Subject: Production and Operation Management (Sem- IV)

Chapter 1 – Introduction to Production & Operation

1. ________________________ is the process by which raw materials and other inputs are
convert into finished goods.
Inventory
Logistics
Production
Supply Chain

2. __________________ is the process in which resources or inputs are converted into more
useful products.
Material Management
Inventory Management
Operations Management
Logistic Management

3. __________________ system is one of the types of production system.

Non-flow
Intermittent
Periodical
Routine

4. Mass production is characterized by_______________________.

Low-volume items with maximum flexibility in their design
High-volume items with maximum flexibility in their design
High-volume items with minimum flexibility in their design
Low-volume items with minimum flexibility in their design

5. Production cost is less in _____________________ manufacturing system.

Continuous
Intermittent
Hybrid
Job Shop
6. In intermittent manufacturing system, the goods are produced for__________________.
Storing
Processing
Order
Own consumption

7. The products are produced for stock purpose in ________________________.

Continuous Production System
Assembly Production System
Intermittent Production System
Analytical Production System

8. All of the following decisions fall within the scope of operation management except for_____.
Financial analysis
Design of products & processes
Location of facilities
Quality management

9. Production department is dependent on which department for decision about ‘Status of

Production’?
Finance
Human Resource
Marketing
All of the above

10. Production department is depends on which department in order to take decision about
‘Investment made in physical facilities like machines’.
Finance
Human Resource
Marketing
None of the above

11. ______________________ can be separated from sellers.

Goods
Services
Goods and Services
All of the above
12. In case of _________________, customer does participate in the production process.
Goods
Services
Goods and Services both
Neither Goods nor Services

13. In which production system, goods are constantly produced according to the demand
forecast?
Intermittent Production System
Continuous Production System
Job Production
All of above

14. Which is not the type of continuous production system?

Mass Production
Process Production
Job Production
Assembly Production

15. Which production system is used when two or more components are combined to
manufacture a finished product?
Assembly Production
Job Production
Mass Production
Batch Production

16. In which production system, break even point is easy to achieve as well as capital investment
is less?
Intermittent Production System
Continuous Production System
Mass Production
Assembly Production
 Chapter – 2 – Plant Layout and Material Handling
1. If all the processing equipment and machines are arranged according to the sequence of
operations of a product, the layout is known as ____________.
Product Layout
Process Layout
Fixed Position Layout
Combination Layout

2. The following type of layout is preferred to manufacture a standard product in large quantity.
Product Layout
Process Layout
Fixed Position Layout
Combination Layout

3. The following type of layout is preferred for low volume production of non standard products.
Product Layout
Process Layout
Fixed Position Layout
Combination Layout

4. In ________________ layout, the facilities are clubbed together so as to form a cell.

Product Layout
Process Layout
Fixed Position Layout
Cellular Layout

5. __________________ refers to the arrangement of machinery, equipment and other industrial

facilities.
Plant Lining
Plant Location
Facility Location
Plant Layout
6. Every foot of available space should be used effectively is a principle of _____________.
Sequence
Safety
Flexibility
Usage
7. Product layout is suitable for ______________ type of production.
Mass
Small
Less
Medium

8. Product Layout is best suited where ____________.

One type of product is produced
Product is standardized
Product is manufactured in large quantities
All of the above

9. For Ship Vessel Industry, the following layout is best suied.

Product Layout
Process Layout
Fixed Position Layout
Plant Layout

10. Process Layout is employed____________.

Where low volume of production is required.
Where similar jobs are manufactured on similar machines.
Where machines are arranged on functional basis.
All of the above

11. Which of the following layout is used when the production being processed is very big,
heavy or difficult to move?
Product Layout
Process Layout
Fixed Position Layout
Cellular Layout

12. The disadvantage of product layout is_____________.

High initial investment for the specialized facilities
Skilled labour to operate machines
Production time is longer, requiring more goods in inventory
High cost of inspection
13. In which production system, two or more components are combined to manufacture a
finished product?
Mass Production
Process Production System
Assembly Production
All of the above

14. Departments are created by grouping similar type of machines together is called________
Layout.
Process
Product
Fixed Position
Cellular

15. Material handling consists of movement of material from:

One machine to another
One shop to another shop
Stores to shop
All of the above

16. Economy in material handling can be achieved by:

Employing gravity feed movements
Minimizing distance of travel
By carrying material to destination without using manual labour
All of the above
Chapter – 3 – Inventory Control
1. ABC analysis deals with:
Analysis of process chart
Flow of material
Ordering schedule of job
Controlling inventory costs money

2. VED analysis of inventory management stands for:

Vital – Essential – Desirable
Valuable – Easy – Difficult
Very – Essentially – Desired
Valuable – Effective – Difficult to obtain
3. Inventories which are consumed in the production process but which does not become part of
the product:
Production Inventories
In-Process Inventories
Finished Goods Inventories
MRO Inventories

4. The items stored in the warehouse of a store or a factory to reduce the impact of unexpected
shocks is called which types of inventories?
Decoupling Inventory
MRO Inventory
Buffer Inventory
All of the above

5. “Interest Cost” is in which type of Inventory Cost?

Ordering Cost
Carrying Cost
Shortage Cost
None of the above
6. The item constitute large in number but small consumption value represent which class of
ABC analysis of inventory technique?
"A" class
"B" class
"C" class
All of the above
7. Which one of the following is NOT a technique of inventory control?
FSN analysis
ABC analysis
FTMN analysis
VED analysis

8. Which of the following inventory costs represents the cost of loss of demand due to shortage
in supplies?
Unit Cost
Stockout Cost
Procurement Cost
Carrying Cost
9. Classifying items in A,B & C categories for selective control in inventory management is done
by arranging items in the decreasing order of:
Total Inventory Costs
Annual Usage Value
Item Value
Item Demand

10. Which of the following is not an inventory?

Machines
Raw materials
Finished products
Consumable tools

11. The following classes of costs are usually involved in inventory decisions except______.
Cost of Ordering
Carrying Cost
Cost of Shortages
Machining Cost

12. The cost of insurance and taxes are included in______.

Cost of Ordering
Set up Cost
Inventory Carrying Cost
Cost of Shortages

13. Which of the following is true for inventory control?

EOQ has minimum total cost per order
Inventory carrying costs increases with quantity per order
Ordering cost decreases with lot size
All of the above

14. Identify two components that makeup the EOQ equation.

Order Cost, Setup Cost
Quality Cost, Setup Cost
Annual Usage, Carrying Cost
Quality Cost, Annual Usage
15. In A-B-C Analysis, which class of items are generally large in number?
A class
B class
C class
None of these

16. An item can be purchased for Rs. 100. The ordering cost is Rs. 200 and inventory carrying
cost is 10% of the item cost per annum. If the annual demand is 4000 units, the EOQ is?
50
100
200
400
17. The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 per
unit. The EOQ for an annual demand of 2000 units is?
400
440
480
500
18. Cost of identifying need of material is which type of inventory cost?
Basic Cost of Material
Ordering Cost
Carrying Cost
Shortages Cost

19. The costs arise on account of maintaining the stocks and the interest paid on the capital
associated with stock is called as______________.
Basic Cost of Material
Ordering Cost
Carrying Cost
Shortages Cost
20. All items are not required with the same frequency – some are required regularly, some
occasionally and some once in a while then which inventory technique is used for classification
of inventory?
ABC Analysis
VED Analysis
FSN Analysis
EOQ Analysis
21. Which is not the assumption of EOQ model?
Annual demand of an item ‘D’ is known accurately and remains constant
P, the price of the material does not change with time or with change in order quantity, Q.
Lead time of purchase is known accurately and remains constant.
There is shortage and hence shortage cost or stock out cost

Chapter – 4- Production Planning and Quality Control

1. ________ sets the quantity of each finished product to be completed in each time period of
short range planning horizon.
Capacity Requirement Planning
Material Requirement Planning
Master Production Schedule
Aggregate Production Planning

2. It is a technique of determining the quantity and timing of acquiring dependent demand items
(raw material, other input material) needed to satisfy the production schedule set by MPS.
Capacity Requirement Planning
Material Requirement Planning
Master Production Schedule
Bill of Material

3. It is a technique to determine what labour and equipment capacities are needed to meet
production objective specified by the MPS and MRP.
Capacity Requirement Planning
Material Requirement Planning
Master Production Schedule
Aggregate Production Planning

4. The First step in Master Production Scheduling is______________________.

Consider sale projections & probable demands to prepare aggregate plan
Prepare trial (tentative) master schedule
Check this tentative master schedule for material availability by MRP (Material Requirement
Planning) & for adequacy of capacity by CRP (Capacity Requirement Planning)
Define Objective
5. Which of the following is NOT an input in the material requirement planning process?
Inventory Status File
The Product Structure File
The Master Production Schedule
The Planned Order Report

6. Which of the following is NOT output in the MRP Process?

MPS Planners
Inventory Transaction File
Exception Report
Master Production Schedule

7. It is the file provides the information regarding all the materials, parts and sub assemblies that
go into end product.
Inventory Status File
Bill of Material File
Inventory Transaction File
All of the above

8. Which of the following is NOT an input in the capacity requirement planning process?
Planned orders and released orders
Work centre status report
Routing Report
Work load report

9. Which of the following is NOT output in the CRP Process?

MPS Planners
Work load report
Confirmation to MRP
Work centre status report

10. In which method of capacity adjustment, it is possible that some other organization having
similar capacity can carry out some production operation for us.
Overtime of existing workers
Hiring of temporary labour
Sub Contracting or Outsourcing
Adjustment during lean season
11. ______________ is about analysis and determine the time required to perform each
operation.
Routing
Scheduling
Loading
Sequencing

12. Scheduling gives information about___________________.

When work should start and how much work should be completed during a certain period
When work should complete
The how idle time can be minimized
Proper utilization of machines

13. Which is not the scheduling strategy?

Detailed scheduling
Short scheduling
Cumulative scheduling
Priority decision rule

14. In which scheduling concept, procurement of material and operations start as soon as the
customer requirements are known?
Forward Scheduling
Backward Scheduling
Detailed Scheduling
All of the above

15. It is scheduling often results in completion of jobs before due dates.

Forward Scheduling
Backward Scheduling
Detailed Scheduling
All of the above
16. It is a scheduling activity which involves planning various activities in the reverse direction
from due date.
Forward Scheduling
Backward Scheduling
Detailed Scheduling
Cumulative scheduling
17. In which priority sequencing rule incoming jobs or customers are processed in their order of
arrival?
First Come First Serve
Earliest Due Date
Shortest Processing Time
Longest Processing Time
18. It is jobs or orders are given first priority in which company is more interested or that order is
very valuable for company is called as_________________.
Earliest Due Date
Shortest Processing Time
Longest Processing Time
Preferred Customer Order
19. The following data is available for six jobs A,B,C,D, E and F which are to be processed on
two work centres WC-1 & WC-2. The estimated processing times are given in hours for the six
jobs at the two work centres. Sequencing these jobs so that total flow time to complete all the
jobs and the total idle times are minimized by applying Johnson’s rule.
Estimated Processing time (hours)
Job A B C D E F
WC-1 2.0 4.0 0.75 1.5 2.0 2.0
WC-2 1.0 2.25 2.5 3.0 4.0 3.5
C-D-E-F-B-A
C-D-F-E-B-A
C-B-E-F-D-A
C-A-D-E-F-B

20. To convert n/3 problem ton/2 problem and apply Johnson’s rule to get optimal sequence,
which condition has to met_____.
Smallest duration on machine-1 is at least as great as the largest duration on machine-2
Smallest duration on machine-1 is at least as less than largest duration on machine-2
Smallest duration on machine-3 is less than largest duration on machine-2
None of the above

21. Statistical Quality Control techniques are based on the theory of________________.
Quality
Statistics
Probability
All of the above
 Chapter – 5 – Work Study
1. This chart is a graphic representation of all the production activities occurring on the shop
floor.
Operation Process Chart
Flow Process Chart
Templates
All of the above

2. __________________ is the first step in method study.

Examine the facts
Record the present method
Develop best method
Select the work to study

3. Which of the following method is used for recording path of movement during method study?
Chronocycle graph
SIMO chart
Two handed process chart
Therbling

4. Work study is concerned with ______________________.

Improving present method and finding standard time
Motivation of workers
Improving production capabilities
All of the above

5. SIMO charts are used in _____________.

Method study
Micro-motion study
Process analysis
Layout analysis

6. What is correct procedure of work study?

Select – Record – Develop – Examine – Measure – Define – Install – Maintain
Select – Record – Develop – Examine – Define – Measure – Maintain – Install
Select – Record – Examine – Develop – Measure – Define – Install – Maintain
Select – Record – Examine – Develop – Install – Define – Measure - Maintain
7. What does symbol “ “ imply in work study?
Operation
Transport
Delay
Inspection

8. What does symbol “ “ imply in work study?

Operation
Transport
Delay
Inspection

9. What does symbol “ “ imply in work study?

Delay
Duty
Down
Domestic

10. What does symbol “ “ imply in work study?

Storage
Inspection
Transport
Delay

11. What is correct procedure of method study?

Select – Record – Develop – Examine – Install – Maintain
Select – Record – Examine – Develop – Install – Maintain
Develop – Examine – Record – Select – Install – Maintain
Examine – Develop – Select – Record – Maintain – Install

12. Which is (or) are the recording techniques of method study?

Flow Process Chart
Diagram
Photographic Techniques
All of the above
13. It is a technique in which time required to carry out a job at a defined level of performance is
obtained from knowledge and practical experience of concerned elements and whenever
possible, synthetic data are also used.
Pre- determined motion time system
Analytical Estimation
Synthesis Approach
Work Sampling

14. It is an element which does not occur in every work cycle but takes place at regular or
irregular interval..
Repetitive element
Occasional element
Variable element
Constant element

15. It is an element which occurs in every work cycle of job.

Repetitive element
Occasional element
Variable element
Constant element

16. It is an element which occurs during study observations but does not form the part of job.
Machine element
Foreign element
Governing element
Occasional element

17. These allowances are given to the worker because during certain stage of production, worker
has to remain idle as the machine is automatically working.
Interference Allowances
Process Allowances
Contingency Allowances
Periodic Activity Allowances
18. It is extra time for a worker attending two or more machines and the worker is busy on one of
the machines resulting in idleness of other machines is called which allowance of time study?
Interference Allowances
Process Allowances
Contingency Allowances
Periodic Activity Allowances

19. These are delay because of non-repetitive activities of the worker is called which allowances
of time study?
Process Allowances
Contingency Allowances
Start up Allowances
Cleaning Allowances

20. What does symbol “ “ imply in work study?

Operation
Option
Overhead
Overtime

21. Work Study involves_______________.

Only method study
Only work measurement
Method study and work measurement
Only motion study

22. Standard time is defined as________________.

Normal time + allowances
Normal time + idle time + allowances
Normal time + idle time
Only normal time for an operation