Operations Management Quiz - 8 (MBA Quiz)

1. Which of the following is not true regarding JIT Purchasing?
[A]There is usually a single source of supply for a given part in nearby geographical area with a long-term contract
[B]Purchasing is carried out in small lots, with frequent deliveries
[C]Suppliers can be innovative in design specifications
[D]A certain percentage of rejects from a supplier is acceptable



2. Maximum managers spend most of their time working on the unimportant many problems than working on the important few problems. The remedy to this universal problem can be solved most effectively using
[A]Value analysis
[B]Job analysis
[C]ABC analysis
[D]Make-or-Buy analysis



3. The stores manager wants to report to the senior management that in the past four months, the supply of inventory materials had been very irregular. Which of the following types of output report related to Materials Requirement Planning should be submitted by the stores manager to have the management’s attention for ensuring a regular supply of materials in right quantities?
[A]Change Report
[B]Control Report
[C]Planning Report
[D]Authorized Order Release



4. Which of the following priority scheduling rules is based on the assumption that the jobs that consume more processing time are more valuable for the organization?
[A]Earliest due date
[B]Shortest processing time
[C]Longest processing time
[D]First in, first serve



5. Which of the following quality functions is measured as the Mean Time Between Failures (MTBF)?
[A]Reliability
[B]Serviceability
[C]Perceived quality
[D]Aesthetics



6. Which of the following gives rise to a truly virtual corporation that allows contact with any customer or supplier at any time?
[A]SCM
[B]ESCM
[C]CAD
[D]CAM



7. A renowned automobile manufacturing company wants to automate its production process in order to bring efficiency in the process. With regard to this, it has sought the help of an external consultant. However, the consultant has warned that the company should clearly understand the advantages and disadvantages of automation before going for it. Which of the following is not an advantage that would be offered by automation?
[A]Improvement in productivity
[B]Efficient use of materials
[C]Reduced factory lead-time
[D]Greater flexibility



8. The planning division of a manufacturing organization wants to formulate its aggregate output plan for the coming six months on the basis of historical planning data available with it. For this purpose, which of the following models should it use?
[A]Linear Programming
[B]Linear Decision Rules
[C]Heuristic Model
[D]Computer Search Model



9. Out of the following materials handling equipment, used by a cement manufacturing company, which one can be classified as a fixed path equipment?
[A]Trucks
[B]Forklifts
[C]Mobile cranes
[D]Conveyors



10. A popular tractor manufacturing company uses an MRP (Materials Requirement Planning) system to manage its complex production process, that involves many components and sub-assemblies. An MRP system is used because of the many advantages offered by it. However, it might not be advantageous in some respects. Which of the following is not an advantage of an MRP system?
[A]Reduced per unit cost of production
[B]Low inventory levels, especially for in-process materials
[C]Lesser time required in implementing the system
[D]Optimized production scheduling



11. The quality inspection team of the client company has been told by the Quality Control Manager to be more vigilant in checking whether the products manufactured by the contractee firm were as per the agreed specifications. This aspect refers to which of the following quality dimensions?
[A]Performance
[B]Conformance
[C]Reliability
[D]Serviceability



12. If selling price of a product ‘x’ is Rs.45. Variable cost per unit is Rs.40. If fixed cost is Rs.1,00,000. What will the profit, if sales are Rs.11,25,000
[A]Rs.25,000
[B]Rs.30,000
[C]Rs.40,000
[D]Rs.45,000



13. In a big hospital like Seba, the lower-level managers have been arguing for some time that a large amount of nurses’ were spending time in non-nursing activities. This has resulted in increased hospital costs, because nurses’ wages are the highest single cost in the operation of the hospital. Which of the following Work Measurement Techniques will be the most appropriate and economical to use by the top management to verify the above argument?
[A]Time Study
[B]Predetermined Motion Times
[C]Work Sampling
[D]Standard Data



14. Which of the following is not true in case of Point Rating technique?
[A]It is based on the ranking of various weighted factors that influence the choice of location
[B]Locations are ranked by the appropriate weightages given to each factor
[C]Evaluation should be only quantitative and not qualitative
[D]Implementation of this type of system requires careful judgment



15. A firm achieved sales of 1000 units in the month of June when the forecast was for 900 units. The estimated sales for the month of July for a smoothing constant of 0.1, is
[A]850 units
[B]870 units
[C]890 units
[D]910 units