given costs?
► Both customer waiting cost and service capacity cost
► None of the given options
► Customer waiting cost
► Service capacity cost
Question No: 47 ( Marks: 1 ) - Please choose one
Which of the following is a cause of development of waiting lines?
► Customer arrival rate varies through out the day
► Time required to process a customer may vary
► Some transactions are complicated and require above average process time
► All of the given options
Question No: 48 ( Marks: 1 ) - Please choose one
During the period of high unemployment or when low-skilled labor is acceptable, which of the following strategy would be cost effective?
► Chase demand strategy
► Level capacity strategy
► Proactive strategy
► Mixed or hybrid strategies
Question No: 49 ( Marks: 3 )
As an operations manager of a firm what significant issues you have to consider while implementing supply chain management?
Elements of Supply Chain Management (page no, 174)
Question No: 50 ( Marks: 3 )
How would you reveal the importance of maintaining good relationship with suppliers in a JIT system?
Increased emphasis on supplier relationships: A company without inventory does not want a supply system problem that creates a part shortage. This makes supplier relationships extremely important.
Supplies come in at regular intervals throughout the production day. Supply is synchronized with production demand and the optimal amount of inventory is on hand at any time. When parts move directly from the truck to the point of assembly, the need for storage facilities is reduced.
Question No: 51 ( Marks: 5 )
As operations manager of a manufacturing firm, how can you judge the effectiveness of inventory management?
An Inventory Management System would be called Effective if it is able to fulfill the following requirements.
1. A system to keep track of inventory.
2. A reliable forecast of demand.
3. Knowledge of lead times.
4. Reasonable estimates of:
a. Holding costs
b. Ordering costs
c. Shortage costs
5. A classification system.
Question No: 52 ( Marks: 5 )
What is bullwhip effect? What are its consequences?
Bullwhip effect represents the real life time situation that Inventories are progressively larger moving backward through the supply chain.
Consequences:
In addition to greater safety stocks, the described effect can lead to either inefficient production or excessive inventory as the producer needs to fulfill the demand of its predecessor in the supply chain. This also leads to a low utilization of the distribution channel. In spite of having safety stocks there is still the hazard of stock-outs which result in poor customer service. Furthermore, theBullwhip effect leads to a row of financial costs. Next to the (financially) hard measurable consequences of poor customer services and the damage of public image and loyalty an organization has to cope with the ramifications of failed fulfillment which can lead to contract penalties. Moreover the hiring and dismissals of employees to manage the demand variability induce further costs due to training and possible pay-offs
Question No: 53 ( Marks: 5 )
In the above bill of materials, if existing inventory =0, then how many units of G, E, F, H and B must be purchased to produce 4 units of A?
