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Executive Post Graduate Diploma in Management

Subject: Operations Management

Sample Question paper (Reference only)

Level 1: Objective Type (2 marks each)

1. Establishing personnel policies in an organization falls more appropriately under which of the
following activities?
(a) Coordinating
(b) Directing
(c) Planning
(d) Controlling
(e) Organizing

2. Which of the following statement is false with respect to the maturity stage of a Product Life Cycle?
(a) Over capacity exists in the industry
(b) Emphasis is on customized product design and production in the small batches
(c) Emphasis is on efficiency
(d) Emphasis is on low cost
(e) The growth rate in sales decreases but sales continue to be either constant or increase slowly

3. The initial investment is higher in which of the following Production Systems?


 (a) a) Product Focused
 (b) b) Discrete Unit Manufacturing
 (c) c) Process Manufacturing
 (d) d) Product Focused
 (e) All of the above
If choice e is selected set score to 2.

4. Which of the following statement is not true with respect to the Project Crashing?
 (a) The process of reducing the time of the project by reducing some of the activity times is called
Crashing
 (b) As the Project Crashing approaches are expensive, Managers need to make an analysis of ti
me cost tradeoffs that reduce the project duration with a minimum increase in the cost
 (c) Subcontracting, using the services of overtime labour and adding an extra shift are some of th
e general approaches for Crashing the project time
 (d) We select the critical activity that has the minimum completion time
 (e) For this purpose, we need to find out normal cost, normal time, crash cost and crash time
5. The difficulties involved in transporting products and accessing established distribution channels
impede the process of globalization. This is an example of:-
 (a) Cultural Impediment
 (b) Managerial Impediment
 (c) Institutional Impediment
 (d) Technical Impediment
 (e) Economic Impediment

6. Variable sequence robots are most useful for which of the following Production Systems?
 (a) Product Focused
 (b) Line Flow
 (c) Assembly Line
 (d) Process Focused
 (e) Flow-Shop

7. Which of the following statement is false about the strategic decisions?


 (a) They are very broad in nature
 (b) They usually have a time frame that extends up to seven years or more
 (c) They have a great impact on the long term effectiveness of the organization
 (d) They do not affect short term and mid term organizational decisions
 (e) They are usually taken by Top Level Managers

8. Which among the following belongs to the function of controlling?


 (a) Encourage pride in performing as expected
 (b) Issue job assignments and instructions
 (c) Establish personnel policies
 (d) Establish provisions of union contracts
 (e) Establish employment contracts

9. Which of the following does not constitute the elements of an Operations Strategy?
 (a) Technology selection and process development
 (b) Product/Service design and development
 (c) Facility planning
 (d) Marketing
 (e) Designing the Production System

10. The sequence of operations and processes to be followed in order to produce a particular product is
known as:-
 (a) Integrating
 (b) Producing
 (c) Dispatching
 (d) Loading
 (e) Routing

11. The minimum amount of time in which an activity can be completed is known as:-
 (a) Critical time
 (b) Optimistic time
 (c) Pessimistic time
 (d) Expected time
 (e) Most likely time
12. For an activity, optimistic time, pessimistic time and most likely time are 6 days, 12 days and 9 days
respectively. Then the expected time for the activity is:-
 (a) 7 days
 (b) 6 days
 (c) 8 days
 (d) 9 days
 (e) 10 days

13. Intel has established itself as a technology leader, coming out with new microprocessors at a
breakneck speed. Which of the following competitive weapons is most likely being made use of by
Intel effectively?
 (a) Quick delivery
 (b) Quality
 (c) Short product cycle
 (d) Product variety
 (e) Production flexibility

14. The formal business planning process addresses which of the following plan(s)?
 (a) a) Long range plan
 (b) b) Intermediate range plan
 (c) c) Operations plan
 (d) Both a and b
 (e) All of the above

15. Fixed sequence robots are most useful for which of the following production systems?
 (a) Process Focused
 (b) Production System which uses Functional Layout
 (c) Product Focused
 (d) Job-Shop
 (e) Intermittent System

16. Which of the following statement is false regarding Program Evaluation and Review Technique
(PERT)?
 (a) It is an ideal technique for strategic level planning
 (b) It is applicable to any type of single project planning activity in any type of industry
 (c) It cannot handle situations in which two or more projects have to be planned together to share
the available resources
 (d) It provides a graphical display of a project that helps the users understand the relationships a
mong the activities
 (e) It is ideal for planning projects in which activity times are known

17. Global organizations can obtain the economies of scale by the virtue of:-

a) Bargaining power
b) Large production
c) Skills and expertise of salespersons
d) Heterogeneity of products
 (a) Only a
 (b) Only b
 (c) Both a and d
 (d) a, b and c
 (e) b, c and d
18. Which of the following types of layout is commonly used for JIT Manufacturing?
 (a) L-shape
 (b) Mixed arrangement
 (c) Straight line
 (d) U-shape

19. Indian Space Research Organization (ISRO), which is involved in space research, manufacturing of
rockets and other related works, may involve which of the following types of Facility Layout?
 (a) Service Facility Layout
 (b) Grouping Technology Layout
 (c) Fixed Position Layout
 (d) Process Layout
 (e) Product Layout

20. Which of the following systems represents the highest level of automation in manufacturing?
 (a) Computer Integrated Manufacturing
 (b) Computer Aided Design
 (c) Computer Aided Manufacturing
 (d) Flexible Manufacturing System
 (e) Automatic Identification System

21. When an emergency occurs, Appointment Systems use which of the following for the purpose of
scheduling?
 (a) Most likely time
 (b) Optimistic time
 (c) Earliest start time
 (d) Slack time
 (e) Expected finish time

22. Maintenance of a computerized parts classification and Coding System is usually required in which
of the following Production Systems?
 (a) Discrete Unit Manufacturing
 (b) Process Focused
 (c) Cellular Manufacturing
 (d) Product Focused
 (e) Process Manufacturing

23. Which of the following is a function of Directing?


 (a) Guide by informing correct work methods
 (b) Encourage employees to seek perfection in their tasks
 (c) Give more challenging job assignments
 (d) Issue job assignments and instructions
 (e) Support employees in training programs

24. Which of the following constitute the development of new products?

a) Idea generation
b) Economic evaluation
c) Market testing
 (a) Only a
 (b) Both a and b
 (c) Both a and c
 (d) Both b and c
 (e) All of the above
25. The appropriate type of Layout for the purpose of Automobile Manufacturing is:-
 (a) Hybrid Layout
 (b) Grouping Technology Layout
 (c) Product Layout
 (d) Process Layout
 (e) Fixed Position Layout

26. Companies prefer to choose Asian countries for low labour cost services such as electronics
assembly, textile making and Information Technology Enabled Services (ITES). Which of the
following strategic advantages are they trying to derive by adopting this policy?

a) Comparative advantage
b) Economies of scale
c) Proprietary product technology
 (a) Only a
 (b) Only b
 (c) Only c
 (d) Both a and b
 (e) Both b and c

27. Which of the following is not a feature of Flexible Manufacturing System (FMS)?
 (a) It is usually suitable for manufacturing products in high volumes
 (b) It is generally used to produce a variety of parts that have similar processing requirements
 (c) It offers many advantages such as reduced direct labour, shorter response time and consisten
t quality of products and better control over the manufacturing process
 (d) It however requires huge capital investments in equipment and planning and control systems
 (e) It is a form of flexible automation in which several machine tools are linked together by a Mate
rial Handling system, with a central computer controlling all aspects of the system

28. Comparing inventory levels to targets, it falls more appropriately under which of the following
activities?
 (a) Organizing
 (b) Coordinating
 (c) Motivating
 (d) Controlling
 (e) Planning

29. A renowned Automobile Manufacturing company wants to automate its production process inorder 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) Greater flexibility
 (b) Improvement in product quality
 (c) Efficient use of materials
 (d) Reduced factory lead time
 (e) Improvement in productivity

30. 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 be the profit, if sales are Rs.11,25,000/-?
 (a) Rs.45,000/-
 (b) Rs.30,000/-
 (c) Rs.25,000/-
 (d) Rs.50,000/-
 (e) Rs.40,000/-
31. Which of the following statement is not true regarding Product Life Cycle?
 (a) In the introduction stage, sales begin as a result of intense promotion, other marketing efforts
and profits are either less or negative
 (b) The activities in the operations department that are related to the product development and de
sign are more intense in the later stages of the Product Life Cycle
 (c) The first stage in the life cycle of a product is introduction stage
 (d) In the maturity stage, the growth rate in sales decreases but sales continue to be either const
ant or increase slowly
 (e) In the growth stage, there is a high growth rate in the sales volume and organizations emphas
ize on production capacity expansion

32. Achieving the production targets to meet the market demand is important for any organization.
Productivity can be improved by dividing the job into sub tasks and assigning them to workers based
on their skills and capabilities. This concept was adopted by F.W.Taylor in his book "Principles of
scientific management". This concept is known as:-
 (a) Division of labour
 (b) Scheduling techniques of employees
 (c) Hawthorne studies
 (d) Scientific motion study of jobs
 (e) Moving assembly line

33. An Operation Strategy is a high level integrated plan for business effectiveness or competitiveness.
Which of the following does not constitute the key components of Operations Strategy?
 (a) Facility planning
 (b) Designing the Production System
 (c) Marketing
 (d) Product/Service design and development
 (e) Technology selection and process development

34. Which of the following statements are true concerning 'Product Flexibility'?

a) It refers to the ability of the Production System to quickly shift from producing one product to
another
b) It is useful for production of custom designed products in small lots
c) Equipment should be designed to meet the production requirements that are close to the peak
level of demand
d) Employees with multiple skills are usually required for this type of setup
 (a) a, b and c
 (b) a, b and d
 (c) b, c and d
 (d) Both a and b
 (e) Both b and c

35. Due to increase in cost of components and unsatisfactory quality of the components, Adlabs Ltd. is
planning to expand the ownership of the production and distribution chain towards the source of
supplies. Which of the following is being implemented by Adlabs Ltd.?
 (a) Forward integration
 (b) Backward integration
 (c) Horizontal integration
 (d) Cellular Manufacturing
 (e) Modernization and expansion
36. Which of the following Layout is also known as Functional Layout or Job-Shop Layout, involving
grouping of all similar equipment or functions?
 (a) Product Layout
 (b) Fixed Position Layout
 (c) Grouping Technology Layout
 (d) Hybrid Layout
 (e) Process Layout

37. Which of the following statement is not true about vertical integration?
 (a) Any organization can vertically integrate its activities in two ways forward and backward
 (b) Results in an increase in profits due to centralized overheads
 (c) Always preferable, as there are no risks associated with it
 (d) It determines the extent to which the production and distribution chain can be brought under t
he ownership of the organization
 (e) Relieves an organization from a part of its purchasing or marketing functions

38. Which of the following is/are advantage(s) of Cellular Manufacturing?


 (a) a) It is economical only for those parts that possess a degree of standardization and are prod
uced in moderate size batches
 (b) b) Production planning and control is simplified
 (c) c) Machine changeover times between batches of parts are considerably reduced
 (d) d) Cell workers have to be paid more than Assembly Line workers
 (e) Both b and c

39. One of the major factors affecting process design decisions is the flexibility of the organization. In
this context, the product/service flexibility of an organization refers to the ability:-
 a) To increase or decrease production volumes very fast
 b) To shift production from one product to another very quickly
 c) To produce different types of products
 d) To serve both manufacturing and service sectors
 e) Both a and b

40. Warehouse rental is associated with which of the following costs?


 (a) a) Carrying cost
 (b) b) Ordering cost
 (c) c) Stock-out cost
 (d) Both a and b
 (e) Both b and c
Level 2: Descriptive Type (10 marks each)

1. Outline the various aspects of Operations Strategy of a Manufacturing firm. What are the other
aspects to be considered by a service firm?

2. What are the typical Operations Strategy aspects an MNC considers in setting up an Electronic item
manufacturing unit in developing countries?

3. How can workmen be motivated? What is required to invoke pride of workmanship in them?

4. Summarize what world-class companies do in relation to business and operations strategy.

5. Discuss Quality control in Services.

6. What is the objective of Johnson's rule? Under what conditions would it be used?

7. What is Mean Absolute Deviation (MAD)? How is it calculated? What are its uses?

8. What has been the main contribution of Deming? Who are the other main contributors in the same
field?

9. Give reasons why aggregate planning is difficult in services. What can Operations Managers do to
overcome these difficulties?

10. Define the terms: logistics, distribution management, distribution requirements planning.

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