Management 339Dr. Gamini Gunawardane

Principles of Management & Operations

SAMPLE QUESTIONS SET 2

  1. The basic philosophy of TQM includes
  1. customer is always right
  2. quality is not a strategy
  3. inspections alone cannot improve quality
  4. quality is the responsibility of OM alone.
  1. Which of the following is true
  2. ISO 9000 is the highest quality award in the U.S.
  3. Baldrige award does not take into consideration management aspects such as leadership and strategic quality planning.
  4. Quality can be improved by increased inspection.
  5. Continuous improvement is a key element of TQM.
  1. Top Management/Leadership skills needed for TQM includes all the following except

(a)substantial personal involvement

(b)emphasis on continuous improvement

(c)make key quality decisions by himself/herself

(d)create strategic vision

  1. In strategic quality planning, quality leader companies do

(a)Improving the design process

(b)Involves suppliers in the process

(c)Benchmarking

(d)Development of quality policies

(e)All of the above

  1. All the following are elements of customer focus except

(a)company focussed standards

(b)customer identification

(c)good complaints management

(d)customer satisfaction measurement

  1. Allocating a larger number of related tasks to a job to make it more satisfying is called
  1. job rotation
  2. job enrichment
  3. job enlargement
  4. job challenge
  1. Types of teams that facilitate quality improvement include
  1. cross functional teams
  2. teams within departments
  3. both a and b above
  4. none of the above
  1. The text book on OM says “process management is the selection of the inputs, operations, work flows, and methods that transform inputs into outputs.” This is
  1. correct because books cannot be wrong
  2. correct because “management” actually is selection of these things
  3. incorrect because “management” is more comprehensive than planning, and therefore, process management should include process planning/selection, process improvement, and process control.
  4. incorrect because work flows have nothing to do with the process
  1. Fixed automation is more suitable for
  1. flexible flows (job/batch processes)
  2. line flows/processes
  3. CAD/CAM
  4. Robots
  1. Vertical integration is more feasible in
  2. line flows/processes
  3. flexible flows(job/batch processes)
  4. process layouts
  5. manufacturing companies
  1. Customer involvement in the process is more likely to be a possible feature in the design of

a line flows/processes

bflexible flows (job/batch processes)

c customer based organizations

d manufacturing companies

12.A company decides that the competitive priorities for its new product will be price and availability. The process type selected by the company for this product will most likely be

a line flow/processes

b flexible flow(job/batch processes)

c cost leadership

d customer satisfaction

13.A company finds that the customers for a certain service line look for more features of the service and even some customization. The process type the company will most likely set up for this service is

a. line flow

b flexible flow

c differentiation and focus

d an efficient service

  1. In TQM, problem identification and continuous improvement can be facilitated by
  1. intra departmental teams (teams within one department)
  2. inter departmental teams
  3. both a and b above
  4. only self managing teams
  1. Which of the following is true about “Cost of Quality”
  1. COQ includes appraisal and failure costs
  2. COQ is considered by some as the true measure of the success of a TQM program
  3. Preventive costs rise when TQM is implemented
  4. All of the above are true
  1. Which of the following statement is incorrect? Capacity utilization
  2. is sometimes calculated as actual use/effective capacity
  3. is sometimes calculated as output/input
  4. is sometimes calculated as actual use/maximum capacity
  5. is a measure operations managers are expected to maximize
  1. The supervisor of the accounting department has found that three employees have fallen sick and will be away for 3-7 days. This creates a
  1. health problem
  2. an aggregate planning problem
  3. a medium term capacity problem
  4. a short term capacity problem
  1. The solution the supervisor might turn to in the above problem include
  1. hiring a few new employees
  2. overtime
  3. computerizing the jobs and eliminating some of the three jobs
  4. all of the above
  1. Advantages of centralized large scale operations include all the following except
  1. image and bargaining power with suppliers
  2. reduced shipping costs for finished goods
  3. lower average cost of the product
  4. lower material prices
  1. A process layout problem involving 7 processes and 7 spaces

a. has 49 choices

b. has 720 choices

  1. has close to 5000 choices
  2. has 7 raised to power 7 times choices
  3. none of the above is true

21.Objectives in process layout include all the following except

  1. meeting technical and legal requirements
  2. maximizing movement costs
  3. maximizing management preferences
  4. consideration of behavioral factors

22.Efficiency of an assembly line decreases with

  1. reducing cycle time
  2. increasing idle times
  3. balancing work loads at stations
  4. increasing daily output

23.Objectives in a good line flow layout include all the following except

  1. meeting production needs
  2. reduced idle times
  3. subjective factors relating to job satisfaction
  4. customer satisfaction by providing customization

24.Management wants to design an assembly line that will turn out 360 units per day for satisfying a six month contract. There will be seven working hours in each day. There are seven tasks to manufacture this product. They are

TaskTime (Seconds)

A50

B60

C50

D70

E40

F80

G30

The required cycle time is:

a.50 seconds

b.60 seconds

c.70 seconds

d.80 seconds

  1. none of the above
  1. Can the company in the above problem, set up an assembly line with the required cycle time you got as the answer to the above problem ?
  1. Yes, because an assembly line can be set up with any cycle time.
  2. No, because the largest task time is smaller than the required cycle time.
  3. Yes, because the smallest task time is less than the required cycle time.
  4. No, because the largest task time is greater than the required cycle time
  5. Cannot be answered with information available.
  1. The minimum number of workers needed to balance the line in the above problem at a cycle time of 80 seconds is
  1. 3
  2. 4
  3. 5
  4. 6
  5. Cannot be answered with information available.
  1. The efficiency of the line set up at cycle time 80 seconds and 6 workers is approximately
  1. 60%
  2. 70%
  3. 80%
  4. 90%
  5. cannot be answered with information available
  1. Information needed to perform MRP computations is/are
  1. bill of materials
  2. inventory data file
  3. both a and b above
  4. both a and b above together with MPS
  1. The simple EOQ formula can be used to determine the order quantity of an item when
  1. the item is an A item
  2. the demand for the item is seasonal
  3. the demand for the item is uniform over time
  4. the demand for the item is uncertain
  1. The process for ordering materials for dependent demand is called
  1. JIT
  2. MRP
  3. TQM
  4. EOQ

31.In MRP, the BOM file contains data of the:

a.product structure

b.on hand stock level

c.lead time

d.all of the above

  1. none of the above

32.Safety stock

a.is the average amount on hand needed to cover lead time demand

b.is sometimes thought of as remaining in inventory all year

  1. should be minimal
  2. all of the above
  1. The usual basis for classifying inventory as ABC is
  1. the lead time of the item
  2. the cost and usage of the item
  3. the order policy of the item
  4. the MPS of the item
  1. The inventory review system most suitable for C items is
  1. periodic review
  2. reorder point review
  3. continuous review
  4. MRP
  1. Cycle counting
  1. has no relationship to ABC analysis
  2. helps maintain inventory accuracy
  3. both a and b are true
  4. refers to counting the cycles in demand
  5. all of the above are false
  1. The mean daily demand for an item (cost $100) with a uniform demand pattern is 10. The store is open 5 days a week for 48 weeks an year. The ordering cost is $50 per order and the holding cost of the item is 15% of the cost of the item. The lead time is 5 days. The EOQ for this item is approximately
  1. 125
  2. 155
  3. 240
  4. 24000
  1. The re-order point for the above problem is
  1. 5
  2. 50
  3. 75
  4. 250
  5. Cannot be answered with information available.
  1. If the demand pattern in problem 19 above is not uniform but past sales records show that the demand has a mean of 8 units and a standard deviation of 2 units. Service level set by management for this item is almost 100%. All other relevant information is unchanged. The re-order point now will be approximately
  1. 13
  2. 40
  3. 53
  4. 57
  5. None of the above.
  1. The size of a safety stock depends on
  1. the variation of demand
  2. the service level assigned to the item
  3. both a and b above
  4. neither a nor b above
  1. Objectives in operations scheduling include all the following except
  1. minimizing mean flow time of jobs
  2. minimizing mean lateness of jobs
  3. minimizing utilization of capacity of the shop
  4. minimizing the total time taken to complete a set of jobs
  1. JIT highlights the “pull method” of production scheduling. This is similar in concept to
  1. efficient line flows
  2. good management of flexible flows
  3. statistical process control
  4. none of the above
  1. In operations scheduling involving one machine, mean flow time is minimizing by using the following scheduling sequence
  1. first come first serve
  2. LIFO
  3. Do earliest due job first
  4. SPT
  1. The responsive supply chains discussed in the text are
  2. equivalent to flexible flows discussed in class
  3. equivalent to the push method in JIT
  4. is an ingenious concept developed by SCM experts
  5. equivalent to the line flow discussed in class
  1. Group Technology (GT) layouts
  2. groups machines common to commonly performed tasks
  3. groups machines using common parts
  4. both of the above are true
  5. all of the above are false
  1. A study of key punch errors in a company over 30 days involved 250 records each day.

The number of errors found in the study for the whole 30 day period was 300.

The center line in a p-chart for this process should be at

  1. 1.0
  2. 0.02
  3. 0.06
  4. none of the above
  1. The LCL for the above study, at 3 standard deviations, should be at (calculate the SD of the binomial distribution only to 3 decimal places)
  1. .001
  2. .002
  3. .003
  4. .004
  5. none of the above

47.Factors affecting location of facilities include

  1. transportation costs
  2. community or country support
  3. quality of life of the area
  4. all the above

1

v 2