Paper 9 Operations Management and Strategic Management MCQ : Multiple Choice Questions and Answers

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CMA INTERMEDIATE EXAMINATION

Multiple Choice Questions and Answers

Paper 9 Operations Management and Strategic Management MCQ

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A. Choose the most appropriate alternative for the following  

1. Inventory cost per product in intermittent production is

  1. Higher
  2. Lowest
  3. Medium
  4. Abnormal

Answer :- Higher

2. The act of assessing the future and make provisions for it is known as

  1.  Planning
  2. Scheduling.
  3. Assessment
  4. Scheduling

Answer :- Scheduling

3. One of the important charts used in Programme control is

  1. Material chart
  2. Gantt chart
  3. Route chart
  4. Inspection chart

Answer :- Gantt chart

4. Cost reduction can be achieved through

  1. Work sampling
  2. Value analysis
  3. Quality assurance
  4. Supply chain management

Answer :- Value analysis

5. Linear Programming is a technique used for determining

  1. Production Programme
  2. Plant Layout
  3. Product Mix
  4. Manufacturing Sequence

Answer :- Product Mix

6. (Total station time/cycle time x Number of work stations) x 100 is known as

  1. Line efficiency
  2. Line smoothness
  3. Balance delay of line
  4. Station efficiency

Answer :- Line efficiency

7. Arrangement of machines depending on sequence of operations happens in

  1. Process Layout
  2. Product Layout
  3. Hybrid Layout
  4. Group Technology Layout

Answer :- Product Layout

8. Line of Best fit is another name given to

  1. Method of Least Squares
  2. Moving Average Method
  3. Semi Average Method
  4. Trend Line Method

Answer :- Method of Least Squares

9. In route sheet or operation layout, one has to show

  1. A list of materials to be used
  2. A list of machine tools to be used
  3. Every work center and the operation to be done at that work center
  4. The cost of product

Answer :- Every work center and the operation to be done at that work center.

10. Computers are used in Production control in this area

  1. follow-up activity
  2. to control labour
  3. to disseminate information
  4. Loading, Scheduling and Assignment works

Answer :- Loading, Scheduling and Assignment works

B. Choose the most appropriate alternative for the following  

1. The recent trend in the Production/Operations management which suggests the use of minimal amount of resources to produce a high volume of high quality goods with some variety is referred to as:

  1. SCM
  2. TQM
  3. Lean Production
  4. Just-In-Time

Answer :- Lean Production

2. Effective capacity can NOT be determined by which of the following factors?

  1. Product design and product-mix
  2. Quantity and quality capabilities
  3. Facilities
  4. None of the above

Answer :- None of the above

3.  In which of the following stages the management should try to change its approach by changing its strategy from “buy my product” to “try my product”?

  1. Introduction
  2. Growth
  3. Maturity
  4. Decline

Answer :- Growth

4. Conducting occasional check-ups of the products manufactured or assembled to ensure high quality of the production is known as:

  1.  Planning
  2. Scheduling
  3. Inspection
  4. Routing

Answer :- Inspection

5. Which one of the following standards is associated with the “Quality Assurance in Final Inspection Test”?

  1. ISO 9001
  2. ISO 9002
  3. ISO 9003
  4. ISO 900

Answer :- ISO 9003

6. With reference to project management, identify which of the following statement is NOT correct?

  1. Gantt chart is a principal tool used in scheduling and also in some methods of loading
  2. Routing is the first step in the production planning
  3. The cost of any activity is proportional to its time of completion
  4. The free float can be calculated by subtracting EFT from EST

Answer :- The free float can be calculated by subtracting EFT from EST

7. Identify which one of the following statement is NOT correct?

  1. Preventing maintenance includes lubrication, cleaning, periodic overhaul, etc
  2. The two types of cost-cost of premature replacement and cost of breakdown-need to be balanced
  3. Wear and obsolescence are the two main causes of replacement of machinery in every aspect of life
  4. A machine is technically obsolete when another machine can do the same job more efficiently with reduced time and also at a lower cost

Answer :- Preventing maintenance includes lubrication, cleaning, periodic overhaul, etc

8. To determine where the plant should be located for maximum operating economy and effectiveness, refers to which one of the following?

  1. Plant layout
  2. Facility location
  3. Capacity planning
  4. Capacity requirement

Answer :- Facility location

9. Which of the following models deals with the physical movement of goods from different supply origins to a number of different demand destinations?

  1. Simulation
  2. Transportation
  3. Lean operations
  4. Line balancing

Answer :- Transportation

10. One of the objectives of maintenance is:

  1. to prevent obsolescence
  2. to ensure spare parts management
  3. to satisfy customers
  4. to extend the useful life of Plant & Machinery without sacrificing the level of performance

Answer :- to extend the useful life of Plant & Machinery without sacrificing the level of performance

C. Choose the most appropriate alternative for the following  

1. Which one of the following recent trends in Production/Operations management involves drastic measures or break through improvements to improve the performance of a firm?

  1. Corporate Downsizing
  2. Re-Engineering
  3. Technology
  4. TQM

Answer :- Re-Engineering

2. The starting point of Production cycle is

  1. Product design
  2. Production planning
  3. Routing
  4. Market research

Answer :- Market research

3. Which of the following process types is used when a very highly standardized product is desired in high volumes?

  1. Repetitive Process
  2. Batch Process
  3. Project Process
  4. Continuous Process

Answer :- Continuous Process

4. Which of the following aims at finding the best and most efficient way of using the available resources—men, materials, money and machinery?

  1. Method Study
  2. Work Study
  3. Time Study
  4. Motion Study

Answer :- Work Study

5. Generally the size of the order for production in Job production is

  1. small
  2. Medium
  3. large
  4. very large

Answer :- small

6. Which one of the following statements is NOT correct?

  1. LFT is calculated from the LFT of the head event
  2. Slack can be calculated by adding EFT and LFT of any job
  3. EFT is the sum of the EST and the time of duration for any event
  4. The Total Project time is the shortest possible time required in completing the project

Answer :- Slack can be calculated by adding EFT and LFT of any job

7. Which one of the following is NOT the advantage of Preventive Maintenance?

  1. Better product quality
  2. Greater safety to workers
  3. Increased breakdowns and downtime
  4. Fewer large-scale repairs

Answer :- Increased breakdowns and downtime

8. Which one of the following establishes time sequence of operations?

  1.  Routing
  2. Sequencing
  3. Scheduling
  4. Dispatching

Answer :- Scheduling

9. MRP stands for

  1. Material Requirement Planning
  2. Material Reordering Planning
  3. Material Requisition Procedure
  4. Material Recording Procedure

Answer :- Material Requirement Planning

10. With reference to Aggregate Planning, identify which of the following statements is NOT correct?

  1. It is an Intermediate-term planning
  2. It is made operational through a master schedule, that gives the manufacturing schedule
  3. Facility planning and scheduling are closely related with the aggregate planning
  4. It deals with the strategic decisions, such as purchase of facilities, introduction of new products, processes, etc

Answer :- It deals with the strategic decisions, such as purchase of facilities, introduction of new products, processes, etc

D. Choose the most appropriate alternative for the following  

1. The effective capacity is NOT influenced by which of the following factors:

  1. Forecasts of demand
  2. Plant and labour efficiency
  3. Subcontracting
  4. None of the above

Answer :- None of the above

2. Key aspects in process strategy does NOT include which of the following:

Make or buy decisions

Capital intensity

Process flexibility

Packaging

Answer :- Packaging

3. The example of worker involvement, as a recent trend in production/operations management is

  1. SCM
  2. Just-in-Time.
  3. Quality Circle
  4. MRP

Answer :- Quality Circle

4. In an organization, the Production Planning and Control department comes under

  1. Planning department
  2. Manufacturing department
  3. Personnel department
  4. R & D department

Answer :- Manufacturing department

5. JIT stands for

  1. Just In Time Purchase
  2. Just In Time Production
  3. Just In Time use of Materials
  4. Just In Time Order the Material

Answer :- Just In Time Production

6. In route sheet or operation layout, one has to show

  1. a list of materials to be used
  2. a list of machine tools to be used
  3. every work center and operation to be done at that work center
  4. the cost of product

Answer :- every work center and operation to be done at that work center

8. One of the important charts used in Programme control is

Material chart

Gantt chart

Route chart

Inspection chart

Answer :- Gantt chart

9. Production planning in the intermediate range of time is termed as

  1. Production planning
  2. Long range production planning
  3. Scheduling
  4. Aggregate planning

Answer :- Aggregate planning

10. Preventive maintenance is useful in reducing

  1. Inspection Cost
  2. Cost of premature replacement
  3. Shutdown Cost
  4. Set-up Cost of machine

Answer :- Shutdown Cost

11. Which one of the following standards is associated with the “Quality Assurance in Production and Installation”?

  1. ISO 9001
  2. ISO 9002
  3. ISO 9003
  4. ISO 9004

Answer :- ISO 9002

E. Choose the most appropriate alternative for the following  

1. Number of product varieties that can be manufactured in Mass production is

  1. one only
  2. two only
  3. large varieties in small volumes
  4. few varieties in large volumes

Answer :- few varieties in large volumes

2. The act of assessing the future and make provisions for it is known as

  1.  Planning
  2. Assessment
  3. Forecasting
  4. Scheduling

Answer :- Forecasting

3. Generally in continuous production, the production is carried out to:

  1. meet customer’s order
  2. provide for stock and supply
  3. meet Government orders only
  4. satisfy a few rich customers

Answer :- provide for stock and supply

4. Which one of the following activities does not fall into special project control under a production control system?

  1. Construction of bridges
  2. Construction of office building
  3. Construction of hospitals
  4. Internal order for general stock in anticipation of orders

Answer :- Internal order for general stock in anticipation of orders

5. Transportation models typically arise in situations involving physical movement of

  1. goods from one shop to another within the plant as and when required
  2. goods from different plants to different warehouses
  3. goods requisitioned by an important customer to be delivered instantly
  4. goods resulting from excess stock to be shifted to a distant warehouse owned by the company

Answer :- goods from different plants to different warehouses

6. Which of the following statements is not correct in case of a Network Analysis in Project Management?

  1. A job for which the slack is zero is known as critical job
  2. An activity having independent float can be rescheduled without affecting the other activities—preceding or succeeding
  3. Negative float signifies increase in target time to finish the work in time
  4. Free float is total float minus slack time of the head event

Answer :- Negative float signifies increase in target time to finish the work in time

7. Which one of the following is a disadvantage of Material Requirements Planning?

  1. Reduced Inventory
  2. Better customer service
  3. Lack of top management commitment
  4. Ability to price more competitive

Answer :- Lack of top management commitment

8. To plan for future manpower requirement

  1. long range forecasting is used
  2. short term forecasting is used
  3. medium range forecasting is used
  4. there is no need to use forecasting, as future is uncertain

Answer :- long range forecasting is used

9. Most suitable layout for continuous production is

  1. Process layout
  2. Line layout
  3. Group technology
  4. Matrix layout

Answer :- Line layout

10. Which one of the following standards is associated with the “Quality Assurance in Design, Production, Installation and Servicing”?

  1. ISO 9001
  2. ISO 9002
  3. ISO 9003
  4. ISO 9004

Answer :- Line layout

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